The December Dow and December S&P 500 are trading weaker at the midsession as trader shy away from risky assets ahead of this week’s Fed FOMC and G-20 meetings. The December NASDAQ is trading higher on merger and acquisition news. Volume is light and the markets have been rangebound most of the morning. Some support is coming from commodity-based stocks which have been beat-up following the recent sell-off in commodities.

Weakness in the equities may be leading to light buying in the Treasuries ahead of this week’s $112 billion auction. With more supply hitting the markets, the Treasury is counting on China’s support once again to maintain demand and keep yields steady.

The U.S. Dollar is posting a strong gain at the midsession. The December Euro appears to be consolidating in a range. The December British Pound is still seeing selling pressure from talk that there is a financial system crisis brewing in the U.K. Weaker equity and oil is hurting the December Canadian Dollar. Fundamental and technical factors are pressuring the December Japanese Yen.

December Gold and Silver are retreating after several weeks of gains. The stronger Dollar is pressuring these precious metals. Gold has fallen below $1000 which could be a warning of lower prices to follow. A break through $993.00 could trigger an acceleration to the downside.

Talk that the Fed is considering an exit strategy or at least an end to its financial stimulus programs is helping to pressure December Crude Oil. Traders feel that the economy may not be strong enough to trigger enough demand at this time to keep pace with the growing supply.