Join        Login             Stock Quote

Binary Options Analysis – U.S Fed Chairman Gives Markets A Boost

 June 20, 2010 09:04 PM

Global equity markets finished the day mixed. In Japan, following yesterday's massive sell off, markets were flat, gaining just 17 points to close at 9,537.94. In the U.K, the FTSE 100 is getting closer to a drop below the psychologically important 5,000 mark after it was down again yesterday. The FTSE 100 shed 40.91 points to finish the day at 5.028.15. U.S equity markets rebounded Tuesday, following more than 2 days of losses. Prompting the buying was U.S. Fed Chairman, Ben Bernanke's comments that the recovery is intact and pointed to the fact that small business confidence is the highest its been in 2 years. The DJIA gained 123.49 points to close at 9,939.98.

Commodities & Treasuries:
Commodities were up across the board yesterday. Copper advanced $2.30 while Oil rose just under $1.50 a barrel to close at $71.99. As investors worries were calmed  following the U.S Fed Chairman's remarks, traders reduced their Gold positions causing Gold to fall by more than $3.50 an ounce to 1,236.30. After falling more than 23bps over the last 3 business day the benchmark U.S Treasury 10-yr note fell 12/32nds, lifting yields 4bps to 3.189%.

[Related -Savings Glut and Financial Imbalances]

The EUR is little changed after falling to 4 year lows last Friday. The EUR remains at a mid 1.19 handle. The DXY, the weighted currency basket against the U.S Dollar softened a little Tuesday, but still remains above 88. Majors were flat against the Greenback except for commodity currencies as commodities moved slightly higher. The AUD was able to retrace more than Monday's losses as it gained 2.04% to close at .8275. The NZD gained 1.40% and the CAD gained 1.11%

Economic Outlook:
It was a quiet day for economic releases yesterday, with the main attraction being Switzerland's Unemployment reporting in at a healthy 3.8%. The U.S Fed Chairman  reiterated his contention that the recovery is underway and sustainable. His comments gave the market a needed boost. In the U.K today, Trade Balance figures will report in. In the U.S, the Fed Beige Book notes will be released. Later in the day the the National Reserve Bank of New Zealand will announce its key interest rate decision. Many analysts are predicting a quarter point hike, but it is hardly penciled in at this point. And finally, Japan's GDP will print, and although it slightly missed expectations last month it was still a robust 4.2%.

iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageSavings Glut and Financial Imbalances

Martin Wolf in today's Financial Times discusses the reasons for low interest rates and suggests some read on...

article imageA Dividend Aristocrat Is Now On Sale

The bear market investors have been dreading is already here for many individual stocks. While the S&P 500 read on...

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Two Picks to Play Defense in a Slowing Economy
More Articles on: Forex

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.