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By BinaryOptionStrategy.com
Equities
Weak factory data from China, coupled with European debt fears, pressured Asian markets. The Shanghai Composite dropped 2.9% and the Hang Seng fell 2.1%. The Nikkei fell 1.5% to 9461, and the Kospi sank 2.6%.
European markets fell steeply, as the Dax dropped 2%, the FTSE fell 1.9% and the CAC40 dropped 2.1%. S&P cuts its outlook tor Italy to negative from stable, adding to the mountain of debt fears. European PMI data showed a slowdown in Germany in France, and Fitch cut its outlook on Belgium to negative from stable.
US markets were unable to escape the selling pressure, as the Dow fell 131 points to 12381, and the Nasdaq slumped 1.6%. Energy shares fell more than 2%, as oil prices dropped.
Dow Falls 131 Points
Treasuries and Commodities
Bonds rose moderately, as 10-year notes gained 5/32 to yield 3.13% and 30-year notes rose 17/32 to yield 4.27%.
Oil dropped 2.6% as signs of a slowdown in China and Europe weighed on commodities. Copper fell 3.2%, while gold rose .5% to 1516.70.
Currencies
The Dollar rallied against major world currencies as European currencies lost their appeal. The Euro fell .8% to 1.4051, and fell as low as 1.3970 earlier in the day. The Pound and Swiss Franc both dropped .7%. The Australian Dollar, which is highly sensitive to negative news, tumbled 1.4% to 1.0508.
Economic Outlook
The worsening situation in Europe, both in terms of debt and growth is a major issue that is likely to weigh on the markets for the coming weeks.
Tuesday’s reports will include New Home Sales, Redbook, and the Richmond Fed Manufacturing Index.
Earnings are due from Autozone and Applied Materials.
Equities
Weak factory data from China, coupled with European debt fears, pressured Asian markets. The Shanghai Composite dropped 2.9% and the Hang Seng fell 2.1%. The Nikkei fell 1.5% to 9461, and the Kospi sank 2.6%.
European markets fell steeply, as the Dax dropped 2%, the FTSE fell 1.9% and the CAC40 dropped 2.1%. S&P cuts its outlook tor Italy to negative from stable, adding to the mountain of debt fears. European PMI data showed a slowdown in Germany in France, and Fitch cut its outlook on Belgium to negative from stable.
US markets were unable to escape the selling pressure, as the Dow fell 131 points to 12381, and the Nasdaq slumped 1.6%. Energy shares fell more than 2%, as oil prices dropped.
Dow Falls 131 Points
Treasuries and Commodities
Bonds rose moderately, as 10-year notes gained 5/32 to yield 3.13% and 30-year notes rose 17/32 to yield 4.27%.
Oil dropped 2.6% as signs of a slowdown in China and Europe weighed on commodities. Copper fell 3.2%, while gold rose .5% to 1516.70.
Currencies
The Dollar rallied against major world currencies as European currencies lost their appeal. The Euro fell .8% to 1.4051, and fell as low as 1.3970 earlier in the day. The Pound and Swiss Franc both dropped .7%. The Australian Dollar, which is highly sensitive to negative news, tumbled 1.4% to 1.0508.
Economic Outlook
The worsening situation in Europe, both in terms of debt and growth is a major issue that is likely to weigh on the markets for the coming weeks.
Tuesday’s reports will include New Home Sales, Redbook, and the Richmond Fed Manufacturing Index.
Earnings are due from Autozone and Applied Materials.