Markets were on a topsy–turvy course last week with European markets experiencing a very volatile week and U.S markets rising finally on Friday, post Presidential election. Asian shares and commodities displayed a mixed trend throughout the week. Here’s an overview of the global markets for the past week so that you can be well–informed during your binary options trading this week.
The stock markets finished business on a subdued note at 2.7% down last Friday. Investors were holding back as tensions escalated in Gaza Strip and negotiations on the U.S. fiscal cliff began.
The Stoxx 600 index fell by 1% and closed at 262.86, the lowest since August. The household products manufacturer, Henkel Ag & CO. KGaA, lost 4.7% and reported their Q3 earnings. Henkel also said that they are committed to achieve their financial targets for the year.
The markets tumbled during the later part of the week as tension intensified in Middle East. BP PLC plummeted to 2.1% as the oil giant has agreed to settle $4.5 billion federal charges pertaining to the oil spill of 2010. The oil market was mostly gloomy with BP PLC and the Royal Dutch Shell PLC falling down considerably. FTSE 100 was also down to 5605.59 and lost 2.8% for the week.
The market is likely to continue its sluggish performance this week too, with the Middle East tensions continuing to escalate.
The U.S. markets were rejoicing slighlty on Friday as the stocks rose to post the biggest gain since the Presidential election. This came as a result of the discussion between the White House and lawmakers, which proved to be positive. The DJIA rose by 0.4% to 12588.31 in spite of losing 71 points in the morning. The DJIA had plummeted after the Presidential election on 6th of November and turned the investor attention on the fiscal cliff that would come into force on the 1st of January if a budget deal is not being made.
S&P 500 rose by 0.5% with 6.55 points to 1359.88. The trend continued in Nasdaq composite index too, as it rose by 0.6% with 16.19 points to 2853.13. While the stock markets rose slightly, things are not very good on the economic front. The U.D. Industrial Production report released by the Federal Reserve fell to 0.4%, lower than the expected 0.2%. The shares of leading computer giants, Dell and HP, fell to 7.3% and 1.8% respectively. Dell reported that its quarterly earnings had dropped down to almost 50% on Thursday, and this might have been a reason for the PC maker’s downfall.
The U.S. stock market may seem like it is going strong but the economy says otherwise. Keep a wary eye on US stocks while trading your binary options this week.
The Asian Market is a mixed bag with the Hong Kong stocks stabilizing, the Japanese stocks increasing the rally by 3% due to weak currency and many other regional markets continuing to slip on concerns regarding the U.S. fiscal cliff. The weak yen however helped the Japanese stocks rise. Many exporters also gained with Nissan Motor rising to 5.1%.
The Hang Seng Index also rose by 0.2% to 21159.01 amidst several companies slipping considerably. The world’s premier fashion giant, Esprit fell to 6.2% despite a short lived 22% rise early on Thursday, as investors hoped that the former chairman may return back.
With some positive signs after the discussion on the U.S. fiscal cliff, the Asian markets might become a bit stable this week.
The Euro weakness prompted the London Metal Exchange to close down at a subdued note with the only exception of nickel. Aluminium was closed down at 0.6% with $1951/ton and Copper also down at 0.5% with $7605/ton. The oil futures, however, rose steeply on Friday with an escalating Middle East tension that inflicted a fear of disruption in supplies of the crude oil from Middle East.
The light, sweet crude for December delivery expired on Friday and settled 1.4% up at $86.67 per barrel on New York Mercantile Exchange. The January contract settled at $86.92 per barrel, 1.2% higher, and Brent crude on ICE futures settled at $108.95 per barrel, 0.9% higher. Gold prices, too, gained slightly amid the Middle East crisis as traders who were expecting lower prices cashed out. The labour tension in South Africa led to a slippage in Platinum futures to a one–week low.
Whilst binary options trading this week, bank on a downward trend with an exception of oil and Gold, thanks to the Middle East tensions.