BinaryOptionStrategy- Daily Analysis – US and European Markets Rally on Strong Earnin


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Asian markets closed mostly lower, led by the Nikkei which dropped 1.2% to 9559. Canon reported a 5% cut in profit and lowered its outlook due to the deadly March earthquake. The Shanghai Composite extended its losses, ending down .9%, and the Hang Seng fell .5%. Australia’s stock market remained closed for a holiday and will reopen on Wednesday.

The tone in Europe was more upbeat, as stocks posted significant gains. The FTSE and Dax both rallied .8%, while the CAC40 rose .6%. Strong earnings from UBS helped lift the market.

US markets rallied, thanks to a healthy round of earnings data. The Dow climbed 115 points to 12595, and the Nasdaq gained .8%, hitting its highest level since October 2007.

Dow Climbs 115 Points

UPS, 3M, and Ford all rose after beating earnings estimates, while Coca-Cola fell 1.2% on unexpected weakness.

After the bell, Amazon reported results showing strong revenues but weak profits. The shares fell 1.7% in after-hours trading.

Treasuries and Commodities

Bonds rallied, with the 10-year note up 14/32 to yield 3.31% and 30-year notes up 1 2/32 to yield 4.39%. A $35 billion auction of 2-year notes had a bid-to-cover ratio of 3.06 and a high yield of .673%.

Silver plunged 4.7% to 44.94, just one day after setting a new record high of 49.79, as selling intensified. Gold eased 6.80 to 1502.30, and copper rose .5%.

Oil closed down .2% in choppy trading, and gasoline futures rose .9% to 3.3535.

Agricultural futures ended mixed, as coffee rallied 2.5%, while cotton sank 3.3% and wheat dropped 1.8%.


Tuesday was another losing day for the US dollar. The Australian dollar led the gains, rising .6% to 1.0782, and hit a new record high of 1.0792. Similarly, the Swiss Franc rose .5% to .8764, after hitting a new record high of .8744. The Euro rose .4% to 1.4640 and the Yen rose .3% to 81.55. The Pound eased .1% to 1.6479.

Economic Outlook

The Fed will announce the results of its 2-day meeting on Wednesday afternoon, and the Bernanke will hold a first-ever policy press conference. Investors will be looking for clues regarding interest rates, inflation, and further easing.

Consumer Confidence rose more than expected, climbing to 65.4 from 63.8 the month before, more than expected.

Wednesday’s reports will include Durable Goods and Oil inventories.

Earnings are due from many market heavywerights including Boeing, General Dynamics, Credit Suisse, Ebay, Allstate, and Baidu.

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