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Global Financial System Concerns Could Limit Demand for Higher Risk Assets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 18, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Stories that Lloyds Banking Group Plc lacked sufficient capital circulated throughout the markets today. Traders reacted by reducing positions in higher risk assets.

    U.S. equity markets closed up for the day and posted small gains for the week. Today was a triple-witch expiration day so trading was light and directionless throughout the trading session. A drop in demand for higher risk assets could trigger a lower opening on Monday. Forex traders are expressing concerns about the global financial system. These worries could spread to the equity markets over the weekend.

    Despite concerns over the global financial system, U.S. Treasuries finished lower for the day. This could change over the week-end if the Lloyds’ news becomes a major issue. Trading was light and range bound in the December Bonds and December Notes ahead of next week’s FOMC meeting and the $112 billion Treasury auction.

    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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