Binary Options Daily Analysis – Upbeat Economic Data Helps US Markets Erase Losses

Sep 8, 2011
Asian markets traded mixed on Wednesday, following Tuesday’s advance. For the gainers, the Nikkei rallied 1.2% to 8560, and the ASX 200 surged 2.1%, as mining giant BHP Billiton soared 4.1%. On the losing side, the Kospi declined .5%, the Shanghai Composite sank 1.4%, and the Hang Seng slid .8%

European banks tumbled 3.6%, weighing on the region’s indexes. The CAC40 slumped 1.6%, the DAX fell .9%, and the FTSE declined .6%. News that Italy’s largest bank, UniCredit, will need to raise 8 billion euros to meet capital requirements, pressured financials.

US markets traded lower at the open, but erased their losses as the day progressed. The Dow rose 21 points to 12418, while the S&P 500 and Nasdaq ended flat.

Dow Erases Morning Losses to Close Higher

Yahoo shares dropped 3.1% after naming Scott Thompson as its new CEO. Kodak shares tumbled 28% on news the company is headed for bankruptcy.

Treasuries and Commodities
Treasuries extended their declines. 10-year notes fell 12/32 to yield 1.99%, and 30-year notes dropped 1 6/32 to yield 3.04%.

Energy rallied, led by natural gas, which jumped 3.7% to 3.104. Gasoline gained 1.4% to 2.7823, and crude oil edged up .3% to 103.23.

Metals traded mixed. Copper fell 2.8% to 3.4315 and silver lost 1.6% to 29.09, while gold rose .8% to 1612.90.

The Euro fell .9% to 1.2942, the Swiss Franc dropped 1% to 1.0620, and the Pound eased .2% to 1.5618, as debt fears hit European currencies. The Yen and Australian Dollar settled flat, while the Canadian Dollar ticked down .1% to 1.0124.

Economic Outlook
Vehicle sales remained at an annualized rate of 13.6 million, slightly above expectations, and factory orders increased by 1.8% after last month’s .2% decline.

Thursday’s heavy economic calendar will include the ADP employment report, the Challenger job-cut report, weekly jobless claims, ISM non-manufacturing data, and chain-store sales.

Earnings are scheduled for Apollo Group, Family Dollar, Monsanto, and Constellation Brands.