Binary Options Analysis – US Equities Rally, Shrugging Off Weak Data

SamTrader1

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Equities

Asian markets advanced, with upbeat PMI data from China helping to fuel the rally. The Nikkei rose 1.2% to 8733, the Kospi soared 3.9% , and the ASX 200 climbed 2.2%. Hong Kong’s Hang Seng closed up 2%, erasing early morning losses, and the Shanghai Composite rose 1.5%

In Europe, the major indexes closed higher, despite weak economic data from Germany. The CAC40 and DAX both rose 1.1%, while the FTSE added .7% to 5129.

Across the Atlantic, US markets rallied despite a 5.8 earthquake that shook the East Coast. The Dow jumped 322 points to 11177, the Nasdaq soared 4.3%, and the S&P 500 gained 3.4%.

aug-24-dow1-300x135.png

Dow Rallies more than 300 Points

Sprint shares soared 10% on news that it would sell Apple’s new iPhone, joining AT&T and Verizon. Nvidia shares surged 10.8% on an analyst upgrade, and Medtronic shares rallied 6.2% after the company met analyst forecasts.



Treasuries and Commodities

Bonds declined, as investors poured into equities. 10-year notes slipped 12/32 to yield 2.15%, and 30-year notes fell 1 1/32 to yield 3.48%.

Energy rallied, with crude oil up 1.9% to 86.03, natural gas gaining 2.9%, and gasoline futures closing 2.1% higher.

Precious metals tumbled, as gold reversed from a record high of 1911, to settle at 1827/60, down $64.30. Silver skidded 3.6% to 41.75, while copper gained 3.5%.



Currencies

The Australian Dollar closed up 1.2% to 1.0538, while most other currencies rose modestly. The Euro gained .6% to 1.4439, the Canadian Dollar edged up .2% to .9886, and the Pound inched up .1%. The Yen continues to hover just below record highs, closing up .2% at 76.6650.



Economic Outlook

Home Sales fell to a 5 month low, coming in 15K units below estimates, at 298K. The Richmond Manufacturing index fell to -10, worse than feared, but investors managed to shrug off the bad news, taking advantage of an oversold market.

Wednesday’s reports will include Durable Goods Orders, weekly oil inventories, and weekly mortgage applications. Earnings are due from Applied Materials, American Eagle Outfitters, Tivo, Express, and Toll Brothers.



Binary Options Trading analysis written by Bradley Welcher
 
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