Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy
Equities
Asian markets jumped following news of a deal for a 50% haircut on Greece’s debt. The Nikkei gained 2% to 8927, the Kospi advanced 1.5%, and the ASX 200 rallied 2.5% hitting its highest close in 3 months. In China, the Hang Seng rose 3.3% to 19689, led by railways, and the Shanghai Composite edged up .3%.
European markets soared, led by banks which rocketed up 9%. The CAC40 jumped 6.3%, the DAX jumped 5.4%, and the FTSE rallied 2.9%. In France, the 3 leading banks, Credit Agricole, Societe Generale and BNP Pariba,s all posted gains greater than 20%.
The upbeat sentiment continued in the US, sending the indexes sharply higher. The Dow gained 340 points to 11209, the Nasdaq climbed 3.3%, and the S&P 500 jumped 3.4%. The VIX tumbled 14.7% to 25.46 as investor anxiety eased. Here too, financials were the outsized gainers.
Stocks Soar on Greek Debt Deal
Dow Chemical shares jumped 8.2% even though the company reported earnings which were slightly shy of expectations. Visa gained 2.6% after reporting profits that were in line with estimates.
Treasuries and Commodities
Bonds tumbled as investors poured into riskier assets. 10 year notes fell 1 21/32 to yield 2.4% and 30-year notes sank 4 21/32 to yield 3.46%.
A $29 billion auction of 7-year notes had a high yield of 1.791 percent and a weak bid-to-cover ratio of 2.59.
Commodities rallied across the board. In energy, crude oil soared 4.1% to 93.91, gasoline advanced 3.3% to 2.7391 and natural gas edged up .4%.
Copper once again led metals higher, rocketing 6.1% higher to close at 3.703. Silver jumped 5.4% to 35.105, and gold gained 1.3% to 1746.30.
Currencies
The dollar plunged as the market return to risk-on mode. The Australian Dollar was the biggest gainer, soaring 3.1% to 1.0722. The Swiss Franc rallied 2.4% to 1.1628, and the Euro advanced 2.1% to 1.4188. The Yen once again touched a new record high, tagging 75.67, before pulling back to 75.97, up .4%. The Canadian Dollar broke back through the parity level, climbing 1.4% to .9911.
Economic Outlook
GDP rose at an annual rate of 2.5%, slightly better than forecast, and a marked improvement from last quarter’s 1.3% gain.
Weekly jobless claims came in at 402K, slightly better than last week, but a bit weaker than forecast. Pending home sales unexpectedly declined by 4.6%, a large increase from last month’s 1.2% drop.
Friday’s reports will include personal income, personal spending, consumer sentiment, and the employment cost index.
Earnings are scheduled for Arch Coal, Cablevision, Chevron, Cigna, Merck and Whirlpool.
Equities
Asian markets jumped following news of a deal for a 50% haircut on Greece’s debt. The Nikkei gained 2% to 8927, the Kospi advanced 1.5%, and the ASX 200 rallied 2.5% hitting its highest close in 3 months. In China, the Hang Seng rose 3.3% to 19689, led by railways, and the Shanghai Composite edged up .3%.
European markets soared, led by banks which rocketed up 9%. The CAC40 jumped 6.3%, the DAX jumped 5.4%, and the FTSE rallied 2.9%. In France, the 3 leading banks, Credit Agricole, Societe Generale and BNP Pariba,s all posted gains greater than 20%.
The upbeat sentiment continued in the US, sending the indexes sharply higher. The Dow gained 340 points to 11209, the Nasdaq climbed 3.3%, and the S&P 500 jumped 3.4%. The VIX tumbled 14.7% to 25.46 as investor anxiety eased. Here too, financials were the outsized gainers.
Stocks Soar on Greek Debt Deal
Dow Chemical shares jumped 8.2% even though the company reported earnings which were slightly shy of expectations. Visa gained 2.6% after reporting profits that were in line with estimates.
Treasuries and Commodities
Bonds tumbled as investors poured into riskier assets. 10 year notes fell 1 21/32 to yield 2.4% and 30-year notes sank 4 21/32 to yield 3.46%.
A $29 billion auction of 7-year notes had a high yield of 1.791 percent and a weak bid-to-cover ratio of 2.59.
Commodities rallied across the board. In energy, crude oil soared 4.1% to 93.91, gasoline advanced 3.3% to 2.7391 and natural gas edged up .4%.
Copper once again led metals higher, rocketing 6.1% higher to close at 3.703. Silver jumped 5.4% to 35.105, and gold gained 1.3% to 1746.30.
Currencies
The dollar plunged as the market return to risk-on mode. The Australian Dollar was the biggest gainer, soaring 3.1% to 1.0722. The Swiss Franc rallied 2.4% to 1.1628, and the Euro advanced 2.1% to 1.4188. The Yen once again touched a new record high, tagging 75.67, before pulling back to 75.97, up .4%. The Canadian Dollar broke back through the parity level, climbing 1.4% to .9911.
Economic Outlook
GDP rose at an annual rate of 2.5%, slightly better than forecast, and a marked improvement from last quarter’s 1.3% gain.
Weekly jobless claims came in at 402K, slightly better than last week, but a bit weaker than forecast. Pending home sales unexpectedly declined by 4.6%, a large increase from last month’s 1.2% drop.
Friday’s reports will include personal income, personal spending, consumer sentiment, and the employment cost index.
Earnings are scheduled for Arch Coal, Cablevision, Chevron, Cigna, Merck and Whirlpool.