SamTrader1
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By BinaryOptionStrategy.com
Equities
A powerful rally lifter Asian markets, buoyed by Greece’s deal for a bailout. The Nikkei gained .9% to 9679, and the Kospi jumped 1.7%. China’s markets soared on hopes that inflation may soon drop, raising sentiment. Banks led the gains, as the Shanghai Composite jumped 2.2%, and the Hang Seng rallied 1.9%. The ASX 200 was the laggard inching up just .2%.
In Europe, the major indexes closed mixed, as the FTSE rose .4%, while the DAX fell .4%. European banks fell, and leading Italian banks tumbled more than 4%, after Moody’s warned they may be downgraded.
US markets fell more than 1%, on continuing concerns over the European debt situation. The Dow fell 115 points to 11935, the Nasdaq slumped 1.3%, and the S&P 500 dropped 1.2% to 1268. Friday’s losses pushed the S&P and Dow into negative territory for the week, but the Nasdaq remained up 1.4% for the week. The VIX surged more than 9%, settling at 21.10.
VIX Surges, Reversing Thursday's Drop
Oracle shares fell 4.1%, on concerns over outlook, even as the company beat analyst expectations. Semiconductor stocks fell, led by Micron which tumbled 14.5% after reporting weak earnings. Airlines fell steeply, after United Continental issued a profit warning, send the company’s shares down 8.6%.
Treasuries and Commodities
Bonds traded mixed, as shorter-term issues rose, while the longer-end of the yield curve dropped. 5-year notes and 10-year notes both gained 13/32, while the 30-year note dropped 8/32 to yield 4.18%. A hefty round of treasury auctions will take place throughout next week, as the Treasury sells $99 billion in 2, 5, and 7-year notes.
Crude oil closed up .2%, at 91.16, but had risen much higher earlier on Friday. Gasoline futures fell 2,2% to 2.7766, while natural gas rose .9% to 4.229.
Gold extended its losses, dropping 1.3% to 1500.90, and silver slipped 1% to 34.638. Copper bucked the trend, jumping 1.5% to 4.0985.
Agricultural futures traded mostly lower, as wheat dropped 2%, and corn fell 1.5%.
Currencies
The US Dollar rose on Friday, as falling oil prices helped boost the greenback. The Canadian Dollar dropped 1%, as the USDCAD broke through the .9800 barrier to close at .9886. The Euro slid .5% to 1.4188, while the Pound and Australian Dollar declined .4%. The Swiss Franc was a notable exception, gaining .5% to .8340, touching a new record high of .8320 against the US dollar.
Economic Outlook
Durable Goods Orders rose 1.9% in May, more than expected, and a pleasant reversal from last month’s 2.7% decline. GDP for the quarter rose 1.9%, in line with expectations, but slightly better than last month’s preliminary reading of 1.8% gain.
Monday’s reports will include Personal Income, Personal Spending, and the PCE Price Index. Earnings are due from Nike.
Equities
A powerful rally lifter Asian markets, buoyed by Greece’s deal for a bailout. The Nikkei gained .9% to 9679, and the Kospi jumped 1.7%. China’s markets soared on hopes that inflation may soon drop, raising sentiment. Banks led the gains, as the Shanghai Composite jumped 2.2%, and the Hang Seng rallied 1.9%. The ASX 200 was the laggard inching up just .2%.
In Europe, the major indexes closed mixed, as the FTSE rose .4%, while the DAX fell .4%. European banks fell, and leading Italian banks tumbled more than 4%, after Moody’s warned they may be downgraded.
US markets fell more than 1%, on continuing concerns over the European debt situation. The Dow fell 115 points to 11935, the Nasdaq slumped 1.3%, and the S&P 500 dropped 1.2% to 1268. Friday’s losses pushed the S&P and Dow into negative territory for the week, but the Nasdaq remained up 1.4% for the week. The VIX surged more than 9%, settling at 21.10.
VIX Surges, Reversing Thursday's Drop
Oracle shares fell 4.1%, on concerns over outlook, even as the company beat analyst expectations. Semiconductor stocks fell, led by Micron which tumbled 14.5% after reporting weak earnings. Airlines fell steeply, after United Continental issued a profit warning, send the company’s shares down 8.6%.
Treasuries and Commodities
Bonds traded mixed, as shorter-term issues rose, while the longer-end of the yield curve dropped. 5-year notes and 10-year notes both gained 13/32, while the 30-year note dropped 8/32 to yield 4.18%. A hefty round of treasury auctions will take place throughout next week, as the Treasury sells $99 billion in 2, 5, and 7-year notes.
Crude oil closed up .2%, at 91.16, but had risen much higher earlier on Friday. Gasoline futures fell 2,2% to 2.7766, while natural gas rose .9% to 4.229.
Gold extended its losses, dropping 1.3% to 1500.90, and silver slipped 1% to 34.638. Copper bucked the trend, jumping 1.5% to 4.0985.
Agricultural futures traded mostly lower, as wheat dropped 2%, and corn fell 1.5%.
Currencies
The US Dollar rose on Friday, as falling oil prices helped boost the greenback. The Canadian Dollar dropped 1%, as the USDCAD broke through the .9800 barrier to close at .9886. The Euro slid .5% to 1.4188, while the Pound and Australian Dollar declined .4%. The Swiss Franc was a notable exception, gaining .5% to .8340, touching a new record high of .8320 against the US dollar.
Economic Outlook
Durable Goods Orders rose 1.9% in May, more than expected, and a pleasant reversal from last month’s 2.7% decline. GDP for the quarter rose 1.9%, in line with expectations, but slightly better than last month’s preliminary reading of 1.8% gain.
Monday’s reports will include Personal Income, Personal Spending, and the PCE Price Index. Earnings are due from Nike.