Daily Analysis – Global Markets End Mixed, Silver Hits New Record High |
Equities
Asian markets ended Monday mixed following the Easter holiday. The Nikkei ended down .1%, while the Shanghai Composite tumbled 1.5%. In Korea, the Kospi rose .8%. Markets in Hong Kong and Australia were closed for the holidays.
In Europe, the major indexes ended mostly higher, as the Dax gained .6% and the CAC40 rose .4%. Chemical company AkzoNobel gained 4% on strong earnings. The FTSE lagged behind, shedding .1%.
US markets traded in a narrow range and also ended mixed. The Dow slipped 26 points to 12480, while the Nasdaq gained .2%.
Slot-machine maker IGT jumped 9.3% on surprisingly strong earnings and Sohu.com rallied 8.8% after profits rose 34%.
Treasuries and Commodities
Bonds rose slightly, with 10-year notes up 8/32 to yield 3.36%, and 30-year notes up 4/32 to yield 4.46%. A Chinese Central Bank official warned that China must be careful of rising US treasury rates.
US crude ended down fractionally in choppy trading, closing at 112.22. Gold rallied 6.60 to close at 1510.40, and silver briefly crossed its all-time high from 1980, hitting 49.79 before reversing to close at 47.38, up 2.9%. Copper tumbled 2.3% to 4.3005.
Silver Hits New Record High Before Selling Off
Wheat, corn, and rough rice all rose more than 3%.
Currencies
The dollar ended mixed on Monday, largely recovering from steep morning losses. The Euro rose .1% to 1.4581, and the Swiss Franc rallied .6% to .8804 after hitting a new record high of .8773. The yen rose .2%, while the Pound ended flat and the Australian dollar eased .2% to 1.0715.
Economic Outlook
New home sales jumped 11% to 300K, better than forecast, the first gain in 3 months.
The Fed will begin a 2-day meeting on Tuesday, and the government will release Consumer Confidence figures.
A very heavy dose of earnings news awaits investors on Tuesday. Earnings are due before the open from Coca-Cola, Ford, UPS, Coach and US Steel. After the bell, Amazon, Western Union and Dreamworks will report.
-Bradley Welcher
About the author: BinaryOptionStrategy- David Frank
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