Tag: equity marketsSort
Late Equity Market Surge Put Stocks in Strong Position
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.
Multiple Factors Driving U.S. Equity Markets Lower
Risky assets under pressure; Weaker Euro, Pound to blame
Stocks Feeling Downside Pressure Ahead of Fed Announcement
U.S. equity markets are trading lower ahead of this afternoon’s Fed interest rate policy announcement. Traders have been nervous the past few days as economic indicators have been pointing toward a global economic slowdown. In addition, possible changes in regulations have been driving many trades to lighten up long positions.
Demand for Higher Risk Assets Drives S&P through Recent High
The overnight strength in the global equity markets spilled over to the U.S. markets on the opening. Demand for higher risk is rising because of concerns over U.S. debt. With new Treasury debt being issued this week, investors are looking for higher returns. The inability to follow-through to the upside under thin trading conditions has encouraged traders to back off from the highs slightly.
Asset Allocation Play Drives Stocks Up; Treasuries Down
U.S. equity markets are trading higher at the mid-session as traders bet that the U.S. economy will continue to recover even in the face of higher interest rates.
Investors are reallocating funds from Treasuries into the stock markets. Traders feel that the best return will be in equities in 2010 while higher interest rates will erode the value in T-Bonds and T-Notes.
U.S. equity prices traded sharply higher overnight but failed to attract fresh buying after the strong opening in New York. This has been a common pattern, however, since the rally began in March. Traders have been reluctant to chase this market higher, and have shown more confidence in letting it come to them. Mutual funds have been very active buyers on Monday’s recently.