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Saturday, August 15, 2009

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Gold Prices Finish Below $950

Gold prices fell on Friday as the dollar rebounded versus other majors, reducing the need to invest in the precious metal as a hedge outlet. The metal lost a little more than 1% for the week.

December gold rose to $948.70 an ounce, down $7.70 on the session. Gold reached as high as $961.40 and later hit as low as $949.40.

The greenback saw strength against the euro as weaker global stocks reduced risk appeal. The buck posted slight gains against the pound.

A Reuters and the University of Michigan report showed that the consumer sentiment index fell to a reading of 63.2 in August from a reading of 66.0 in July. The decrease surprised economists, who had been expecting the index to increase to 69.0.
Earlier, the Labor Department said its consumer price index was unchanged in July after increasing by an unrevised 0.7 percent in June. The lack of growth in consumer prices came in line with the expectations of economists.

Meanwhile, the Federal Reserve released a report that showed that industrial production increased by 0.5 percent in July after falling by 0.4 percent in June. Economists had been expecting a slightly more modest increase in industrial production of about 0.4 percent.

Meanwhile, the Federal Reserve released a report that showed that industrial production increased by 0.5 percent in July after falling by 0.4 percent in June. Economists had been expecting a slightly more modest increase in industrial production of about 0.4 percent.

On Monday, Empire Manufacturing data is expected at 8:30 a.m. ET. A reading of 2.2 is expected for August, compared to a minus 0.55 in the month of July.

Crude Loses More Than $3

Crude oil plunged on Friday amid energy demand concerns after a disappointing consumer sentiment report in the U.S. The drop took oil to its lowest closing level of the month.

Light sweet crude oil for September delivery declined to $67.51 per barrel, down $3.01 on the session. Prices touched below $67.12 per barrel. For the week, oil lost $3.06.

A Reuters and the University of Michigan report showed that the consumer sentiment index fell to a reading of 63.2 in August from a reading of 66.0 in July. The decrease surprised economists, who had been expecting the index to increase to 69.0.

Elsewhere on the economic front, the Labor Department said its consumer price index was unchanged in July after increasing by an unrevised 0.7 percent in June. The lack of growth in consumer prices came in line with the expectations of economists.
Meanwhile, the Federal Reserve reported industrial production increased by 0.5 percent in July after falling by 0.4 percent in June. Economists had been expecting a slightly more modest increase in industrial production of about 0.4 percent.

Crude oil's hedge value was also decreased as the dollar rebounded versus the euro. The greenback saw strength against the euro as weaker global stocks reduced risk appeal. The buck posted slight gains against the pound.

Earlier this week, Energy Information Administration data showed crude oil inventories increased by 2.5 million barrels from the previous week. Experts were looking for a build in crude supplies of 1.2 million barrels. At 352.0 million barrels, U.S. crude oil inventories are above the upper boundary of the average range for this time of year.

by RTT Staff Writer

Dollar Firms Up Amid Economic Doldrums


The dollar finished a choppy week in typical fashion Friday, bouncing back from early weakness after another round of troubling economic data fueled renewed risk aversion.

This marks the second day in a row that disappointing data signaled equities and riskier assets may have gotten ahead of any economic recovery. With a V-shaped recovery no longer a slam dunk, stocks fell sharply on Friday, giving the safe haven buck a big boost.

Reuters and the University of Michigan released their preliminary report on consumer sentiment in the month of August, showing that their consumer sentiment index unexpectedly decreased compared to the previous month.

The report showed that the consumer sentiment index fell to a reading of 63.2 in August from a reading of 66.0 in July. The decrease surprised economists, who had been expecting the index to increase to 69.0.

Last week, the dollar hit 2009 lows versus higher yielding counterparts, as many went all-in on the prospect of a global economic rebound.

Today's data all but ensures the dollar will not test those levels until a sunnier batch of economic data emerges, or stocks shrug off the worrying news and extend the summer rally.

The dollar firmed up a bit versus the euro on Friday, edging higher by a cent from its early lows to 1.4220. Earlier in August, the dollar hit an 8-month low of 1.4446.
Eurozone consumer prices declined at the fastest pace on record in July. However, the slower-than-expected economic contraction in the second quarter allayed fears of deflation and suggests that inflation will soon turn positive.

Eurostat revised the annual decline in consumer prices for July to 0.7% from the flash estimate of 0.6%.

Meanwhile, the dollar was stable versus the sterling, holding near 1.6530. While its been a rough summer, the dollar has managed to stabilize since hitting a 10-month low of 1.7012 earlier this month.

With commodity prices pulling back sharply, the dollar jumped versus the resource-linked loonie, bouncing back to $C1.0950. A week ago, the dollar seemed on its way to parity with the loonie, but bottomed out at a 10-month low of C$1.0630.

Against the yen, the dollar was hurt by the carry trade, slipping to a 10-day low of 94.50. On a longer term basis, the pair has been dancing around the mid-90's, with neither currency in great demand due to the stock rally.

The Bank of Japan might be required to extend its special funding measures after December if the economic situation fails to improve sufficiently in the bank's judgement, the minutes of the meeting held on July 14 and 15 showed Friday.

2008/2009 China Fashion Week


2008-03-26 08:37:07

A model presents a creation during the first day of 2008/2009 China Fashion Week (A/W) Collections in Beijing, capital of China, March 25, 2008.

A model presents a creation during the first day of 2008/2009 China Fashion Week (A/W) Collections in Beijing, capital of China, March 25, 2008. (Xinhua Photo)

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