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Stocks Could Weaken as Risk Sentiment Shifts away from Higher Risk Assets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 16, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    Stock Index Futures are trading lower overnight as investors are shifting out of higher risk assets. Concerns that a tighter monetary policy in China will lead to a slow down in the Chinese economy is encouraging traders to lighten up on higher yielding assets. Traders are also being cautious ahead of today’s earnings reports. Momentum has slowed down despite higher prices this week. Investors are worrying about taxes, bank fees and the healthcare package, and their possible negative impacts on the economy.

    Treasury futures are trading higher this morning after a strong turnaround on Thursday. Strong demand for Treasury Bonds at yesterday’s auction helped send yields down and prices up. Falling demand for risky assets could drive more money into fixed income instruments today.

    February Gold is trading lower because of the stronger Dollar. News that China’s economy may actually slowdown is also triggering lower demand for raw materials. In addition, a slowdown in demand from China will lessen gold’s appeal as a hedge against inflation. The inability to rally back to $1151.00 yesterday is a sign of weakness. Downside momentum could take this market through a 50% level at $1119.10 to the .618 level at $1108.80.

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

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