A big improvement in the S&P/Case-Shiller Housing Report helped support the U.S. equity markets early in the trading session but it was the better than expected U.S. Consumer Confidence Report that helped launch the stock markets to new highs for the year.
After the initial thrust to the upside which took out yesterday’s high and negated the technical reversal top, the equity markets broke hard to the downside, but buyers quickly stepped in. Since the early morning action, the markets have been churning in a tight range.
Higher equity prices are keeping a lid on September Treasury Bonds and Notes as well as the $42 billion auction of 2-year Notes. A report stating that the Federal budget deficit is expected to rise is also a negative influence weighing on these markets.
The U.S. Dollar is trading mixed at the midsession. The Dollar is losing ground versus the September Euro on better than expected economic news out of the Euro Zone. The September Japanese Yen is also trading better despite the stronger stock market. Traders may be repatriating funds after weakness developed in the Asian markets overnight. Weaker crude oil and a signs of strength in the U.S. economy are helping to pressure the September Canadian Dollar.
December Gold and December Silver are trading higher because of the mixed to weaker Dollar. These markets are both in down trends which are expected to continue as long as the Dollar doesn’t tank. Without inflation, there is really nothing but the Dollar to follow for direction. December Copper could weaken if the Chinese government decides to curb liquidity.
Energy markets are trading lower. The inability to rise after last week’s bullish report and the surging equity markets could be a sign that traders are waiting for tomorrow’s oil inventory report to confirm last week’s bullish drawdown.
After the initial thrust to the upside which took out yesterday’s high and negated the technical reversal top, the equity markets broke hard to the downside, but buyers quickly stepped in. Since the early morning action, the markets have been churning in a tight range.
Higher equity prices are keeping a lid on September Treasury Bonds and Notes as well as the $42 billion auction of 2-year Notes. A report stating that the Federal budget deficit is expected to rise is also a negative influence weighing on these markets.
The U.S. Dollar is trading mixed at the midsession. The Dollar is losing ground versus the September Euro on better than expected economic news out of the Euro Zone. The September Japanese Yen is also trading better despite the stronger stock market. Traders may be repatriating funds after weakness developed in the Asian markets overnight. Weaker crude oil and a signs of strength in the U.S. economy are helping to pressure the September Canadian Dollar.
December Gold and December Silver are trading higher because of the mixed to weaker Dollar. These markets are both in down trends which are expected to continue as long as the Dollar doesn’t tank. Without inflation, there is really nothing but the Dollar to follow for direction. December Copper could weaken if the Chinese government decides to curb liquidity.
Energy markets are trading lower. The inability to rise after last week’s bullish report and the surging equity markets could be a sign that traders are waiting for tomorrow’s oil inventory report to confirm last week’s bullish drawdown.
