Binary Options Daily Analysis – Gold Soars Past $1600, Equities Drop

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Equities

Asian markets closed moderately lower, on light volume. The Kospi fell .7% weighed down by memory chip makers, as Hynix slumped 4.4%. The Shanghai Composite ticked down .1%, and the Hang Send slipped .3%, while the ASX 200 closed flat. Japanese markets were closed for a holiday, contributing to the light volume.

Selling pressure picked up in Europe, as concerns over Greece remained in focus. The CAC40 sank 2%, while the FTSE and DAX both dropped 1.6%. Italian banks tumbled, and European banking sector fell 3.1%.
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France's CAC40 Drops to New Low for the Year

US markets fared slightly better, but still closed down. The Dow fell 95 points to 12385, the S&P dropped 11 points to 1305.50, and the Nasdaq slid .9%.

Apple was a bright spot amongst stocks, gaining 2.4% after JPMorgan significantly raised it earnings estimate. Netflix skidded 2.8% after being downgraded by Pacific Crest Securities, and LinkedIn tumbled nearly 7% after JPMorgan downgraded the stock to neutral.

The ongoing phone hacking scandal sent News Corp shares down 4.3%.



Treasuries and Commodities


Bonds traded flat, with the exception of 30-year notes which dropped 26/32 to yield 4.29%.

Gold soared to a new record high, settling at 1605.50, up 1%. Silver rallied 3.1% to 40.285, breaking back above $40 for the first time since early May.

Crude oil fell 1.4% to 95.91, and gasoline futures fell 1% to 3.0985, erasing Friday’s gains.

Agricultural futures skidded across the board, with cotton down 2.6%, coffee dropping 2.1% and wheat easing .8%.



Currencies


The US Dollar rose against the majors, as investor appetite for risk faded. The Euro fell .3%% to 1.4110, the Pound dropped .5% to 1.6052, and the Canadian Dollar slumped .6% to .9590. The Swiss Franc dropped .6% to .8178, reversing from early morning gains, and the Yen closed flat, just above 79.



Economic Outlook

Home Builder Sentiment rose slightly to 15, from last month’s drop to 13, but still remains at extremely low levels.

Tuesday’s reports will include Housing Starts and Building Permits. In Europe, the ZEW Economic Sentiment report is due for Germany and the Eurozone.

Earnings are scheduled for Coca Cola, Goldman Sachs, Apple, Bank of America and Yahoo.

Binary Options analysis written by Bradley Welcher.
 
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