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U.S. Stock Indices Hold on to Gains in Tight Range Bound Trading

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 8, 2009.

  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 held on to their gains following a stronger opening fueled by increased demand for higher yielding assets. U.S. investors held the markets inside of the range established earlier in the day as once again investors did not feel the need to chase the markets higher. The strong rise in hard assets also boosted the price of industrial metal stocks. The overall strength in the market, however, was attributed to the weakness in the Dollar and the strong appetite for risk.

    Treasuries finished lower after the equity markets were able to hang on to their gains. Some traders bought bonds and notes in anticipation of a possible break because of the gap higher opening in the equity markets. Foreign investors have been looking elsewhere for better returns on bonds. This is helping to contribute to the weakness in the Treasuries. This is also a sign that yields will have to rise to attract more buying interest.

    The U.S. Dollar finished weaker across the board. The G-20’s pledge to continue to provide stimulus was most likely the biggest factor contributing to the rally in the foreign currencies. The thought of pumping more money into the global economy triggered renewed demand for equities and commodities with metals leading the way. Traders are also reacting to renewed questions about the role of the Dollar as the world’s number one reserve currency.

    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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