Binary Options Analysis – Chinese Growth Lifts Commodities and Equities

Sep 8, 2011
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Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy


Equities

Manufacturing PMI data from China rose for the first time in 3 months, boosting the region’s indexes. In Greater China, the Shanghai Composite advanced 2.3% and the Hang Seng jumped 4.1%. Around the region, the Nikkei rose 1.9% to 8844, the Kospi rallied 3.3% and the ASX 200 gained 2.7%.

European markets extended their gains from Friday. The CAC40 gained 1.6%, the DAX rose 1.4%, and the FTSE closed up 1.1%. Materials stocks led the advance, as the sector rallied 5.4%, encouraged by China’s PMI data.

In the US, stocks continued to rise. The Nasdaq was the biggest gainer, climbing 2.4%, while the Dow rose 105 points and the S&P 500 advanced 1.3%. The VIX dropped more than 6% to settle at 29.26.

Caterpillar shares climbed 5% after reporting strong earnings.

A flurry of M&A activity was announced on Monday. Cigna announced it will buy Healthspring for $3.8 billion, sending Healthspring shares up 34%. Oracle said it will buy Rightnow Technologies for $1.5 billion. Mattel revealed it will buy HIT Entertainment for $680 million.



Treasuries and Commodities

Bonds closed with slight losses as 10 and 30 year notes both slipped 2/32, to yield 2.23% and 3.27% respectively.

Commodities traded mostly higher, thanks to China’s upbeat data. Crude oil jumped 4.6% to 91.39, and copper posted an impressive 7% gain, closing at 3.4495. Gold advanced 17.20 to 1653.30 and silver settled at 31.65, up 1.5%.

oct-25-copper-300x141.png

Copper Prices Start to Recover



Currencies

The Australian Dollar jumped 1% to 1.0474, thanks to a recovery in commodity prices. The other major currencies rose modestly against the Dollar. The Euro and Pound both inched up .2%, and the Canadian Dollar rose .3% to 1.0035.



Economic Outlook

Tuesday’s reports will include the Case-Shiller home price index, the FHFA home price index, and consumer confidence.

Earnings are due from 3M, UPS, Amazon, DuPont and Deutsche Bank.