Dow logs best one day percentage gain in six months – Binary Options Daily Review

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Tuesday 12th September 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

 
Market Index Closing Level Move on day Intraday Market Range
CAC 5,176.71 + 63.22 5,145.78 – 5,180.25
DAX 12,475.24 + 171.26 12,381.30 – 12,481.80
Dow Jones 22,057.37 + 259.58 21,927.79 – 22,067.10
FTSE 7,413.59 + 35.99 7,377.60 – 7,434.07
IBEX 10,322.60 + 193.00 10,197.80 – 10,343.50

Closing Markets Summary

Dow Jones

Stocks in the US closed solidly higher on Monday with the S&P 500 closing at a record high, as nerves over the severity of the weather and worries over North Korea abated allowing tempting investors back into assets perceived as risky. Investors were relieved as Hurricane Irma didn’t hit Florida as hard as initially expected and North Korea didn’t conduct another missile test over the weekend as was feared. The day’s gains were across the board, with all of the 11 main S&P 500 sectors higher on the day. Financials were the best performers as insurance companies led that sector’s gains, boosted by the lighter-than-expected damage from hurricane Irma. Travelers Companies Inc. rose 5.1% and was one of the biggest boosts to the Dow, Progressive Corp rose 4.2% and American International Group Inc. rose 1.2%. The PowerShares KBW Property & Casualty Insurance Portfolio rose 5.2% in its biggest one-day gain since August 2011. Teva Pharmaceutical Industries Ltd. moved up 23% after the Israeli drug company named Lundbeck’s Kare Schultz as its new chief executive. Apple Inc. rose 1.8% and neared record levels ahead of the unveiling of its latest iPhone on Tuesday. Tesla Inc. rose 4.6% as the electric-car maker sent out a free software update temporarily extending the battery life for some of its cars to help owners evacuate the looming Irma storm. Shares of Equifax Inc. continued to fall, with another a drop of 5% following the news that the company suffered a cyberattack in which hackers stole sensitive information, such as social security numbers, of 143 million Americans. The S&P 500 closed up 26.68 points at 2,488.11, to set a new record high. The Dow Jones closed up 259.58 points at 22,057.37, to move back above 22,000 level and its best one-day percentage rise since March 1. The Nasdaq closed up 6,432.26.

Europe

European equity markets closed higher on Monday as insurance stocks rallied as Hurricane Irma took a different path over Florida which could end up resulting in less damage being sustained in the state. The Pan-European Stoxx Europe 600 index rose 0.9% to close 378.71, as all sectors were in positive territory. Investors were also encouraged after Pyongyang failed to conduct a missile test to mark its Foundation Day on Saturday, as had been feared. The Stoxx Europe 600 Insurance Index rose 2.1%, moving toward its best gain since mid-July, as shares of reinsurer Munich Reinsurance Co. rose 4.3% and Swiss Re AG gained 4.5%. Beazley PLC rose 5.6%, Hiscox Ltd. rose 2.9% and French reinsurer Scor SE rose 3.1%. The Euro eased to 1.2020 against the Dollar, down from 1.2037 late Friday in New York. On regional markets the CAC closed up 63.22 points at 5,176.71, the DAX closed up 171.26 points at 12,475.24 and the IBEX closed up 193.00 points at 10,322.60.

FTSE

The FTSE closed higher on Monday as Insurance stocks rallied as the impact of Hurricane Irma on Florida appeared not as severe as had been anticipated, and as fears over North Korea’s eased after the regime did not test another bomb to celebrate North Korea’s founding day celebrations, as had been feared. Investors were also monitoring developments from the UK parliament, where lawmakers are debating elements of the EU Bill. They are expected to vote on the bill, which overturns the legislation that took the UK into the European Union, either late Monday or early Tuesday. Included in the Brexit bill are measures to convert existing EU laws into UK law, which some say hand the government “Henry VIII” powers to amend laws without parliamentary scrutiny. Companies that featured included insurance stocks with Prudential PLC up 1.6%, and on the midcap Lancashire Holdings Ltd. rose 10%, Beazley PLC rose 4.3% and Hiscox Ltd. rose 3.4%. AstraZeneca PLC rose 2.1% after the pharmaceutical company said it’s had positive results from two trials for lung cancer treatments. Associated British Foods PLC fell 5% despite the company raising its outlook for underlying growth as it expects stronger profit performance from its fast-fashion chain Primark. British Land Co. rose 1.7% after Deutsche Bank upgraded its rating on the property developer to buy from hold. The FTSE closed up 35.99 points at 7,413.59.

Economic News Expected Today

 USA

Type Period Forecast Previous Importance
NFIB Small Business Optimism August 105.0 105.2 Low
OPEC Monthly Report August     Medium
Redbook August   0.3% m/m; 4.4% y/y Low
JOLT’s Job Opening July 5.960M 6.163M High

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
Non Farm Payrolls (France) Q2 0.5% q/q 0.5% Medium
Quarterly Unemployment Rate (Italy) Q2 11.3% 11.6% Low
ECB’s Constancio Speaks Sept     Medium

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
CPI August 0.5% m/m; 2.8% y/y -0.1% m/m; 2.6% y/y High
Core CPI August 2.5% y/y 2.4% y/y Low
PPI Input August 1.3% m/m; 7.4% y/y 0.0% m/m; 6.5% y/y Medium
PPI Output August 0.2% m/m; 3.1% y/y 0.1% m/m; 3.2% y/y Low
Core PPI Output August 0.1% m/m; 2.3% y/y 0.1% m/m; 2.4% y/y Low
House Price Index August 4.8% y/y 4.9% y/y Low

Other Global Economic Data Expected

 

Type Period Forecast Previous Importance
NAB Business Confidence (Australia) August   12 Medium

Economic News Round Up MarketsWorld Bars

Canadian housing starts rose in August as a surge in construction of multiple unit buildings, typically condos, offset a decline in starts of single detached homes. The Canada Mortgage and Housing Corporation showed on Monday reported that the seasonally adjusted annual rate of starts rose to 223,232 in August from July’s upwardly revised 221,974. Forecasts were for a decline to a 212,000 annual rate.

Forex Round Up MarketsWorld Bars

The Dollar was broadly higher against other majors in subdued trade on Monday, as concerns over the impact Hurricane Irma and tensions with North Korea continued to ease. Trading was quiet with no major US data to be released throughout the session. The Dollar found some support following an official downgrading of Hurricane Irma’s strength to Category 1 on Monday. The storm battered Florida over the weekend after devastating much of the Caribbean. Massive storm surges have flooded areas across South Florida, while downed trees and power lines have left over 2 million residents without power.

The safe-haven Yen and Swiss franc moved lower with the USD/JPY up 0.0.96% at ¥108.85 and the USD/CHF was up 0.84% at Fr0.9520. The Euro fell below the $1.20 level after European Central Bank Executive Board member Benoit Coeure said that persistent exogenous shocks to the exchange rate could lead to unwarranted tightening of financial conditions with undesirable consequences for inflation. The EUR/USD was down 0.41% at $1.1986.

The GBP/USD edged down 0.08% to $1.3186. The Australian dollar was lower with the AUD/USD down 0.14% at $0.8044 and the NZD/USD was little changed at $0.7267. The USD/CAD was down 0.19% at CAD$1.2140. The US Dollar Index was up 0.44% at 91.71, off Friday’s 32-month low of 90.99.

 
Commodity Round Up MarketsWorld Bars

Gold prices ended solidly lower on some profit taking after hitting a 12-month high last Friday and as investors were willing to take on more risk again. A rebound in the US Dollar Index also weighed. December gold was down $15.50 per ounce at $1,335.70. December silver prices were down $0.198 at $17.92 per ounce.

Oil prices were mixed on Monday, with US prices turning higher as investors assessed the impact of Hurricane Irma on energy demand in Florida and Hurricane Harvey’s extent of damage to oil refineries on the Gulf Coast. October West Texas Intermediate crude rose $0.22 to settle at $47.70 per barrel, having been as low as $47. November Brent crude slipped $0.26 to settle at $53.52 per barrel.

The MarketsWorld Overview MarketsWorld Bars

The UK economy has slowed down in a late reaction to Brexit, the weaker Pound as a result of the weaker Pound. Higher inflation led to talk about a rate hike which in turn has later diminished with lower inflation. Headline CPI is now expected to rise from 2.6% to 2.8% and which could give a boost to the Pound.

Monitor the Pound for Binary Options trading.

 

 

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The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Barry Jenkins’ (MarketsWorld Analyst) current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable. This message is intended for recipient only and not for further distribution without the consent of MarketsWorld.

 

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