Over the next 30-minutes and as we draw closer to the NY session we'll begin to see increasing liquidity levels and money-flows in the markets. Banks and financial stocks are clearly weighing on market participants in early trading this morning.
HSBC needs to raise $18 billion to fight insolvency issues plus they announced an additional $10 billion write down for their consumer lending division in the US, which will be closed. AIG should be the story that dominates Wall St. Later this morning they are expected to announce a $40 billion loss for Q4 which is the worst in their history. In Q4 of 2008 AIG lost $460,000 every 60-seconds. Well done.
The EUR/USD and its market correlated variables are all near very key support and resistance levels... at the top of the hour (0600 EST) the S&P 500 futures remain well under the 720 level, the 10-year yield is well under 3.00% again, the USD Index is pushing 3-year highs, gold failed to break the $950 level, and crude has been steadily falling. Based on what I'm seeing, I think all signs point to another round of fear and panic in the markets today.
Whatever bearish sentiment I have against the USD will likely be set aside because these markets are showing signs they have the potential to break those levels should Wall St. continue what was started in Asia and Europe.
We may hear from Treasury Geithner and FDIC's Bair today, adding to the chaos.
-David
HSBC needs to raise $18 billion to fight insolvency issues plus they announced an additional $10 billion write down for their consumer lending division in the US, which will be closed. AIG should be the story that dominates Wall St. Later this morning they are expected to announce a $40 billion loss for Q4 which is the worst in their history. In Q4 of 2008 AIG lost $460,000 every 60-seconds. Well done.
The EUR/USD and its market correlated variables are all near very key support and resistance levels... at the top of the hour (0600 EST) the S&P 500 futures remain well under the 720 level, the 10-year yield is well under 3.00% again, the USD Index is pushing 3-year highs, gold failed to break the $950 level, and crude has been steadily falling. Based on what I'm seeing, I think all signs point to another round of fear and panic in the markets today.
Whatever bearish sentiment I have against the USD will likely be set aside because these markets are showing signs they have the potential to break those levels should Wall St. continue what was started in Asia and Europe.
We may hear from Treasury Geithner and FDIC's Bair today, adding to the chaos.
-David
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