DJ MARKET TALK: U.S.

Summary
Sun Jul 18 16:18:00 EDT 2010

2018 GMT [Dow Jones] U.S. SUMMARY: Dollar fell Friday to lowest level since December
against yen, as disappointing economic news cast further doubt on pace of U.S. recovery. Euro
rose above $1.30 to 2-month high as concerns over euro-zone sovereign debt crisis continued to
fade with successful auctions of Portuguese and Spanish government debt. Disappointing U.S.
data, including Friday's worse-than-expected consumer sentiment figures, illustrate threat of
global economies lurching into "double-dip" recession, said Roberto Mialich, foreign-exchange
strategist at Unicredit MIB in Milan, noting his firm did not share such a pessimistic view of
global recovery. EUR/USD at 1.2927 late Friday vs 1.2900 late Thursday, USD/JPY at 86.61 vs
87.46, EUR/JPY at 111.95 vs 112.81, GBP/USD at 1.5298 vs 1.5412, USD/CHF at 1.0519 vs
1.0439. USD index at 82.535 vs 82.555. Stocks fell as decline in consumer sentiment added to
market's disappointment over weaker-than-expected 2Q revenue at Bank of America, down
9.2%. General Electric fell 4.6%, also on weaker-than-expected 2Q revenue. Citigroup fell 6.3%
after missing revenue expectations. Dow down 2.5%, Nasdaq down 3.1%, Philly semicons down
3.3%. Prices of Treasurys rose as soft consumer-sentiment report added to concerns about U.S.
economic outlook, bolstering demand for safe assets; 5-year yield down 6.5 bps to 1.678%, 10-
year yield down 4.7 bps to 2.932%. Gold futures slid to 8-week lows as strength in euro, weak
economic sentiment reduced demand. August comex gold settled down $20.10 to $1,188.20/oz.
Crude futures dropped, unable to resist following a sharp turn lower in U.S. equities; August
Nymex crude settled 61 cents lower at $76.01/bbl.

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