Overnight, the markets in Asia-Pacific were quiet and narrow: Australia down -0.82% to 4989.9; Shanghai up +1.32% to 2903.0; Hong Kong down -0.24% to 22687.2; India’s Sensex 30 up +0.52% to 14349.1; and Japan’s Nikkei 225 up +0.14% to 13353.78.

In Europe at 7:45am ET (1245 GMT), the French CAC was down -0.96% to 4345; the German DAX down -1.05% to 6369; and the UK FTSE down -0.27% to 5338.

The $USD is down a bit to $0.7289 while the Euro (in USD) is up a bit to 1.5715.

Crude Oil ($WTIC +1.59/bbl) is higher, while precious metals are quiet so far.

Spot prices at about 7:40am ET are for gold, palladium, platinum and silver per oz: 930.05, 383, 1752 and 17.42.

The DJIA futures are down just -4 to 11312.

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Comments:

The continuing question is whether or not the commodity boom cycle has peaked or just under pressure from the credit squeeze at banks and the higher margin requirements on the commodity exchanges.

I think the latter, at least to this point, is the case. I believe all major fiat currencies are over-priced and that financial assets are stuffed with many uneconomic pieces. There will likely be a lengthy period of asset write-downs to reflect what free markets are willing to pay for those assets.

So, after a considerably harsh period of falling commodity prices, I think the general economy will pick up and interest rates will start to lift, which will protect the savings and fixed income investments and pensions from the damage that inflation always brings them.

In my eyes, if traders avoid any asset that might be written down or underlie a business that might fail in future, there ought to be some good years ahead, even when commodity prices begin to rally again, as they will when the economy regains its health and begins to quickly build.

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Links & Charts

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International Economics Review

US Economic Calendar.

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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

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Oil Review

Here is the e-miNY Aug-08 Crude Oil chart.

Interactive Chart of Daily Crude Oil:

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Gold & Precious Metals Review

Spot gold chart for the week

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Spot silver chart for the week

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Forex Review

Here is the chart of the week's trading in the $USD.

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