Daily Analysis – Commodities Rebound, Global Equities Gain

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By, BinaryOptionStrategy.com

Equities

Asian markets overcame early weakness to close higher. The South Korean, Kospi, rallied 1.6%, with automakers leading the way, and the Nikkei rose 1% to 9662. China’s Shanghai Composite rose .7% and the Hang Seng closed up .5%

In Europe, the major markets followed Asia’s lead, as the FTSE climbed 1.1% and the CAC40 gained .9%. Overnight, IMF Chief Strauss-Kahn resigned, while maintaining his innocence amid accusations of raping a hotel work during a trip to New York He is being held without bail in New York.

Moving in step, US markets rose, led by the tech-heavy Nasdaq which gained 1.1%. The Dow added 81 points to 12560 and the S&P advance .9%.

Dell shares jumped 5.4% after beating analyst estimates, even as HP reported weaker than expected earnings results. Staples shares tanked 15.4%, after reporting disappointing profits and a drop in same store sales.

LinkedIn’s IPO set a price of $45 a share, and will begin trading on Thursday on the NYSE. The ticker symbol is LNKD.

Treasuries and Commodities

Bonds slumped as the Fed’s minutes indicated a readiness to raise interest rates. 10-year notes fell 16/32 to yield 3.17% and 30-year notes dropped 1 3/32 to yield 4.29%.

Commodities bounced back, with significant gains in all markets. Crude Oil jumped 2.9% to 99.75 after a government report showed a drop in inventories. Gasoline futures climbed .8% to 2.9438, and natural gas edged up .3% to 4.193.
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Crude Rallies Following Bullish Inventory Data

Silver led metals higher, surging 4.4% to 34.965 as the metal’s high volatility continues. Gold rose 1% to 1495.40, and copper jumped 2.5% to 4.10.

Wheat soared 6.9%, while corn and sugar rallied more than 4%.

Currencies

The Pound fell .6% to 1.6158 as minutes from the recent policy meeting revealed that a move to raise interest rates has not gained traction, even as inflation continues to rise. Other currencies moved narrowly, as the Euro and Australian Dollar closed flat, while the Yen eased .3% to 81.69.

Economic Outlook

Mortgage applications rose nearly 8%, boosted by refinancing applications, as homeowners take advantage of the recent dip in interest rates.

Thursday’s reports will include Existing Home Sales, the Philly Fed Survey, Leading Indicators and weekly jobless claims.

Earnings are due from several retailers including Sears, Gap, Children’s Place and William’s Sonoma.
 
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