;
Home / Knowledge / News / Textiles / Further interest rate cut to likely support inflation
Further interest rate cut to likely support inflation
09
Jan '08
Beginning of 2008 has seen sharp losses in the stock market. Disappointing numbers on employment and manufacturing have contributed to this loss. This week, again, gave the market a weaker home sales report, which is, much weaker than it has been expected.

Dow Jones ended the trading day sharply lower by falling close to 240 points. There are rising hopes in the market that Fed will continue to cut down interest rate. However, the overall confidence level is low and recession fears have prevented stock market to recover its loss.

The possible further interest rate cut will likely support inflation and push the general commodities prices up. As cotton price is lagging compared to other commodities, funds have been increasing their positions since the beginning of the year. It's not hard to see why market is expecting higher prices.

Wednesday session climbed some 50 points higher, supported by the broad higher prices in outside commodities market. Trading was active with some estimated 35,000 contracts in futures and 38,000 contracts in options. Open interest was increased by over 3,400 contracts Monday to reach the current total at 249,072. Specs are at 27.1% long and with potential to
go further longer.

Looking at the chart, we are sticking to the upside trend line and have broken through the trading range established during the last four sessions. March contract successfully broke the 69 cent resistance level that has proven firm lately. The next run will be the 70 cent level from last November.

RSI has grinded above 70% after the two consecutive up trading days. As demand from foreign countries is not rolling in, Thursday's export report is looking sluggish. Though fundamentals don't justify current cotton prices, outside commodities market keep posting a pressure for cotton to follow. Corn and soybeans made a new record high today, as well as the gold prices.

Click here to view more:

ECOM USA Inc


Must ReadView All

Japanese capital pouring into textile, garments in Vietnam

Apparel/Garments | On 12th Dec 2018

Japanese capital pouring into textile, garments in Vietnam

Several Japanese companies, including Itochu and Sakai Amiori, are...

Chanel bans fur, exotic animal skins in its products

Fashion | On 12th Dec 2018

Chanel bans fur, exotic animal skins in its products

French fashion retailer Chanel recently announced it will stop using...

Apparel, footwear brands failing to tackle exploitation

Apparel/Garments | On 12th Dec 2018

Apparel, footwear brands failing to tackle exploitation

Apparel and footwear firms are failing to tackle exploitation of...

Interviews View All

Amit Jain, Shingora Textiles Ltd

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Ghanshyam Ghoghari, Kimora Fashion

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sunil Rathore, Lacoste India

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Anupam Arya,

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search