SubscribeDaily Futures Commentary April 8, 2009
Wednesday, April 8, 2009
Global stock markets are feeling pressure overnight following the release of a bearish earnings report from Alcoa. The Street was looking for a loss because of lower demand and falling aluminum prices but the wider-than-expected loss came as a surprise to many traders.
Traders in Asia and Europe started selling after the release of the Alcoa news and no sector seems to be immune from the bearishness. Investors are becoming more defensive after the month long rally seems to be coming to an end. Appetite for risky assets is declining quickly as investors face the grim reality that the worst of the economic slump may not be over.
With the start of this year’s earning season, investors have to begin to brace themselves for more bad news to follow as these will be the first reports that reflect the damage from last fall’s credit crunch. Investors are finally getting to see how much the tight credit markets actually impacted business the past 5 – 6 months.
Since this is a short-trading week, this week’s sell-off has been triggered by light volume. Thin conditions could prevail …
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