Optimism Helping to Drive U.S. Equity Markets Higher
U.S. stock markets are trading sharply higher at the mid-session, driven by reports that the Greek sovereign debt problems will be resolved shortly. Stock investors are driving up stocks across the board as confidence is being restored to the markets. Bargain hunters have also stepping in to take advantage of lower priced equities.
Easing of Investor Risk Sentiment Supporting Equity Markets
U.S. equity markets mounted a strong recovery following the news that the unemployment rate dropped unexpectedly. Although the number of jobs loss was greater than forecast, the improvement in the jobless rate helped confirm that the economy is on the road to recovery. Fear over sovereign debt issues in the Euro Region most likely limited gains.
Equity Markets Finish Higher on Friendly U.S. Economic Data
U.S. equity markets rallied late in the session to close above key retracement points as traders set aside their recent worries and returned from the sidelines. The markets opened firm then surged to the upside following a better than expected U.S. manufacturing report. Good news from the consumer side also helped to support the rally.
Ashraf Laidi Interview Outtake - FOMC & Obama's State of the Union
Equity Markets Rebounding after Last Week’s Sell-off
U.S. equity markets are expected to open better this morning following last week’s hard sell-off. Investors dumped stocks late last week as sentiment shifted toward less risky assets. The combination of a stronger Dollar, monetary tightening in China and a proposal by Obama to end financial institution prop trading weighed heavily on traders last week.
President Obama’s new regulatory proposal to curb trading by financial institutions and the fear that the economy may slow down led to a massive sell-off in equities on Wall Street. Support failed in the stock indices early in the session after fresh money failed to show up. This broke the pattern of the last two days and set the tone for a sizeable retracement break.
USD JPY Tumbles as Return of Risk Aversion Rocks the Markets
The USD JPY reversed its four day rally as traders sought safety in lower yielding assets following an announcement by President Obama to curb trading at financial institutions. The immediate reaction was to sell higher risk assets after Obama called for a reduction in the size and trading activities of financial institutions.