Tuesday, February 23, 2010
U.S. equity markets are expected to open lower as risk sentiment wanes a little following a drop in the Euro. Investors appear to be taking risk off the table over concerns about debt
issues in Europe and a slow down in the U.S. economy. Traders will be focusing on the Case-Shiller Housing and Consumer Confidence Reports for direction. Investors are also uncertain about the Fed’s
next interest rate play now that they have raised the discount rate. The great debate remains, will they or won’t they raise rates in 2010?
Aversion to risk and oversold conditions are helping to give Treasury futures a boost. While the stronger Dollar and weaker Euro is pressuring April Gold and April Crude Oil.
The U.S. Dollar is trading higher against all major currencies except the Japanese Yen as risk sentiment has shifted back toward safety. Investors are buying the Dollar and the Yen as
they scale back their appetite for more risky investments.
Today, U.S. traders will focus on the S&P Case-Shiller HPI and Consumer Confidence Reports. Economists are predicting …
