SubscribeDaily Futures Commentary May 4, 2009
Monday, May 4, 2009
Equity markets are trading higher overnight as a friendly report from China is being treated as another sign the global recession is easing. This news is triggering strength in European and Asian equity markets and is expected to spill over to the U.S. equity markets.
It was reported overnight that China’s manufacturing expanded for the first time in nine months. This could be the result of stimulus money. It will be interesting to see if there is demand for the goods being manufactured especially by the U.S. Overall, traders are happy with the news as this may be a sign that global conditions are improving.
The key reports today are construction spending and pending home sales. Construction spending is expected to come out lower but news that credit spreads are narrowing could provide a surprise. Pending home sales will also be watched closely. Investors want to see if there has been a drawdown in housing inventory. This would be a sign that the logjam which has been holding back the housing industry is finally loosening.
I still maintain that housing and employment are …
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