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Stocks Rally on Upbeat Fed News; Optimistic Obama Speech

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 27, 2010.

  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 hemmed and hawed immediately after the FOMC announcement before rallying sharply higher. Traders seemed to have had a delayed reaction to upbeat news from the Fed regarding the economy. Although it kept interest rates unchanged and offered no hard evidence as to when rates were to begin rising, it did say that there were “moderate” rather than “weak” improvements in the economy. This change in the statement may have given investors more confidence to buy stocks.

    Tomorrow, traders will react to tonight’s speech by President Obama. Investors are looking for more clarity as to how the government plans to regulate proprietary trading by financial institutions. In addition, investors are likely to react to news about jobs stimulus and tax breaks for small businesses.

    Treasury futures finished mixed after the Fed announcement. Short-term rates rose as the FOMC statement may have brought the U.S. closer to higher interest rates. News that the economy was improving also encouraged investors to liquidate safe Treasury positions for higher risk stocks.

    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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