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Daily Forex Fundamentals |
Written by Trade The News |
Mar 24 08 15:44 GMT |
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U.S. Market Update
- Dow +217 S&P +23 NASDAQ +59
US equity markets continue to rebound after JP Morgan confirmed it is increasing is buyout offer for Bear Stearns to $10/share. BSC briefly approached $14 and is still trading nearly $2 above the new deal price. XLF +3% Stocks were also helped when February existing home sales moved back above the 5M unit mark and months of inventory slipped back below 10. Home building stocks are seeing some good upside momentum. TOL +7% DHI +9% KBH +8.5% PHM +8% CTX +8.5% Tiffany's Q4 numbers beat expectations and more importantly the Company issued substantially better-than-expected guidance, bringing some positive news for the high end retail space. TIF +13% COH +8% GES +8.3% US Treasury markets are under some real pressure on the back of better equity markets. The two-year yield has climbed back to 1.80% while the ten-year is holding close to 3.50%. The May Fed fund future puts less than 20% odds of a 50 basis point cut. April gold is trying to find some traction after last week's sharp pullback trading up $4.00 at $923. Energy markets are fairly quiet with the best gains being found in gasoline and natural gas futures.
The USD was mixed throughout the US morning in thin, choppy trading session, but managed to regain some additional momentum during the latter portion of the morning. The USD was broadly firmer against the carry-related pairs of CHF and JPY as a sense of calm emerged in the financial sector, aided by an improved bid for Bear Stearns and better-than-expected February US existing home sales. The CHF weakness was also attributed to press speculation the UBS shareholders will vote on a CHF10B capital increase at an April 23 meeting. USD/JPY was approaching the 101 area. Overall the technical picture continues to show some improvement for the USD after recovering from recent lows from EUR, CHF and JPY pairs. The CAD rebounded from its initial session weakness as various commodities recovered from overnight lows. USD/CAD tested 1.03 before retracing back below the 1.02 handle. AUD/USD was firm throughout the day holding above the 0.9030 area. European equities and fixed income markets were closed for Easter Monday holiday.
Trade The News Staff
Trade The News, Inc.
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