Why Today’s Was A Relief Rally
The equity markets moved
higher today, more
as a result of investor relief that Memorial Day weekend came and went
without a terrorist incident than the strong housing and
confidence data. This is evidenced by the
fact that last week’s safe haven instruments, such as Treasuries, gold and oil
prices, all appreciated in value, whereas riskier high yield and emerging market
assets decreased in value ahead of the long weekend.
Fixed Income
The 10 year futures contract
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down 085 to close at 118-175; the 30 year
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was down 1-13 at 119-28; and the five year note was up 015 at 116-020
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Metals
July gold was lower by 2.10 to close at 365.70
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silver
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benefited from stronger equities, as copper was up .20 at 78.00
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and aluminum
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Energy
The petroleum market was also lower. June crude
was down .24 cents to
close at 29.11
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close at 5.848
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Currencies
The theme in the currency markets has moved from
US dollar weakness to euro strength, as the European currency continues to make
multi-year highs across the board The USD index
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finished at 92.81.