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Current Futures: Dow -6.00, S&P -1.10, NASDAQ -0.25
Asian markets are advancing, but still the gains seen in the major indexes are small. U.S futures has had a very light volume of trading so far, and was unable to move anywhere decisively.
Asian markets continue to post very small gains, as investors are uncertain about the rally that started in March, which helped the global equity markets advance as much as 40% and recover the declines seen in the first three months of 2009. The global equity markets started to rally after a number of macroeconomic releases begin to turn around, and show that the pace of contraction was slowing down, TheLFB-Forex.com Trade Team said. However, these days many investors are questioning the market’s strong reply, since the global economy is still in a contraction phase and the main macroeconomic indicators (unemployment, investments, retail sales, inventories, etc.) are still showing a mixed picture.
In the current environment, the global equity market saw a period of side-ways movement and small declines since the beginning of June, as investors left the market and it therefore was unable to sustain the equity rally. Tonight, the Asian markets posted limited gains, of less than 0.5%. In the Japanese Nikkei, the number of companies that advanced is only slightly bigger than the ones that declined tonight, while trading volume is still very thin. Most sectors traded mixed on Monday, as investors priced individual company news rather than industry news. As such, the biggest gains were seen in Sapporo Holdings, which gained 17.5% on a rating upgrade, while Fuji Electric and Furukawa gained more than 6% after the two companies decided to join the chip markets for hybrids.
Overnight, the Japanese Nikkei added 7.67 points (0.08%) to 9,793.93. The Australian S&P/Asx rose 13.90 points (0.36%) to 3,913.50
Crude oil for July delivery was recently trading at $69.05 per barrel, lower by $0.50.
Gold for July delivery was recently trading lower by $2.10 to $934.10.
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