Thursday, April 15, 2010
Stronger Dollar Could Pressure U.S. Stocks Today
The stronger U.S. Dollar is helping to put pressure on U.S. equity markets overnight. Concerns about Greek financial problems are pressuring the Euro, leading to a
decline in demand for higher risk assets. Traders appear to be lightening up their long equity positions ahead of today’s opening despite the possibility of stronger than expected corporate earnings
reports.
Yesterday, Fed Chairman Bernanke ignited a rally in the equity markets with his dovish assessment of the economic recovery and outlook for interest rates. Like he did
several times before, Bernanke basically gave equity traders the green light to continue to buy stocks. This is old news, however, as traders will now have to turn their focus on the reigniting of
fiscal problems in Greece. Rather than try to sort out the details, investors may choose to take the easy route and lighten up their long positions.
June Treasury Bonds are trading better this morning, buoyed by weaker equity markets. The overnight rally in the …
