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Mixed U.S. Economic Data Fuels Choppy Equity Trade

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 1, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Mixed U.S. economic data fueled a choppy trade in U.S. equity markets most of the day. The markets opened higher this morning following a Gross Domestic Product Report that showed the economy had contracted less than expected. Early gains were erased, however, following a report which showed a drop in the Chicago Purchasing Managers Index.

    In addition to these two reports, the ADP private employment report also showed an improvement, but nonetheless it still indicated that jobs were being lost. Traders may be reluctant to buy at current levels until they can see a more robust improvement in the economy. The currency markets showed a greater demand for higher risk assets, but the tone seemed a little sluggish in the equities.

    U.S. Treasury futures posted gains today as weaker economic reports indicated that the Fed was less likely to raise rates in the near future. There is still some debate going on as to how aggressive the Fed should get when it comes time to hike the rates. A consensus seems to be developing which shows that investors expect unemployment to remain high and growth to be sluggish. This is why there has been demand for T-Bonds.

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

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