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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (33663)	7/15/2005 4:02:23 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Oil ETF resourceinvestor.com NEW YORK (ResourceInvestor.com) -- Graham Tuckwell has chalked up another commodity Exchange Traded Fund with Oil Securities [LSE:OSL]. The open ended oil ETF started trading in London today

To: RealMuLan who wrote (33663)	7/15/2005 10:41:47 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

U.S. June PPI unexpectedly flat - Friday, July 15, 2005 1:58:47 PM afxpress.com (This is an update to correct the core producer price index.) WASHINGTON (AFX) - U.S. producer prices were unchanged in June despite higher energy prices, the Labor Department reported Friday The core rate of inflation at the wholesale level fell 0.1%, the agency said Economists had expected the producer price index to rise 0.4% in June, according to the MarketWatch survey. Core inflation was expected to rise 0.2%. The PPI had dropped 0.6% in May while core prices increased 0.1% Despite the mild reading in June, inflation accelerated on a year-over-year basis to 3.6% from 3.5% a month earlier. Yearly inflation peaked at 5.2% in November. The core PPI is up 2.2% year-over-year. The PPI report, combined with a similarly mild consumer price index for June, should add to the chorus of voices calling for the Federal Reserve to end its tightening cycle sooner rather than later "There is certainly nothing here to suggest any intensification of inflation pressures at the producer level," said Joshua Shapiro, chief economist for MFR Inc. "To the contrary, these data point to lessening pressures." "With an overheating housing sector, rising unit labor costs, solid personal income growth and tentative signs that the beleaguered factory sector is stabilizing, the risks remain that inflation pressures could build moving forward," said Sherry Cooper, chief economist for BMO Nesbitt Burns. "This is likely to keep the Fed in the tightening game for at least the next meeting or two." The Federal Open Market Committee will get one more major inflation report before its next meeting on Aug. 9, the key personal consumption expenditure price index to be released Aug. 2 Fed officials have said they believe inflation is contained for now, but are boosting short-term rates to keep the economy from overheating and fueling inflation Tame inflation The PPI report showed moderate inflation throughout the production pipeline. Prices of intermediate goods destined for further processing increased 0.1%, with core intermediate prices falling 0.8% The core intermediate PPI is up 4.9% in the past year, having peaked at 8.5% in January The Fed typically wraps up its tightening cycle about the time the year-over-year gain in the core intermediate PPI peaks, although this cycle has been anything but typical Prices of crude goods fell 3.3%. Prices of iron and steel scrap fell 19.9%, the biggest drop in 31 years, Crude energy prices fell 3.1% despite a 5.5% rise in crude petroleum prices Finished goods At the finished goods level, energy prices rose 2%, including an 8.7% rise in wholesale gasoline prices, the most since October Finished foods prices fell 1.1%, with large declines in beef, pork and seafood offsetting a large increase in vegetable prices Prices of finished consumer goods other than food and energy fell 0.1%. Auto prices fell 1% while light truck prices dropped 1.7% Prices of finished capital goods fell 0.2% in June In a separate report, the Fed said industrial production soared 0.9% in June, the fastest growth in more than a year. Capacity utilization rose to 80%, the highest since December 2000. In other reports, the New York Fed said its July manufacturing sentiment index rose to 23.9, the highest level this year. Readings over zero indicate expansion in the sector. Also, the Commerce Department said inventories rose 0.l% in May, as the inventory-to-sales ratio matched the record low