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Binary Options Analysis – Oil Down As Mideast Tensions Rise

 

Equities:
Global equity markets kicked off the new month much the way they left the old one, down. Japan’s Nikkei finished lower yesterday by 56.87 points and dropped an additional 1.12% in the overnight to close at 9,603. In the second session Tuesday, the FTSE 100 was down just under a half percent while still staying above 5,100. The Stoxx Europe 50 was flat, losing only .18%, but remaining 8 point below 2,400. In the U.S, the Dow Jones Industrial Average dropped 112.61 to close at 10,024.02. Equity futures are pointing lower again for Wednesday.

Commodities & Treasuries:

Commodities were down as Oil dropped $1.39 a barrel to close at 72.58. Mideast tensions precipitated the drop in commodity prices. This flight to safety pushed Gold higher as it gained $11.90 an ounce  to close at 1,226.90, while copper continued its sell off  this time shedding another $4.00. The U.S Treasury 10-year fell 4 bps to 3.26% as prices rose as demand spiked.

Oil Lower

Oil Lower


Currencies:

The DXY, the Dollar weighted index basket traded higher for for a third straight session, to close at 86.92. The Canadian Dollar closed back above the 200 day moving average, at 1.0541 giving up nearly 100 pips on the day. The CAD’s sister commodity currencies, the AUD and NZD, all closed lower than their open as Oil sold off. The Swiss Franc moved nearly 200 pips on the day but closed within 15 pips of it open, once again showing markets indecision.

Economic Outlook:
Last week it was North Korea and South Korea. This week tensions in the Middle East sparked by pro Palestinian supporters attacking an Israeli soldier as he attempted to board a ship has left the market taking all risk off the table. In Germany, the Change in Unemployment moved up more than expected. In Canada, the B.O.C raised key interest rates as expected by a quarter point to .50%, while in the U.S, ISM Manufacturing data printed in line with growth expectations. In Australia today, GDP will print.

- Alex Perlmuter

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