Daily Analysis – Global Equities Closed Mixed, Energy Climbs |
Equities
Asian markets closed mostly higher. The Nikkei rose .4% to 9974, and the Kospi climbed .7%, even as the Bank of Korea lowered its growth outlook, and raised inflation expectations. China’s Shanghai Composite rose .4% to a 6 week high, but the Hang Seng slid .3%, leaving it down 3.8% for the week.
In Europe, the major markets slid ahead of the release of stress test results for the region’s banks. The CAC40 dropped .7%, and markets in Spain and Italy fell more than 1%. The DAX managed a slight gain, rising fractionally to 7220.
The Nasdaq led US markets higher, rallying 1% to 2790, buoyed by Google which soared 13% on strong earnings. The Dow advanced 43 points to 12480, and the S&P 500 rose .6% to 1316.
Citigroup shares slid 1.6%, despite strong profits. 8 European banks failed stress tests, raising investor concern over financial shares.
Mining giant, BHP Billiton, announced it is buying Petrohawk Energy for $12.1 billion, sending Petrohawk’s shares up 62%. Energy-related stocks rallied as well, as Chesapeake climbed 9.1%, and Nabors surged 8%.
Treasuries and Commodities
Bonds rose modestly, particularly the middle of the yield curve. 5-year notes rose 9/32 to yield 1.44%, and 10-year notes gained 13/32 to yield 2.91%, while 30-year notes ticked up 4.32 to yield 4.25%.
Energy commodities rallied, led by natural gas which jumped 3.8% to 4.546, thanks to forecasts for high temperatures across much of the country. US crude climbed 1.6% to 97.24, and gasoline inched up .1% to 3.1293.
Crude Oil Gains 1.6%
Gold settled at 1590.10, a new record, and silver gained another 1% to 39.071, continuing its recent rally.
Currencies
The Dollar closed mostly lower against the world’s major currencies. The Canadian Dollar ledt the gains, rising .7% to .9532, and the Swiss Franc rose .3% to .8128. The Pound and Yen closed little changed, and the Euro settled at 1.4158, up .1%. A notable exception was the Australian Dollar which skidded .8% to 1.0642, after Westpac Bank forecast the country’s central bank might cut interest rates in the coming months.
Economic Outlook
The Empire State Manufacturing Index unexpectedly dropped to -3.8, contracting for a second month in a row. Industrial Production rose, but less than forecast, and CPI data showed prices dropped slightly more than expected.
Earnings season will pick up steam next week. Monday’s reports will include Halliburton and IBM.
-Bradley Welcher
About the author: BinaryOptionStrategy- David Frank
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