Monday, January 25, 2010
U.S. equity markets are expected to open better this morning following last week’s hard selloff. Investors dumped stocks late last week as sentiment shifted toward less risky assets.
The combination of a stronger Dollar, monetary tightening in China and a proposal by Obama to end financial institution prop trading weighed heavily on traders last week. While these conditions are
expected to continue to linger this week, the bulk of the focus will be on the Fed FOMC meeting which takes place on January 27th. Traders will be looking for clues as to when the Fed will decide to
begin to raise interest rates.
Treasury futures are trading lower overnight as demand for lower yielding assets dropped overnight in Asia and Europe. Demand for safety helped to lower yields and boost the March
Treasury Bonds and Treasury Notes last week. This bodes well for the next auction because it looks as if the Treasury will be able to offer lower yields. Supply concerns are likely to limit gains,
however.
February Gold is mounting a strong comeback following …
