Binary Options Analysis – Equities Rally, Lifted by Jobs Data and Earnings

SamTrader1

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Equities

Asian markets closed mixed, largely overcoming the fierce selling pressure which had hid the West on Wednesday. The Nikkei declined .6% to 8982, and the Kospi closed up .6%, recovering from an early loss of 4%. In China, the Shanghai Composite advanced 1.3%, while Hong Kong’s Hang Seng slumped 1%.

European markets bounced strongly, as upbeat US jobs data triggered an afternoon rally. The FTSE climbed 3.1%, the DAX rallied 3.3% and the CAC40 gained 2.9%. A 15-day ban on short-selling in several European countries will begin on Friday, in an effort to lessen volatility and curb speculation.

US indexes surged, leaving the Dow up 423 points at 11143, while the Nasdaq and S&P 500 gained more than 4%.

aug-12-vix-300x137.png

VIX Spikes to Highest Level since March 2009

Cisco jumped 16% after beating analyst estimates, and NewsCorp soared 18% on solid profits.



Treasuries and Commodities

A $16 billion auction in 30-year notes had a weak bid-to-cover ratio of 2.08, with a high yield of 2.08.

Bond prices tumbled, as 10-year notes fell 1 20/32 to yield 2.33%, and 30-year notes plunged an astonishing 5 8/32 to yield 3.78%.

Energy rallied, led by crude oil which gained 3.4% to 85.70. Natural gas rose 2.7% to 4.109, and gasoline climbed 1.7% to 2.8293.

Metals closed mixed, as copper soared 4.5% to 4.0616, while gold dropped 1.9% to 1749.80, and silver fell 1.3% to 38.82.



Currencies

The Swiss Franc staged a sharp reversal, tumbling 4.9% amid talks of pegging the Franc to the Euro, as Swiss officials struggle to deal with the nation’s soaring exchange rate. On Wednesday, the EURCHF nearly reached parity.

The US Dollar declined as investors’ risk appetite returned. The Australian Dollar jumped 1.7% to 1.0332, and the Canadian Dollar gained .7% to .9882. The Euro edged up .4% to 1.4225, and the Pound rose .5% to 1.6220.



Economic Outlook

Weekly jobless claims fell to 395K, slightly better than the 401K analyst forecast.

The US trade gap reached -$53 billion, its highest level in nearly 3 years, with both imports and exports declining.

Friday’s reports will include retail sales, consumer sentiment, and business inventories.

Earnings are scheduled for JC Penney and Zoom Technologies.

Binary Options Trading analysis written by Bradley Welcher
 
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