March 1, 2010
U.S. stock indices are trading better this morning ahead of the U.S. session. Although they are off their highs, there seems to be enough demand for higher risk despite the
strengthening Dollar and the falling Euro and British Pound. This could mean that traders are confident that the EU and Greece are close to reaching an agreement regarding the budget deficit crisis
or it may be a vote of confidence in the U.S. economy. Traders may turn against risk if the Euro continues to weaken.
Today’s U.S. economic reports may have some say in the matter. Personal income is expected to show no growth while consumer spending is predicted to show a modest gain. The ISM
Manufacturing Index has been up for 6 straight months, but this month is called flat. The predicted range is 55 to 60. Finally, Construction Spending is called lower. The drop in home sales should
have a negative influence on construction spending. Early guesses for Friday’s Non-Farm Payrolls Report is for a loss of 50,000 jobs.
June Treasury futures are trading lower. Traders don’t seem …
