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 markets surged following early weakness after President Obama failed to reveal any new plans to regulate U.S. financial markets. On the opening stocks were down because of escalating Greek debt problems and fear that Obama would announce more austere financial market restrictions.
Buyers came out the second time bearish traders tried to flush weak stock investors out of the market about midday on Tuesday, triggering a late session short-covering rally which enabled the indices to close on their highs.
U.S. stock index futures closed lower on Tuesday. Equities were higher early this morning after a friendly Case-Schiller Housing Report but these gains were quickly erased after the Michigan U.S. Consumer Confidence Report showed a drop. Weaker technology issues drove the markets lower. The main trend has turned down in all three major indices on the daily chart.
U.S. equity markets sold off sharply early in the trading session because of a 6.7% decline in China’s Shanghai Index. The Chinese stock market is once again down over 20% from the top. Classical chartist’s are calling this a new bear market. U.S. investors are trying to figure out if China is the leader or if the U.S. will continue to move higher without China.
