22 October 2008, Wednesday
Oil ends at 16-month low
U.S. crude for December delivery lost $5.43 to end the session at $66.75 a barrel in New York.
Dollar:As the global economy slowed, investors sought the stability of the dollar, which also contributed to lower oil prices.Oil, like other commodities, is traded in dollar terms. So when the value of the dollar goes up, it often means that the dollar-denominated price of crude falls.
Stocks tumbled as weak corporate results and forecasts - and slumping commodity prices - amplified fears of a broad recession.Global markets slid, with Asian and European stocks ending lower. Treasury prices rose, lowering the corresponding yields. The dollar was mixed versus other major currencies. Oil, gas and gold prices fell.
Commodities:Reported a negative growth
Credit market:Treasury prices rose, lowering the yield on the 10-year note to 3.62% from 3.70% Wednesday. Treasury prices and yields move in opposite directions.
The yield on the 3-month Treasury bill, seen as the safest place to put money in the short term, slipped to 0.98% from 1.19% late Tuesday. However, the yield remained above recent lows as investors began to pull money out of the safer investment and put it back in stocks.
Last week, the 3-month fell to below 0.2%. Last month, it reached a 68-year low around 0% as investor panic hit its peak.
Treasury bond prices often climb when stock prices fall as investors seek the perceived safety of government debt.
UK
Libor is a daily average of what 16 different banks charge other banks to lend money in London and is used to calculate adjustable rate mortgages. The higher the rate, the more difficult it can be for homeowners to meet their payments.
