Daily Analysis – US Markets Rally, Oil takes a Breather

SamTrader1

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Equities
Asian markets took a break from the recent selling, but most indices ended just slightly higher. The Nikkei rose 20 points to 10525, and the ASX 200 rose .2%, while China’s Shanghai Composite edged up just .1%. The Hang Seng stood out, surging 1.7% higher, led by HSBC.
In Europe the FTSE and DAX ended flat, while the Dax rose .6%. Deutsche Telekom shares jumped 3.8% on rumors of a partenrship with Sprint Nextel.
US markets rallied, with the Dow up 1% and the Nasdaq gaining .7%. Bank of America leaped 4.7% on strong profits, sending banking shares sharply higher.

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Dow Rallies 1%
Airlines rallied on suggestions that OPEC might raise output. Delta surged 9.7% higher, and Southwest gained 7.6%. Home-builder, Pulte Homes gained 8.4% after announcing encouraging sales data, pushing up the sector.

Treasuries and Commodities
Bonds eased slightly as equities rallied. 10-year notes ended down 8/32 to yield 3.54%, and 30-year notes slid 20/32, to yield 4.66%.
Oil slid .62 to 104.82, as the upsurge took a breather. Brent Crude fell 2.1%, and gasoline dropped 2%, while natural gas ended 1.5% lower.
Gold eased 4.60 to 1429.90, but silver gained .6% to 36.075. Copper edged up .5% to 4.3475.
Agricultural futures saw volatile swings as cotton fell 3.3% and wheat fell 2.6%, while sugar and coffee rose more than 2%.

Currencies
The dollar rose against most major currencies. The Swiss Franc sank nearly 1% to .9354, leading the declines. The Euro fell .5% to 1.3903 and the Pound eased .3% to 1.6160, while the yen closed .4% lower to 82.665.
The sole gainer was the Canadian Dollar which inched up .2% to .9712.

Economic Outlook
Wednesday’s reports include Wholesale Trade, weekly oil inventories and mortgage applications. The Treasury will auction 10-year notes.
Earnings are due from retailers Urban Outfitters and Children’s place, and from H&R Block.

By BinaryOptionStrategy.com
 
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