Binary Options Daily Analysis – Greek Hopes Push up Euro, Treasuries Slide

Equities
Asian markets closed modestly lower, amid rising tensions over Greece’s debt troubles. The Nikkei eased .1% to 8918, the ASX 200 fell .5%, and the Hang Seng closed down fractionally. China’s Shanghai Composite tumbled 1.7% as steel companies dropped, while Korea’s Kospi edged up .4%.

China's Shanghai Composite Continues to Struggle, Dropping 1.6%

Indecision gripped European traders, leaving the major indexes mixed at the close. The CAC40 rose .2%, while the DAX slipped .2%, and the FTSE closed flat. Excitement abated over the potential merger of Xstrata and Glencore, as several major shareholders said they’d vote against the deal, sending shares of both companies down roughly 4%.

In the US, stocks inched up, lifted on hopes that a Greek debt deal was imminent. The Dow closed up 33 points to 12878, the S&P 500 gained .2%, and the Nasdaq rose .1%.

Yum Brands advanced 2.6%, and Coca-Cola gained .8% after beating analyst profit forecasts. Mastercard doubled its dividend to 30 cents a share, pushing the stock up .4%.

Treasuries and Commodities
Bonds fell, with 10-year notes shedding 19/32 to yield 1.98%, and 30 year notes losing 1 1/32 to yield 3.15%.

Crude oil jumped 1.8% to 98.66, a day after Saudi Arabia said it favored a $100 target for oil prices. Natural gas dropped 2.8% to 2.479.

Gold rallied 1.3% to 1747.80, and silver climbed 1.4% to 34.23, while copper dipped .1% to 3.8605.

Currencies
An afternoon selloff in the Dollar pushed the Euro up .9% to 1.3248, its highest level in nearly 2 months. The Swiss Franc climbed .8% to 1.0963, the Australian Dollar rallied .7% to 1.0796, and the Pound gained .5% to 1.5895. The Yen slipped .3% to 76.81.

Economic Outlook
Consumer credit rose by $19.3 billion, nearly 3 times analyst estimates for a $7.7 billion increase, in a sign that the consumer spending is picking up dramatically. The TIPP economic optimism index rose to 49.4 from 47.5, more than forecast.

Wednesday’s light economic calendar will be limited to weekly oil inventories and weekly mortgage applications.

Earnings are due from Akamai, CVS, Cisco, Groupon, ICE, Moodys, Sprint, Time Warner, Visa, and Whole Foods.

-Bradley Welcher

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