Binary Options Daily Analysis – Strong Payroll Data Boosts Equities and Dollar

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By BinaryoptionStrategy.com

Equities

Asian markets extended their losses on Friday following Thursday’s declines on Wall Street. Japan’s Nikkei returned from an extended holiday to drop 1.5%, and the South Korean Kospi fell 1.5% as well. In China, markets fell moderately as the Shanghai Composite eased .3% and the Hang Seng slipped .4%.

Upbeat US payroll data sent European markets sharply higher in the afternoon, as the FTSE rose 1% and the DAX rallied 1.6%. Materials stocks recovered after the steep commodity selloff this week, as the sector rose 2.9%. Germany’s, Spiegel Online, published a report indicating Greece might abandon the Euro, which officials denied.

US markets rose, but ended well off their highs as the markets swung in a wide range. The Dow added 55 points to close at 12639, but had climbed as high as 12759 earlier in the session. The Nasdaq gained 5% and the S&P 500 rose .4%.
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Dow Gives Up Most of its Gains


Kraft rose 2.1% on strong earnings, and Visa gained .9% on positive earnings after initially falling after-hours on Thursday.

Berkshire Hathaway, Warren Buffett’s conglomerate, announced a smaller profit than expected due to steep insurance losses tied to disasters in Japan, New Zealand and Australia. The company took a $.1.7 billion charge for the insurance losses.

Treasuries and Commodities

Bonds traded mixed, as shorter term issues rose slightly, while the 30-year note fell 17/32 to yield 4.29%.

Crude oil dropped another 2.6%, closing at 97.18, and ended the week down nearly 15%. Gasoline futures eased .2% to 3.0901, and natural gas closed down .6% at 4.235.

Gold rose .7% to 1491.60, while silver dropped another 2.6% to 35.283, down 27% for the week. Copper lost .6%, closing at 3.9635.

Cotton tumbled 7% and corn fell 3.2% while what and soybeans rose slightly.

Currencies

The dollar ended Friday mostly higher. The Euro tumbled 1.6% to 1.4312, extending Thursday’s steep 2% loss. The Swiss Franc dropped 1.1% to .8796, and the Yen fell .5% to 80.73. The Australian Dollar was a notable exception, bouncing .9% to 1.0687.

Economic Outlook


Friday’s payroll report showed a gain of 244K jobs, well above analyst estimates of 186K. The private sector added 268K jobs in April, up from 231K in March. Surprisingly, the unemployment rate unexpectedly rose to 9% from 8.8%.
 
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