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To: bobby beara who wrote (15297)	8/4/1998 4:00:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 116764

bobby...i could be wrong but I think xau is the only positive index today except for bonds.

To: bobby beara who wrote (15297)	8/4/1998 4:08:00 PM
From: Enigma	Respond to of 116764

Bobby B. - what do you mean about closing above yesterday's low - surely this is certain? E.

To: bobby beara who wrote (15297)	8/4/1998 5:01:00 PM
From: Broken_Clock	Read Replies (3) \| Respond to of 116764

Tuesday August 4, 3:57 pm Eastern Time Dollar/Dow link tenuous, but Asia focus shared By Alden Bentley NEW YORK, Aug 4 (Reuters) - Tuesday's big shakeout on Wall Street sapped some support for the dollar but the correlation between the two markets is tenuous, U.S. currency experts said. Analysts said the U.S. stock market was less at the mercy of international capital flows than the dollar or U.S. Treasury debt market. ''There is no stable or consistent relationship between the stock market and the dollar, partly because most investors in the U.S. stock market are domestics,'' said Marc Chandler, senior currency analyst at Deutsche Bank Securities. Experts said the two-week retreat of more than seven percent in U.S. equity prices illustrates a growing loss of confidence in the durability of the U.S. economic expansion as Asian demand evaporates and U.S. exports falter. In the short-term, this means the dollar can also take a hit as foreign investors trim back dollar holdings. ''The rest of the world is convinced the U.S. stock market is the key to the U.S. economy and that the risk of U.S. recession goes way up if we get a 20-percent (stock) correction,'' said a currency trader at a U.S. investment bank. ''The flow of money from Europe and Japan has been just staggering. If it slows, there will be less demand for dollars,'' he added. With little other news to provide direction, the dollar fell through support at 1.7750 marks on Tuesday, in tandem with the Dow industrials, which were down about 275 points shortly before the close, having reversed a 70-point opening rally. Chandler noted that Treasury prices rose as the Dow slide gathered momentum around midday, suggesting investors might be switching from stocks to bonds -- a straight-forward asset reallocation with at worst a neutral impact on the dollar. As recently as June, before the United States and Japan jointly intervened to slow the dollar's rise, the greenback tracked Treasury bond prices with a near 80-percent correlation, Chandler said. Against the yen, the dollar showed little reaction to the stock market rout -- the third in three days -- having already pulled back from a seven-week high overnight. The bullish dollar/yen outlook is unlikely to be derailed by what appears to be an overdue correction to pricey U.S. shares. Indeed, though traders across U.S. financial markets are equally focused on Asia's economic collapse, the crisis is boosting the dollar against the yen even as it feeds bearishness on Wall Street, economists said. ''The headline of those concerns is that slow growth in Asia is going to weaken the U.S. economy, finally, and is going to hurt earnings growth,'' said Josh Feinman, global markets economist at Bankers Trust. But dollar/yen, which overnight came within a yen of the eight-year high set at 146.75 on June 16, reflects perceptions that Asia's currencies will have to stay weak to promote export-led recoveries in the region, experts said. ''So dollar/yen goes higher on continued concern that Japan is going to stay weak and those are some of the same concerns that are weighing on the U.S. stock market,'' Feinman said.