Binary Options Analysis – Asia and Europe Tumble, US Recovers to end Higher

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Equities

Asian markets closed down, following steep losses in Europe and the US on Tuesday. The Nikkei sank 2.1% to 9637, the Kospi tumbled 2.6%, and the ASX dropped 2.3%, its biggest drop in more than a year. As is often the case, China’s Shanghai Composite moved independently, closing flat, while the Hang Seng lost 1.9%.

Another heavy round of selling hit European markets, pushing the FTSE and DAX down 2.3%. France’s second largest bank, Societe Generale, tumbled 9% after issuing a profit warning.

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Dax Tumbles for a 3rd Straight Day

US markets successfully snapped an 8-day losing streak, reversing from early losses to end higher. The Dow rose 30 points to 11896, erasing a 166 point loss earlier in the session. The Nasdaq advanced .9% and the S&P 500 rose .5%.

Blackberry maker, Research in Motion, rose 4.9% after announcing 5 new Blackberrry models.

Mastercard shares surged 13.4% after reporting stellar earnings.



Treasuries and Commodities

Moody’s and Fitch both confirmed the US’s AAA rating, following the successful passage of the budget bill.

Bonds closed mostly flat, with little change in 2-10 year notes, while 30-year notes rose 11/32 to yield 3.89%.

A jump in crude oil supplies helped send crude oil down 1.95 to 91.84, while gasoline futures tumbled 3.5%.

Gold jumped 21.10 to yet another record lose of 1665.60, and silver rallied 4.3% to 41.83. Mounting concerns over a European debt meltdown continue to fuel the advance of both gold and the Swiss Franc.



Currencies

The Dollar closed mostly lower against world currencies. The Euro and Pound both gained .9%, rising to 1.4318 and 1.6426 respectively. The Yen rose .5% to 76.99, while the Swiss Franc retreated .6% to .7692, after touching a new record of .7628 earlier in the day.



Economic Outlook

The ADP Employment Report showed an impressive gain of 114K jobs in July, better than the 101K forecast by analysts. Meanwhile, non-manufacturing PMI fell to 52.7 from 53.3, worse than expected, and factory orders decline .8%, more than forecast.

The ECB and Bank of England will issue their rate decisions on Thursday. Both are expected to hold rates steady.

In the US, weekly unemployment claims and chain store sales data will be announced. Earnings are due for GM, AIG, Kraft, and Sunoco.




Binary Options Trading analysis written by Bradley Welcher
 
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