SamTrader1
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Equities
The threat of a nuclear disaster in Japan sent the Nikkei tumbling 6.2%, while the Bank of Japan injected nearly $200 billion into money markets to prevent a cash crisis. Surprisingly, the impact outside of Japan was limited, as the Kospi rose .8%, and the Hang Seng and ASX 200 both rose .4%. The potential global impact of the mass destruction in Japan remains unclear.
Insurers pulled down European markets, as damage estimates spiraled higher. Nuclear energy companies tumbled as Germany and Switzerland questioned their continuing commitment to nuclear energy in light of the threat of a reactor meltdown in Japan. The Dax fell 1.7%, and the FTSE dropped .9%.
US markets closed with mild losses, bouncing back from steep declines. The Dow closed down 51 points, far better than the 147 point loss seen earlier in the day. The S&P fell .6% and the Nasdaq dropped .5%.
Afternoon Rally Cuts Dow's Losses
Solar stocks rallied, as investor appetite for alternative energy sources grew. LDK Solar gained 8.8% and First Solar rose 5%. Japanese automakers, Nissan and Toyota sank 6.2% and 4.6% respectively, as Toyota announced a suspension in production. Sony fell 7.1% and Toshiba plummeted 13.8%, as purchases of electronics goods will probably be impacted by the quake.
Treasuries and Commodities
Bonds rose moderately, with 10-year notes gaining 13/32 to yield 3.36% and 30-year notes rising 10/32, yielding 4.53%,
Crude oil edged up .55 to 101.71, while gasoline fell .9% to 2.96. Gold inched up .2% to 1424.60, while palladium fell 2.3%, and copper dropped .5%. Sugar and cotton both fell more than 3%.
Currencies
European currencies rose, with the Euro, Pound, and Swiss Franc all up .6% on the dollar. The yen’s volatility settled down following the Bank of Japan’s massive liquidity injection, closing up .2% to 81.63. The Australian dollar slipped .5% to 1.0098 and the Canadian dollar ended flat.
Economic Outlook
While the initial reaction to the earthquake was upbeat, promising huge construction and capital investments for Japan, the threat of a nuclear meltdown has undermined those sentiments. A radiations disaster would have a devastating humanitarian and financial impact.
The Federal Reserve Board will meet on Tuesday. There are no expectations of a rate increase, but traders will be looking for hints regarding the ongoing quantitative easing program, inflation, and the overall economic recovery.
Reports are due on credit card default rates, import and export prices, as well as the Empire State Manufacturing Survey.
Earnings are due from Williams Sonoma and BMW.
By, BinaryOptionStrategy.com
The threat of a nuclear disaster in Japan sent the Nikkei tumbling 6.2%, while the Bank of Japan injected nearly $200 billion into money markets to prevent a cash crisis. Surprisingly, the impact outside of Japan was limited, as the Kospi rose .8%, and the Hang Seng and ASX 200 both rose .4%. The potential global impact of the mass destruction in Japan remains unclear.
Insurers pulled down European markets, as damage estimates spiraled higher. Nuclear energy companies tumbled as Germany and Switzerland questioned their continuing commitment to nuclear energy in light of the threat of a reactor meltdown in Japan. The Dax fell 1.7%, and the FTSE dropped .9%.
US markets closed with mild losses, bouncing back from steep declines. The Dow closed down 51 points, far better than the 147 point loss seen earlier in the day. The S&P fell .6% and the Nasdaq dropped .5%.
Afternoon Rally Cuts Dow's Losses
Solar stocks rallied, as investor appetite for alternative energy sources grew. LDK Solar gained 8.8% and First Solar rose 5%. Japanese automakers, Nissan and Toyota sank 6.2% and 4.6% respectively, as Toyota announced a suspension in production. Sony fell 7.1% and Toshiba plummeted 13.8%, as purchases of electronics goods will probably be impacted by the quake.
Treasuries and Commodities
Bonds rose moderately, with 10-year notes gaining 13/32 to yield 3.36% and 30-year notes rising 10/32, yielding 4.53%,
Crude oil edged up .55 to 101.71, while gasoline fell .9% to 2.96. Gold inched up .2% to 1424.60, while palladium fell 2.3%, and copper dropped .5%. Sugar and cotton both fell more than 3%.
Currencies
European currencies rose, with the Euro, Pound, and Swiss Franc all up .6% on the dollar. The yen’s volatility settled down following the Bank of Japan’s massive liquidity injection, closing up .2% to 81.63. The Australian dollar slipped .5% to 1.0098 and the Canadian dollar ended flat.
Economic Outlook
While the initial reaction to the earthquake was upbeat, promising huge construction and capital investments for Japan, the threat of a nuclear meltdown has undermined those sentiments. A radiations disaster would have a devastating humanitarian and financial impact.
The Federal Reserve Board will meet on Tuesday. There are no expectations of a rate increase, but traders will be looking for hints regarding the ongoing quantitative easing program, inflation, and the overall economic recovery.
Reports are due on credit card default rates, import and export prices, as well as the Empire State Manufacturing Survey.
Earnings are due from Williams Sonoma and BMW.
By, BinaryOptionStrategy.com