Thursday, July 12, 2007

Pre market

Asia and Europe are both very bullish this morning.

Economic Calendar


Crude oil rose to more than $73 a barrel in New York after the U.S. government reported supplies of oil dropped because of a decline in imports.

Crude-oil stockpiles dropped 1.5 million barrels to 352.6 million barrels last week, according to the U.S. Energy Department. Imports fell 7 percent to an average 10 million barrels a day, the lowest since the week ended April 13. Bloomberg
I think oil prices are close to peaking for the year. Lately, a lot of 'dumb' money has gone long oil.

Retailers posted modest June sales results, with department stores showing weakness and apparel sellers posting mostly flat sales.

Among the casualties is Macy's Inc., which reported weaker-than-projected sales and cut its fiscal second-quarter earnings outlook. Five other retailers also lowered forecasts.

Conversely, Wal-Mart Stores Inc. beat its modest outlook and Cato Corp. sees earnings above expectations amid solid sales and lower-than-expected markdowns.

As they did in the prior three months, June same-store-sales comparisons will be impacted somewhat by calendar shifts that are moving holidays into different monthly reporting periods compared with 2006. WSJ
As I suspected retail sales are slowing.

Rio Tinto has sparked a bidding battle for Alcan by tabling a $38.1 billion (£18.9 billion) offer for the Canadian aluminium producer, $10 billion more than the bid made by Alcoa.

The Anglo-Australian mining giant said that the $101 per share all-cash bid, the largest ever made in the industry, had been unanimously recommended by Alcan’s board.

The acquisition will fuel a fourfold increase in Rio’s alumininum output and see it overtake Alcoa and Russia's Rusal as the world’s biggest producer of the metal at a time aluminium prices are soaring on the back of demand from Russia and China and with Indian demand set to take off. Times online

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