SubscribeDaily Futures Commentary April 1, 2009
Wednesday, April 1, 2009
Trading in the financial markets could be light today, one day ahead of the April 2nd European Central Bank announcement and the start of the G-20 Economic Conference.
Since the Federal Reserve caused a spike to the upside in the June Treasury Bonds and June Treasury Notes on March 18, these markets have traded flat. The initial move had traders reacting as if the Fed had just pumped $1 trillion into the market overnight instead of the planned nine months.
The current action in the treasuries reflects a shift in sentiment by investors. The continuous supply of financial instruments hitting the market is encouraging investors to ask for higher rates. This is keeping the downside pressure on the bonds and notes.
Equity markets are feeling downside pressure overnight. Yesterday’s rally retraced the previous day’s range on light volume. There is a bearish tone this week in the market because of the government’s rejection of financial aid for Chrysler and GM.
More bad economic news out of Japan is creating weakness in global markets overnight. A new report showed that Japanese business confidence plunged to a …
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