Daily Analysis – European Debt Fears Weigh on Markets |
Equities
Asian markets closed mixed, with minimal reaction to Thursday’s weak US data. The Nikkei eased slightly, losing 14 points to 9707, and the Australian ASX 200 slid .5%, while the Kospi rallied .8%, and the Shanghai Composite closed flat.
European indexes fell, following another downgrade of Greece’s credit rating. The DAX tumbled 1.2% and the CAC40 fell .9%. THE FTSE escaped mostly unharmed, easing .1%. The German Central Bank warned of a potential economic slowdown in Germany.
In the US, the Dow fell 93 points and the Nasdaq dropped .7%. The VIX jumped more than 12% to 17.43 as European concerns weighed on investors minds.
Gap shares tumbled 17.5% after cutting its outlook for the year, citing high cotton prices.
Salesforce shares gained 8% after blowing past sales expectations, even as profits fell.
Treasuries and Commodities
Bonds posted narrow gains, as the 10-year note rose 7/32 to yield 3.15% and the 30-year note inched up 3/32 to yield 4.3%.
Commodities gained despite the falling stock market. In energy, crude oil rose 1.1% to 99.49, and natural gas jumped 3.3% to 4.23. Metals closed higher, led by copper which gained 1.7% to 4.1215. Gold rallied 1.1% to 1508.90, and silver rose .4% to 35.087.
Currencies
The Euro fell 1.1% to 1.4158, as Greece’s debt troubles remain in focus. The Swiss Franc gained .4% to .8772, while the Canadian Dollar fell .7% to .9742. The Pound and Australian Dollar closed within .1% of Thursday’s close.
Euro Tumbles
Economic Outlook
Monday’s sole report is the Chicago Fed National Activity Index, which incorporates 85 indicators to produce a unified picture of the economic state of the US.
Earnings are due from Campbell Soup and Krispy Kreme Doughnuts.
About the author: BinaryOptionStrategy- David Frank
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