Binary Options Daily Analysis – Strong Earnings Give Dow Largest Gain of the Year

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Equities

Asian markets closed mostly lower, following Monday’s slide in Europe and the US. The Nikkei dropped .6% to 9890, and the ASX 200 eased .1%. China’s Shanghai Composite declined .7% as banks continued to weigh on the index, but the Hang Seng gained .5% to 21802, led by utilities. The Kospi closed flat, as tech stocks offset losses in financials.

In Europe, a rally in banks boosted the major indexes, after 3 days of steep losses. The DAX and CAC40 gained 1.2%, while the FTSE rose .7%.

Across the Atlantic, US markets surged in reaction to strong earnings, combined with positive developments in the debt ceiling negotiations. The Dow rallied 202 points to 12587, its biggest gain of the year, and the Nasdaq jumped 2.2%.

IBM climbed 5.7% and Cocoal Cola rose 3.3% after beating earnings estimates. Bank eranings were mixed, with Wells Fargo beating estimates, climbing 5.7%, while Bank of America and Goldman Sachs missed analyst estimates, sending the shares lower.



Treasuries and Commodities

30-year notes surged 2 4/32 in a late-day rally, in reaction to news of a debt deal from top Congressman. 10-year notes rose 15/32 to yield 2.87%. In Europe, German bonds sank due to European debt concerns. 30-year German bonds fell 1 4/32 to yield 3.38%.

30-year Treasuries Rally in the Afternoon

Energy commodities gained, with crude gaining 1.9% to 97.71, and gasoline closing up .6% to 3.1154. The sector has seesawed over the past few days, unable to establish a trend.

Gold fell $15 to 1587.40 after hitting a new record high of 1609, and silver skidded 3.5% to 38.95.



Currencies

The Dollar slid as investors piled into riskier assets, sending the Australian Dollar up 1.1% to 1.0722, and the Canadian Dollar up .9% to .9508. In Europe, the Pound rose .4% to 1.6122, the Euro gained .3% to 1.4141, while the Swiss Franc declined .8% to .8246. The Yen settled down .2% at 79.22, after reaching 78.81 earlier in the session.



Economic Outlook

Housing Starts climbed to a 6-month high, exceeding expectations, and Building Permits unexpectedly rose.

On Wednesday, investors await reports on existing home sales,weekly mortgage applications and weekly oil inventories.

Earnings are due from Altria, BlackRock, American Express, Intel, and Ebay.


Binary Options analysis written by Bradley Welcher.
 

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