Binary Options Daily Analysis – Commodities Fall Despite Strong US Data

Sep 8, 2011
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Equities
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%.

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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%.

Currencies
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.