Binary Options Daily Analysis – Asia Rallies, West Awaits Greek Deal

Equities
Asian markets rallied on Wednesday, with several of the major indexes climbing to multi-month highs. The Nikkei advanced 1.1% to 91016, a 3 month high, as Toyota raised its annual profit forecast by more than 30%. Similarly, the Kospi posted a gain of 1.1%, with leading shipbuilders advancing 6% on hopes the sector will soon recover. The Shanghai Composite surged 2.4%, and the Hang Seng jumped 1.5% to 21018, a 6 month high. The ASX 200 trailed its peers, rising just .4%.

Hang Seng Index Climbs to 6 Month High

The East’s impressive gains failed to make an impact on the West. European markets closed slightly lower, as the region anxiously awaits a Greek debt deal. The FTSE slipped .2%, while the DAX and CAC40 dipped less than .1%.

US stocks fared better, posting modest gains. The Nasdaq gained .4% to 2916, the S&P 500 rose .2%, and the Dow inched up 6 points to 12884.

Disney shares gained.7% after beating earnings forecasts, while missing on revenue.

Caesars Entertainment soared 71% in its first day of trading under the symbol “CZR”.

Treasuries and Commodities
The Treasury auctioned $24 billion in 10-year notes, with a high-yield of 2.02%, and bid-to-cover ratio of 3.05. 2 through 30-year notes all closed flat to fractionally lower.

Gasoline climbed 1.7% to 2.978, and crude oil rose .5% to 98.90, while natural gas shed 1.1% to 2.444. Crude oil inventories rose by .3M barrels, significantly less than the 2.5M expected.

Metals traded mixed, as copper gained .7%, while silver and gold fell .7% to 1735.40 and 33.935, respectively.

Currencies
The Dollar gained modestly across the board. The Pound slumped .5% to 1.5819, and the Yen dropped .3% to 77.01. The Euro, Australian Dollar, Swiss Franc, and Canadian Dollar all ended down .1%, as the market braces for the outcome of Greece’s debt negotiations.

Economic Outlook
Weekly mortgage applications jumped last week, a healthy sign that the housing market is on the rebound.

The Bank of England, and the ECB will announce their rate decisions on Thursday, but no changes are expected.

In the US data is due on weekly unemployment claims, and wholesale inventories.

Earnings are scheduled for Activision, CBOE, Dunkin Donuts, LinkedIn, Noble Energy, Pepsi, Phillip Morris, and Rio Tinto.

-Bradley Welcher

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