Daily Futures Commentary FINANCIALS 030409

Wednesday, March 4, 2009

OVERVIEW

Asian stock markets are up overnight in anticipation of the announcement of another massive stimulus plan by China. Speculators are buying key raw materials in anticipation of increased demand from China. Industrial metals are firm on speculation that the news may include infrastructure plans for bridges and roads.

Industrial stocks could carry the stock market today. Financial stocks are still weak as the market is still looking for clarity from the Obama administration regarding its housing bailout plan. Traders have been selling financial stocks out of fear of nationalization. Some of the selling pressure is reflecting trader intolerance to ambiguity and the lack of detail from the U.S. government.

Financials: Lower as money is moving into equities. New supply next week is bearish.
Equities: China stimulus plan is driving Asian stocks higher overnight.
Currencies: U.S. Dollar a little weaker as trader appetite for risky currencies increases.
Energies: Short-covering rally likely if equities rise.
Metals: Traders are selling precious metals and buying industrial metals.
Grains: Argentina has a plan to control domestic supply and demand.
Softs: More production with Cocoa. Weaker U.S. …
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