Binary Options Daily Analysis –Dollar Surrenders Early Gains, Dow Rises for a 3rd Day


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By, BinaryOptionStrategy


Asian markets closed mostly lower, reversing early gains, as delays in Greece’s bailout continue to add to investor angst. The Kospi fell .6%, and the ASX 200 slumped .7%, dropping to a 9 month low. In China, the Shanghai Composite lost .8% and the Hang Seng slipped .4%, weighed down by real estate shares. The Nikkei ended flat, aided by utilities, after the government allowed power companies to restart nuclear power plants across the country.

European markets continued their 7-week slide, led down by banks. The FTSE shed .4%, the DAX eased .1%, and the CAC40 dropped .6%. Italian stocks tumbled 2.5% in response to Friday’s announcement by Moody’s that it was placing Italy’s debt under review.

US markets rose, with the Dow up 76 points to 12080, and the Nasdaq and S&P 500 both gaining .5%.

Banks closed lower, following downgrades of Bank of America, Goldman Sachs, and Morgan Stanley. Cell phone makers dropped, as Research in Motion sank an additional 6.7%, Nokia shed 2.8%, and Apple fell 1.5%.

Treasuries and Commodities

Bonds closed mixed, with 10-year notes easing 2/32 to yield 2.95% and 30-year notes rising 7/32 to yield 4.19%.

US Crude oil closed up .4% at 93.37 after dropping below 91.50 in the early morning. Gasoline futures fell 1.3% to 2.907, and Brent crude dropped 1.5% to 111.56.

Oil Reverses Early Losses to Close Higher

Silver rose .7% and gold inched up 1.80 to 1540.90, while copper lost .7% to 4.0735.

Agricultural futures closed mixed, as wheat fell 1.9% and coffee dropped 2.4%, while sugar surged 4.2% and cotton rallied 2.%.


The major world currencies traded little changed against the dollar, after an early morning Dollar rally faded. The Euro, Pound, and Canadian Dollar closed down less than .1%, overcoming earlier losses, while the Yen and Swiss Franc both slipped .3%.

The Australian dollar was the only notable exception, dropping .6% to 1.0560, after trading as low as 1.0496.

Economic Outlook

Tuesday’s economic reports will include Existing Home Sales for the US, Economic Sentiment for Germany and the Eurozone, and Retail Sales for Canada.

Earnings will be a focal point this week for investors, with many significant reports due. Data is due from Walgreens, Adobe, Barnes & Noble, Carnival, and Jabil Circuit on Tuesday.

-Bradley Welcher
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