Binary Options Daily Analysis – Housing Market Sentiment Soars to 4.5 Year High

Asian markets traded mixed on Wednesday, as doubts over Greece’s debt burden clashed with Tuesday’s cheer. The Nikkei climbed 1% to 8551, lifted by a sharp 6.6% rally in Elpida Memory on news the company is seeking a deal with Micron Technology. The Hang Seng rose .3%, to 19687, while the Kospi and ASX 200 settled little changed. The Shanghai Composite fell 1.4% to 2264, following Tuesday’s powerful 4.2% rally, the largest single-day gain in more than 2 years.

European shares traded mixed as well. The FTSE rose .2%, the DAX gained .3%, while the CAC40 eased .2%. Societe Generale shares surged 6% as Greece resumed debt negotiations, on hopes the bank’s losses due to exposure to Greek debt will be less than feared.

Upbeat data and rumors of a possible Greek-debt deal later in the week sent US stocks higher.  The Nasdaq led the advance, climbing 1.5%. The Dow rose 97 points to 12576, and the S&P 500 gained 1.1% to 1308.




Goldman Sachs surged 6.8% after beating earnings estimates, while Bank of NY Mellon sank 4.6% after reporting weak earnings.

Home builders soared, thanks to upbeat home builder sentiment index data. The index rose to its highest level since June 2007. Hovnanian closed up 12.2%, and Pulte Homes posted a 5.9% gain.

Currencies
The Euro surged 1.6% as hopes for a solution to Greek’s debt woes lifted the single currency. The Australian Dollar rallied 1.2% to 1.0430, the Swiss Franc advance 1% to 1.0654, and the Pound climbed .8% to 1.5441. The Canadian Dollar posted a smaller .4% gain to 1.0112, and the Yen inched up fractionally to 76.99.

Economic Outlook
The NAHB housing market index jumped to 25 from last month’s reading of 21, blowing past analyst estimates of a rise to 22. Industrial production rose by .4%, slightly less than forecast, and PPI slipped .1%, following last month’s .3% gain.

Thursday’s economic data will include CPI, housing starts, weekly jobless claims, and weekly oil inventories.