Binary Options Daily Analysis – Chinese GDP Better than Expected, Lifting Markets

GDP data from China showed the economy grew at 8.9% in the last quarter, better than forecast. The news sent the Shanghai Composite soaring 4.2%, despite the fact that the figure was lower than last quarter’s 9.1% growth. Across the region, stocks rallied, particularly in neighboring Hong Kong, where the Hang Seng jumped 3.2% to 19638. The Nikkei advanced 1.1% to 8466, the Kospi climbed 1.8%, and the ASX rose by 1.7%.

The upbeat sentiment continued in Europe, as the DAX rallied 1.8%, the CAC40 gained 1.4%, and the FTSE rose .7%. Automakers posted a 2.8% gain, as fear of a Chinese hard landing abated.

US stocks posted smaller gains. The Dow tacked on 60 points to 12482, the Nasdaq advanced .6%, and the S&P 500 gained .4%.

Citigroup shares tumbled 8.2% after reporting weaker than expected earnings, while Wells Fargo inched up .7% after beating estimates. Financials traded mostly lower, as the weight of Citigroup’s disappointment hit the sector.

Research in Motion surged 8% on takeover rumors, and Sears rocketed 9.5% higher amid rumors the company will be going private.

Cruise operator, Carnival, tumbled nearly 14% as the market reacted to the weekend crash of a cruise ship off the coast of Italy.

Currencies
A successful bond auction in Spain helped boost European currencies. The Swiss Franc rallied .8% to 1.0533, the Euro gained .6% to 1.2734, and the Pound inched up .1% to 1.5332. The Canadian Dollar edged up .3% after the Bank of Canada kept rates steady at 1%. In the Pacific region, the Australian Dollar climbed .7% to 1.0379, and the Yen closed down fractionally at 76.82.

Economic Outlook
The Empire State manufacturing index blew past expectations, rising to 13.5 from last month’s 9.5 reading, its highest level since April.

Germany’s ZEW economic sentiment indicator improved considerably from last month’s -53.8 reading, climbing to -32.5.

Wednesday’s economic reports will include PPI, industrial production, the housing market index, and weekly mortgage applications.