Friday, January 15, 2010
Stock Index Futures are trading lower overnight as investors are shifting out of higher risk assets. Concerns that a tighter monetary policy in China will lead to a slow down in the
Chinese economy is encouraging traders to lighten up on higher yielding assets. Traders are also being cautious ahead of today’s earnings reports. Momentum has slowed down despite higher prices this
week. Investors are worrying about taxes, bank fees and the healthcare package, and their possible negative impacts on the economy.
Treasury futures are trading higher this morning after a strong turnaround on Thursday. Strong demand for Treasury Bonds at yesterday’s auction helped send yields down and prices up.
Falling demand for risky assets could drive more money into fixed income instruments today.
February Gold is trading lower because of the stronger Dollar. News that China’s economy may actually slow down is also triggering lower demand for raw materials. In addition, a
slowdown in demand from China will lessen gold’s appeal as a hedge against inflation. The inability to rally back to $1151.00 yesterday is a …
