BinaryOptionStrategy– Fear Grips Markets as Libyan Violence Escalates

SamTrader1

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By, http://www.BinaryOptionStrategy.com
EquitiesAsian markets were hit by a heavy wave of selling, as the violence in Libya escalated. The Nikkei snapped a 7-day winning streak, falling 1.8% to 10665, and China’s Shanghai Composite sank 2.6%. The Hang Seng fell 2.1%, and Australian ASX 200 slid a more moderate .9%.

In Europe the drop was more moderate, as markets had already dropped on Monday. The FTSE eased .3% to 5997, while the CAC40 suffered a more substantial 1.2% loss.

Reopening after Monday’s holiday break, US markets tumbled. The Nasdaq led the declines, falling 2.7%, while the Dow dropped 178 points to 12220. The VIX jumped 27% as fear spiked. The spike in o

feb-23-nasdaq-300x133.png

Nasdaq Drops 2.7%

Oil prices sent airline stocks sharply lower, as United Airlines fell 9.2% and Delta Airlines fell 6.6%.

Walmart lost 3.1% after reporting a 7th straight quarter of sales decreases. Barnes and Noble shares plunged 14.4% after suspending its dividend. Netflix sank 5.9% after Amazon announced a new streaming tv service that will be free for Amazon Prime members.

Treasuries and Commodities
Bond prices jumped as investors fled to safety. The 10-year note rose 1 2/32, to yield 3.46%, and 30-year notes rose 1 9/32 to yield 4.6%.

Oil extended its gains, climbing to 94.06, up more than 9% since Friday.

Precious metals dropped, with palladium leading the declines, dropping 6%. To 805.45. Silver slid $1 to 32.86, and gold dipped $7 to 1400.

Agricultural futures tumbled, as the selloff spread. Wheat plummeted 7.3%, soybeans dropped 5.1%, and cotton fell 4.6%.

Currencies
Despite the negative tone in equities and commodities, the currency markets moved moderately. The dollar was mixed, rising .6% against the Pound, .7% vs. the Canadian Dollar and 1% against the Australian Dollar.

The yen rose .5% and the Swiss Franc spiked .9% to .9386.

The Euro ended down .2%, recovering from a 150 pip loss earlier in the day.


Economic Outlook
The spreading political unrest in the Middle East will remain a driving force for the market, particularly as it impacts oil supplies and prices. A sharp rise in oil could threaten the much-needed global economic recovery.

Consumer confidence climbed to a 3-year high, exceeding analyst estimates. Home prices dropped 1.2% according to the Case-Shiller Home Price Index.

Wednesday’s reports will include Existing Home Sales, and weekly mortgage applications.

Earnings are due from Limited Brands, Priceline.com, Lowes, and TJ Maxx.
 
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