Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy
Equities
Friday’s Western relief rally lifted Asian markets on Monday, following an agreement for stricter budgets amongst euro zone countries. The Nikkei advanced 1.4% to 8654, the Kospi climbed 1.3%, and the ASX 200 rose 1.2%. China’s Shanghai Composite bucked the uptrend, sliding 1%, and the Hang Seng closed down fractionally.
Friday’s gains were short-lived for European stocks, as a steep selloff hit the continent. Germany’s DAX tumbled 3.4% to 5785, the CAC40 dropped 2.6%, and the FTSE fell 1.8%. Despite Friday’s summit treaty, little progress has been made in improving the European debt crisis.
Germany's DAX Slumps 3.4%
US markets dropped as well, but ended well off their lows. The Dow dropped 163 points to 12021, the Nasdaq declined 1.3%, and the S&P 500 dropped 1.5%. Banking shares were hit hardest, as Citigroup plunged 5.4% and Bank of America dropped 4.7%.
Intel shares tumbled 4% after cutting its profit outlook, weighing on semiconductor shares.
Treasuries and Commodities
Bond prices rose, propelled by the drop in equities. 10-year notes edged up 11/32 to yield 2.02%, and 30-year notes gained 1 full point to yield 3.06%.
Crude oil fell 1.3% to 98.08, and natural gas dropped 1.9% to 3.254 in a broad commodity slide.
Metals posted outsized losses, as gold tumbled 2.8% to 1668.90, silver fell 2.9% to 31.31, and copper dropped 2.8% to 3.457.
Currencies
The Dollar surged as investors flocked to safety. The Euro and Swiss Franc both tumbled 1.5% to 1.3186 and 1.0672 respectively. The Australian Dollar shed 1.4% to 1.0078, and the Canadian Dollar lost 1% to 1.0258. The Yen fared better than its pears, easing .3% to 77.90.
Economic Outlook
The Fed will issue its rate statement on Tuesday, and is not expected to lift rates from .25%. Also due are retail sales, business inventories, and the TIPP economic optimism report.
Earnings are scheduled for Best Buy and Perfumania.
Equities
Friday’s Western relief rally lifted Asian markets on Monday, following an agreement for stricter budgets amongst euro zone countries. The Nikkei advanced 1.4% to 8654, the Kospi climbed 1.3%, and the ASX 200 rose 1.2%. China’s Shanghai Composite bucked the uptrend, sliding 1%, and the Hang Seng closed down fractionally.
Friday’s gains were short-lived for European stocks, as a steep selloff hit the continent. Germany’s DAX tumbled 3.4% to 5785, the CAC40 dropped 2.6%, and the FTSE fell 1.8%. Despite Friday’s summit treaty, little progress has been made in improving the European debt crisis.
Germany's DAX Slumps 3.4%
US markets dropped as well, but ended well off their lows. The Dow dropped 163 points to 12021, the Nasdaq declined 1.3%, and the S&P 500 dropped 1.5%. Banking shares were hit hardest, as Citigroup plunged 5.4% and Bank of America dropped 4.7%.
Intel shares tumbled 4% after cutting its profit outlook, weighing on semiconductor shares.
Treasuries and Commodities
Bond prices rose, propelled by the drop in equities. 10-year notes edged up 11/32 to yield 2.02%, and 30-year notes gained 1 full point to yield 3.06%.
Crude oil fell 1.3% to 98.08, and natural gas dropped 1.9% to 3.254 in a broad commodity slide.
Metals posted outsized losses, as gold tumbled 2.8% to 1668.90, silver fell 2.9% to 31.31, and copper dropped 2.8% to 3.457.
Currencies
The Dollar surged as investors flocked to safety. The Euro and Swiss Franc both tumbled 1.5% to 1.3186 and 1.0672 respectively. The Australian Dollar shed 1.4% to 1.0078, and the Canadian Dollar lost 1% to 1.0258. The Yen fared better than its pears, easing .3% to 77.90.
Economic Outlook
The Fed will issue its rate statement on Tuesday, and is not expected to lift rates from .25%. Also due are retail sales, business inventories, and the TIPP economic optimism report.
Earnings are scheduled for Best Buy and Perfumania.