Binary Options Daily Analysis – China Eases Reserve Requirements, Stocks Rally

Equities
China announced a new stimulus plan to cut bank reserve requirements, pushing up most markets in the region, although much of the initial gains did not last. The Nikkei advanced 1.1% to 9427, and the ASX 200 rallied 1.4%, as miners jumped, encouraged by the Chinese announcement. China’s Shanghai Composite rose as much as 1.3%, but closed up a mere .2%, and the Hang Seng declined .3%, as energy shares sold off. Korea’s Kospi inched up .1%, sliding back from a 6-month high.

European markets rallied, with the DAX leading the advance, climbing 1.5% to 6948. The CAC40 gained 1% to 3473, and the FTSE rose .7% to 5945. JPMorgan said the DAX is its preferred European index, contributing to outsized gains for the German benchmark.

DAX Climbs 1.5% Thanks to Nod by JPMorgan

US stock and bond markets were closed for Presidents Day.

Commodities
Metals advanced on expectations that China’s easing efforts will boost demand. Copper and silver climbed 1.1%, and gold rose .6% to 1735.50.

Oil surged 1.6% to 104.92, and gasoline traded up 1.2% to 3.0511, while natural gas sank 2.6% to 2.615.

Currencies
The Dollar declined, as expectations for a successful Greek bailout encouraged risk taking. The Euro advanced .7% to 1.3241, and the Swiss Franc push up .8% to 1.0967. The Australian Dollar rose .4% to 1.0752, and the Canadian Dollar gained .3%% to .9938. The Yen closed flat after touching a 6-month low of 79.70.

Economic Outlook
Tuesday’s sole report will be the Chicago Fed’s national activity index.

Earnings are due from Barnes & Noble, Cheesecake Factory, Chesapeake Energy, Dell, Home Depot, Kraft Foods, Macy’s, Saks, and Wal-Mart.

-Bradley Welcher

Share

Related posts:

  1. Binary Options Daily Analysis – Stocks Rally as Housing Market Recovers
  2. Binary Options Daily Analysis – Western Markets Rally on Euro Summit Deal
  3. Binary Options Daily Analysis – Western Stocks Rally, Boosted by Positive Data
  4. Binary Options Daily Analysis – US Stocks Rally on Upbeat Economic Data
  5. Binary Options Daily Analysis – US Jobs Data Blows Past Forecasts, Stocks Rally