BinaryOptionStrategy – Gold Hits New Record, Oil Climbs Past $100

SamTrader1

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Asian markets gained for a 3rd straight day, this time with the Nikkei taking the lead, rising 130 points to 10754. China reported PMI data that showed a slowing in manufacturing growth, dropping to a 6-month low. The Shanghai Composite rose .5%, while the Hang Seng edged up .3%. Australia’s ASX 200 was unable to keep up, easing .1% as banks slipped.

Fear reemerged in Europe, sending markets lower, The FTSE dropped 1% to 5936, and the DAX slid .7% to 7223. HSBC shares dropped 3%, extending Monday’s steep 5% drop.

After a quiet open, selling pressure snowballed, sending the markets sharply lower. The Dow sank 168 points to 12058, while the Nasdaq and S&P both tumbled 1.6%.Dow Tumbles 168 Points

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Tivo shares dropped 4.5%, after an analyst downgrade, and Las Vegas Sands fell more than 6% on news that the company is under investigation by the SEC and Department of Justice.

Treasuries and Commodities

Bonds rose gently, with the 10-year benchmark up 7/32 to yield 3.41%, and 30-year notes rose 8/32 to yield 4.49%.

Renewed concerns about the dire situation in Libya sent oil and gold sharply higher. US crude rose 3.47 to 100.44, and gasoline futures surged 3.9% to 3.0061. Gold jumped 24.60 to close at 1434.50, a new record high, and silver rallied 2.4% to 34.615. Copper slid .7%, as traders focused on energy and more defensive plays.

Currencies

Global currencies ended the day close to where they began, as late day dollar buying reversed earlier losses. The Pound and Euro both ended up .1% against the dollar, while the Swiss Franc eased .1%, as currencies moved in relatively narrow ranges. The Canadian dollar eased .2% to .9736, after hitting a record .9684 earlier. The yen retreated .4%, pushing the USDJPY back above 82, to 82.07.

Economic Outlook

Fear has returned to Wall Street, and the ongoing Middle East uncertainty is likely to remain a significant concern for the foreseeable future.

Auto sales data showed strong monthly sales figures with a gain of 20% from last year, led by GM where sales rocketed 49% higher. Bernanke spoke to Congress, and said he does not expect the surging oil prices to threaten the US economy. The ISM manufacturing index rose to 61.4, its highest level since 2004, while Construction Spending slipped .7%, more than expected.

Wednesday’s reports will include weekly mortgage applications, the ADP Employment Report, and the Fed’s Beige Book. Bernanke will continue his 2-day testimony to Congress. Earnings are due from Costco, Staples and Foot Locker.
 
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