SubscribeDaily Futures Commentary FINANCIALS March 11, 2009
Wednesday, March 11, 2009
OVERVIEW
Equity markets are continuing the rally ignited yesterday by positive Citigroup comments and fueled by friendly comments from Fed Chairman Bernanke.
Upcoming Treasury auction is expected to drive up yields and drive down prices. Rally in equity markets is also causing investors to reallocate their funds from fixed income instruments to equities.
The U.S. Dollar is losing its luster as a safe haven currency as banking pressures may be easing. British Pound is under pressure because of the start of quantitative easing.
May Soybeans and May Corn are expected to trade higher because of the weaker Dollar. Today’s USDA crop report may extend gains in soybeans, but limit gains in corn. Hot, dry weather in the Plains has damaged the winter wheat crop.
Financials: Treasury markets feeling pressure from upcoming auction.
Stock Indices: Following through to the upside after yesterday’s big rally.
Currencies: Euro is surging as trader appetite for risk is increasing.
Energies: Energy Dept. inventory report is expected to be bearish.
Metals: Short-covering rally as technical reach oversold levels.
Grains: Weaker Dollar and lower inventory …
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