SamTrader1
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Equities
The Nikkei fell 1.7% to 9449 as concerns about radiation leaks resurfaced. South Korea’s Kospi snapped a 5-day winning streak, ending down .1% and the Hang Seng eased 32 points to 22825. China’s Shanghai Composite rallied 1%, led by the property developers sector which rose 2.6%..
European markets gained, led higher by mining stocks. The FTSE climbed .6% to 5796, and the Dax gained .4%. In Portugal, the parliament rejected the government’s proposed austerity plan. The country’s prime minister, Jose Socrates, said he would resign if the plan was not passed by the legislative body.
An afternoon rally sent the Dow up 67 points to 12086, recovering from a morning slump. The Nasdaq rose .5% to 2698.
Afternoon Rally Sends Dow Higher
Bank of America shares slumped 1.7% after the Federal Reserve denied a request to raise its dividend. Discover Financial Services jumped 5.4% after raising its dividend and reporting a solid quarterly profit. Adobe sank 3.7% after reducing its revenue forecast, and Cree tumbled 12.5% after cutting forecasts.
Treasuries and Commodities
Bonds slipped, as the 10-year note eased 7/32 to yield 3.35% and 30-year notes dropped 10/32 to yield 4.46%.
US crude oil rose .5% to 105.52, its highest close since 2008. Gasoline inventories showed a large 5.3 million barrel drop, nearly 3 times analyst estimates. Gasoline futures rose a moderate .3%.
Metals rallied strongly, led by silver’s 3% gain. Copper jumped 2.7% to 4.428, and gold rose .7% to 1438.10.
Agricultural futures fell, with sugar down 2.1%, cotton down 2% and coffee losing 1.8%.
Currencies
The dollar was mostly higher against major currencies. The Pound fell .8% to 1.6244 on weak economic data, and the Euro dropped .6% ro 1.4102 on renewed concerns related to Portugal. The Swiss Franc slipped .5% to .9082, and the Yen gained .2%, settling at 80.89.
Economic Outlook
New Home Sales declined 16.9%, well below analyst expectations. Meanwhile, mortgage applications rose 2.7% last week.
Thursday’s reports will include Durable Goods, Money Supply, and weekly jobless claims.
Earnings are due from Research in Motion, Oracle, Best Buy and Conagra.
By BinaryOptionStrategy.com