Tuesday, January 26, 2010
U.S. equity markets are called to open lower after a volatile Asian trade triggered by a possible debt rating cut in Japan and another sign that China is serious about tightening its
monetary policy.
Yesterday’s gains were erased overnight before the markets mounted a strong comeback. The activity in Asia indicates that sentiment is shifting toward aversion to risk, however the
early morning comeback indicates that traders will be influenced by today’s U.S. S&P Case-Shiller Home Price Index and the Consumer Confidence Report.
Treasury futures are once again trading higher because of increased demand for safer assets. Traders leaving equity markets are flocking into the Treasuries, driving down yields. Look
for March Treasury Bonds and March Treasury Notes to continue to rally as long as traders prefer to take risk off the table.
February Gold is trading lower. The stronger Dollar is helping to pressure precious metals this morning. New that China is serious about tightening their lending requirements as well
as their monetary policy is also encouraging liquidation of speculative positions in precious …
