Monday, April 12, 2010
Commodities, Equities not Buying Viability of Greece Bailout Package
After surging to the upside following the news of a Greece bailout package, gold, crude and equity markets have erased their gains and are now trading lower. The initial
reaction to the upside was because of increased demand for higher yielding assets. Upon further review however, investors decided to back off on the notion that the Euro is still facing exposure to
Greece’s financial woes.
The Euro gapped higher overnight and soared higher, but has since backed off, leading traders to believe that the gap may be filled before the Euro moves higher.
Furthermore, traders are expressing their concerns that Greece may tap the loan money sooner than expected.
June Treasury Bonds and Treasury Notes initially sold off following the Greek bailout announcement but have since given back some of their gains as equities and
commodities weakened. The first move represented relief that a bailout plan had been proposed. The shortcovering is a sign that there is still fear in …
