SubscribeDaily Futures Commentary EQUITIES, METALS, ENERGY March 30, 2009
Monday, March 30, 2009
EQUITIES
A huge sell-off in global equity markets is putting pressure on the U.S. stock markets overnight. This is leading to the forecast of lower markets from the opening.
Traders are booking profits as it appears the two-week rally has come to end. News that General Motors and Chrysler may have to declare bankruptcy is encouraging selling. This event could have huge ramifications for the economy. Banks, pensions and other financial institutions are facing exposure to GM debt while small suppliers could feel pain if GM declares bankruptcy and fails to pay.
The chart action suggests the markets are poised for a considerable correction of perhaps 50% of the last rally. The key to the longevity of the current rally will be whether new buyers come in on this correction.
In addition to the bearish automaker news, investors have to deal with the unemployment report on Friday and the start of earnings season around April 15. The U.S. unemployment report is expected to show an increase in the number of jobs lost. Earnings are expected to be bad across the …
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