Binary Options Daily Analysis – Commodities Tumble amid Growth Fears

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

Asian markets closed moderately lower, following Tuesday’s losses on Wall Street. The Nikkei closed down .4% to 8519, the Kospi slipped .3%, and the ASX 200 eased .1%. China’s Shanghai Composite fell another..9%, and the Hang Seng shed .5%, extending its losing streak to 5 days.

European markets tumbled as rumors circulated that France’s credit rating might get slashed. France’s CAC40 slumped 3.4%, the FTSE dropped 2.3%, and the DAX lost 1.7%. The automobile sector plunged 4.2%, amid doubts over the region’s growth.

US markets ended lower, with the Nasdaq once again leading the losses. The Nasdaq fell 1.6%, the Dow declined 131 points, and the S&P 500 lost 1.1%.

Joy Global reported disappointing earnings, sending the shares down 10.8%.

Treasuries and Commodities
US bonds continued to rally, as global investors sought safety. 10-year notes climbed 20/32 to yield 1.90%, and 30-year notes surged 2 10/32 to yield 2.90%.

Commodities tumbled across the board. In energy, crude oil dropped 5.1% to 95.04, and gasoline lost 4.6% to 2.504.

Gold plunged 5.6% to 1569.50, closing below its 200-day moving average for the first time in nearly 3 years. Silver tumbled 7.9% to 28.80, and copper declined 4.8%.

Gold Continues to Fall, Dropping 5.6% on Wednesday

The US Dollar extended its recent gains on Wednesday, as the Euro fell 1.4% to 1.2982, hitting a 52-week low of 1.2950. The Australian Dollar dropped 1.5% to .9910, and the Swiss Franc lost 1.5%, dropping to 1.0495. The Canadian Dollar lost 1.1% to 1.0396, and the Pound shed .7% to 1.5489.

Economic Outlook
Import prices rose by .7%, the biggest jump in 7 months, but were still less than the 1% expected. Mortgage applications rose by 4%, as a recovering economy, coupled with low interest rates encourages mortgage activity.

Thursday’s economic data will include weekly unemployment claims, PPI, and the Empire State manufacturing index.

Earnings are due from Pier 1, Research in Motion, and Rite Aid.