SubscribeDaily Futures Commentary FINANCIALS 031009
Tuesday, March 10, 2009
OVERVIEW
Equity markets are trading higher this morning based on positive comments from Citigroup CEO Pandit. In a memo Pandit noted that Citigroup is having its best quarter since 2007 when it was last profitable. He also noted that the bank’s stock price does not reflect its capital strength.
This news is sending stock markets higher in Europe and Asia. The desire for more risky assets is spreading into other futures sectors as well.
The rise in the stock market and the desire for higher risk assets is putting pressure on the three safe-haven markets: Treasuries, gold and the U.S. Dollar while supporting commodity markets such as soybeans, crude oil and copper.
It looks as if the markets will take direction from the stock market today. An up stock market will translate into strong commodity markets and a weaker U.S. Dollar. A down market will likely see another flight-to-safety rally in gold, treasuries and the U.S. Dollar depending on how weak the market trades.
Financials: Treasury markets getting pressure from supply issues.
Stock Indices: Global equity markets are …
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