No data for a second straight day will keep investors focused on oil and unrest in the oil producing regions of North Africa and the Middle East. Oil prices seemed to hit a plateau yesterday and many analysts think that they have peaked barring any additional negative developments.
Mortgage Rate Trend Direction: Neutral/Down
Economic Reports/Rate Impact: No economic data released today
Key News: Geithner goes to Europe
Summary
Yesterday was all about the price of oil. Fears of supply disruptions led traders to push oil futures prices higher. This in turn led to concerns about a negative impact on the US economy which pushed mortgage prices down slightly. Today oil price concerns will be prominent once again, but Treasury Secretary Geithner’s trip to Europe may also provide influence. I do not expect significant moves today, but there may be some slight downward pressure.
Impact of economic reports
No economic reports are scheduled for release today.
Impact of international or political events
Rumors that OPEC leaders were planning a special meeting to discuss potential output increases may have led to a premature pause in the increase in oil prices. Just moments ago OPEC announced that no such meeting was being planned at this time. Immediately, oil futures prices began to tick upward.
US Treasury Secretary Geithner is traveling to Europe to meet with central bank leaders to discuss global economic concerns including the debt issues of several European nations. On-going issues in Greece, Ireland, Spain and Portugal threaten to stall economic growth in Europe and in turn in the US.
source:http://www.mortgageloan.com/mortgage-rates-get-oily-march-8-2011-8439
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