SamTrader1
Active member
- Messages
- 164
- Likes
- 0
By, BInaryOptionStrategy.com
Equities
Most Asian markets rose on Friday, although the Nikkei slipped .5% to 9708, surrendering earlier gains. In Korea, the Kospi rallied .7% to its highest ever close of 2121, and the Hang Seng jumped 1.2%. In China, the Shanghai Composite bounced 1.3% thanks to upbeat PMI data.
In Europe markets rallied strongly, as the FTSE climbed 1.7%, and the Dax soared 2%. A strong payroll report from the US encouraged investors, as did a statement from Ireland’s finance minister that bond holders would not suffer losses from the country’s financial woes.
US markets rose more modestly, with the Dow gaining 57 points to 12376, and the Nasdaq rising .3%. Non-farm payrolls showed a gain of 216K jobs, far better than the 191K analysts had expected, while unemployment dipped to 8.8%.
GM shares jumped 4.5% after announcing that auto sales rose 11.4% in March. Offce Depot shares sank 9% on news it would restate earnings for the year, and Logitech tumbled 19% after cutting its outlook for 2011.
Treasuries and Commodities
Treasuries rose modestly, recovering from early losses, as strong jobs growth suggests interest rates will rise. 10-year notes added 7/32 to yield 3.44%, and 30-year notes rose 11/32 to yield 4.49%. New York Federal Reserve President, William Dudley said he saw no reason to tighten interest rates at this time, which helped bonds recover.
Commodities ended mixed, as energy rose while metals fell. Crude oil climbed 1.22 to 107.94, and gasoline futures umped 1.4% to 3.1513, as fighting in Libya continues. Gold fell $11 to 1428.90, and silver eased .4% to 37.732. Copper once again fell, dropping 1.1% to 4.2582.
Agricultural futures ended mixed. Corn surged 6.2%, while cotton fell 2.3%.
Currencies
Major currencies swung in wide ranges, with the US dollar initially rallying thanks to the strong jobs report, but then following in response to Dudley’s comments. The Euro rose .4% to 1.4236, after falling as low as 1.4062. Similarly, the Pound rose .4% to 1.6113.
Euro Swings From Loss to Gain
The Canadian Dollar broke to new multi-year highs against the greenback, rising .7% to .9634. The yen extended its declines, dropping 1.1% to 84.12, and had hit 84.73 earlier in the session.
Economic Outlook
Jobs growth is finally materializing, although housing continues to struggle. Analysts expect housing to stabilize during 2011, as unemployment drops towards 8%. Interest rates are likely to rise, as the Fed pulls back its easing programs, although when that will occur remains unknown. Until then, the US dollar will struggle, as other major G7 nations raise interest rates to stem inflation.
The ISM’s Manufacturing Index declined to 61.2 from 61.4, but slightly exceeded analyst expectations. Construction spending fell 1.4%, much more than the .1% drop forecast.
Equities
Most Asian markets rose on Friday, although the Nikkei slipped .5% to 9708, surrendering earlier gains. In Korea, the Kospi rallied .7% to its highest ever close of 2121, and the Hang Seng jumped 1.2%. In China, the Shanghai Composite bounced 1.3% thanks to upbeat PMI data.
In Europe markets rallied strongly, as the FTSE climbed 1.7%, and the Dax soared 2%. A strong payroll report from the US encouraged investors, as did a statement from Ireland’s finance minister that bond holders would not suffer losses from the country’s financial woes.
US markets rose more modestly, with the Dow gaining 57 points to 12376, and the Nasdaq rising .3%. Non-farm payrolls showed a gain of 216K jobs, far better than the 191K analysts had expected, while unemployment dipped to 8.8%.
GM shares jumped 4.5% after announcing that auto sales rose 11.4% in March. Offce Depot shares sank 9% on news it would restate earnings for the year, and Logitech tumbled 19% after cutting its outlook for 2011.
Treasuries and Commodities
Treasuries rose modestly, recovering from early losses, as strong jobs growth suggests interest rates will rise. 10-year notes added 7/32 to yield 3.44%, and 30-year notes rose 11/32 to yield 4.49%. New York Federal Reserve President, William Dudley said he saw no reason to tighten interest rates at this time, which helped bonds recover.
Commodities ended mixed, as energy rose while metals fell. Crude oil climbed 1.22 to 107.94, and gasoline futures umped 1.4% to 3.1513, as fighting in Libya continues. Gold fell $11 to 1428.90, and silver eased .4% to 37.732. Copper once again fell, dropping 1.1% to 4.2582.
Agricultural futures ended mixed. Corn surged 6.2%, while cotton fell 2.3%.
Currencies
Major currencies swung in wide ranges, with the US dollar initially rallying thanks to the strong jobs report, but then following in response to Dudley’s comments. The Euro rose .4% to 1.4236, after falling as low as 1.4062. Similarly, the Pound rose .4% to 1.6113.
Euro Swings From Loss to Gain
The Canadian Dollar broke to new multi-year highs against the greenback, rising .7% to .9634. The yen extended its declines, dropping 1.1% to 84.12, and had hit 84.73 earlier in the session.
Economic Outlook
Jobs growth is finally materializing, although housing continues to struggle. Analysts expect housing to stabilize during 2011, as unemployment drops towards 8%. Interest rates are likely to rise, as the Fed pulls back its easing programs, although when that will occur remains unknown. Until then, the US dollar will struggle, as other major G7 nations raise interest rates to stem inflation.
The ISM’s Manufacturing Index declined to 61.2 from 61.4, but slightly exceeded analyst expectations. Construction spending fell 1.4%, much more than the .1% drop forecast.