[link removed]Binary Options Trading[/URL] analysis written by David Frank
Markets
Despite a failed attempt at the end of Friday’s session to close the session out on a positive note, stocks finished higher for the week on some weak signs of recovery for the US economy.
The Dow was modestly lower but the S&P 500 posted losses approaching 1 percent, while the late day selloff pushed the Nasdaq down past 1 percent.
DJIA CHART
FOREX
The Yen advanced a modest 0.22% against a weaker USD by the close of trade this week. Most of the losses for the Buck came on Monday when a sharp selloff in risk assets fueled haven flows into the safety of the Yen. The USD struggled to hold its ground for the remainder of the week as improved risk appetite saw both the Yen and the Dollar go on the defensive with traders favoring higher yielding assets like the Aussie and the Kiwi which were the top two performers against the dollar this week.
As expected the BoJ held interest rates on Friday, making no changes to its current monetary policy. However the central bank cited a firm warning regarding the increased risk of a global economic slowdown. Bank of Japan Governor Masaaki Shirakawa stated that, “The uncertain outlook for the global economy and instability in financial markets are underscoring the downside risks for Japan’s economy.” He went on to say that, “European financial markets remain tense, as there have been moves in money markets similar to those seen during the Lehman crisis. What is different is that the creditability of government debt has become the target of market worries, and this has resulted in a bigger impact.” The governor highlighted a growing concern that the sovereign debt crisis in Europe may soon have a significant impact on the global economy if left unchecked, and with Japan’s interest rates already near zero, officials have little left in their arsenal to help support the economy should the recovery falter.
COMMODITIES
Oil prices rose slightly Friday and have come back from a 12-month low earlier this week.
Friday’s rise followed encouraging news about the economy in the US, which is the world’s largest oil consumer. The nation added jobs, slowly and weakly, last month, easing concerns about another recession. A stronger economy means more demand for energy.
Crude climbed 39 cents to end the day at $82.98 a barrel in New York. It rose from $75.67 Tuesday, the lowest level since September 2010. That low price was prompted by worries about Europe’s debt crisis.
Gold prices lacked clear direction on Friday after the latest reading on employment in the US showed better than expected job growth in September. However, more European credit downgrades kept the yellow metal volatile.
Gold for December delivery was down $15.90 to $1,637.30 at the Comex division of the New York Mercantile Exchange early on Friday afternoon before rebounding to a gain of $4.
Crude Chart
EQUTIES
Home Depot and Wal-Mart led the blue-chip gainers, while BofA and JPMorgan lagged. Also, The latest developments in the Euro zone put pressure on US financials such as Goldman Sachs and Morgan Stanley. Citigroup also slumped after Raymond James cut its price target on the firm to $43 from $65.
Markets
Despite a failed attempt at the end of Friday’s session to close the session out on a positive note, stocks finished higher for the week on some weak signs of recovery for the US economy.
The Dow was modestly lower but the S&P 500 posted losses approaching 1 percent, while the late day selloff pushed the Nasdaq down past 1 percent.
DJIA CHART
FOREX
The Yen advanced a modest 0.22% against a weaker USD by the close of trade this week. Most of the losses for the Buck came on Monday when a sharp selloff in risk assets fueled haven flows into the safety of the Yen. The USD struggled to hold its ground for the remainder of the week as improved risk appetite saw both the Yen and the Dollar go on the defensive with traders favoring higher yielding assets like the Aussie and the Kiwi which were the top two performers against the dollar this week.
As expected the BoJ held interest rates on Friday, making no changes to its current monetary policy. However the central bank cited a firm warning regarding the increased risk of a global economic slowdown. Bank of Japan Governor Masaaki Shirakawa stated that, “The uncertain outlook for the global economy and instability in financial markets are underscoring the downside risks for Japan’s economy.” He went on to say that, “European financial markets remain tense, as there have been moves in money markets similar to those seen during the Lehman crisis. What is different is that the creditability of government debt has become the target of market worries, and this has resulted in a bigger impact.” The governor highlighted a growing concern that the sovereign debt crisis in Europe may soon have a significant impact on the global economy if left unchecked, and with Japan’s interest rates already near zero, officials have little left in their arsenal to help support the economy should the recovery falter.
COMMODITIES
Oil prices rose slightly Friday and have come back from a 12-month low earlier this week.
Friday’s rise followed encouraging news about the economy in the US, which is the world’s largest oil consumer. The nation added jobs, slowly and weakly, last month, easing concerns about another recession. A stronger economy means more demand for energy.
Crude climbed 39 cents to end the day at $82.98 a barrel in New York. It rose from $75.67 Tuesday, the lowest level since September 2010. That low price was prompted by worries about Europe’s debt crisis.
Gold prices lacked clear direction on Friday after the latest reading on employment in the US showed better than expected job growth in September. However, more European credit downgrades kept the yellow metal volatile.
Gold for December delivery was down $15.90 to $1,637.30 at the Comex division of the New York Mercantile Exchange early on Friday afternoon before rebounding to a gain of $4.
Crude Chart
EQUTIES
Home Depot and Wal-Mart led the blue-chip gainers, while BofA and JPMorgan lagged. Also, The latest developments in the Euro zone put pressure on US financials such as Goldman Sachs and Morgan Stanley. Citigroup also slumped after Raymond James cut its price target on the firm to $43 from $65.