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Global Equity Markets Flatten on Tuesday

By DailyForex.com
Global Equity Markets were flat Tuesday. In the U.S the DJIA was up a mere 14 points while the Bond Market was up on the back of the largest 2 year Treasury auction to date. Demand initially was not expected to be so strong however, there are those that believe that equity markets are in for a correction going into Q4 and are pulling money out of equities and into the more secure lower yielding Treasury market.

Additionally, Consumer Confidence printed lower than expected further adding fuel to the side that rates will continue to be on hold for the foreseeable future. That assumption assumes Oil will be held in check as it closed today just south of $80 a barrel. The Gold rush has continued to chill as Gold closed around 1,040.

The Greenback resumed its firmness as equities have been on a mild retreat since last week. The EUR traded below 1.48 while GBP traded below 1.63. There are a number of data releases due out tomorrow. In both the Euro-zone and Australia the Consumer Price Index will print tomorrow. In the U.S Durable Goods and New Homes Sales figures will be published. The RBZ is also expected to decide on a possible Rate increase although most economist are looking for Rates to stay at 2.5%. There has been much rhetoric from Central Bankers recently so stay tuned to accompanying statements.

Upcoming Forex Events for October 28, 2009


EUR German Import Price Index (MoM) Actual -0.90% Forecast -0.60%  Previous 1.30%

USD MBA Mortgage Applications   Previous  -13.70%

USD Core Durable Goods Orders (MoM) Forecast   0.50% Previous  0.00% 

NZD Interest Rate Decision Forecast  2.50%  Previous 2.50%

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