SubscribeDaily Futures Commentary August 28, 2009
Friday, August 28, 2009
Traders are looking for a higher opening in U.S. equity markets this morning based on a follow-through rally overnight. Yesterday, equity markets fell sharply lower but were quickly bought up when crude oil reversed its intra-day trend and started to rally. This move ignited renewed interest in higher risk assets.
Treasury markets finished lower yesterday and are called lower this morning. This week’s auctions were well received but the turnaround in the stock market led to a sell-off signaling that traders are still looking for higher yields. Demand for treasuries could drop today as more attractive yields in Japan could lead foreign investors to shop elsewhere for a better return on investment.
Yesterday it was reported that U.S. Second Quarter GDP eased to a 1% decline after posting a drop of 6.4 % during the first quarter. Today traders will react to July Personal Income and Spending. These reports are expected to show declines as consumers continued to hold on to their money. Michigan Sentiment will also be reported. The forecast is for an increase in consumer confidence because of the strong rise in equity markets.
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