Daily Analysis – Asia Rallies, West Ends Mixed as Rally Stalls
Binary Options Strategy | Oct 24, 2011 07:55AM ET
On Tuesday, Asia rallied, catching up to the West’s significant rally on Monday. The Nikkei returned from a holiday to climb 2%, closing at 8774, and the Kospi advanced 1.6% to 1795. In China, the Hang Seng climbed 2.4%, while the Shanghai Composite ticked up just .2%, weighed down by energy companies, after China announced a tax on domestic oil and gas sales. In Australia, financial shares lifted the ASX 200 by .6% to a 5-week closing high.
After 4 days of big gains, European shares closed mixed. The FTSE slipped fractionally, the CAC40 declined .3%, and the DAX rose .3%, as Slovakia pushed off a vote over expansion of the ESFS bailout fund. After the US markets closed, the vote failed to pass, but analysts expect it to pass over the next few days, as the coalitions reform.
In the US, tech shares rallied, lifting the Nasdaq .7% to 2583, while the Dow eased 17 points to 11416. After the close, Alcoa reported earnings that missed profit forecasts, while revenue grew, as higher commodity prices hurt profits.
Ninety Nine Cent Stores rallied 4.4% on news in would be purchased by a private equity firm.
Currencies
The currency markets closed little changed, as the Dollar’s early gains evaporated in the afternoon. The biggest mover was the British Pound, which fell .5% to 1.5580, followed by the Swiss Franc which closed down .4% to 1.1016. The Euro, Australian Dollar, and Yen all closed within .1% of their previous close.
Economic Outlook
The Small Business Confidence Index rose for the first time in 7 months, but came in below estimates.
Wednesday’s reports will include weekly oil inventories, and the Fed’s FOMC minutes (rescheduled from Tuesday).
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