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Stocks Feel Pressure as Demand for Risky Assets Falters

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 12, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets closed lower on Tuesday as investors dumped higher yielding stocks in favor of safe-haven assets. The news that China may begin raising interest rates pressured demand for higher yielding assets throughout the day. Commodity related stocks were under pressure today because of an expected drop in demand for raw materials. Bank stocks also dragged the markets lower because of a proposed fee by the Obama administration on banks that received federal aid during the credit crisis.

    March Treasury Bonds were able to mount a strong gain as investors dumped equities in favor of safer, lower yielding assets. A breakout above 116’05 fueled an acceleration to the upside into a 50% level at 116’28. Further upside momentum could trigger a further appreciation to 117’14.

    February Gold broke sharply on Tuesday following a rally to $1151.30 earlier in the week. This move completed a 50% retracement of the $1227.50 to $1075.20 range created from December 3rd to December 22nd. The stronger Dollar and news that China may begin removing stimulus from the economy helped to curtail demand for higher risk assets.

    Read full article at 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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