equity

The Euro surged to 1.3105 for the first time since May shortly after U.S. equity markets opened, but was unable to hold this level as stocks corrected sharply during the trading session. The subsequent break triggered volatile moves throughout the session with the market retracing inside the 1.3105 to 1.3059 range several times.

The U.S. Dollar fell sharply across the board on Thursday as trader demand for risky assets soared following a bullish economic report out of Europe last night.

U.S. stock index futures are trading steady to better ahead of this afternoon’s testimony by Fed Chairman Ben Bernanke. Shortly before testimony is to begin, investors will have the chance to react to earnings reports from Morgan Stanley, Wells Fargo and Starbucks.

Despite upbeat earnings from Alcoa last night after the close and a stronger equity market this morning, the Euro is down because of the renewed sovereign debt concerns. Last night Moody’s downgraded Portugal’s debt rating, sending a signal to traders that problems may still be lingering in the Euro Zone despite a month of calm.

Overnight selling pressure in Asia and Europe has U.S. investors looking for a weaker opening. With no major economic reports today, investors will be focusing on earnings. After the stock market close today, Alcoa is expected to kick-off earnings season with a second-quarter report showing a 19 cents per share gain.

U.S. equity markets retreated from their earlier highs as investors failed to chase stocks higher after a surge overnight in Europe and Asia led to a stronger opening in New York. Global equity markets were boosted overnight by the news that China was going to let the Yuan float higher. Technology stocks were hardest hit leading to a lower close in the September E-mini NASDAQ.

U.S. equity markets are trading higher overnight as investors are buying on speculation that government reports this week will show the global economic recovery is back on tract. Easing of tensions in Europe is triggering a short-covering rally in the Euro which is helping to lead to increased demand for higher risk assets.

Global equity markets are trading in a tight range overnight. On Wednesday, U.S. stock markets broke sharply lower after a steady opening as unrest in Greece led traders to shed risky equity positions. As we approached the mid-session, buyers stepped in to gobble up low priced stocks, triggering a massive short-covering rally that took the indices back to unchanged for a little while.

A late surge in U.S. equity markets helped put the three major indices in a strong position to challenge their highs for the year. Traders looking for increased risk drove equity markets higher from the start on Tuesday although there was a little pause in the upside momentum at the mid-session.

U.S. equity markets are consolidating at the mid-session ahead of tomorrow’s U.S. inflation and retail sales reports. Besides the reports, traders are anticipating Fed Chairman Bernanke’s testimony. Some traders feel Bernanke will offer more guidance on when the Fed will raise interest rates.

After surging to the upside following the news of a Greece bailout package, gold, crude and equity markets have erased their gains and are now trading lower. The initial reaction to the upside was because of increased demand for higher yielding assets. Upon further review however, investors decided to back off on the notion that the Euro is still facing exposure to Greece’s final woes.

A turnaround in U.S. equity market pressured the Dollar on Monday as traders sought risk in higher yielding assets. Overnight, the Dollar traded weaker, driven down mostly by traders taking protection in the lower yielding Dollar and Japanese Yen

U.S. equity markets finished down on Friday and barely avoided a closing price reversal top which would have signaled the start of a possible retracement to the downside. The March E-mini S&P 500 and NASDAQ made new highs for the year while all three indices closed higher for the week. Friday saw the indices spike higher then break lower following a better than expected U.S. Retail Sales Report.

U.S. stock indices finished lower with the exception of the March E-mini S&P after failing to hold on to earlier gains. The break late in the session coincided with the release of Fed’s Beige book. At first trader reaction to the report was non-committal as it offered no new bullish economic news.

One thing that seems almost certain is the next move in interest rates will be a move higher. This article provides insight into the impact a move higher in interest rates will have on stock and bond investments.