Citigroup, Merrill Lynch and JP Morgan Chase will write down an additional $33 billion in the fourth quarter, predicted Goldman Sachs analysts this morning.
Goldman Sachs economists forecast a 40% cut in Citigroup’s dividend, coupled with an additional $18 billion write-down. Merrill and JP Morgan will write down an extra $11 billion and $3 billion, respectively.
The U.S. dollar fell again yesterday and overnight. The euro climbed back into the $1.45 range, and the pound regained its footing at $1.99. The dollar index now barely clings to a score of 77.
Crude oil prices took another shot at the $100 mark yesterday and this morning, rising over $2, to $97.
Analysyts are expecting today’s Energy Department report to show the sixth straight week of supply decline… coupled with the Turks and Kurds sharing some extra special holiday cheer this week, oil’s back on the rise.
Gold jumped to $825 overnight. “After Monday’s quiet half session,” reports Doug Casey, “gold came charging out of the box in New York yesterday. Combined with the strength showed during the latter part of last week, gold may well be signaling that the year-end position squaring is over and it’s ready to start the next leg up of this bull run. Of course, it didn’t hurt that yesterday also brought renewed weakness in the dollar and a rise in oil prices.”
This morning, as news of Benazir Bhutto’s assassination crossed the wires, we saw a small flight to quality into gold. The attack pushed gold up to $834.
3 comments:
Hi, I went back and read your post way back. Are you still interested in options? A good book to recommend, by Sheldon Natenberg 'Option Pricing and Volatility'. Very good indeed.
really?
okey, I will try to get it. thanks:)
I have an electronic version so if you need I can send it to you.
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