10:47 Weakness in the dollar spurs rally in commodities and commodity related stocks
Continued weakness in the dollar is aiding the commodity complex today, sending precious metals and energy stocks higher in early trading. The recent strength in the commodities markets has been helped by a sustained move lower in the dollar and a myriad of factors today are pushing the dollar index down to its lowest level since December (currently -1.01 at 79.51). Foreign currencies have improved vs. the dollar today following a batch of positive economic data overseas, including better than expected U.K. housing price data, better than expected G.D.P in India, and better than expected Japan factory output. This weakness, in turn, has been a rallying point for numerous commodities including crude oil, nat gas, gold and silver. Crude oil ($65.97 +$0.89) is on pace for its largest monthly gain in numerous years, gold ($979.00 +$17.50) is making a run back towards the $1000 mark, and silver ($15.565 +$0.405) is trading at its best levels since Aug of last year. Commodity related stocks are benefiting from the run in commodities as well. Today, precious metals ETFs GLD (+2%) and SLV (+2.5%) are once again extending their recent rallies and now higher by ~10% and ~25% in the month of May. Precious metal related stocks are also seeing strength: GOLD +3.5%, GFI +5.3%, AUY +5.7%, AU +4.9%, NEM +3.3%, IAG +4.4%, ABX +4%, KGC +4.4%, GG +4.2%, NG +7.6%, SLW +6.1%, SSRI +5.3%, EXK +4.3%, MVG +5.8%... The energy ETFs OIH (+2.3%) and XNG (+1.5%) are also extending recent moves, and are higher by ~17% and ~13% respectively. Energy related names seeing strength on crude/nat gas' move are: IMO +3.1%, MRO +2.3%, TOT +3.4%, ATPG +3.7%, CHK +2.4%, CRZO +2.8%, DVN +2.2%, FST +2.8%, NBL +2.8%, OXY +3.2%, PXD +2.8%, REM +%, SGY +6.5%, TMR +2.3%, WTI +6%, XEC +3.3%, AHD +5.1%, CHK +2.4%, DBLE +4.1%, FPP +6.8%, GMET +7.6%, LINE +3%, NGAS +%, NGS +3.3%.
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