Binary Options Daily Analysis – European Markets Slide on Economic Weakness

SamTrader1

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By, BinaryOptionStrategy.com

Equities

Asian markets ended mostly higher, while the Hang Seng slid .3%. Australia’s ASX 200 rose .7%, led higher by miners, and the Nikkei and Shanghai Composite both gained .1%.

European markets feel steeply, with the DAX leading the declines, down 1.8%. The FTSE fell 1.1% and the CAC40 dropped 1.2%. Disappointing economic sentiment data for Germany and the Eurozone contributed to the declines.
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Dow Largely Recovers from Early Weakness

US markets opened the day with considerable losses, but clawed back throughout the session to end mixed. The Dow closed down 69 points at 12480, while the Nasdaq and S&P 500 both ended flat.

Hewlett-Packard, a Dow component, cut its profit forecast, sending shares tumbling 7.3%.

Wal-mart reported good profits but a decline in same-store sales. The shares closed down .9% at 55.54. TJX, operator of TJMaxx and Marshall’s stores, fell 4.1% on weak earnings.

Dell reported earnings after the bell, handily beating estimates. The shares rose 6.2% in after-hours trading.

Treasuries and Commodities

Bond prices rose as investors grew concerned over economic weakness. 10-year notes closed up 10/32 to yield 3.11%, and 30-year notes gained 20/32 to yield 4.22%.

Energy-related commodities fell, with US crude down .3% to 97.05, and gasoline futures down .5% to 2.9175. Natural gas slumped 3.1%, closing at 4.184.

Precious metals once again fell, as gold eased .6% to 1481.10, and silver sank 1.4% to 33.64. Copper gained .9%, crossing back above $4 to 4.028.

Agricultural futures rallied across the board, as wheat jumped 3.7% and corn rallied 3.3%.

Currencies

The US dollar slid against most major currencies, as the Euro, Australian Dollar and Swiss Franc all gained .4%, while the Pound rose .3%. The Yen was a notable exception, sliding .6% to settle at 81.38.

Economic Outlook

Industrial Production was flat for April, well below last month’s gain of .7%, and below analyst estimates. Building permits and Housing starts both came in well below estimates, as the housing market’s struggles continue.

Wednesday’s reports will include the FOMC minutes, weekly mortgage applications, and weekly oil inventories.

Earnings are due from Target, BJ’s and Limited Brands.
 
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