Binary Options Daily Analysis – Western Stocks Rally, Boosted by Positive Data

Asian markets ended mixed after conflicting data from China failed to provide direction. The official PMI data pointed to an expansion in manufacturing, while HSBC PMI data indicated a mild contraction. The Shanghai Composites slumped 1.1%, the ASX 200 dropped .9%, and the Hang Seng dipped .3%. Amongst the gainers, the Nikkei inched up .1%, and the Kospi edged up .2%. Korean builders soared, as Samsung Engineering and Hyuandai Engineering both gained nearly 5%.

European markets rallied strongly, supported by upbeat economic news from Germany and the US. The DAX surged 2.4%, the CAC40 climbed 2.1%, and the FTSE jumped 1.9%. Banking shares rebounded 3.8% on news a Greek debt deal was imminent.




DAX Rallies 2.4% on Strong German Manufacturing Data

US stocks climbed as well. The Nasdaq outperformed, closing up 1.2%, followed by the S&P 500, which rose .9% to 1324. The Dow rose 84 points to 12716, ending its 4-day slide.

Amazon shares tumbled 7.7% after the company reported a sharp drop in revenue, and lowered its outlook. Whirlpool shares surged 13.5% after issuing a strong outlook, and Broadcom jumped 8.1% after beating analyst profit forecasts.

Currencies
The Dollar settled modestly lower against global currencies. The Euro rose .5% to 1.3156, recovering from an earlier drop down to 1.3028. The Australian Dollar settled up .7% to 1.0698, while the Pound and Swiss Franc advanced .4%. The Canadian Dollar broke through the parity level, gaining .3% to .9988, and the Yen inched up .1% to 76.22.

Economic Outlook
Wednesday’s ADP Employment report showed the economy gained 170K jobs last month, falling short of expectations of 189K, but still a very respectable figure. The official government non-farm payroll report will be released on Friday.

Construction spending rose by 1.5% last month, more than forecast, and auto sales unexpectedly jumped to an annualized rate of 14.2M, up from last month’s 13.6M reading.

Manufacturing PMI data from Germany rose to 52.1, significantly better than the 50.1 forecast.

Thursday’s data will include weekly unemployment claims, productivity & labor costs, and chain store sales.

Earnings are due from Beazer Homes, Boston Scientific, Cigna, Deutsche Bank, International Paper, Kellogg’s, Merck, Sony, Take Two and Unilever.