Binary Options Daily Analysis – Greece Secures Bailout Package, Commodities Jump

Equities
Greece received approval for its long awaited bailout package from lawmakers, but Asian markets traded mixed on the news. The Nikkei eased .2% to 9463, as Mazda shares tumbled 10% after announcing it would raise $2 billion in a share offering. The ASX 200 advanced .8%, the Hang Seng edged up .3%, and the Shanghai Composite climbed .8%. Korea’s Kospi closed flat, as significant losses in ship builders offset gains in other sectors.

European markets declined, as the Greek debt deal failed to inspire investors. The DAX shed .6%, the FTSE dropped .3%, and the CAC40 slid .2%.

The Dow briefly crossed the 13000 mark for the first time since May 2008, but failed to hold those gains as US stocks ended mixed. The Dow settled at 12966, up 16 points, the S&P 500 inched up .1% to 1362, while the Nasdaq slipped .1% to 2949.

Wal-Mart shares slumped 3.9% after reporting disappointing earnings.

Surging oil prices pressured airline stocks, sending US Airways and Delta Airways tumbling 11.4% and 7.2 respectively.

Treasuries and Commodities
Bond prices fell as the risk of a Greek default passed. 10-year notes declined 16/32 to yield 2.06%, and 30-year notes fell 1 4/32 to yield 3.21%.

Oil jumped 2.4% to 106.12, and gasoline advanced 1.7% to 3.066, while natural gas dropped 2.1% to 2.628.

Metals rallied across the board. Silver surged 3.5% to 34.37, copper bounced 3.1% to 3.8245, and gold traded up 2.1% to 1761.50.

Silver Rallies 3.5%

Currencies
The Australian Dollar dropped .7% to 1.0666, despite the spike in metal prices, as the US Dollar gained. The Pound slipped .4% to 1.5784, the Canadian Dollar declined .3% to .9966, and the Yen eased .1% to 79.72. The Euro and Swiss Franc closed flat.

Economic Outlook
Wednesday’s key report will be existing home sales, which analysts expect to rise to an annualized rate of 4.66M. Also due are weekly mortgage applications.

Earnings are due from Dollar Tree, Hertz, Hewlett-Packard, Limited Brands, MGM, and Toll Brothers.

-Bradley Welcher

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