Stocks Falter but Manage to Hold on to Gains
U.S. equity futures weakened after an early session surge but managed to eke out a small gain. Overnight strength was fueled by greater demand for higher yielding assets while the early morning rally was triggered following the release of a report showing a rise in consumer confidence. Thin trading conditions and the lack of buyers were the driving forces behind this afternoon’s weakness.
Global stock prices rose overnight following a sell-off in the Dollar, signaling greater demand for higher yielding assets. The thought of a recovery in the U.S. economy also contributed to the early strength.
Treasuries finished higher following early morning weakness. March T-Bonds picked up strength late in the session when the market regained a key 50% level at 115’08. Today’s strong close has the market in a position to follow-through to the upside tomorrow. The next potential upside target is 116’05.
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