Stocks Finish Higher as Traders Anticipate Bullish Employment Numbers
Equity markets erased earlier losses after the release of the U.S. Weekly Initial Claims Report to finish higher for the day. Trading was light, but nonetheless, today’s strength is probably a good indication that investors feel that Friday’s report will be better than preliminary estimates.
Dollar Holds Gain as Traders Await Friday’s U.S. Employment Report
The U.S. Dollar held on to most of its gains as traders await Friday’s U.S. employment report. On Thursday, the Weekly U.S. Initial Claims report showed that fewer workers filed for unemployment benefits last week. This news helped boost an already strong Dollar. The ability to hold on to its gains into the close may be an indication that investors are anticipating a friendly U.S.
Stocks fall as Traders Seek Safe-Haven Investments
U.S. stock markets traded hard to downside on Thursday fueled by fears of a financial crisis in the Euro Zone. Stocks began their sell-off last night following a downgrade of Greece’s debt by the S&P credit rating service. The markets accelerated to the downside shortly after the U.S. opening partly on a higher then expected initial claims figure.
Equity Markets Weaken as Greece Downgrades Spooks Traders
U.S. stock markets are expected to open lower based on weaker markets overnight. Traders are taking risky positions off the table in response to another debt rating downgrade of Greece. Traders now fear that the debt crisis could worsen in the Euro Zone and perhaps spread to U.S. banks. This news is triggering a rally in the Dollar and subsequent weakness in the U.S. equity markets.
Equities are holding firm overnight ahead of the Fed’s policy statement. Traders want to see indications that the Fed sees improvements in the economy. At the same time, they don’t want to see higher interest rates. This sets up the possibility of a choppy two-sided trade following the release of the FOMC statement.
The U.S. Dollar is trading softer overnight as traders reduced long positions ahead of today’s Federal Open Market Committee meeting.
The Fed is expected to leave its benchmark interest rate at 0.25%; the argument is whether it will alter the language its policy statement to represent positive changes in the U.S. economy.
Dollar Traders Betting on Hawkish Comment from Fed
Equity Traders Look for Higher Opening as Dubai Concerns Subside
U.S. Dollar Falls as Traders Downplay Dubai Concerns
The U.S. Dollar is declining overnight as speculators are downplaying the debt problems in Dubai. Over the week-end, the United Arab Emirates central bank said it “stands behind” the country’s lenders. This helped to ease concerns that the state owned Dubai World will default on its debt. Traders now believe that this is a local economic problem rather than one with global ramifications.