Friday, March 7, 2008

After A Brief Lull, Bull Run Continues In Commodities

Commodities are back in fierce action after staying soft for one trading day, crude is now trading close to 105 mark after touching 107 dollar per barrel mark. Gold and Silver too are finding many buyers at these heightened levels. Copper, alumunium, nickel, iron ore, coking coal all are trading at their life time highs and thus making inflation prime concern for all. Equities continue to sulk day after day with every bit of news that comes their way turns out to be really bad, especially from U.S. financial market space, leading the news space is Citi Bank who declared to close several bank branches in key U.S. states resulting in job losses. Swiss bank UBS also told about further losses emreging out of subprime carnage and thus making investors very nervous and uncertain about this whole mess. Adding to woes is a bomb explosion in New York Yimes Square yesterday that sent European and U.S. markets into tizzy. That huge negative cue took Asian markets along with it and key markets like India, Nikkie plunging between 3.5-5% in todays trading session. This whole thing is turning really bad and investor confidance has been broken so severly that any recovery would be very short lived.