Friday, February 26, 2010
Despite a pick-up in demand for higher risk assets and higher Asian equity markets, U.S. stock indices are predicting a flat to lower opening. Traders seem to be taking a cautious
approach before the release of this morning’s U.S. GDP, Chicago PMI, consumer confidence and existing home sales reports.
Treasury markets are trading higher this morning. Investors appear to be anticipating U.S. economic reports to come out lower than expected. This will keep the pressure on the Fed to
keep interest rates down.
The weaker Dollar is helping to support both April Gold and April Crude Oil. A stronger Dollar is likely to keep downside pressure on commodity markets. Any flare-up in Greece should
send traders into gold.
Concerns about sovereign debt issues in Greece eased overnight helping to increase demand for higher risk assets. In addition, good economic news from Japan and higher stock markets
in Asia helped increase optimism over the global economic recovery.
With tensions easing regarding the sovereign debt problems in some of the European Union nations, …
