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Equity Markets Finish Higher Amid Upbeat Earnings Expectations

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 14, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets finished higher after bullish earnings reports from Intel and J.P. Morgan fueled investor confidence about a global economic recovery. The Dow Jones Industrials crossed 10,000 in the process for the first time since October 7, 2008. Skeptics are still wondering if the current run in equity markets is a case of “too much, “too soon” although they don’t seem to have a way to stop the rally. Up until this point this rally has been professionally and institutionally driven, some traders feel the push over 10,000 will finally encourage fresh money on the sidelines to enter the marketplace. Start watching for spikes to the upside to indicate that the public is chasing the market. This could be the best indication of a top. Until then, enjoy the ride.

    Weakness in the Treasury futures markets indicates expectations of higher interest rates, but so far the Dollar and equity prices haven’t reacted the same way. Today’s weakness was most likely attributed to the fact that traders are looking for higher yields and may be shifting money into equities and out of fixed income instruments to achieve that goal.

    The U.S. Dollar closed lower across the board with no sign of a let-up in this trend. Last week’s mini rally triggered by Bernanke’s comments about a tighter monetary policy have been erased. Intervention by other central banks to control the rise in their currencies may be the only way to combat the fall in the Dollar. The New Zealand, Japanese, Canadian and Euro Zone central banks have expressed the most concerns about the rapid rise in their currencies. Can a concerted intervention be in the offing in the near future to boost the Dollar?

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

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