June 7, 2010
Equity Markets Rebound after Weak Overnight Session
Although U.S. equity markets have recovered their overnight losses, the fundamentals which influenced the market on Friday are likely to have a lingering affect on the
stock markets today. Traders will be looking for bargains today and will be largely influenced by the action in the Euro especially since this currency has reached an extremely oversold
condition.
A late session surge in Europe is triggering a short-covering rally in the Euro and British Pound ahead of the U.S. opening. The Euro was down sharply overnight as
traders reacted to Friday’s bearish U.S. jobs data and the news that Hungary is the latest candidate for sovereign debt issues.
Over the week-end the Group of 20 major economic powers concluded their meeting by issuing a more cautious outlook for global growth. Their primary concerns were the
European debt crisis and the possibility that European fiscal consolidation will result in muted global growth. While the European and commodity-linked currencies suffered, the Japanese Yen
benefitted from …
