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Equity Markets Manage to Eek Out Small Gain

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 15, 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 treaded water most of the morning following the release of earnings reports from Goldman Sachs and Citigroup but still managed to close higher for the day. The Dow see-sawed over 10,000 indicating traders were having a difficult time adding to their already established positions at current price levels. Many investors are questioning stock values at this time and are wondering whether they are buying momentum or sound fundamentals. Today was a good example of this thinking as Goldman blew out the estimates but traders still had trouble buying the stock on strength.

    U.S. Treasury futures finished the day lower. Yields continue to rise as Treasury instruments are being forced to compete for investor dollars against other higher yielding assets. This morning’s CPI report showed a bigger increase than estimated. This news spooked traders into selling December Treasury Bonds and Treasury Notes early because of inflationary fears. Today’s move was contrary to what yesterday’s FOMC minutes were highlighting. In the FOMC minutes it appeared the Fed was not in a position to hike rates for a while, but the trading action in the markets is saying otherwise. .

    The U.S. Dollar finished the day mixed. The December British Pound rallied sharply higher following rumors the Bank of England may end its asset buyback program early. The December Euro weakened early in the session on poor economic news but managed to erase all losses following a supportive statement from European Central Bank President Trichet. The December Canadian Dollar is posted a closing price reversal top. Traders feel this market has gone up too far, too soon. Comments from the Japanese Finance Minister are helped pressure the December Japanese Yen.

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

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