Binary Options Daily Analysis – Western Markets Rally on Euro Summit Deal

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

Asian markets slumped on Friday as investors grew increasingly nervous over the European Summit. Hong Kong’s Hang Seng led the declines, tumbling 2.7% to 18586. Japan’s Nikkei sank 1.5% to 8536, the ASX 200 lost 1.8%, and the Kospi fell 2%. In China, stocks fell .6%, despite a report which showed a inflation dropped to 4.2%.

European leaders agreed to work towards leaner budgets, but failed to announce any new aid measures. Nonetheless, stocks rallied, led by the banks, which rose 2.6%. The CAC40 climbed 2.5%, the DAX jumped 1.9%, and the FTSE rose .8%.

DAX Rallies 1.9% on Treaty Deal

US markets followed their European counterparts higher. The Dow advanced 187 points to 12184, the Nasdaq rallied 1.9%, and the S&P 500 gained 1.7% to 1255. The VIX tumbled 13.3% to 26.53.

GE shares closed up 3.3% after raising its quarterly dividend to 17 cents, from 15 cents a share.

Treasuries and Commodities
Bond prices tumbled as investors became increasingly optimistic about the European debt crisis. 30-year notes fell 1 20/32 to yield 3.11%, and yields on 10-year notes rose to 2.06%.

Crude oil fell 1.3% to 99.83. Gold rose $3 to 1712.80, and silver gained 71 cents 32.173.

The US Dollar traded mostly lower after the European Summit. The Euro rose 30 pips to 1.3370, the Pound rose 20 pips to 1.5662, and the Swiss Franc edged up 30 pips to 1.0821. The Australian Dollar gained .5% to 1.0221, and the Canadian Dollar ticked up .3% to 1.0193.

Economic Outlook
Consumer sentiment rose more than expected, climbing to 67.7, from last month’s 64.1 reading. The trade deficit fell to $43.5 billion, in line with forecasts.

No major economic reports are due on Monday.