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Commodities Rally as Capital Flees the Dollar

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 3, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    Commodity prices soared on Monday following a slew of global manufacturing reports which indicated that demand for raw materials and food will likely increase. Manufacturing reports in China, the Euro Zone, the U.K, and U.S. came out better than expected indicating that the global recession may have ended. Construction spending in the U.S. also showed signs of an economic recovery.

    Stock markets rallied in Asia, Europe and the U.S. as investors gained confidence that corporate profits would surge in the latter half of the year as the economy improved. The September E-mini S&P 500 closed over 1000 for the first time since November. As long as there is money on the sidelines and a strong appetite for risk, look for this uptrend to continue. Negative factors which could limit gains are a worse than expected unemployment report on Friday or talk of a middle-class tax hike.

    September Treasury Bonds and Notes fell sharply as investors fled the lower-yielding fixed income markets for the higher-risk, higher-reward commodity and equity markets.


    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
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