Monday, February 8, 2010
An easing of investor risk sentiment is helping to support equity price overnight. Early in the trading session, stock markets followed through to the upside following Friday’s strong
finish and talk of a possible resolution of the fiscal problems plaguing the Euro Region.
Appetite for risk was on the rise as the Dollar weakened and the Euro rose. Optimism that a viable solution could be reached to assure investors that Greece would adhere to its
budget, helped drive investor confidence up. It looks as if today could start out choppy until investors decide whether to embrace risk or repel it.
March Treasury Bonds are trading lower. The overnight weakness is being triggered by a combination of falling demand for lower risk assets and the new supply of debt which is ready to
come to the market courtesy of the U.S. Treasury. Overnight support is being established at a 50% level at 118’24. A failure to hold this level is likely to trigger an acceleration to the
downside.
The weakening Dollar helped April Gold rally …
