Rising inflation based on record high oil prices, banks in trouble and in dire need of replacing lost reserves due to worsening credit market problems, and a slowing economy that is starting to show softness among reporting corporations. These are the key factors as noted. But the loss of confidence of international bankers in the Fed and of over-spending politicians is mostly to blame.

At the end of the session, the leading sector was Energy (XLE), which gained +0.88% and Healthcare (XLV) up +0.67%. All other sectors were down, with Industrials (XLI -2.88%), Consumer Discretionary (XLY -1.68%) and Financials (XLF -1.58%) leading the fall.

The Banks index ($BKS) was down -1.54%, while the Goldminers ($XAU) lifted +3.4%.

The goldminers were also up +4.4% on Thursday as traders chased the safe-haven play into Bonds, T-Bills, gold and goldminer shares. The 30-year US Bond ($USB) continued to rally as traders fled equities, closing +0.57% to 115.66. The yield on the T-Bill is down to just 1.63%, which is more than a 30 basis point plunge in three weeks.

For the Cara 100, the leaders were the precious metals players: South Africa’s GFI +5.2%, and Canada’s SLW +4.0%, GG and ABX +4.6% and Argentina’s Tenaris (TS), a steel tube maker for the oil drillers, which lifted +4.7%. The losers were Indian bank IBN -4.3%, Finland’s NOK -4.1%, China’s NTES -4.0% and Brazil’s ERJ -3.8%.

Crude Oil futures ($WTIC) closed at a record high of $140.21/bbl, up +0.57/bbl.

The US Dollar continued it fall, dropping -0.24% to 72.29.

$GOLD jumped +$16.20/oz to close at 931.30. The spot prices for gold, palladium, platinum and silver at the end of the week were: 927.15, 463, 2056, and 17.49.

Palladium spot was actually higher on Tuesday morning (465), before the FOMC announcement, when gold spot was down at 886.52.

The DJIA futures closed the week at 11357.

For the European bourses, traders in Germany and Spain are happiest, but that’s about the European soccer championship finals coming up. The German DAX dropped -0.58% to close at 6421.91, the French CAC dropped -0.65% to 4397.31, but the UK FTSE gained +0.21% to close the week at 5529.90.

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Comments & Outlook

With the West Texas Crude over $140/barrel the oil lobby in Washington is pressuring Congress to open up drilling in America’s most environmentally protected areas. But, the European Brent futures closed at 142.20/barrel. I wonder if there is a similar need to drill offshore Monaco or the Isle of Capri?

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Links & Charts

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International Economics Review

US Economic Calendar.

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Knobias Cara100 Tables

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Cara 100 Daily RSI-7 Charts

At least one RSI value >70:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
SYT	62.88	91.17	58.19	45.55	Sell alert (trig. 7 days ago [on 2008-06-19 at $65.11, -3.42% chg], after a 1 day DZ)
TS	72.29	83.47	87.29	83.60	Distribution Zone (for 3 days)
ECA	89.07	82.97	60.14	42.74
ATVI	33.71	79.17	64.15	35.57	Sell alert (trig. 6 days ago [on 2008-06-20 at $35.85, -5.97% chg], after a 1 day DZ)
TT	46.49	76.65	65.62	56.92
PBR	69.23	73.01	63.06	59.49
WMT	56.30	72.62	51.96	36.60
GGB	23.12	72.39	61.55	35.68
GG	46.36	71.00	68.03	84.50
ABX	45.00	58.91	59.04	80.59
CCJ	40.43	52.33	58.67	70.32
GFI	12.54	29.98	44.61	74.69	Buy alert (trig. 6 days ago [on 2008-06-20 at $11.15, +12.47% chg], after a 2 day AZ)

At least one RSI value <30:

Ticker	Last	RSI-7M	RSI-7W	RSI-7D	Zone
BC	11.25	13.11	17.50	27.88	Accumulation Zone (for 1 days)
CCL	32.93	18.47	24.52	30.01
WFMI	24.65	18.86	21.46	24.54	Accumulation Zone (for 2 days)
UBS	21.70	18.91	20.34	38.01	Buy alert (trig. 4 days ago [on 2008-06-24 at $22.03, -1.50% chg], after a 2 day AZ)
DB	86.90	20.85	13.70	20.60	Accumulation Zone (for 2 days)
GOL	11.26	21.15	24.59	23.88	Accumulation Zone (for 2 days)
SBUX	16.35	23.12	38.38	35.44
GE	26.26	23.82	13.22	18.74	Accumulation Zone (for 2 days)
BDK	58.41	24.34	23.37	39.96	Buy alert (trig. 7 days ago [on 2008-06-19 at $59.66, -2.10% chg], after a 2 day AZ)
ERJ	26.84	25.62	14.75	10.17	Accumulation Zone (for 19 days)
WHR	63.77	26.71	24.58	32.07
SNDK	19.23	26.85	24.24	13.32	Accumulation Zone (for 6 days)
BMY	20.30	27.96	36.72	52.67	Buy alert (trig. 5 days ago [on 2008-06-23 at $19.70, +3.05% chg], after a 1 day AZ)
TM	94.33	28.14	30.35	24.73
GRMN	44.12	28.73	36.39	47.60
JCP	36.83	29.16	33.63	42.56	Buy alert (trig. 7 days ago [on 2008-06-19 at $37.25, -1.13% chg], after a 1 day AZ)
GFI	12.54	29.98	44.61	74.69	Buy alert (trig. 6 days ago [on 2008-06-20 at $11.15, +12.47% chg], after a 2 day AZ)
WAG	32.97	30.38	28.20	18.80	Buy alert (trig. 1 days ago [on 2008-06-27 at $32.97, +0.00% chg], after a 1 day AZ)
TGT	47.87	31.40	28.87	30.60
UTX	61.15	31.73	21.29	11.84
NOK	24.03	31.92	23.53	34.08
IBN	29.66	32.01	21.95	22.13
DEO	72.70	32.38	16.92	31.60
HDB	71.56	32.50	19.59	17.85
BA	66.92	32.60	26.11	15.45
AET	40.31	33.56	28.58	27.24
PAYX	31.58	33.56	28.28	32.03
TGP	26.35	34.76	27.28	20.75
DOW	34.83	34.98	25.03	14.53
ERTS	43.94	35.39	23.68	23.30
KO	51.84	36.03	19.72	25.27
PG	60.49	36.03	20.87	15.69
YHOO	21.33	36.65	18.66	18.89
CSCO	23.61	37.54	32.56	21.62
CHA	53.89	39.04	25.71	26.70
HBC	76.55	39.58	26.88	16.26
ABV	63.25	43.74	28.67	28.39
CHL	66.38	44.79	24.85	32.44
TEF	78.79	46.10	27.43	34.07
VCP	27.04	47.92	32.54	19.27
GOOG	528.07	48.23	43.67	27.87
NKE	60.34	48.59	32.57	20.03
CHRW	55.26	52.46	30.34	25.07
BBD	20.60	54.84	39.74	29.37
MICC	104.93	56.27	40.90	23.27
RIMM	120.98	61.79	43.98	23.49	Sell alert (trig. 6 days ago [on 2008-06-20 at $144.56, -16.31% chg], after a 2 day DZ)

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International Equity Markets Review

Europe

Here is the latest session data for the bourses of Europe.

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Here is the latest session data for the London stock exchange FTSE.

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Here is the latest session data for the German DAX.

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Here is the latest session data for the French CAC 40.

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Here is the latest session data for the Milan Italy stock exchange MIBTEL.

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Here is the latest session data for the Swiss market index.

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Asia-Pacific

Here is the latest session data for the Asia-Pacific stock exchanges.

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Here is the latest chart for the Japanese Nikkei 225 index.

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Here is the latest chart for the Singapore index .

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Here is the latest chart for the Shanghai Composite index .

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Here is the latest chart for the Hong Kong Hang Seng index .

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Here is the latest chart for the India BSE 30 index .

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Here is the latest chart for the Australian All Ordinaries index .

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US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

Table 14: Dow 30 List

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
MRK	36.98	0.78	2.15%	5.27%	4.08%	-5.08%	-35.54%	-17.42%	-36.86%	-26.52%
XOM	86.55	0.14	0.16%	1.93%	-2.05%	-2.49%	-7.44%	0.41%	-7.60%	3.68%
CVX	97.80	0.39	0.40%	1.22%	-1.61%	-1.36%	4.64%	15.88%	4.32%	16.58%
WMT	56.30	-0.53	-0.93%	0.07%	-4.87%	-2.49%	20.04%	7.50%	17.86%	16.18%
PFE	17.28	0.11	0.64%	-0.29%	-3.95%	-10.74%	-24.57%	-15.95%	-24.61%	-32.53%
JNJ	63.57	-0.69	-1.07%	-0.76%	-4.07%	-4.75%	-3.55%	-1.62%	-5.58%	3.45%
DIS	31.57	0.04	0.13%	-1.16%	-6.96%	-6.04%	-0.85%	0.61%	-2.65%	-7.88%
MCD	56.50	0.05	0.09%	-1.57%	-5.75%	-4.75%	-2.75%	1.89%	-4.54%	10.05%
MSFT	27.63	-0.12	-0.43%	-2.13%	-4.95%	-2.44%	-21.55%	-1.50%	-23.19%	-7.50%
IBM	120.05	-1.08	-0.89%	-2.19%	-4.84%	-7.24%	14.67%	3.92%	9.53%	13.87%
HPQ	44.58	-0.09	-0.20%	-2.32%	-6.05%	-5.27%	-10.50%	-4.42%	-13.62%	-1.35%
VZ	34.28	-0.03	-0.09%	-3.11%	-8.17%	-10.89%	-20.67%	-4.67%	-22.76%	-16.23%
KO	51.84	-1.38	-2.59%	-3.39%	-6.46%	-9.47%	-15.14%	-15.45%	-16.79%	-1.14%
INTC	21.49	-0.10	-0.46%	-3.93%	-5.16%	-7.29%	-15.23%	1.90%	-19.90%	-9.67%
GE	26.26	-0.27	-1.02%	-4.09%	-9.91%	-14.52%	-28.56%	-28.70%	-29.39%	-31.00%
PG	60.49	-1.76	-2.83%	-4.23%	-8.97%	-8.42%	-16.35%	-12.85%	-18.14%	-1.53%
MMM	69.51	-0.75	-1.07%	-4.81%	-8.68%	-10.38%	-15.96%	-10.72%	-18.61%	-20.22%
T	32.76	-0.71