The Irish stock exchange started the day off in negative territory this morning after oil prices rose again and the Central Bank warned of a slump in the housing market today.
The price of Brent North Sea crude oil reached an all-time peak of $69.71 a barrel this morning. The previous high was $69.70 reached on Monday.
It had a positive effect on oil companies Dragon, up 10c to €3, and Tullow oil who saw their share price rise 12c to €5.43.
The construction sector also had a bad morning after the Central Bank warned of an increased risk of a sudden slump in the housing market after months of constant price rises. The Central Bank said the re-acceleration of prices at 11% in February, compared to 7% last autumn was worrying as it "increases the risk of a sharp correction in the future".
April 13, 2006
Oil up. Housing down. Oh crap.
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7 comments:
one answer... ~ INFLATION~
as oil and gold prices kept rising... basic commodities` prices kept rising too...
I bet the U.S. FED will kept raising rates to tame these inflationary pressures... !!!
30 yr mortgage rates now stand s at 6.50 % ???
Here are some of the homebuilders stocks affected by the rising Interest Rates: HOMEBUILDERS STOCK LISTS
I really really want interest rates back where they were in the 80's.
Americans have gone beserk with credit.
The fact that there are STILL people out there stretching to get into overpriced POS's is a sign that Americans NEED to get walloped to quit this insanity.
Whatever it takes. Enough with the puny 1/4% hikes. Let's get this show on the road.
Big news. CNBC just did a little segment on the out of control credit debt. They pointed out tat it is way higher now than what it was in the 20's before the big crash.
First time I've heard national TV draw a comparison between now and the 20's.
Irish banks are finally agreeing with the OECD/ECB and other economists. Ireland is experiencing a huge bubble and this bubble is not eternal. But Irish elections are coming up so let's try to keep our heads in the sand for another 2 years O.K.?
http://news.google.com/news/url?sa=t&ct=/2-0&fp=443e2ef3865f1329&ei=JsU-RKjlDp-KwQGixcyBDA&url=http%3A//www.unison.ie/irish_independent/stories.php3%3Fca%3D184%26si%3D1595231%26issue_id%3D13904&cid=0
TAOISEACH Bertie Ahern believes there is "no great problem" with the level of money being borrowed for property in Ireland. Some people may have lost money by taking bad advice about an imminent property crash, he asserted.
Speaking at the Irish Management Institute (IMI) in Wicklow yesterday, Mr Ahern said he had listened to people speaking about potential difficulties in the construction and property sector for seven years now.
"Everybody said we're going to see a huge downturn in 2005 leading in 2006," he said. "They were entirely wrong and really we should have an examination into why so many people got it so wrong."
Bad advice
"My view is there's not a great problem. The bad advice of last year given by so many has maybe made some people make some mistakes."
"I mean, quite frankly, if you had taken the advice a year ago, you would have lost a lot of money," he said.
Mr Ahern commented that in the late 1990s and into 2000, there was concern that the burst of the technology bubble would lead us into great difficulties. But he said that Ireland has now spread itself around several sectors.
Yeah, construction, real-estate and ummmm construction! BTW, a recent survey found that only 3% of the Irish population expected property values to fall, 80% expected it to rise, most people were unconcerned with interest rate rises even though almost all loans are ARMs with terms stretching to 40 years. How does this compare with post bubble places like London, Sydney,Tokyo,HK, Houston? How does it compare with Las Vegas, Phoenix, D.C. or Orlando?
Don't worry all you Yanks.
Us Irish know how to take care of the clowns like Kieth.
I work in the plumbing wholesale business and copper prices have just gone up 20% in the last week. This is
quite unusual, as this comodity tends to stay relatively stable.
Wondering if this is a harbinger of inflationary pressure caused by higher oil prices or more of a system wide indicator of inflation (China, Katrina
consumption)?
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