Binary Options Report (May 7- May 11)
Markets
Euro zone issues caused t othe US Iindexes to close lower thiss week. The Dow Jones lost 34.44 points, to close at 12,820.60. The S&P 500 lost 0.34 percent, to close at 1,353.39. The Nasdaq rose 0.18 points to close at 2,933.82 points.
DJIA CHART
FOREX
The dollar’s recent performance is impressive. The Dollar Index has risen 1.9 percent to its highest weekly close since the middle of December. Looking at currency’s performance in specific corners of the market, we find the EUR/USD is below 1.3000, AUD/USD is at its lowest level for the year and the Dollar has even been able to muscle gold to a correction of a bull run that goes back nearly three years. The euro is the most fundamentally loaded currency this coming week. Through the close of this past week, the currency won temporary stays on two of the most critical threats to regional stability: the Greek election turmoil and Spanish financial troubles. Both areas can quickly flare up. For Greece, the short-term concern is creating a new government and seeing if it backs the austerity measures or withdraws from EU and suffers a default. As for Spain, the relief in the Bankia nationalization has been muddied by the Economic Minister’s announcement that another €30 billion will be needed to be set aside for further losses of other Spanish banks.
EUR/USD Chart
COMMODITIES
London brent crude for Junefell to $111.40, but did not go back above $113.18, needed to avoid a weekly loss.
Crude lost 0.95 to close at $96.13. This is now below the 200-day moving average of $96.27. Gold fell 0.8 percent to close at $1,5780.25. For the week, gold saw a 3.7 percent loss. Yhis is the Yellow metals worst performance since the week of Dec. 18 last year when it lost nearly 7 percent.
Oil Chart
EQUTIES
Arena soared after the drugmaker’s experimental obesity pill won an FDA panel’s support.
Meanwhile Facebook’s record IPO is already oversubscribed. Shares are expected to begin trading on May 18. Nordstrom lost after the department-store chain missed Wall Street expectations. And Nvidia surged after the chipmaker reported revenue and outlook which topped estimates.
Binary Options Report (April 30- May 4)
Markets
NFP Payrolls badly missed th marks and teh S&P500 and NASDAQ posted thier biggest losses of hte year. The Dow Jones Industrial Average fell 168.32, to close at 13,038.27. The S&P 500 lost 22.47, to close at 1,369.10. The Nasdaq dropped 2.25 percent, to close at 2,956.34.
DJIA CHART
FOREX
The NFP in April was disappointing, as they fell for the third straight month.The NFP reported that employers added 115,000 in April, down from March’s revised figure of 154,000. March’s figure had been revised upwards from its original print of 120,000. The forecas called for an increase of 160,000. Private payrolls rose by 130,000 in April, down from 166,000 in March, while manufacturing added 16,000 jobs as opposed to 41,000 jobs a month ago. Employment increased in professional and business services, retail trade and health care, but fell in transportation and warehousing.
Meanwhile, the unemployment rate fell slightly in April to its lowest level since January 2009, to 8.1 percent. This is down from 8.2 percent the previous month..
USD Chart
COMMODITIES
Crude was down nearly 4 percent at 98.49 per barrel. WTI has lost all of its gains for the year and is down fractionally for the year and down 6 percent on the week.
Brent crude, was down 2.5 percent at $113.18. It lost 5.6 percent for the week.
Oil Chart
EQUTIES
Apple dragged on the Nasdaq as it fell to $585 a share. The iPad maker has lost 6 percent for the week, and 12 percent from its all-time high of $644 a share. Kraft Foods posted results that above estimates. They reaffirmed its full-year growth targets and said it was going ahead with the 2-1 split into two companies later this year.
Binary Options Report (April 23- April 27)
Markets
Stocks finished higher , with the Nasdaq showing its best weekly gain in almost three months. Despite a better-than-expected consumer sentiment report and a weak despite weak GDP report.
The Dow was up23.69 points, to close at13,228.31. The S&P 500 rose 3.38 points, to close at 1,403.36. The Nasdaq rose 18.59 points, to close at to 3,069.20.
DJIA CHART
FOREX
The dollarpressured this past week. Yet, despite the USD favorable shift in tone and forecasts from the Fed along with the disappointing round of data along with a plethora of headlines that dominated the headlines throughweak, the buck was decisively bearish.As with before, could this be a technical correction? Instead, the dollar mustered the greatest level of momentum amongst all of its most liquid counterparts. The dollar is defying the standard fundamental lines and underlying market conditions. Could it gain again?
USD Chart
COMMODITIES
Crude lost $1.05 to close at $103.50. While gold closed at 1642.70, up $1.90 an ounce.
GOLD Chart
EQUTIES
Amazon surged sharply after they posted Q1 numbers that blew past estimates after-the-bell Thursday. Ford closed lower after the American automaker posted earnings that fell form last year, but still topped estimates.
Binary Options Weekly Report (April 16- April 20)
Markets
Stocks finished mixed Friday, but the Dow and S&P ended higher for the week, The ywere booseted by good corporate news and good news out of the Euro zone.
The Dow gained 65.16 to finish at 13,029.49. The S&P 500 rose1.21 points, to end at 1,378.53. And the Nasdaq lost 7.11 points finish at 3,000.45.
DJIA CHART
FOREX
Disappointments in recent US economic data set the stage for a more dovish FOMC through Wednesday’s rate decision and leave risks to the downside for the Dollar. Economists predict late-week US GDP will show robust US growth through Q1 and may boost the Buck.
Investors will ne watching the FOMC as it announces rates. New interest rate moves are not verylikely, but Fed officials will issue guidance on future economic conditions and their internal predictions for future rate moves. A weakness in US NFP and US Initial Jobless Claims could mean more dovish forecasts. Speculation remains, thanks to slower job growth, that the Fed to may enact furtherQuantitative Easing measures (so-called QE3).
Any hints at lower interest rates or QE3 could mean decent amount of US Dollar losses.
USD Chart
COMMODITIES
Crude gained 78 cents to finish at $103.05. Brent crude added 76 cents to end at $118.76 in London. Spot gold was slightly off and ended at $1,641.79. Gold futures rose $1.40 to close at $1,642.80.
Oil Chart
EQUITIES
US Airways fell after the airline said it has reached a labor deal with three American Airlines unions for support of a possible merger.
A new insider trading investigation is underway involving a current employee of Goldman Sachs. This is an investigation that could cause problems for the prosecution of former Goldman board member Rajat Gupta. Apple lost more than 2 percent. It is now trading below $580 . Over one month, it has tumbled more than 10 percent from its all-time high of $644.
Binary Options Weekly Report (April 9- April 14)
Markets
Stocks continued to selloff in the final hour of trading to close at session lows. This was their worst weekly decline for the year, and comes as weakness overseas and weak economic news in the U.S. worried investors.
The Dow Jones dropped 136.99 points, the S&P 500 fell 17.31 points, to close at 1,370.26. The Nasdaq fell 1.45 percent, to finish at 3,011.33.
DJIA CHART
FOREX
Chinese loan growth could grow 9.0 percent in Q1. Also, ECB members are now discussing using the securities market program (SMP) to buy Spanish debt. FOMC voting member Janet Yellen made the argument for low-rates through 2016.
The Chinese GDP reading for Q1 uunderscores the bearish sentiment in the markets. The 8.1 percent reading was below 9.0 percent, and below the consensus of 8.3 percent. The Australian Dollar fell sharply on the release. Was down 40-pips to the Japanese Yen and 50-pips to the buck. China’s weak data along with the rising Euro zone periphery bond yields helped the dollar regain 2 days of losses.
AUD/USD Chart
COMMODITIES
Brent crude lost 31 cents to close at 121.21 a barrel. Crude lost 81 cents to close at 102.83. Crude lost 48-cent for the week. The yellow metal jumped nearly $16 to close the week at 1628.10.
Oil Chart
EQUTIES
Google is in the spotlight as well after the search-engine giant’s earnings beat forecasts and the company also announced a two-for-one stock split.
Apple has rejected the US Justice Department’s allegations that it colluded with publishers over electronic book pricing, calling the charges “simply not true.” Coinstar surged after the company lifted its revenue outlook.
Binary Options Report (March 26- March 30)
Markets
Stocks closed mixed on Friday, but the DJIA and S&P logged their best quarterly gains in almost 14 years and the NASDAQ had its best quarterly performance since 1991.
The closed higher. This was its 6 month of gains.
The S&P 500 also finished higher. Hoever, the tech heavy NASDAQ fell in the final minutes. Thsi was its fourth-consecutive day of losses.
DJIA CHART
FOREX
The Euro ended the month of March unchanged against dollar unchanged. Stll a strong Q1 could set the road for gains in 2012. Yet the coming week of major event risk may prove critical for the Euro and US Dollar as the exchange rate trades near significant technical resistance and at a major crossroads.
Firstly, iinvestors will watch the rate decision due April 4by the EU. Also a potentially game-changing US Nonfarm Payrolls will wrap up what could be a pivotal week in price action. European officialsrecenlt too pressure off of the Euro as they agreed to support the firepower of their key bailout funds. It will be key to pay attention to ECB President Mario Draghi if he hints to further moetary actions this coming week.
EUR/USD Chart
COMMODITIES
Crude futures crawled higher Friday on ongoing concerns about Iran and supply disruptions, improved consumer sentiment and a weak dollar. Oil prices posted a 4.2 percent gain in Q1. Gold rose .12% to close at 1668.10 on Friday.
Oil Chart
EQUTIES
Apple closed below $600 a share even after BMO raised its price target on the iPad maker to $675 from $590. Still, shares climed almost 50 percent this quarter. Research In Motion finished higher after the struggling BlackBerry maker posted a loss. Th company said it was launching a review that could include a sale of the company. At least seven analysts slashed their price targets on the firm.
Binary Options Report (March 19- March 23)
Markets
Stocks closed higher Friday, but the Dow and S&P posted their worst weekly loss for the year. This comes as investors are afraid over a slowdown fears in China and weak economic news from the EU.
The Dow was up 34.59 points to close at 13,080.7. The S&P 500 rose 4.33 points, close at 1,397.11. The Nasdaq rose 4.60 points to close at 3,067.92.
DJIA CHART
FOREX
The US Dollarlooked as though it would break above key 8 month highs and end its downtrend. However, a significant turnaround leaves the dolalr open for even more losses into the final week of March trading. .
The past week looked as though we would see losses in the S&P 500 and US Dollar gain. Hoever, the opposite happened. Up coming economic event risk remains limited in the week ahead. Still, any surprises in final revisions to Q4, 2011 US GDP or Federal Reserve commentary could cause some major moves.
US Dollar Index
COMMODITIES
US crude oil futures rose more than 1 percent on Friday. This comes as some buyers have either ceased or scaled back imports of Iranian oil due to Western sanctions. Gold lost 3.30 points to end at 1655.80 on Friday.
Oil Chart
EQUTIES
KB Home lost after the homebuilder posted an unexpected decline in orders, hurt by rising cancellations in the Q1. Rivals Pulteand Toll Brothers also fell.
Micron Technology fell after the chipmaker posted a quarterly loss. they said low prices for its products has yet to recover. Rivals SanDisk and Texas Instruments also dipped.
Binary Options Report (March 12- March 16)
Markets
US markets had an unimpressive session on Frdiay but the major indices posted the weekly gains since last December.
The Dow Jones lost 20.14 points to close at 13,232.62. This ended a a seven day winning streak. The S&P 500 rose1.57 points to close at 1,404.17. The Nasdaq lost 1.11 points to end at 3,055.26.
This week, the DJIA rose 2.40 percent, the S&P rose 2.43 percent, while the Nasdaq jumped 2.24 percent.
DJIA CHART
FOREX
The dollar turned sharpply bearish through the final 48 hours of this past week. Has the bull run come to an end?
Through the past few weeks, we have seen dramatic changes in long standing correlations. the most dramtic being the Bucks standing as asafe haven currency. As of late the dollar has gone in the opposite direction form the market standard like the S&P 500 or carry trade.
The dollar could be turning bearish as a faulty equities rally that is ready to collapse or a systemic change in the buck’s function as a funding and liquidity currency or perhaps it was simply the reflection of lacking conviction behind the one thing that has synced all these markets up: risk appetite trends. Or perhaps all 3 have played a factor in this role.
US Dollar Index
COMMODITIES
Oil rose almost 2% to close at 107.15. Gold closed at 1710.90 for the week.
Oil Chart
EQUTIES
Research In Motion jumped nearly 7 percent amid rumors Samsung may be interested in a minority investment in the BlackBerry maker.
Homebuilders including DR Horton, Lennar and Pulte all declined after posting gains over the last few sessions.
Binary Options Report (March 5- March 9)
Markets
US markest rose on better than expected job data. Still, a “credit event” from greece dampened sentiment.
The S&P 500 and Nasdaq saw their 4th consecutive week of gains.
The Dow Jones rose14.08 points, the S&p was up 4.96 points, or 0.36 percent an the Nasdaq rose 17.92 points.
DJIA CHART
FOREX
It appears the Greek drama has come to a conclusion, for now. Athens completed the PSI bond swap with over 95 percent participation from debt holders after invoking collective action clauses (CACs) built into paper governed by Greek law,. Greece has now met the the requirements needed to unlock funding through the €130 billion second EU/IMF bailout package.
This whole dealthis means relatively little. A Greek default has not amounted to a material threat for global financial markets for some. EU banks have enough cash on hand to prevent a Greek default from causing a market wide credit squeeze since the first 3-year ECB LTRO in December. But…. is there enough to cover more flair ups?
EURO/USD
COMMODITIES
Crude-oil futures ended higher Friday, notching a weekly gain as better-than-expected data on U.S. employment in February lifted prospects for oil demand.
Crude rose 82 cents, or 0.8%, to close at 107.40 That was crude’s third session of gains.
Gold shed 12.80 to close at 1708.80
Oil Chart
EQUTIES
Starbucks hit new record highs after the coffeehouse chain said it will introduce its own single serving coffee brewing system that will compete with Green Mountain’s popular Keurig machine. Meanwhile, S&P Capital IQ raised its rating on Starbucks to “buy” from “hold.” Texas Instruments fell after the chipmaker lowered its earnings and revenue targets for the Q1.
Binary Options Report (Feb. 27- March. 2)
Markets
Stocks came off lows for hte day Friday. But investors, who had little economic news to go on, sat out on the sidelines. Still, the S&P and Nasdaq eeked out small gains for the week.
The Dow Jones lost 2.73 points and closed at 12,977.57.
The S&P 500 fell 4.47 points to close at 1,369.62. The Nasdaq lost 12.78 points, to close at 2,976.19.
DJIA CHART
FOREX
This week we will see more economic events out of the US which will make the dollar more volatile. Is the recovery seen in the dollar relevant and will it continue? Friday’s US Nonfarm Payrolls is key to traders. It will be important to watch how the Dollar starts off the first full week of March trade.
The traditional safe haven currency will do well when risk is poor or not doiing well. If stocks lose, commodities lose, the Dollar will do better.
US Dollar Index
COMMODITIES
Oil was down to 107.10 on Friday. Crude lost 1.74 as crude futures dropped nearly 2 percent on Friday after Saudi Arabia denied a report of a pipeline fire. Gold lost 9.80 to close at 1775.10.
Oil Chart
EQUTIES
Yelp gaiined over 60 percent in its IPO after the consumer review website priced its IPO at $15 per share. The IPO makes the value of Yelp at $900 million.
Citigroup’s Chairman Richard Parsons will step down from the board. Citigroup is expected to elect Michael O’Neill as the new Chairman.
Binary Options Report (Feb. 20- Feb. 24)
Markets
Markest closed mixed another dull day on Friday. this comes as investors are still wary ahead of a long. The Dow lost 1.74 points to close at 12982.95. The S&P 500 saw it s best close in 3 and a half years, asi it gained 2.28 points, to close at 1,365.74, The Nasdaq rose 6.77 points to close at 2,963.75.
DJIA CHART
FOREX
The Yen continued to rise this week with the USD/JPY gaining more than 2.1% by the. The yen’s decline has been against all of its major counterparts. While the moves in the yen have been strong, the currency is expected to remain under pressure.
Next week traders will be closely eyeing data out of Japan. We will see industrial production and key inflation data being released. Consensus estimates call for production to contract by 1.6% y/y, up from a previous contraction of 4.3% y/y with inflation expected to come in at -0.1% y/y from a previous read of -0.2% y/y. Although we are expecting to see the headline inflation print to contract by just 0.1% y/y, the recent trend in overall price growth, or lack thereof, could produce a larger than expected contraction, fueling ongoing deflationary concerns.
USD/JPY
COMMODITIES
Oil is approaching last year’s highs. This comes as tensions increase over Iran’s nuclear program. West Texas crude was up 1.94 to clsoe at 109.77 . Brent crude rose by $1.85 to closed at 125.47. Gold closed lower Friday by 9.70 to finish the week at 1780.30.
Oil Chart
EQUTIES
JC Penney lost early gains to close lower even after the clothing retailer reported earnings that beat estimates. Gap lost ground after the retailer reported a 40 percent decline in Q4 net income. Gap was hurt by higher costs and heavy discounts during the holiday season. Sears jumped for a second day to lead the S&P 500 after the retailer announced several moves to increase liquidity. They will sell 11 stores to General Growth Properties for $270 million, and the spinoff of 1,250 Hometown and Outlet.
Binary Options Report (Feb. 13- Feb. 17)
Markets
US markets closed mixed in a thin trade day ahead of a 3 day weekend holiday and admist some hope Greece will find a solution to its debt woes. The Dow was up 45.79 points to 12,949.87. This is just below the key 13,000 mark. The S&P 500 added 3.19 points, to close at 1,361.23. The Nasdaq shed 8.07 points, to close at 2,951.78.
DJIA CHART
FOREX
Surprisingly, the European Central Bank has participated in a Greek bond swap. However, bonds are simply being rolled over. Which means that the ECB will receive similar bonds at the same value.
The IMF has tentatively said that it will only contribute €13 billion of the €130 billion in the second bailout package. What does this mean? EU governments will have to contribute more. Given the recent statement form the Dutch, Finnish, and German governments, it is doubtful this will happen. Greece remians on the path of default. Question is… has it sped up?
EURUSD
COMMODITIES
Brent crude for April delivery closed at 119.58 a barrel. It was off 53 cents,after hitting 120.70. For the week, Brent crude rose 2.27. up 4 weeks in a row. Crude rose 1.74 and closed at 104.06. Gold was up 20.20 to close high at 1747.90.
Oil Chart
EQUTIES
Campbell Soup was after the soup maker posted better-than-expected quarterly earnings. Heinz also rose after the maker of Ketchup and other condiments reported earnings that beat estimates. General Millsfell off after the cereal maker said it is lowering is 2012 earnings forecast.
Binary Options Report (Feb. 6- Feb. 10)
Markets
The markets rcovered from their lows but showed a weekly loss. The S&P and Nasdaq lost a 5-week winning streak. This comes with stalled debt talks in Greece, disappointing economic reports and the S&P downgrading some Italian banks. The Dow Jones lost 89.23 to close at 12,801.23. The S&P 500 lost 9.31,to close at1,342.64. The Nasdaq fell 23.35to close at 2,903.
DJIA CHART
FOREX
Euro traders appear to be losing patience as Greece continues to break promise after promise. The Greek debt problem is now in its 23rd month, and the outlook continues to to worsen. What is next? This week will be critical.
The Greek Parliament must approve the terms of the austerity proposal that the Cabinet approved after the close of trading on Friday. Last weeks plan was rejected by EU minister as it supposedly required another 325 million Euros in spending cuts (in additional to the reported 3.3 billion that was presented). Finance Minister Venizelos has framed the vote as a decision on whether the country will remain with the Euro. This move, even if it only posturing, sets a tone of ‘no alternative’ to traders.
Should Parliament approve the proposal, then Greece must get rivate investors to consent to haircuts on existing debt. The current terms are for a more-than 70 percent write down, a swap for 30 year bonds yielding 3.6 percent along with growth and EFSF bond sweetners. If that step is done, then the EU ministers will decide whether it is confident in Greece’s ability to bring its debt to the targeted 120 percent of GDP. If that is done, the 130 billion euro package will be released. Should any of these steps fail then the failure is in the cards and default happens.
EURUSD
COMMODITIES
Oil prices fell Friday with a critical bailout plan for Greece’s economy stalling. Crude lost $1.17 to close at $98.67. Gold was up $8.90 to $1747.90
Oil Chart
EQUTIES
NYSE Euronext narrowly beat analyst forecasts with a 13 percent profit rise to $212 million in Q4 ’11, after Deutsche Boerse’s plan to take over the transatlantic exchange was scuttled. LinkedIn surged after the online networking company beat expectations and handed in an outlook for the quarter and full-year that beat estimates. Expediafell after the online travel agency reported sales that missed and profit that was hurt by rising costs.
Binary Options Report (Jan. 30- Feb. 3)
Markets
The markets ended higher on Friday as employment numbers blue past expectatuins and other economic news also helped stocks see highs not seen since May 2008. The Dow rose 156.82 points to close at 12,862.23. This was the DJIA highest close in almost 3 and 1/2 years. The S&P 500 rose 1.46 percent, to finish at 1,344.90. The Nasdaq jumped 45.98 points to close at 2,905.66. It has not been this high since the tech bubble of 2000.
DJIA CHART
FOREX
The Euro leaders are playing chicke with Greece and investors in the Forex market. Just in 20011, we have seen several occasions of immient market collapse just to be saved at the last second. Are we now seeing a new course? The departure of Greece from the EU?
It is almost unbelievable to even suggsest this scenario. But, right now, as an orderly default seems likely. Everything changed this week as tensions soared and the main Euro members finding it had to figure out an answer in the Greek debt-swap impasse.
After months of negotiations, and countless times of being told that we were within “hours” of a resolution. It appears then end is no where in sight. . The European Central Bank has publicly stated that it will not take a haircut on its Greek debt. Also, now, Greek Prime Minister Papademos is threatening to step down over the negotiations. Also, the EU Core has threatened to withhold any further bailout funds unless the debt-deal is completed and additional austerity measures are implemented. German leadership has asked for control of Greek finances. What is next? We might see a controlled default and Greek tragedy… as it exits the EU.
EURUSD
COMMODITIES
Crude was up by $1.48 on Friday. It closed the week at $97.84 .
Brent, was up $2.51 to close at $114.58 per barrel. The April gold contract on the Comex closed at $1,740.30, up 0.28% on the week. March silver closed at $33.749, down 0.12% on the week.
Oil Chart
EQUTIES
Edwards Lifesciences slumped after the medical device maker showed revenue that fell short of forecasts.
And Estee Lauder showed numbers that exceeded expectations, but shares of the skin-care products maker slumped after handing in an outlook that was below current projections.
Urban Outfitters jumped after the apparel retailer said Tedford Marlow will return to the company as CEO.
Binary Options Report (Jan. 23- Jan. 27)
Markets
The markets finished Friday a bit mixed as weak economic and earnings reports scared investors. Further fears out of the Euro zone were no help. The Dow Jones was off 74.17 points, and closed at 12,660.46. The S&P 500 paired losses but was off by 2.10 points, or 0to close at1,316.33. The Nasdaq rose 11.27 points to close at 2,816.55.
DJIA CHART
FOREX
This week will featre an important European summit. Also, we have US employment data due out which should make it an interesting week for forex markets. .
The EURUSD never looked back as it ended near fresh multi month highs at the close of Friday. Can it sustain this recovery?
A European summit on Monday could be a key factor in the Euro as we enter February. On Friday, the NFP are released in the US. These will highly influencethe broad financial markets. . Markets are tired of listening to Angela Merkel, Nicolas Sarkozy, and fellow Euro Zone leaders commit to vague action plans for the sake of the Euro Zone. In other Can Monday’s summit finally give us some solid indication of a game plan to save the Euro Zone? If not… the Euro recover can be in real trouble.
EURUSD
COMMODITIES
Oil was off 14 cents andclosed at $99.56 after hitting $100.63. Brent rose 67 cents to end at $111.46. Gold rose Friday by 9.40 to close at 1663.70 and ounce on the COMEX.
Oil Chart
EQUTIES
Among the Dow components, Caterpillar was the biggest winner and Travelerswas the biggest loser for the day. Chevron was down sharply after the oil giant reported lower-than-expected earnings, due to rising spending on oil and gas projects offset gains from rising crude prices. Ford also posted lower-than-expected earnings on disappointing results outside North America and rising commodity costs.
Binary Options Report (Jan. 9- Jan. 13)
Markets
Markets had a quiet day on friday. This coomes as traders are uneasy after some weak earnings reports.
All three major US indices we up adding two percent for the week. This comes as ongoing trepidation over the Euro zone debt crisis. The Dow Jonesrose96.50 points, to close at 12,720.48. The S&P 500 rose0.88 points to close at 1,315.38. The Nasdaq lost 1.63 points to finish at 2,786.70.
DJIA CHART
FOREX
The US Dollar lost much ground this week. The Euro showed signs of life against the Dollar . It will be important to watch events out of the US this coming week as it could impact the Dollar further.
We will be watching the US Fed’s policy setting decision on Wednesday and end-of week GDP data. The Fed is very unlikely to change interest rates or monetary policy, but it will unveil a new tool in its arsenal: interest rate forecasts. FOMC members will show when they interest rates will be raised through 2016.
EURUSD
COMMODITIES
Crude was down $1.93 to close at $98.46 .The market was down 0.2% for the week. On Friday, gold was u $9.60 to close at $1664.00.
Oil Chart
EQUTIES
Google fell sharply to lead the S&P laggards after the Internet giant’s results failed to reach Wall Street estimates. goole had beaten on revenue for eight consecutive quarters. Talbots jumped over 15 percent amid takeover talks from Golden Gate. General Motors reclaimed again the top spot as the world’s best selling maker of autos
Binary Options Report (Jan. 9- Jan. 13)
Markets
Stocks rocovered somewhat Friday. However, US indices were still in the red afte the close of business. This comes as investors are afraid that teh S&P will downgrade several EU countries.
DJIA CHART
FOREX
It has happened, Friday France lost its AAA rating and was cut to AA+… Austria also was cut becuase of debt problems. , Italy was cut to BBB+, placing the Eurozone’s third-largest economy close to the threshold of junk status. Portugal was cut to junk. This move could affect the use of Portuguese debt as collateral to borrow from the ECB.
Germany had its AAA rating upheld and its outlook was moved off “negative watch” to “positive”. That was good news.
One big possibilty from these recent S&P sowngrades can also be the potential for the EFSF losing its own top rating at risk unless it increases guarantees to maintain its capacity of 440 billion Euros. This was hinted to, as possiblity by and ECB Board Member, Austrian National Bank Governor Ewald Nowotny.
EURUSD
COMMODITIES
Crude lost 40 cents to close at $98.70 . Brent crude, lost 70 cents to close at $110.35. Gold lost over 1% to close at $1630.80.
Oil Chart
EQUTIES
JPMorgan profits that met expectations. Still its shares fell they missed its revenue number. Citigroup, Wells Fargo, BofA and Morgan Stanley will post earnings next week. Caterpillar finished higher after Barclays raised its price target to $128 from $115.
Binary Options Report (Jan. 2- Jan. 6)
Markets
We saw a mixed day for the US markets on Friday. Still all major averages hada strong week. Markets were mixed even though we had a stong NFP report. Euro zone debt worries strongly overshadow the markets at this time. The Dow Jones lost 55.78 points, to close at 12,359.92. The S&P 500 lost 3.25 points,to close at 1,277.81. The NASDAQ rose 4.36 points, to close at 2674.22.
DJIA CHART
FOREX
The US Dollar surged against the Euro and other market peers. The rise was helped by a erosion in the Eurozone and good US economic data. NFP report added a surprising 200k jobs through the month of December. this move sent unemplyment rate to new lows and installing confidence in investors. It would appear that the momentum favours the USD but we should be aware of event risks that could make for a volatile US Dollar trading week, in short the EURUSD could be in for some volatility.
We have an empty US economic calendar which means investors will look at developments from euroope this week. Still, traders should not ignore any new comments made from the fromthe US Fed. Nor should they discount the late-week Advance Retail Sales data.
US Dollar Index
COMMODITIES
Crude lost 53 cents to close at $101.31 . Brent crude, lost 24 cents to finish at $112.50 . Gold rose $1.80 to settle at $1,621.90 an ounce.
Oil Chart
EQUTIES
Goldman Sachs was downgraded by Wells Fargo to market perform from outperform. Citigroup’s which has been trying to to sell its OneMain consumer lending unit to private equity buyers ended with no deal. Alcoa fell after the aluminum producer said it will cut its global smelting capacity by 12 percent. Best Buy lost 1.2 percent of same store sales, but shares still rose after its outlook was reaffirmed.
Binary Options Report (Dec. 26- Dec. 30)
Markets
Markets closed lower in the final trading day of a volatile year. The Dow finished higher for the year, while the S&P erased gains to close out the year basically flat.
The Dow Jones Industrial Average finished lower for the session, but finished in the black for 2011 as it saw its its biggest quarterly point gain in history. The S&P 500 and the Nasdaq also ended the session lower. The S&P erased its earlier gains for the year in the final minutes of trading, leaving the index basically unchanged for the year.
DJIA CHART
FOREX
The US Dollar Index is 0.80 percent lower from the open after moving 132 percent of its average true range, but we should see the Dollar regain its footing over the following week as it remains oversold. As the recovery in the States gathers pace, the economic docket for the week ahead is expected to reinforce an improved outlook for future growth, and the developments may support the greenback as the rise in private sector activity limits the Fed’s scope to conduct another large scale asset purchase program.
The economic docket for the following week is expected to show Non-Farm Payrolls increasing another 150K in December. However, the FOMC policy meeting minutes due out on Tuesday could prop up the Dollar should the central bank continue to soften its dovish tone for monetary policy. As the Fed carries its wait and see approach into 2012, we should see the central bank stick to ‘Operation Twist’, and the committee may look to conclude its easing in the following year as the economic recovery gradually gathers pace. However, as the sovereign debt crisis continues to drag on the world financial system, Fed Chairman Bernanke may keep the door open to expand the monetary policy further, and the central bank head may look to further expand the balance sheet in order to shield the world’s largest economy.The dollar should appreciate further in 2012 as the fundamental outlook for the US improves.
US Dollar Index
COMMODITIES
Crude futures closed lower Friday as traders eyed developments in Europe and Iran and their potential risks to global oil demand, but prices ended the year more than 8% higher after a strong Q4.
Crude for February delivery lost 82 cents, 0.8%, to close at $98.83 on the New York Mercantile Exchange. The exchange held a full session of trading Friday, but will be closed for the new year holiday on Monday.
For the year, crude futures gained 8.2% after climbing 25% for the quarter. Crude was trading below $80 at the end of September and closed out 2010 at $91.38 .
Gold climbed $25.90 to settle at $1,565.80 an ounce at the Comex division of the New York Mercantile Exchange. This move clinched an eleventh straight year of gains. The gold price traded as high as $1,582.80 and as low as $1546.20 an ounce.
Oil Chart
EQUTIES
McDonald’s was the top gainer for 2011, surging more than 30 percent, while Bank of America posted the biggest loss, plunging almost 55 percent. Sears identified 79 of the 100 to 120 Sears and Kmart stores it said earlier this week it would close, with the list split almost evenly between the two chains. Standard & Poor’s placed Sears’ credit rating on review for a possible downgrade, saying the retailer’s plan to close at least 100 stores may not do much to improve performance.
Binary Options Report (Dec. 19- Dec. 23)
Markets
Wall Street closed higher Friday as the S&P 500 rallied for a fourth straight day and turned positive for the year after a run of better than expected economic data.
The S&P 500 has gained nearly 5 percent over the last four days and is slightly higher for the year. Investors cited recent improvement in US economic data and seasonal factors behind the move, but many remained cautious about the 2012 outlook.
The Dow Jones was up 124.35 to close at 12294.00 and the S&P500 was up 11.33 to close at 1265.33. While the NASDAQ was up 19.19 to close at 2618.64
DJIA CHART
FOREX
Let us take a look at the USDJPY as a drive higher has been called for over the last year. However, the pair has forged little progress to make that a reality. My analysis approach is to combine rudimentary technicals and capital flow based fundamentals. Both of these types of analysis lead to the same bullish conclusion for the foreseeable future.
The first consideration is the pair incredible proximity to its record low. Extending historical extremes is exceptionally difficult. So, we need a catalyst for reversal. Short term, we have the threat of manipulation from the BoJ and Ministry of Finance to offer economic relief. Medium term, we have the possibility of a deepening financial condidtions in the US and europe that makes us more selective of safe havens (the Buck is undisputed for relative liquidity, credit market stability). Finally, long term, the return of higher global rates supports the Fed moving while the BoJ continues a 20 year, near ZIRP policy .
USDJPY Chart
COMMODITIES
Oil prices rose above $100 a barrel Friday as worries over global security issues outweighed weak economic data in the US.
Crude ended the day at $99.68, up 15 cents. It rose as high as $100.23 during the session. Brent crude finished 7 cents higher at $107.96 in London.
Oil Chart
EQUTIES
SunPower shares rose after the solar panels maker said it would buy rival Tenesol, a unit of France’s Total. At the same time, Total is buying 18.6 million SunPower shares, raising its stake to about 66 percent. Rambus shares traded higher after the company signed a cross licensing agreement with Broadcom ending patent litigation between the two.
Binary Options Report (Dec. 12- Dec. 16)
Markets
Wall Street staggered along to the closing bell Friday. They ended up closing out a rough week with modest gains in technology and little movement in the Dow.
Traders had to contend with yet another ratings agency warning on debt, while the quadruple witching scenario, in which four key options and futures contract expire, brought more volume to the market but little in the way of gains.
The Dow closed done 2.42 at 11866.39, the NASDAQ was up 14.32 at 2555.33 and the S&P 500 rose 3.91 to close at 1219.66 forthe week.
DJIA CHART
FOREX
Sharp Euro declines left it below the psychologically important $1.30 mark for the first time since January. This is leaving momentum sharply to the downside ahead of the final two weeks of 2011. Traders showed little hesitation in selling the EURUSD. We see relatively limited scope for continued volatility into the final weeks of the year, but anything can happen on headline driven price swings.
The final two weeks of the year are unlikely to see any major price breakouts, and indeed the EURUSD could very well consolidate until the New Year. The Forex Options market volatility expectations have fallen into Friday’s close with 1 week currency options now at the smallest currency ranges since the summer. Second tier economic data could perhaps force modest reactions on any surprises. It is not likely to be a week of sharp breakouts or pronounced currency trends.
EURUSD Chart
COMMODITIES
Crude fell 34 cents to end at $93.53 in New York. The market fell as low as $92.52 earlier in the day.
Brent crude, which is used to price foreign oil that’s imported by many US refineries, fell 25 cents to finish at $103.35 a barrel in London.
Goldwas up $19.80 to $1,597 an ounce at the Comex division of the New York Mercantile Exchange. The yellow metal traded as high as $1,603.50 and as low as $1,572.10.
Gold Chart
EQUTIES
Ista Pharamceuticals jumped on a takeover offer of about $6.50 a share from Valeant Pharmaceuticals, a bid that Ista said “significantly undervalues” the company.RSC Holdings surged after rival United Rentals made a $1.9 billion offer for the company. Cameron International said BP had agreed to indemnify the company for current and future compensatory claims associated with the Deepwater Horizon incident.
Binary Options Report (Dec. 5- Dec. 9)
Markets
US Markets closed near their highs Friday. They ended up climbing steadily throughout the day. They were bolstered by a strong consumer sentiment report and as investors appeared to show relief after the Euro zone’s latest plan to solve its debt crisis.
The Dow Jones Industrial Average soared 186.56 points, or 1.55 percent, to finish at 12,184.26. The S&P 500 rose 20.84 points, or 1.69 percent, to close at 1,255.19. The Nasdaq jumped 50.47 points, or 1.94 percent, to end at 2646.85.
DJIA CHART
FOREX
Last week, trade was choppy. This came as the major currencies set their bottoms in the Asian session while rising to highs in the European session. As they Headed into the North American trading, the majors were positioned closer to their range bottoms. This came as the results from this week’s Euro zone summit began to trickle out of Brussels and into the markets.
At a first look, the results of the Euro zone summit are both encouraging s well as disappointing. Positive, leaders of all 17 Euro zone countries plus 9 non Euro-zone nations agreed to terms that allow strict caps on government spending and borrowing. Britain is the only country not to agree to the terms. The Czech Republic, Hungary and Sweden, while initially holding out on the agreement, later agreed to changes on the condition that certain details of the pact need to be reviewed by their leaders and by their national parliaments.
Britain’s veto, given the way current treaties are structured, is enough to prevent changes to European Union treaties, as a unanimous vote is required among the 27 European Union nations. British Prime Minister David Cameron was pushing for protections for London from future financial regulations. As such, the veto may limit the impact the new agreements have.
EURUSD Chart
COMMODITIES
Oil prices rose for the first time in three days. This comes as as the European Union moved closer to a plan that promises to fix the Euro zone debt crisis.
Crude rose $1.07 Friday to end the week at $99.41. Brent crude, which is used to price foreign oil imported by some US refineries, added 53 cents to finish at $108.47 in London.
Oil Chart
EQUTIES
GE gained after the conglomerate boosted its quarterly dividend to 17 cents from 15 cents. Texas Instruments fell after the chipmaker cut its outlook for the current quarter and warned demand declined as clients reduce their inventories. Apple appealed a US judge’s decision not to block Samsung Electronics from selling Galaxy smartphones and tablets in the US market.
Binary Options Report (Nov. 28- Dec. 2)
Markets
Stocks erased most of their earlier gains to finish flat in thin trading Friday. This comes as investors booked profits ahead of the weekend following a robust rally all week. All three major averages posted an impressive gain of over 7 percent for the week. The Dow Jones finished slightly lower, but still logged its second best weekly point gain ever. the index ended in positive territory for 2011.
The S&P 500 and the Nasdaq ended mixed. The S&P logged its best weekly percentage gain since March 2009. For the week, the DJIA jumped 7.01 percent, the S&P surged 7.39 percent and the Nasdaq jumped 7.59 percent.
DJIA CHART
FOREX
Even though the Euro has the lock up on market wide influence, the Australian dollar will certainly face a wave of volatility this coming week. At the top of the list we have the RBA rate decision. Like the ECB, the Australian Central Bank is expected to cut rates. This is a move that would certainly fuel any risk off sentiment. However, this move is already largely priced in, so the issue is the pace of further action. Follow up drives to watch include the 3Q GDP and November employment figures.
In contrast to its fellow high-yield currency, the New Zealand dollar is not expected to suffer a dovish central bank decision. There is virtually no expected change from the RBNZ according to overnight swaps. RBNZ Governor Bollard is, howeverh vocal and traders will pay attention that he maintains his hawkish lean. This is a move that would close the gap with the Aussie rate (watch AUDNZD) and stabilize its risk bearing (NZDUSD).
AUDUSD Chart
COMMODITIES
crude futures rose on
As US unemployment rate fell to a 2-1/2 year low, which is seen supportive for demand, crude posted its first weekly gain in three weeks. This comes despite persistent worries about the Euro zone debt crisis and data midweek showing a surprise big increase in domestic crude inventories from last week.
Friday’s high of 101.56 broke through the technical resistance at 101.52. this could signaling a test of 1
02.88
Oil Chart
EQUTIES
Comcast, Time Warner Cable and Bright House Networks are planning on selling Advanced Wireless Spectrum to Verizon Wireless for $3.6 billion. Comcast, which owns more than 63 percent of Spectrum will receive about $2.3 billion from the sale. Comcast is the parent company of NBCUniversal.
Binary Options Report (Nov. 21- Nov. 25)
Markets
Stocks closed in negative territory in thin trading Friday as investors were reluctant to go long ahead of the weekend. This comes amid ongoing worries over the euro zone. The Dow and S&P posted their worst Thanksgiving week since the Great Depression on a percentage basis. The Dow Jones erased gains to finish lower. The S&P 500 and the Nasdaq also ended lower. Both logging a seventh consecutive decline. Some traders are watching for 1,150 on the S&P as the next key level.
DJIA CHART
FOREX
The US Dollar rose to multi-month highs amidst sharp losses in the Dow Jonesand S&P500. The Dow Jones FXCM Dollar Index easily broke the pshych resistance at 10,000 and currently boasts its strongest 20-day appreciation since the height of the financial crisis in 2008. Momentum clearly favors the topside, but traders should be careful of sharp corrections ahead of a critical week for the US Dollar and broader financial markets.
US Nonfarm Payrolls data headlines foreseeable event risk for the world’s largest economy. Traders should be equally mindful of any surprises out of a European finance ministers meeting on Wednesday. Euro Zone tensions hit fever pitch this week as a failed German bond auction caused sell-offs in Spanish and Italian bonds. Italy paid a huge 7.81 percent for 2 year bonds in its most recent auction. This is up substantially from the 4.63 percent frolast month. Standard and Poor’s also aggrevated the Euro Zone’s wounds as it downgraded Belgium’s sovereign credit rating for the first time since 1997. The doom and gloom in Europe was enough to push the US Dollar to significant highs.
EURUSD Chart
COMMODITIES
US crude futures fell on Friday and were on pace to post a loss for the week as concerns about Europe’s debt crisis strengthened the dollar and kept ita focus fears that an economic slowdown will curb oil demand. The price of ICE Brent oil, the global benchmark, rose 62 cents to $107.64 in thin trading conditions as US traders were away for the Thanksgiving holiday.
Oil Chart
EQUTIES
Macy’s, Best Buy, Wal-Mart among other retail giants will be in focus this week as the winter shopping season opens up. AT&T said it would take a $4 billion charge in case its takeover of T-Mobile USA fails.
Binary Options Report (Nov. 14- Nov. 18)
Markets
Equity markets finished mixed in another thin, erratic session Friday. This comes as investors were reluctant to commit to the market ahead of the weekend and amid ongoing fear over the debt talks in Europe and Washington.
All three major averages closed at their worst levels in nearly two months. The Dow Jones Industrial Average edged out a gain of 25.50 points, or 0.22 percent, to finish at 11,796.23. The S&P 500 slipped 0.46 points, or 0.04 percent to end at 1,215.67. The Nasdaq fell 15.49 points, or 0.60 percent, to close at 2,572.50.
DJIA CHART
FOREX
The outlook for the Japanese Yen continues to depend on which currency pairingis in question. This is with the crosses continuing to show a strong sensitivity to broad based market sentiment trends while the benchmark USDJPY is distorted by intervention risk. However, the principal consideration for the week ahead is the severity of Eurozone sovereign stress and investors’ resulting demand for the Yen as a safe haven.
The Yen fulfills both critical characteristics of an attractive safe haven asset. It is the world’s third most traded currency. This fact making the market liquid and thereby a compelling place to park capital at times of crisis because retrieving it is relatively easy once a problem passes and reallocation to higher yielding investments is desired. The Yen is also an excellent store of value courtesy of Japan’s anemic inflation rate. In fact, year-on-year CPI has been sinking deeper into negative territory over the past three months.
USDJPY Chart
COMMODITIES
Oil prices dropped below $98 per barrel Friday at the end of a volatile week. The week showed mixed fears about Europe’s debt along with the prospect of tighter oil supplies and improving economic conditions in the US. Gold closed $4.90 higher to $1,725.10. Even thouggh gold was losing momentum in after-hours trading. The gold price has traded as high as $1,738.50 and as low as $1,711.40, while the spot gold price was up $4, according to Kitco’s gold index. Gold’s strength was due to the change in the US dollar as physcal demand was $2 lower.
Gold Chart
EQUTIES
Marvell Technology gained even after the chipmaker posted a decline in revenue and warned that the flooding in Thailand may hurt demand for hard drive controllers. Salesforce fell after the web-based software maker reported a quarterly loss as its market and sales costs increased sharply in addition to a tepid outlook. Clearwire tumbled more than 30 percent after the wireless Internet service provider’s CEO discussed whether the firm would make its debt payment due Dec. 1 Shares were halted four times.
- David Frank
Binary Options Report (Nov. 7- Nov. 11)
Markets
Stocks finished higher Friday. Marekets ended up extending gains for a second session. This comes amid signs of stabilization in the Euro zone. Also comes after a better than expected consumer report. All three major averages are now in positive territory for 2011.
The Dow Jones jumped 259.89 points, or 2.19 percent, to finish at 12,153.68. The S&P 500 rose 24.16 points, or 1.95 percent, to close at 1,263.85. The Nasdaq exploded for 53.60 points, or 2.04 percent, to end at 2,678.75.
DJIA CHART
FOREX
The Euro ended the week on a good note. The market ended upposting the largest daily rally in two weeks and trimming its weekly loss to just 0.2 percent on average against the major currencies. Optimism emerged after Greece finally settled on Lucas Papademos as thier new Prime Minister. Also, Italy abandoned plans for disruptive early elections in favor of a technocrat transition government headed by former EU Commissioner Mario Motti. The news stroked hopes that the emergence of coherent stewardship will speed the passage of austerity measures and calm already nervous financial markets. Thereby lightening the debt burden on both countries by bearing down on borrowing costs.
This week, this happy mood is might not prove lasting. While the passage of deficit reduction plans is certainly a step in the right direction, it is clearly their effective implementation is what investors are truly concerned about. Greece has proven to be an excellent case study of a country that promised a lot but delivered very little. they have been failing repeatedly to meet the budget benchmarks set by the EU and the IMF. With that said, traders are unlikely to expect much more of Italy.
EURUSD Chart
COMMODITIES
Crude rose $1.26 cents to end the week at $95.52. The market price has not finished that high since July 29. Brent crude, which is used to price many foreign oil varieties, rose $2.59 to finish at $114.56 in London. Gold for December delivery closed down $9 at $1,756.10 an ounce at the Comex division of the New York Mercantile Exchange.
CRUDE OIL Chart
EQUTIES
Walt Disney rose after the media conglomerate posted sales that beat expectations as advertising rose at the company’s cable networks and theme park revenue increased. Nvidia rose after the chipmaker posted results that topped estimates. Although its revenue forecast was a lower than expected. Meanwhile, Citigroup raised the company’s price target on the firm to $17 from $14. Also, shares of Caterpillar rose after the heavy equipment maker said it will move production of some equipment from Japan to North America. they are doing this to be closer to customers in the Americas and Europe.
- David Frank
Binary Options Report (Oct. 31- Nov. 4)
Markets
Stocks regained losses in a volatile trading session Friday but still finished lower as investors tried to get a handle on the Euro zone and ahead of a key confident vote in Greece.
The Dow Jones Industrial Average finished lower. The S&P 500 and the Nasdaq also closed lower.
DJIA CHART
FOREX
The Euro fell sharply against the US Dollar because of a clear deterioration in domestic fiscal issues. This was underlined by fresh troubles in Greece. The quick fixe to the deeply entranched fiscal problems across the Euro zone were open wide when Greek Prime Minister proposed putting the latest austerity packages to a domestic referendum. This quick about face and short term resolution later show clearly things are no clearer than they were at the start of the week.
Investors seem to have endless reasons to remain bearish the Euro (EURUSD)and other key counterparts. The Euro tumbled on suggestions that Greece could derail weeks of negotiations on the most recent fiscal aid packages. The crisis seems to be averted as Prime Minister Papandreou backed away from plans to put fresh austerity restrictions to a popular vote. Still, it is safe to say, uncertainty reigns as Italian bond yields shot higher and markets remain nervous.
A relatively empty week of Euro zone economic news suggests that volatility could slow in the days ahead. However, the recent price action emphasizes that sharp moves can come on any number of unexpected announcements. The Greek government narrowly passed a no confidence vote. This vote avoided Greece putting itself into further crisis via new elections. Greece is a mere distraction compared to the trouble brewing in Italy. It is safe to day that the lack of confidence in the existing government threatens to put the whole Euro zone at risk.
EURUSD Chart
COMMODITIES
Oil prices rose Friday as concerns about the European financial crisis were balanced by improving jobs data in the US. Crude rose 19 cents to end at $94.26 per barrel. Gold for December delivery closed down $9 at $1,756.10 at the Comex division of the New York Mercantile Exchange.
CRUDE OIL Chart
EQUTIES
AIG tumbled after the insurer missed results following an impairment charge in its aircraft leasing unit. Starbucks gained after the world’s largest coffee chain posted earnings that were better than expected. On the tech front, AMD fell after the microprocessor maker said it is slashing almost 1,4000 jobs. This move comes due to the weak PC market and manufacturing delays.
- David Frank
Binary Options Report (Oct. 17- Oct. 21)
Markets
Markets closed out a volatile week quietly. They ended upregistering modest gains as part of what is shaping up to be the equity market’s best month ever.
After trading up and down through most of the session, the major averages closed slightly higher, with the Dow registering a 3.4 percent gain that has helped boost the market about 12 percent for October. It was the fifth consecutive weekly gain for the DJIA.
DJIA CHART
FOREX
The Canadian Dollar remains correlated to broad market sentiment trends. This is with price showing a firm correlation to the S&P 500. This, also, speaks directly to Canada’s own performance which naturally sets the trajectory for its monetary policy and thereby the Canadian Dollar considering the country is highly sensitive to the worldwide business cycle both as a commodity producer and as a key exporter to the globe’s largest economy, the United States.
With this in mind, it is not surprising that the Canadian Dollar surged to the highest in a month last week as investors cheered on the moderation in all three of the major headwinds that had been weighing on economic growth expectations. The threat of an immediate meltdown on the Euro Zone periphery was reduced after an EU leaders’ summit in Brussels concluded with policymakers throwing more money at the problem. Q3 US GDP figures showed growth accelerated to the strongest pace in a year. This ended up warding off double dip recession fears, for now. Finally, official commentary from China began to carry subtle hints that monetary tightening was done and credit may even be loosened in pockets of the economy. This ended up stoking hopes that a hard landing in the world’s second-largest economy will not happen.
While this paints a rosy picture of the Loonie’s prospects, not all is well. Last week, the Bank of Canada took a decisive turn toward the dovish side of the spectrum. They ended up lowering its GDP outlook and conspicuously removing language referencing the unwinding of monetary stimulus in its policy statement. The monthly GDP update to be released on Monday is forecast to show the annual growth rate slowed to 2.2 percent in August, a hair above the 16-month low of 2.1 percent recorded in June, while employment data due Friday is expected to yield a weak 15,000 jobs increase in October. This is reinforcing priced in bets that rates will be at a standstill for the coming year.
This makes for a cloudy outlook for the Canadian currency in the week ahead, with much likely to depend on the deluge of US scheduled event risk in the economic calendar.
USDCAD Chart
COMMODITIES
Oil dropped Friday as investors acknowledged that Europe needs to tighten its belt for years in order to work through a credit crisis. Also, factory production stalled in Japan.
Crude fell 64 cents to end the day at $93.32 per barrel in New York. Brent crude, which is used to price foreign oil, lost $2.17 to finish at $109.91.
Gold closed a bit flat as investors took profits. Gold for December delivery closed down 50 cents to settle at $1,747.20 at the Comex division of the New York Mercantile Exchange.
CRUDE OIL Chart
EQUTIES
Troubles continued to add up for MF Global. Now with a Moody’s downgrade the latest issue to confront the battered brokerage run by former New Jersey Gov. Jon Corzine. Shares tumbled more than 26 percent after falling nearly 16 percent Thursday.
Samsung has overtaken Apple in terms of smartphone sales and expects the fourth quarter to be even stronger. Wynn Resorts lead the winners on the NASDAQ even as analysts scaled back earlier projections for the hotel and casino giant’s earnings potential.
- David Frank
Binary Options Report (Oct. 10- Oct. 14)
Markets
The Dow Jones rallied 166.36 points, or 1.45 percent, to close at 11,644.49, finishing firmly in positive territory for the year.
The S&P 500 jumped 20.92 points, or 1.74 percent, to close at 1,224.58, its best week since Jul. 2009. The NASDAQ rose 47.61 points, or 1.82 percent, to end at 2,667.85, also higher for 2011.
DJIA CHART
FOREX
The Canadian Dollar remains tied to the trends in market wide risk sentiment, with the price showing a strong correlation to the S&P 500 stock index. Looking ahead, this puts the spotlight on the evolution of the EU debt crisis as well as economic data out of the US, with the health of the world’s top economy seen as a proxy for the state of the global recovery. On the former theme, the tone will be set by the outcome of the weekend’s G-20 finance ministers’ meeting. For the latter, a busy docket of scheduled releases on the economic and corporate earnings calendars will be a tell all.
Hopes were running high ahead of the weekend G-20 summit amid rumors that policymakers will be discussing plans for an expansion of the IMF’s role in managing the EU crisis by using it as a vehicle to assist emerging economies including China and Brazil to help relive funding pressures in debt strapped EU nations. Newswires suggest a final announcement on the scheme would wait until the G-20 meeting on November 3 to account for whatever EU officials produce at their own sit down on October 23. However, traders are hopeful that something supportive would surface.
USDCAD Chart
COMMODITIES
Benchmark crude rose $2.57, or 3.1 percent, to end at $86.80. That’s the highest level since Sept. 20.
Brent crude, which is used to price oil from foreign countries, rose $3.57, or 3.2 percent, to finish at $114.68 in London.
Prices jumped after China said its inflation rate dropped last month. This giving Chinese leaders room to further stimulate the country’s economy without overheating it.
Gold closed up $40 on the weekk. Today it closed above the 20 day MA for the first time since mid-September. The key next week will be a close above $1692. A fail of that, look for a trade back to $1600.
Gold Chart
EQUTIES
Ubiquity Networks soared more than 15 percent in their market debut after the wireless equipment maker broke a two-month lull in the IPO market. Also, on the earnings front, Mattel posted sales that topped estimates. However the toy company’s profit only came in line with expectations. This was due to higher costs of making and packaging toys.
- David Frank
Binary Options Report (Oct. 3- Oct. 7)
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.
- David Frank
| Novl | 0.00 | ||
| Microsoft Corpora | 29.72 | ||
| Intel Corporation | 26.19 | ||
| Pfizer, Inc. Comm | 22.56 | ||
| Google Inc. | 623.05 | ||
| Apple Inc. | 530.12 | ||
| Bp P.l.c. Common | 37.50 | ||
| General Electric | 18.88 | ||
| Exxon Mobil Corpo | 81.91 | ||
| Ebay Inc. | 39.03 | ||