U.S Market Summary

Investors dumped some of the safe-haven assets acquired over the past
month, including the CHF, as they entered a data-focused week. Since Fed
Chairman Ben Bernanke didn't specifically spell out what the bank might
do to boost the economy in his speech last week, leaving the door open
for possible stimulus measures, traders will go over every piece of data
to try to clarify the health of the economy and divine the Fed's next
move, says Aroop Chatterjee, interest rate strategist at Barclays
Capital in New York. Late Monday, the EUR/USD was at 1.4510 vs 1.4499
late Friday, the USD/JPY was at 76.84 vs 76.69, the EUR/JPY was at
111.52 vs 111.13, the GBP/USD was at 1.6415 vs 1.6371, and the USD/CHF
was at 0.8160 vs 0.8065. The ICE Dollar Index was at 73.700 from 73.814.

Stocks rallied in some of the thinnest trading of the summer,
highlighted by gains for insurers amid relief over Irene's relatively
light touch on major cities. Insurance stocks leapt as analysts
concluded that the tropical storm that swept across the East Coast
wasn't as damaging as feared. Hartford Financial Services Group gained
13%, Lincoln National rose 8.9%, and Travelers rose 5.1%. Bank of
America gained 8.1% after it agreed to sell half its stake in China
Construction Bank, booking a $3.3 billion gain.

The Dow jumped 2.3%, while the Nasdaq soared 3.3%. Investors sold out of
safe-haven Treasurys on the back of an upbeat spending report, further
heartened as the weekend's storm caused less damage than expected.

The two-year yield rose 1.2 bps to 0.207%, while the 10-year yield rose
7.8 bps to 2.268%. Gold futures eased as upbeat market sentiment boosted
equities and damped investor demand for gold; Comex December gold fell
0.3% to $1,791.60/oz.

Oil futures rallied sharply as traders took cues from the rising stock
market and shrugged off the relatively mild impact of Irene; Nymex
October Crude settled up 2.2% at $87.27/bbl.

-@-
Source : http://marketcall.net/2011/08/u-s-market-summary-2/
<http://marketcall.net/2011/08/u-s-market-summary-2/>















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