Binary Options Market Review 07-May-2010
Stock Binary Options News:
European shares dropped in a volatile session on Friday, with Germany’s impending vote on aid to Greece, the fallout from the turmoil on Wall Street and the likelihood of a hung parliament in the U.K. combining to fuel investor nervousness. The Stoxx Europe 600 fell 2.7% in late morning trade, while the Nikkei 225 dropped 3.1% in Tokyo.
U.S. stock futures on Friday rose after one of the most tumultuous sessions in history, with markets prepping for the release of payrolls data, news on the Greek rescue and who will lead Britain — and bracing for further volatility.
U.S. stocks ended with steep losses Thursday after an afternoon meltdown lopped nearly 1,000 points off the Dow Jones Industrials Average– its biggest intraday drop ever – before a comeback of sorts, as Europe’s troubles took hold on Wall Street and talk of errant trades exacerbated the swift selloff. The Dow Jones Industrial Average finished the day down 347 points, or 3.2%, and at one point blue chip Procter & Gamble was down 37%.
Meanwhile, the issue that seemed to have hit stocks at the beginning of the day — euro-zone stability — will be in the spotlight as Germany votes on its contribution to the joint European Union-International Monetary Fund 110 billion euro loan package for Greece. Citigroup strategists say the Greece issues could cause a global equities correction of between 10% and 20%.
Through Thursday, U.S. stocks are down 7.6% from April highs.
Currency Binary Options News:
The euro climbed 0.9 percent to $1.2737 as of 10:58 a.m. in London, paring its decline this week to 4.2 percent, the biggest weekly drop since October 2008, the month following the collapse of Lehman Brothers Holdings Inc. The 16-nation currency jumped 2.6 percent to 117.25 yen, paring its drop in the five days to 6 percent. The dollar advanced 1.6 percent to 92.07 yen. The pound dropped 1.7 percent to $1.4578, trading as low as $1.4476, the lowest level since April 2009.
The pound tumbled to a 13-month low versus the dollar as the U.K. parliamentary election failed to produce an outright winner, fanning concern the next government won’t be able to reduce the budget deficit fast enough.
The Australian dollar rose on speculation investors bought the currency after its drop to a three-month low. The Aussie climbed 0.8 percent to 89.21 U.S. cents, and advanced 2.6 percent to 82.25 yen.
Commodities Binary Options News:
Crude oil rose, snapping three days of declines, as the dollar weakened versus the euro and on speculation this week’s 10 percent fall may have been excessive. Futures are still heading for their biggest drop since July on concerns Europe’s debt crisis will derail the economic recovery. Prices touched an 11-week low of $74.58 a barrel in New York yesterday.
Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, rose by the most in 15 months to the highest ever. Gold for immediate delivery surged to $1,210.70 an ounce yesterday, just 1.3 percent short of its peak of $1,226.56 an ounce reached Dec. 3. The metal was down 0.2 percent at $1,206 an ounce at 8:47 a.m. in Singapore.
