SubscribeDaily Futures Commentary May 12, 2009
Tuesday, May 12, 2009
After taking a one day breather, traders have aggressively returned to the markets with a strong appetite for higher yielding assets. Yesterday was marked by light volume and profit-taking as investors seemed to “take a little off the top†of recently bullish markets.
Overnight action indicates that taking a break following a stressful two-week time period may have actually been beneficial as traders have returned this morning with a vengeance to drive stocks and commodities higher.
Some of today’s bullishness is coming from overseas as three major reports from the U.K. are indicating that the worst of the recession in that country may be over. U.K. manufacturing fell by less than economists forecast while house prices declined at a slower pace than estimated. The best news however was that U.K. retail sales rose.
The rise in U.K. retail sales is a welcomed sign as it indicates that the consumer may be loosening up their purse strings after several months of declines. The strong rise in the equity markets and the availability of credit is most likely causing consumers to become more optimistic over the prospects of a …
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