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Current Futures: Dow +5.00, S&P -0.30, NASDAQ -2.25
European markets showed some slight signs of buying strength near to the opening bell, but then quickly retraced back to the break-even line, as investors continue to question the March-May 09 rally.
European markets posted small gains in the first few minutes of the session, but then retraced back after the S&P futures hit the 894.00 area. This particular area also acted as a major resistance point in the previous day of trade, which confirms that the S&P would need first to break decisively going long if global markets are to be able to easily follow, TheLFB-Forex.com Trade Team said. However, such a move will be hard to pull outside of the cash trading hours, especially when the U.S. economic calendar is loaded with important releases on Wednesday.
In Europe, most industries continued to trade mixed, with some small gains observed in commodity stocks and in the technology sectors. Commodity stocks reversed the declines seen over the past two days and rose approximately 2% this morning in Europe, as the price of metals advanced on Wednesday. The technology sectors rose after Oracle reported better than expected results for the fourth quarter, TheLFB-Forex.com Trade Team notes.
The current U.S. administration’s plan to put pay caps on the bailed out companies seems not to be working; Citigroup is discussing the potential to raise base salaries by 50%, to counter the smaller paychecks received as bonuses. Moreover, the company plans to award stock options to employees, which would halt (at least) the number of investment bankers leaving for other financial institutions that are outside of President Obama’s administration reach.
Overnight, the U.K. FTSE gained 2.82 points (0.07%) to 4,232.80, while the German Dax fell 0.20 points (0.01%) to 4,706.95
Crude oil for July delivery was recently trading at $68.70 per barrel, lower by $0.50.
Gold for July delivery was recently trading up by $3.50 to $927.80.
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