Binary Options Daily Analysis – Europe Rallies on Bailout Hopes

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Equities

Wall Street’s gains on Tuesday lifted Asian markets, sending the Nikkei up 1.2% to 10006, and the ASX 200 soaring 1.8%, its largest one-day gain in 8 months. The Kospi advanced 1.2%, and the Hang Seng rose .5%. China’s Shanghai Composite bucked the trend, closing down .1%.

European markets rallied, as progress was made in negotiations over the sovereign debt crisis. The FTSE climbed 1.1%, and the CAC40 rallied 1.6%. The peripheral Eurozone jumped, as Italian and Spanish stocks rallied more than 3%.

CAC40 Bounces from 10-month Lows

Following Tuesday’s rally, US markets closed modestly lower. The Dow slipped 16 points to 12572, and the Nasdaq declined .4% to 2814.

Goldman Sachs jumped 3.3%, and Bank of America climbed 2.9%, after slipping on Tuesday following weak earnings. Banking shares were lifted by developments in Europe.

In earnings news, Yahoo sank 7.6% after reporting a drop in revenue, and Apple shares hit a new record high of 396.27 following strong earnings.



Treasuries and Commodities

Bonds declined, with 10-year notes dropping 12/32 to yield 2.93%, and 30-year notes sliding 30/32 to yield 4.24%. German bonds tumbled, with 10-year notes down 25/32 and 30-year notes down 1 28/32, on hopes that bailout funds could be used to buy bonds in the secondary market.

Crude oil rose .6% to 98.44 and gasoline futures gained .9%, while natural gas declined .9% to 4.494.

Gold setting down .1% at 1598.90, and silver dropped .7% to 39.96.



Currencies

The Euro, Swiss Franc, and Yen all gained .5% against the dollar, in a quiet session for currencies. The Pound rose .2% to 1.6161.



Economic Outlook


Home sales dropped to a 7-month low, falling short 150K from estimates. Mortgage applications jumped their most in 4-months thanks to low interest rates.

The House of Representatives passed a bill raising the debt ceiling, but it remains unclear if the Senate will approve the bill.

Thursday’s reports will include weekly jobless claims, leading indicators, and the Philly Fed survey.

The earnings marathon continues, with reports due from AT&T, Morgan Stanley, Microsoft, AMD and Sandisk.


Binary Options Trading analysis written by Bradley Welcher.
 

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