Binary Options Analysis – PPI Jump Sends Commodities Higher

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Equities

The Nikkei fell .6%, while most other Asian indexes rose. The Kospi climbed .7%, although tech shares struggled, with Hynix dropping more than 4%. Australia’s ASX 200 rallied 1.3%, and the Hang Seng rose .4%.

European markets closed mixed, as the FTSE fell .5% and the DAX dropped .8%, while the CAC40 gained .7%. Drugmaker shares gained after Deutsche Bank listed Sanofi as a good value following the recent market drop.

US markets opened up, but those gains faded later in the day. The Dow and S&P both closed with fractional gains, while Nasdaq ended down .5%.

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Early Gains Fade as Nasdaq Closes Down .5%



In earnings news, Dell tumbled 10.1% after cutting its revenue forecast for the year. Abercrombie and Fitch sank 8.7% even though they beat profit forecasts. Staples rose .5%, and Target advanced 2.4% after beating analyst expectations.



Treasuries and Commodities

Bonds advanced, particularly 30-year notes, which closed up 1 30/32 to yield 3.56%. 10-year notes rose 18/32, yielding 2.16%.

Commodities rose across the board. Crude added .92 to 87.57 and gasoline futures rose .8% to 2.8764, even through government data showed a surprise increase in supplies.

Gold ticked up 7.60 to 1792.60, silver gained 1.4% to 40.375, and copper bounced 1.2% to 4.0435.

Agricultural futures posted strong gains, as cotton jumped 5.2%, and coffee surged 4.6%.



Currencies

The US Dollar fell across the board, as the Swiss Franc snapped its losing streak, gaining 1.1% to .7890. The Australian Dollar rallied .9% to 1.0558, and the Pound rose .6% to 1.6552. The Yen gained .4% to 76.49, and the Euro inched up .2% to 1.4435.



Economic Outlook

PPI data showed prices rose .4% in July, significantly more than expected, posting its biggest gain since January. Weekly mortgage applications rose.

Thursday’s packed economic calendar will include CPI, weekly jobless claims, existing home sales, the Philly Fed survey, leading indicators, and money supply.

Earnings are due from Hewlett-Packard, Gap, and Sears.

Binary Options Trading analysis written by Bradley Welcher
 
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