Daily Analysis (6/6) – Weak Payroll Data Sends US Markets Lower

SamTrader1

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By, BinaryOptionStrategy.com

Equities

Asian markets closed mostly lower, as ongoing concerns about the economic health of the US weighed on investors nerves. The Nikkei closed down .7% to 9492, Australia’s ASX 200 slid .4%, and Hong Kong’s Hang Seng shed 1.3%. China’s Shanghai Composite rose .8%, and Korea’s Kospi ended flat.

In Europe, the DAX gained .5% and the FTSE inched up .1%, after Greece announced it had made progress in negotiating with the IMF and EU. The markets had briefly tumbled after the US jobs data was announced, but managed to climb back into positive territory before the market closed.

In the US, markets closed significantly lower, as a disappointing jobs report raised doubts about the health of the US economy. The Dow lost 97 points to 12151, the Nasdaq tumbled 1.5%, and the S&P fell 1% to 1300. Stocks had largely recovered from their opening lows, but afternoon selling pushed prices back down.
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Dow Briefly Recovers but Sinks in Afternoon


Despite the broad losses, there were some significant gainers. Quiksilver shares soared 15% after beating analyst estimates, and GT Solar shares surged 12.5% on news of a large order from China.

Treasuries and Commodities

Bonds gained, with 10-year notes up 12/32 to yield 2.99%, and 30-year notes up 12/32 to yield 4.22%. Talk of another round of quantitative easing reemerged following the weak jobs data.

Crude oil closed down .18 to 100.22, recovering from a steep afternoon selloff which had pushed prices down to nearly $98. Natural gas fell 1.8% to 4.707, but gasoline futures gained .9%.

Gold climbed 9.70 to 1541.70, and copper rallied 1.2% to 4.1345, despite the signs of economic weakness.

Currencies

The dollar tumbled against most major currencies, as the Swiss Franc rallied 1.1% to a new record of .8332, and the Euro jumped 1% to 1.4634. The Yen gained .7% to 80.38, and the Pound edged up .3% to 1.6424.

Economic Outlook


May’s payroll data showed the economy gained just 54K jobs, far below the 150K expected by analysts. The unemployment rate rose to 9.1% from 9%.

On a brighter note, the ISM non-manufacturing index rose to 54.6 from 52.8, more than expected.
 
 
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