Binary Option Analysis – Upbeat US Employment Data Lifts Western Markets

Sep 8, 2011
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Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy


Equities

Asian market closed mixed on Wednesday, as concerns over the European debt situation continued to weigh on investors. The Nikkei skidded 2.2%, as Sony shares dropped 3.6% ahead of earnings. Korea’s Kospi slipped .6%, and the ASX 200 dropped 1.1%. China’s markets rallied, with the Shanghai Composite climbing 1.4%, and the Hang Seng rallying 1.9%.

European stocks rallied, aided by goodUSdata and the Fed’s remarks that it was prepared to take action to keep the economy growing. The DAX jumped 2.3%, the CAC40 climbed 1.4% and the FTSE advanced 1.2%.

In the US, the Dow rallied 178 points to 11836, the S&P 500 gained 1.6% and the Nasdaq rose 1.3%. The Fed left interest rates unchanged, and cut its growth forecast to 1.6% for the coming year.

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Dow Gains 178 Points



Treasuries and Commodities

US bonds closed mixed, as 10-year notes ticked up 1/32 to yield 1.99%, and 30-year notes slipped 9/32 to yield 3.01%. German bonds skidded, as 10-year notes fell .54, and 30-year notes dropped 1.60.

Crude oil rose .7% to 92.80, while natural gas slipped .4% to 3.765.

Metals advanced, led by silver, which rallied 4.7% to 34.265. Copper climbed 2.6%, and gold gained 1.5% to 1738.20.



Currencies

The Dollar fell against other major currencies, as the market stabilized after Tuesday’s plunge. The Euro rose .5% to 1.3746 , and the Swiss Franc gained .6%, The Yen gained .4% to 78.07, the Australian Dollar rose .3% to 1.0341, and the Pound inched up .1% to 1.5952.



Economic Outlook

Wednesday’s ADP employment report showed a gain of 110K jobs last month, better than forecast, lifting hopes for Friday’s non-farm payroll report.

Thursday’s economic data will include weekly jobless claims, productivity, factory orders, ISM non-manufacturing index, and chain-store sales.

Earnings are due from AIG, CBS, and Unilever.