www.TheLFB-Forex.com The Forex Trader Portal

Current Futures: Dow -45.00, S&P -7.40, NASDAQ -9.50

The major U.S. index are heading lower for a second consecutive day, as some investors are starting to say that the current market valuation has left behind the economic outlook.

The equity markets saw strong momentum even from the overnight session, when, around the London open, the S&P futures fell close to 1%. Soon after, the futures market retraced the move almost completely, but entered in a wide side-ways channel that lasted all the way into the cash session.

The vast majority of selling came from the basic materials sector, which lost 2.5% as crude oil and gold posted one of the worst intra-day performances of the last few months. The basic materials sector was a major drag on the U.S. market on Tuesday, also being the worst performer of the day. On Wednesday, only the healthcare and the telecommunications sectors managed to hold above the break-even line, with both industries posting small gains, and unfortunately too small to outpace the declines seen in the other eight major sectors.

During the U.S. session, a release showed that durable goods order fell 2.5% in June, much worse than expected. However, the core read, which excludes the volatile items as car sales, increased 1.1% even though the market expected a much lower read, of only 0.1%. The release had a light influence on the global markets, especially in the forex market where the major currencies barely moved. 

Treasuries rose for a second day, as investors shifted from equities into government debt. Yield on the 10-year note declined 2.3 basis points to 3.664%.

The Dow Jones Index fell 65.30 points (0.72%) to 9,031.42, while the S&P 500 index slipped 9.16 points (0.94%) to 970.06

Crude oil for August delivery was recently trading at $63.50 per barrel, lower by $3.70. 

Gold for August delivery was recently trading lower by $10.90 to $928.20. 

TeamLFB provides forex related market analysis and trade signals