Binary Options Daily Analysis – Commodities Fall Despite Strong US Data

Sep 8, 2011
Asian markets traded mostly lower on Thursday, as concerns over Europe’s debt troubles resurfaced. The Nikkei dropped 71 points to 8489, the ASX 200 skidded 1.1%, and the Shanghai Composite fell 1% to 2149. Oil stocks helped offset losses in financials, with the Kospi easing a mere .1%, and the Hang Seng gaining .5%.

In Europe, stocks dropped once again, weighed down by banks. The CAC40 fell 1.5%, the FTSE lost .8%, and the DAX shed .3%. Italy’s MIB index tumbled 3.7%, as Italy’s leading bank, UniCredit, continued to drop.

US markets once again recovered from early losses. The Dow closed down 3 points, erasing a 130 point drop, while the Nasdaq climbed .8% and the S&P 500 rose .3%.

Dow Closes Flat, Bouncing Back from Morning Loss

Denndreon shares surged 39.8% after reporting a huge jump in revenues.

Zumiez rocketed up 17.6% after reporting impressive sales data. Macy’s climbed 3.9%, while Target fell 3% after missing sales forecasts.

Treasuries and Commodities
Bonds retreated for a 3rd day, despite the mounting European debt fears. 10-year notes edged down 4/32 to yield 1.99%, and 30-year notes fell 18/32 to yield 3.06%.

Natural gas dropped 3.9% to 2.975, as energy traded lower. Crude oil fell 1.43 to 101.79, and gasoline lost 1.6% to 2.7399.

Metals settled mixed, as copper fell .4% to 3.4205, while gold gained .8% to 1625.50, and silver rose .6% to 29.275.

Agriculturals fell sharply, with sugar losing 5.3%, wheat dropping 3.2%, and corn sinking 2.3%.

The US Dollar rallied across the board, while the Euro fell to a 15-month low of 1.2771, down 1.2%. The Swiss Franc lost 1.1% to 1.0493, and the Pound dropped .8% to 1.5487. In the Pacific, the Australian Dollar declined 1% to 1.0252, and the Yen shed .6% to 77.22.

Economic Outlook
ADP payroll data showed a massive jump of 325K jobs last month, blowing past estimates for a 176K gain, and boding well for Friday’s official non-farm payroll report. Weekly jobless claims fell to 372K from last week’s 387K, slightly better than forecast.

Analysts expect the government to report a gain of 152K jobs over the last month in Friday’s payroll report. The unemployment rate is expected to rise to 8.7%.

Earnings are due from PriceSmart, Robins & Myers, and Commercial Metals.