BinaryOptionStrategy Analysis - page 29
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Binary Options Daily Analysis – Samsung Tanks and Apple Gains Following Patent Verdic
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Equities
Asian markets traded mixed on Monday, following a choppy session. The Nikkei rose .2% to 9085, the ASX 200 eased .1% to 4345, and the Hang Seng declined .4% to 19899. Korea’s Kospi slipped .1%, although Samsung shares tumbled 7.5% after a US court ruled in favor of Apple in a patent lawsuit between the two companies. The Shanghai Composite skidded 1.7% to 2056, a 3.5 year low as expectations for easing lessened following remarks by China’s Premier.
In Europe, stocks rallied, as the DAX climbed 1.1% to 7074, and the CAC40 advanced .9% to 3463. Nokia shares jumped 5.5% in reaction to the Samsung court decision, amid expectation that the cellphone maker will benefit from a setback to Samsung. UK markets were closed for a holiday.
US stocks ended mixed after trading in a narrow range. The Dow declined 33 pints to 13125, the S&P 500 eased 1 point to 1410, and the Nasdaq ticked up .1% to 3073.
Apple shares jumped 1.9% to 675.68, a record close, in response to the favorable ruling in the $1.05 billion lawsuit.
Hertz announced it will buy Dollar Thrifty for $2.3 billion. Hertz shares surged 8.1% and Dollar Thrifty shares popped 7.5%.
Treasuries and Commodities
10-year notes rose 11/32 to yield 1.65%, and 30-year notes climbed 26/32 to yield 2.76%.
Gasoline surged 2.7% as refiners in the Gulf of Mexico shut down operations ahead of tropical storm Isaac. Crude oil slipped .5% to 95.68, and natural gas sank 1.9% to 2.651.
Copper and gold dropped .4% to 3.469 and 1664.90 respectively, while silver inched up fractionally to 30.635.
Currencies
The currency markets were unusually quiet, thanks to the UK bank holiday. The Euro traded in a narrow 44 pip range for the entire day, ending down .1% to 1.2497. The Pound, Swiss Franc, and Yen all slipped .1% as well. The Australian Dollar declined .3% to 1.0370, while the Canadian Dollar rose .2% to .9904.
Economic Outlook
Tuesday’s economic reports will include the Case-Shiller home price index, consumer confidence, and the Richmond manufacturing index.
Earnings are due from Movado.
Binary Options Daily Analysis – Markets Await Friday’s Jackson Hole Meeting
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Equities
Asian stocks traded mixed on Tuesday. The Nikkei fell .6% to 9033, as the government cut its growth outlook due to economic sluggishness across the globe, and the Kospi eased .1% to 1916. On the gaining side, the Shanghai Composite rebounded .9% to 2073, the ASX 200 rose .4% to 4359, and the Hang Seng inched up .1% to 19812.
In Europe, markets fell while volume remained light. The CAC40 slumped .9% to 3432, the DAX dropped .6% to 7003, while the FTSE closed little changed. Economic data from Spain indicated the country remained in a recession, as GDP fell by .4% in the second quarter.
In the US, stocks ended little changed, on light volume. Investors are expected to remain on the sidelines until after the Bernanke’s speech from Jackson Hole on Friday. The Dow slipped .2% to 13103, the S&P 500 eased .1% to 1409, and the Nasdaq ticked up .1% to 3077.
Lexmark shares jumped 13.7% after announcing steep job cuts, and saying it will exit the inkjet printer business.
Treasuries and Commodities
10-year notes rose 4/32 to yield 1.64%, and 30-year notes edged up 7/32 to yield 2.75%.
Natural gas sank 1.8% to 2.606, and gasoline dropped 1% to 3.124, while crude oil bounced .7% to 96.11.
Silver fell .8%, copper shed .5% to 3.461, and gold slipped .4% to 1666.60.
Currencies
The Dollar eased on Tuesday, but the currency markets continued to trade in narrow ranges. The Euro gained .5% to 1.2566, the Pound rose .2% to 1.5822, and the Yen gained .3% to 78.50. The Canadian Dollar edged up .2% to .9881, and the Australian Dollar inched up .1% to 1.0378.
Economic Outlook
The Case-Shiller home price index unexpectedly rose by .5%, and the Richmond manufacturing index improved to -9 from -17.
Wednesday’s reports will include preliminary GDP, pending home sales, beige book, and weekly oil inventories.
Earnings are due from Heinz, Joy Global, and Vera Bradley.
Traders Await Key US Data
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There was low volume trading overnight as investors appear to be waiting the report on growth in the US and Fed Reserve Chairman Ben Bernanke’s speech this week.
US
Yesterday saw the release of better than expected data from the US housing sector which overshadowed U.S., consumer confidence plunging to its lowest levels in 9 months for August. The Standard & Poor’s/Case-Shiller home price index released Tuesday showed the first annual increase since 2010 with a gain of 0.5% from June 2011. The markets had been expecting a 0.1% contraction and the housing numbers helped raise positive sentiment amongst investors keen to see upward revisions to Q2’s1.5% Gross Domestic Product growth data due out later today (Wednesday)
The Conference Board reported yesterday that its consumer confidence index fell to 60.6 in August from 65.4 in July, a figure that is still higher than the 45.2 index level of August 2011. The markets forecasted a reading of 66.0.
Europe
The Euro gained support yesterday after European Central Bank President Mario Draghi canceled his trip to the U.S. Federal Reserve’s annual symposium in Jackson Hole, US. This fueled talk that the European Central Bank may take part in intervening in sovereign debt markets to lower borrowing costs in the near future. Earlier in the day, Italy had a debt auction of it 2 year gov debt bonds which saw borrowing costs fall. In total, 3.0 billion euros of bonds maturing in May 2014 were sold at the top end of the targeted range, with an average yield of 3.06%, down from 4.86% at a similar auction last month. In Spain, the Treasury sold 1.67 billion euros of 3 month bills with an average interest rate of 0.95%, down from 2.43% this time last month.
Today
After German CPI figures are released, the investor attention should turn to the US where Quarterly GDP figures are released in the world’s largest economy with an expected increase from 1.5% to 1.7%. Staying in the US, Gas and Oil inventories are released made even more interesting by last weeks dramatic fall in stockpiles and the increasingly bad weather hampering supply lines off the US coast.
Binary Options Daily Analysis – Stocks Skid Ahead of Bernanke’s Address
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Equities
Asian markets retreated on Thursday, as weak retail sales data from Japan weighed on the region. The Nikkei fell 1% to 8984, the Kospi sank 1.4% to 1906, and the ASX dropped .9% to 4316. The Hang Sang slumped 1.2% to 19553, a 1-month low, while the Shanghai Composite ended flat at 2053.
In Europe, markets sank amid concerns over Spain’s potential bailout. The DAX tumbled 1.6%, the CAC40 slid 1%, and the FTSE declined .4%. An Italian debt auction fared better than expected, as the government sold 7.3 billion euro of 10-year notes with a yield of 5.82%.
US stocks experienced a similar decline. The Dow dropped 107 points to 13001, the Nasdaq fell 1.1% to 3049, and the S&P 500 shed .8% to 1399.
Pandora jumped 14.3% after earnings beat forecasts.
Treasuries and Commodities
10-year notes rose 8/32 to yield 1.62%, and 30-year notes gained 13/32 to yield 2.74%.
Crude oil slipped .7% to 94.86 and gasoline fell .6% to 3.0816 as fears over tropical storm Isaac died down. Natural gas jumped 2.7% to 2.757.
Silver skidded 1.5% to 30.367, gold declined .3% to 1655.50, and copper eased .2% to 3.4375.
Currencies
Currency trading remained slow as the market continued to consolidate. The Australian Dollar fell .6% to 1.0289, continuing its retreat, and the Pound dipped .3% to 1.5786. The Euro and Swiss Franc slipped .2% to 1.2509 and .9601 respectively, while the Yen inched up .1% to 78.64.
Economic Outlook
Weekly unemployment claims remained unchanged from last week at 374K, slightly above forecasts for 370K. Personal spending rose by .4%, inline with estimates, while personal income rose .3%, less than expected.
Friday’s focus will be Bernanke’s address from Jackson Hole. Also due are Chicago PMI, consumer sentiment, and factory orders.
Binary Options Daily Analysis – Asia Tumbles, West Mixed Ahead of ECB
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Equities
Asian markets sank on Wednesday, pressured by disappointing US data. The Nikkei posted its 5th straight loss, dropping 1.1% to 8680 , and the Kospi tumbled 1.7% to 1874. In greater China, the Hang Seng tanked 1.5% to 19145, its biggest loss in 6 weeks, while the Shanghai Composite slipped .3% to 2038.
European markets fared significantly better, ending mixed. The DAX gained .5% to 6965, the CAC40 rose .2% to 3406, while the FTSE declined .3% to 5658. Nokia shares plunged nearly 16% after announcing two new phones which failed to impress shareholders.
US indexes ended little changed, as investors waited on the sidelines ahead of Thursday’s ECB press conference. The Dow inched up 12 points to 13048, the Nasdaq slid .2% to 3069, and the S&P 500 eased .1% to 1403.
Fedex shares fell 2% to 85.80 after cutting its forecast for the current quarter.
Social networking shares rallied, led by Yelp’s 6.3% gain. Facebook jumped 4.8% and Zynga advanced 3.2%.
Treasuries and Commodities
10-year notes declined 6/32 to yield 1.59%, and 30-year notes fell 15/32 to yield 2.71%.
Natural gas dropped 1.9% to 2.801, while crude oil edged up .3% to 95.57.
Copper jumped 1.5% to 3.5215, boosted by reports the ECB may launch an unlimited bond purchasing plan. Gold settled unchanged, while copper declined .4% to 32.375.
Agricultural futures skidded, as wheat slumped 2.4%, while corn and sugar sank 1.7%.
Currencies
The Euro rose .3% to 1.26, and the Pound edged up .2% to 1.5904. Commodity currencies declined, as the Australian Dollar and the Canadian Dollar both fell .4%. The Yen and Swiss Franc both settled little changed.
Economic Outlook
Worker productivity increased by 2.2%, more than the 1.8% forecast by analysts.
Thursday’s reports will include the ADP employment report, weekly unemployment claims, ISM non-manufacturing PMI, and crude oil inventories.
The Bank of England and ECB will issue their rate decisions, and the ECB is expected to announce a new bond buying initiative.
Earnings are due from Hovnanian, and Smith & Wesson.
Mixed Trading Ahead of ECB Meeting
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Asian stocks and the markets in general experienced choppy trading overnight as investors await the key meeting held by the European Central Bank later today (Thursday). While uncertainty and anticipation for an ECB announcement to buy bonds pushed some investors to the dollar, talk the Fed may stimulate its own economy initiated some selling and the US Dollar index was unchanged at time of writing.
Asian trading on Wednesday has seen Hong Kong’s Hang Seng Index decline 0.18%, Australia’s S&P/ASX200 increase 0.77%, whilst Japan’s Nikkei 225 Index was down 0.18%. Many investors appear to be preparing for the outcome today but driving the markets was South Korea reporting that its economy is growing at slower rate than previously thought and a surprise fall in the unemployment rate in Australia.
South Korea
South Korea’s Q2 growth fell short of the forecasts, posting a 2.3% growth rate, which is slightly less than the predicted 2.4% growth rate. Compared with Q1, the economy expanded by 0.3%, which is lower than the estimated 0.4% expansion. South Korea’s growth over the last few years has been fuelled by its exports sector, which accounts for nearly 50% of its total economic output. However, slowing growth in key export markets such as the US and the Eurozone has had an impact on the demand for South Korean goods, hurting the country’s economic growth. Exports dropped 1.4% in the second quarter from the three months prior, according to the data published by the Bank of Korea and the weak data may prompt the South Korean government to boost stimulus measures.
Australia
Following on from the previous day’s news that Australia’s economic growth rate slowed in Q2 after a fall in global demand for its resources and weak domestic consumption. Australia surprised the markets by announcing an unexpected fall in its unemployment rate last month. The Australian Bureau of Statistics said that the unemployment rate fell to a seasonally adjusted 5.1%, from 5.2% in the preceding month, after analysts had been expecting the Australian unemployment rate to rise to 5.3% last month. The Aussie regained most of its losses from yesterday and was 0.28% up against the USD.
ECB
Today is going to be all about the ECB meeting later today. It was reported earlier that the ECB was planning to launch “unlimited, sterilized” bond purchases, allowing the monetary authority to purchase Spanish and Italian debt (or any other debt) with money currently already in the financial system and not freshly printed money as carried out by the U.S. Federal Reserve. These plans, known as the ‘Monetary Outright Transaction proposal’, will government bonds carrying maturities of up to three years being purchased.
Today
Thursday promises to be a very busy day for traders with focus firmly on the potentially make or break ECB meeting today. Interest rates are expected to remain unchanged in the Eurozone as they are in the UK, but watch out for jobless and Nonfarm employment change figures in the US. Expect plenty of volatility in the EUR/USD pairing today.