Daily Analysis – Upbeat Manufacturing Data Boosts Stocks

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By BinaryOptionStrategy.com

Equities

Asian markets ended mostly higher, as the immediate threat of a Greek default disappeared. The Nikkei rose .5% to 9868, despite an unimpressive business outlook report, and the Kospi jumped 1.2%, led by automakers. Australia’s ASX 200 slipped .4% to 4591, due to weaker than expected PMI data from China, although the Shanghai Composite only eased .1% on the news.

Renewed confidence, combined with solid economic data from the US helped boost European indexes, ending an 8-week losing streak. The FTSE gained .7% to 5990, while the CAC40 and DAX both rose .6%.

US markets rallied, with the Dow charging ahead 168 points to 12583. The Nasdaq gained 1.5% and the S&P 500 rose 1.4% to 1340. The major indexes all rose more than 5% this week, while the VIX dropped to 15.98.
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Dow Rises 5.4% this Week

Ford and GM rose after they both reported an impressive increase in monthly sales.

Eastman Kodak plunged more than 14% after a court upheld a losing patent ruling related to digital cameras.



Treasuries and Commodities


The bond selloff continued, as a strong equity rally, combined with the end of the Fed’s easing, reduced the appeal of fixed income. 10-year notes dropped 6/32 to yield 3.18% and 30-year notes fell 10/32 to yield 4.39%

Crude oil closed down .5% to 94.94, and natural gas slumped 1.4% to 4.311, but gasoline closed up .1% at 2.9726.

Precious metals fell, as gold sank 1.3% to 1482.60, and silver declined 3.2% to 33.694. Copper gained .5%, despite the weak Chinese data.



Currencies

The Swiss Franc tumbled 1% against the dollar, dropping to .8499, as the appeal of safe-haven currencies dropped. The Yen also eased, dropping .2% to 80.74. Most other currencies gained against the dollar, led by the Australian Dollar and Canadian Dollar, which both rallied .6% to 1.0773 and .9585 respectively. The Euro and Pound rose a more moderate .2%.



Economic Outlook


The ISM’s Manufacturing PMI report rose more than expected, showing its first gain in 4 months. Consumer Sentiments was slightly below expectations at 71.5 vs. 72, and Construction Spending unexpectedly declined .6%.

US markets will be closed on Monday for Independence Day.
 
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