SubscribeDaily Futures Commentary April 7, 2009
Tuesday, April 7, 2009
Equity markets are expected to remain under pressure today as optimism over the U.S. economy is fading. Traders are also selling out positions ahead of a potentially bearish earnings season. Finally potentially bad news regarding the U.S. banking system is triggering a “sell first, ask questions later” scenario.
Global stock markets are continuing their sell-offs following a sharp drop on Monday which began after Mike Mayo of Calyon Securities said the U.S. banking sector problems still have further to run before they reach bottom. He also said that U.S. government action may not offer as much help as expected. His report triggered a profit-taking break in banking sector stocks which spread to the broad-based equity markets. Repercussions from the release of this report yesterday are still lingering in the market overnight.
Adding additional pressure to the stock markets are comments from billionaire investor George Soros who was referring to the U.S. when he stated in an interview that the “banking system as a whole is basically insolvent.” He also added that the U.S. economy is in for “a lasting showdown.”
There are still concerns about …
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