Despite Caution Wall Street Remains Near Record Highs

Despite last week’s cautious results from Wall Street, particularly the NASDAQ, the major Indexes in the States remain near record highs and will be watched intently as they begin trading this week. Asian markets did well today and European equities have opened with gains. Forex has seen the U.S Dollar range trading against the major currencies.

Wall Street will be Watched Closely – Disappointing Data Last Friday

U.S markets will be watched closely upon their opening, after last week’s rather cautious results. While the Dow Jones and S&P finished with gains on Friday, the NASDAQ has been under a shadow. However, even during last week’s so-called cautious results, Wall Street remains within record territories. There will be little data from the States today, but New York Fed President William Dudley will be speaking. Last Friday’s economic results from the housing sector were disappointing and a Consumer Sentiment reading also missed its expectation. Washington politics will remain a highlight this week, and traders will keep an eye on the White House as it interacts with Congress.

Hang Seng Powers Higher – Japan Data Stays Lackluster

The Hang Seng Index led gainers across Asian equity markets today. The Nikkei and Topix were able to reverse last week’s tentative trading, and the Shanghai Shenzhen composite also put in superior results to begin the week. Trade Balance results for Japan which were published early on Monday morning were negative, continuing a streak of rather lackluster economic data. However, the All Industries Activity numbers from Japan coming this Wednesday are expected to beat last month’s results. The Hang Seng Index from Hong Kong is up nearly 3 percent the past month and indicates risk appetite continues to be prevalent in Asia.

Euro & Pound Testing Ranges – European Equities Open Higher

The Euro and Pound are both continuing to test their ranges against the U.S Dollar. The 1.12 level for the Euro against the U.S Dollar is important. And the 1.28 mark for the Pound against the U.S Dollar is attracting attention. Economic data has been extremely light from Europe today, but later today German Bundesbank President Weidmann will be speaking at a conference. However, political developments may have a larger effect on short-term investor sentiment today – from the U.K and the States. European equities have opened with solid early gains this morning.

Gold Support Being Tested – Risk Management Needed for Precious Metal

Gold continues to turn in rather fast and volatile trading. The precious metal is near 1250.00 U.S Dollar an ounce. Gold is testing early May lows and traders in search of reversals should use risk management wisely if they are speculating on a sudden climb.

Yaron Mazor is a senior analyst at SuperTraderTV.

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