The economy received another shot in the arm this morning as new home sales in June rose more than expected. Stock Index traders decided to fade the report after new buyers failed to materialize after the Dow and the S&P 500 penetrated last week’s highs.
Currently the equity markets are trading at approximately the mid-points of the day. There doesn’t seem to be any conviction at this time, but as the day wears on weakness could develop especially if these indices are under 50% of the day’s ranges and below the opening.
Treasury futures are under pressure as traders have decided to sell today because of the increase in supply which is expected to hit the market all week. The results of the auctions this week are expected to offer traders insight as to the direction of inflation and the economy.
The Dollar is trading weaker today. Most of the loss occurred overnight. The day session has the Dollar erasing some of the loss because of the developing weakness in the U.S. stock markets. Look for the direction in the stock market to dictate the move in the currencies. A sell-off in equities into the close is likely to trigger a strong rally in the Dollar late in the session.
August Gold has all but erased its gains from overnight and early this morning. Lower demand for risky assets such as stocks, currencies and crude oil are pressuring precious metals today as the need for a hedge against inflation is diminishing.
September Crude Oil has given back its early session gains and is now lower on the day. The lack of demand for higher risk assets, highlighted by lower stock futures and a slightly stronger Dollar have also hurt energy prices.
November Soybeans remain inside of their two week range as most of the bearish news regarding the improvement in crop conditions seems to have been priced into the market.
Despite a weaker Dollar and production issues, September Cocoa appears to have given in to profit-taking. Losses continue to mount in December Cotton as the lack of demand and improving crop conditions may lead to an increase in ending stocks.
Currently the equity markets are trading at approximately the mid-points of the day. There doesn’t seem to be any conviction at this time, but as the day wears on weakness could develop especially if these indices are under 50% of the day’s ranges and below the opening.
Treasury futures are under pressure as traders have decided to sell today because of the increase in supply which is expected to hit the market all week. The results of the auctions this week are expected to offer traders insight as to the direction of inflation and the economy.
The Dollar is trading weaker today. Most of the loss occurred overnight. The day session has the Dollar erasing some of the loss because of the developing weakness in the U.S. stock markets. Look for the direction in the stock market to dictate the move in the currencies. A sell-off in equities into the close is likely to trigger a strong rally in the Dollar late in the session.
August Gold has all but erased its gains from overnight and early this morning. Lower demand for risky assets such as stocks, currencies and crude oil are pressuring precious metals today as the need for a hedge against inflation is diminishing.
September Crude Oil has given back its early session gains and is now lower on the day. The lack of demand for higher risk assets, highlighted by lower stock futures and a slightly stronger Dollar have also hurt energy prices.
November Soybeans remain inside of their two week range as most of the bearish news regarding the improvement in crop conditions seems to have been priced into the market.
Despite a weaker Dollar and production issues, September Cocoa appears to have given in to profit-taking. Losses continue to mount in December Cotton as the lack of demand and improving crop conditions may lead to an increase in ending stocks.
