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Demand for Risk Helps Equity Markets Recover from Wednesday’s Decline

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jul 22, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets surged to the upside, taking back most of Wednesday’s loss as signs of a global economic recovery helped drive up demand for higher risk assets.

    Better than expected housing data and earnings reports also contributed to today’s rally, but the majority of the buying was done overnight by aggressive Asian and European buyers.

    Earlier in the week, Fed Chairman Bernanke helped drive the market lower with his dovish tone toward the economy. These losses were erased by a strong European industrial report. Today’s rally sends a signal that investors are more optimistic in a global recovery than concerned about the possible double-dip recession in the U.S. Furthermore with U.S. interest rates at extremely low levels and the strong possibility of more economic stimulus or quantitative easing by the Fed, traders feel that the stock market will offer a better return than fixed income instruments.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the 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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