Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy portal
Equities
Asian markets fell on Monday as once again the week started with significant losses. The biggest loser was the Hang Seng, which tumbled 4.4% to 16882, as property shares saw double digit declines. In Japan, the Nikkei fell 1.8% to 8546, and Sony shares slumped 4.5%, touching their lowest level since the 1980’s. Australia’s ASX 200 skidded 2.8%, while markets in Korea and mainland China were closed for a holiday.
European markets closed lower, but were well off the session lows. The DAX fell 2.3% to 5376, but had fallen to 5289 at the open. France’s CAC40 lost 1.9%, and the FTSE declined 1%. Greek officials announced that they would miss deficit targets for the next year, suggesting recent austerity measures are insufficient.
US markets dropped sharply, as the Nasdaq plunged 3.3%, the S&P 500 fell 2.9% and the Dow lost 258 points, closing at 10655. The VIX jumped nearly 6% to 45.45, indicating a high level of investor fear.
Airline stocks tumbled after analysts raised the possibility of a bankruptcy for AMR, parent of American Airlines. The shares dropped 33% to 1.98 and weighed on the sector. US Airways dropped 16%, while Delta and Continental skidded 11%.
Eastman Kodak shares soared 72% to 1.34 after denying that the company is planning a bankruptcy filing.
Apple is expected to announce the iPhone 5 on Tuesday.
Treasuries and Commodities
The mounting fear sent bond prices soaring, as 10-year notes rallied 1 17/32 to yield 1.75%. 30-year notes jumped 4 11/32 to yield 2.72%.
Energy continued to fall, led by crude oil, which lost 3.2% to settle at 76.64. Gasoline lost 1.3% and natural gas fell 1.5%.
Metals traded mixed as gold gained 2% to 1655, while copper declined 2.5% to 3.072. Copper has dropped more than 30% over the past 3 months, as slowing growth and recession fears weigh on the industrial metal.
Copper Drops more than 30% in Under 3 Months
Currencies
The US Dollar continued to soar, as investors dumped European currencies. The Euro fell 1.6% to 1.3178, down more than 2 cents. The Swiss Franc slumped 1.4% to .9208, and the Pound declined .9% to 1.5444. The Australian Dollar continued to fall, dropping 1.3% to .9574, and is now hovering just above its 52-week low of .9537. The only gainer was the Japanese Yen, which rose .6% to 76.65.
Economic Outlook
Monday’s economic data was surprisingly upbeat, but investors ignored the data, which is a very bearish indicator. ISM manufacturing PMI data came in slightly stronger than expected, rising to 51.6 from last month’s 50.6. Construction spending unexpectedly rose by 1.4%, reversing last month’s decline of 1.4%, and auto sales climbed to 13.1M, significantly higher than last month’s 12.1M.
Tuesday’s sole US report will be factory orders. Bernanke will be speaking to Congress.
Earnings are due from Global Payments and Yum Brands.
Equities
Asian markets fell on Monday as once again the week started with significant losses. The biggest loser was the Hang Seng, which tumbled 4.4% to 16882, as property shares saw double digit declines. In Japan, the Nikkei fell 1.8% to 8546, and Sony shares slumped 4.5%, touching their lowest level since the 1980’s. Australia’s ASX 200 skidded 2.8%, while markets in Korea and mainland China were closed for a holiday.
European markets closed lower, but were well off the session lows. The DAX fell 2.3% to 5376, but had fallen to 5289 at the open. France’s CAC40 lost 1.9%, and the FTSE declined 1%. Greek officials announced that they would miss deficit targets for the next year, suggesting recent austerity measures are insufficient.
US markets dropped sharply, as the Nasdaq plunged 3.3%, the S&P 500 fell 2.9% and the Dow lost 258 points, closing at 10655. The VIX jumped nearly 6% to 45.45, indicating a high level of investor fear.
Airline stocks tumbled after analysts raised the possibility of a bankruptcy for AMR, parent of American Airlines. The shares dropped 33% to 1.98 and weighed on the sector. US Airways dropped 16%, while Delta and Continental skidded 11%.
Eastman Kodak shares soared 72% to 1.34 after denying that the company is planning a bankruptcy filing.
Apple is expected to announce the iPhone 5 on Tuesday.
Treasuries and Commodities
The mounting fear sent bond prices soaring, as 10-year notes rallied 1 17/32 to yield 1.75%. 30-year notes jumped 4 11/32 to yield 2.72%.
Energy continued to fall, led by crude oil, which lost 3.2% to settle at 76.64. Gasoline lost 1.3% and natural gas fell 1.5%.
Metals traded mixed as gold gained 2% to 1655, while copper declined 2.5% to 3.072. Copper has dropped more than 30% over the past 3 months, as slowing growth and recession fears weigh on the industrial metal.
Copper Drops more than 30% in Under 3 Months
Currencies
The US Dollar continued to soar, as investors dumped European currencies. The Euro fell 1.6% to 1.3178, down more than 2 cents. The Swiss Franc slumped 1.4% to .9208, and the Pound declined .9% to 1.5444. The Australian Dollar continued to fall, dropping 1.3% to .9574, and is now hovering just above its 52-week low of .9537. The only gainer was the Japanese Yen, which rose .6% to 76.65.
Economic Outlook
Monday’s economic data was surprisingly upbeat, but investors ignored the data, which is a very bearish indicator. ISM manufacturing PMI data came in slightly stronger than expected, rising to 51.6 from last month’s 50.6. Construction spending unexpectedly rose by 1.4%, reversing last month’s decline of 1.4%, and auto sales climbed to 13.1M, significantly higher than last month’s 12.1M.
Tuesday’s sole US report will be factory orders. Bernanke will be speaking to Congress.
Earnings are due from Global Payments and Yum Brands.