New book by Larry Connors Click here Improve your trading - See how
U.S. 10-year Treasury bonds rose slightly today. Bonds have been staging a firece rally since mid-July, on concern that subprime and credit problems will spread to other areas of the economy and cause slowing growth. Last Friday, the Fed cut its discount lending rate by 1/2 a percentage point, helping to boost the equity markets, and bond prices have only risen since. Bonds typically rise on economic weakness and fall on strength, so it's safe to say that recent market activity has led to mostly negative economic speculation.
The yen tanked today against the dollar and the euro, after the BoJ kept interest rates at the lowest levels of the major economies of the world. With interest rates low and with no hike in sight, traders fully resumed the carry trade, borrowing yen to invest in riskier, more profitable assets. In the past few weeks, the yen has gained on global equity weakness, and fell on strength, as traders enter and exit the carry trade based on global conditions. The euro was up slightly against the dollar. The dollar fell against the Canadian dollar and the British pound.
Crude rose fractionally today. Crude has been falling lately, on widespread concern that slowing economic growth could lead to a decline in energy demand. The credit crunch has affected oil prices by driving them lower on widespread economic worries. Crude prices have fallen over 10% since the beginning of August, when the slide began. Crude oil fell about 0.6% after a government report of comfortable inventories.
Gold was flat today. Gold normally trades inversely to the dollar and with oil; today, despite dollar losses versus the euro, gold managed to stay near-even. Gold fell sharply last week on concerns that economic growth problems would lead to slowing gold demand, but gold prices have since inched steadily higher. Copper futures rose nearly 2% on rising global demand.
Grains were mixed today. Soybeans gained 1.3%, and corn fell 0.5%.
The major averages began the day in positive territory but shortly thereafter moved below the unchanged line. A rally took place shortly after 1:30 P.M. that brought the Dow briefly above the unchanged line. But downward pressure once again infiltrated stocks, as lingering fears within the credit market continue to plague investors. Click here to read the rest of today's Stock Market Recap.
| Economic News | |
|
Sign me up for a no obligation, 7-day Free Trial of PowerRatings (for Traders)
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
