Binary Options Market Review 06-May-2010
Stock Binary Options
Asian Sell-Off! Almost all of the Asian region’s major indexes fall 1%-3%. Most Asian markets trade sharply lower on increasing concerns over the spreading debt crisis in Europe, with Japanese exporters with high exposure to Europe taking a hit from the euro’s weakness. Forex Binary Options are rebounding this hour and traded around the 1.2796 level.
European shares also lost ground on Thursday as investors continued to fret about debt levels in countries on the edge of the region. The U.K. FTSE 100 index declined 0.6% to 5,309.34 on the day of a general election, while the German DAX index declined 0.4% to 5,935.26 and the French CAC-40 index lost 1% to 3,600.66. The European Central Bank will announce a decision on interest rates later Thursday.
U.S. stocks fell for a second day Wednesday as worries that Europe’s debt trouble is escalating overshadowed economic reports showing growth in the services sector and additional hiring by private firms. After a triple-digit slide and then a brief visit to positive territory, the Dow Jones Industrial Average closed down 60 points, or 0.6%, to 10,866.83. The latest action is leading U.S. market commentators to suggest that stocks are going much lower, and that the U.S. market’s pullback could be heavier than any since March 2009.
The EUR-USD fell to a fresh 14-month low against the dollar in Asia Thursday as riots in Greece fueled investor concern that the nation can’t implement fiscal reform steps smoothly and may face higher default risk. Three people were killed during demonstrations in Athens Wednesday in protest against the government’s spending-cut and tax-hike plans to avert national bankruptcy. Over the weekend, the government agreed to an EUR110 billion ($141 billion) European Union and IMF debt bailout. The development prompted investors to speculate the nation may not be able to promptly take necessary steps to avoid default, which in turn will increase worries that other debt-suffering European nations such as Portugal may experience similar fates.
Oil Binary Options
Oil prices settled under $80 a barrel on Wednesday, pulled down by a stronger U.S. dollar, concerns about the political unrest in Greece and the state of other European economies, and a higher-than-expected rise in crude inventories. Crude oil for June delivery slumped $2.77, or 3.4%, to $79.97 a barrel on the Comex division of the New York Mercantile Exchange. That is the lowest price for a most-active contract since March 15, according to FactSet Research. Losses were deeper mid-morning and in the last hour of trading. This action is leading market commentators to suggest that people are worried that the bull market is over, that maybe we are seeing the tipping point.
Gold Binary Options
Gold changed direction to settle marginally higher on Wednesday as bullion regained at least some its glow as a hedge against macroeconomic and political unrest. Gold turned as the euro bounced off lows and U.S. stocks paired losses. This has lead market commentators to suggest that the the global political and macroeconomic background is bullish for gold, it shows the viability of gold as an alternative currency. Gold for June delivery added $5.80, or 0.5%, to $1,175 an ounce on the Comex division of the New York Mercantile Exchange.
