Mid-Day Recap: Commodities Down, Dollar Up, Stocks Flat

Stocks performed well in the Asian session on Wednesday, but trading in Europe was mixed and, at mid-day, it looks as though the US session will follow the latter’s footsteps. 

As of 1:15, stocks are directionless. The S&P is down 0.12% at 1,053, the NASDAQ is up 0.01% to 2,103, and the Dow is down 0.01% at 9,696

News has been sparse as markets look ahead to the Q3 earnings session beginning today with Alcoa results after the closing bell. The only major data set for release is consumer credit, yet that won’t hit markets until the final hour.

As equities falter, the action today lies in commodities and currencies. WTI Crude oil futures fell 0.6% t o $70.44 per barrel in the morning after a government report said inventories in the US were higher than forecasts. Meanwhile, the dollar recovered from yesterday’s losses against the yen, “enabling it to recover broadly and secure modest gains against the euro and other currencies,” according to the Wall Street Journal.

In earlier news, average rates for a 30-year mortgage remained below 5% for the third consecutive week, helping applications for mortgages jump more than 16% to their highest in five months, according to the Mortgage Bankers Association.

Applications to purchase a home also climbed to the highest level since January, the MBA said. 

At 1:00pm the Treasury Department auctioned $20 billion 10-Year Notes. Results and commentary have been published on the MBS Commentary Blog.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.