Binary Option Analysis – Dow Drops Despite Strong Economic Data

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Equities

Asian markets slumped, following Wednesday’s steep slide on Wall Street. The Nikkei fell 1.5% to 9901, the Kospi dropped .9%, and the ASX 200 skidded 1.6%. In China, the Shanghai Composite eased .5%, and the Hang Seng managed to close up .1%.

In Europe, the FTSE rose .3%, while the CAC40 dropped .6%. In Germany, the DAX fell .9%, weighed down by chemical maker BASF, which shed 4.2% on weak earnings.

US markets closed mixed on light volume. The Dow closed down .5% to 12240, while the Nasdaq inched up fractionally. The VIX market fear index climbed above 23, reaching its highest level since March.

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Late Day Selling Pressure Erases Morning Gains

Symantec shares climbed 5.8% after beating analyst profit forecasts. Akamai tumbled 19% after lowering its growth outlook.



Treasuries and Commodities

Bond prices inched up with 10-year notes rising 6/32 to yield 2.96%, and 30-year notes up 10/32 to yield 4.27%.

A $29 billion auction of 7-year notes had a high yield of 2.28% and a bid-to-cover ratio of 2.63.

Natural gas dropped 1.9% after a government report indicated that the amount in storage was higher than expected. Gasoline fell .8% to 3.1181, and crude oil eased .2% to 97.18.

Silver tumbled 1.9% to 39.795, while gold closed flat. Copper gained .5% to 4.47, boosted by supply concerns tied to a strike in Chile at the world’s largest copper mine.



Currencies

The currency markets traded in a relatively narrow range, as the world awaits a debt deal from Congress. The Euro and Australian Dollar both fell .4%, while the Yen advanced .2% to 77.74. The Pound and Swiss Franc closed fractionally off their previous closing price.



Economic Outlook

Weekly unemployment claims were significantly less than expected, dropping down to 398K from last weeks 422K. Pending Home Sales unexpectedly rose, climbing 2.4% in June.

Friday’s reports will include Advance GDP, the Employment Cost Index, Chicago PMI, and Consumer Sentiment.

Earnings data is due from Amgen, Merck, Chevron, Newmont Mining, and Weyerhaeuser.



Binary Options Trading analysis written by Bradley Welcher
 
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