Binary Options Analysis – Equities Rise as Stormy August Comes to an End

SamTrader1

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Equities

The Kospi rallied 2%, leading Asian markets higher. The Hang Seng climbed 1.6% to 20535, and the ASX 200 closed up .6%. The Nikkei and Shanghai Composite closed flat.

European markets soared, with the FTSE up 2.4%, the DAX up 2.5%, and the CAC40 gained 3%. Despite the gains, the indexes ended the month of August with steep losses, particularly the DAX which tumbled 19% for the month.

US markets rose modestly, erasing sizable early gains. The Dow rose 54 points to 11616, the S&P 500 gained .5%, and the Nasdaq inched up .1%.

The US Justice Department filed a petition to block AT&T’s takeover of T-Mobile, sending AT&T shares down 3.9%. Sprint shares rallied 5.9% on the news.



Treasuries and Commodities

Bonds sank, with 10-year notes closing down 15/32 to yield 2.23%. 30-year notes dropped 1 18/32 to yield 3.61%.

Gasoline rallied .9% after a government report showed a sharp drop in supply. Analysts suggested the drop was due to the hurricane, as people refueled ahead of the storm.

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Gasoline Rises Sharply Over the Last 2 Days

Natural gas soared 3.8% to 4.058, and crude oil closed flat at 88.91.

Copper advanced 1.5% to 4.204, while gold eased .2% to 1826.70.



Currencies

The Swiss Franc jumped 1.7% against the Dollar, after a central bank official said the government will have to accept a stronger Franc for the time being, easing fears of government intervention. The Euro fell .5% to 1.4373, and the Pound shed .4% to 1.6240. The Yen inched up .2% to 76.62, and the Canadian Dollar closed flat at .9792.



Economic Outlook

The ADP payroll report shoed the economy added just 91K jobs last month, 11K less than expected, and significantly lower than last month’s 109K addition. The report is seen as an indicator for the official government non-farm payroll report, which will be released on Friday.

On a brighter note, Chicago PMI was better than expected at 56.5, although lower than last month’s 58.8. Factory Orders rose 2.4%,after last month’s .4% drop.

Thursday’s reports will include weekly unemployment claims, the ISM manufacturing index, Construction Spending, Chain Store sales, and auto sales.

Earnings are due from Ciena, H&R Block, and Movado.




Binary Options Trading analysis written by Bradley Welcher
 
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