Binary Options Analysis – European Markets Post Biggest Daily Loss in Years

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Equities

Asian markets fell, as investor anxiety returned. The Nikkei closed down 1.3% at 8943.76 and Korea’s Kospi dropped 1.7%. In China, news of an expansion in property buying restrictions weighed on real estate shares, as China’s Shanghai Composite slumped 1.6%, and the Hang Seng shed 1.3%.

European markets plunged, posting their biggest daily drop in nearly 3 years. The Dax tumbled 6.2%, the CAC40 sank 5.84%, and the FTSE lost 4.8%. European banks tumbed, with Barclays down 11.3%, and Deutsche Bank down 7%.

In the US, investors dumped stocks, sending the Dow tumbling 420 points to 10991, and the Nasdaq down 5.2%. The VIX fear-indicator jumped to 42.7, up 35%.

Netapp shares sank 14% after issuing a profit warning, and Sears shares tumbled 8.2% on losses which exceeded analyst forecasts.



Treasuries and Commodities

Bonds gained, with yields touching record lows. 10-year notes closed up 24/32, yielding 2.08%, with the yield at one point hitting a record low of 1.97%. 30-year notes rallied 2 7/32, pushing the yield down to 3.45%.

Crude oil tumbled 6.6% to 81.84, dragging down oil stocks. Gasoline futures fell 3%, while natural gas eased .3%.

Gold soared to another record close, up 2% to 1829.10, while copper fell 2.4% to 3.936.


Gold Rally Continues, Soaring past $1800



Currencies

Despite the steep drop in equities, currency markets were quite tame, other than the Australian Dollar which dropped 1.3% to 1.0399. The Euro lost .6% to 1.4338, and the Canadian Dollar dropped .8%, while the Yen traded flat.



Economic Outlook

Signs of a double-dip recession continue to mount, as the Philly Fed index dropped to its lowest level since March 2009, tumbling to -30.7, as opposed to a forecast of +4.0. Weekly jobless claims rose to 408K, 6K more than expected, and existing home sales fell to 4.67M, a significant drop from last month.

No major reports are due on Friday.




Binary Options Trading analysis written by Bradley Welcher
 

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