A strong piece of economic
data seems to be the catalyst for today’s early market drop. A robust report on the creation of private
sector jobs sent Treasury yields higher and markets lower because of the
perception that economic stimulus might be coming to an end sooner than
later. International markets were mixed
last night. Gold continues its downward
drift. The price of gold seems to also
be intertwined with the economic stimulus plan.
A withdrawal of stimulus means less financial liquidity, which dampens
speculation, in precious metals and other volatile areas of investment. Oil is up slightly on a decrease in inventory
levels, but there is a feeling that a glut of oil supply, much of it from US
sources, will continue to pressure oil to the downside. Earnings season is almost upon us and it may
set the tone for stock market action in the next month or two. For the meantime, negative sentiment is the
order of the day as the markets attempt to consolidate after last year’s big
rally.
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