| Global Market Wrap-Up - July 26, 2010 |
July 27, 2010 - 6:00am — mhanna
Increased guidance by FedEx offset continued poor housing figures, as corporation specific news continues to trump macro economic data. The S&P 500 gained 1.1%, and crossed over a key technical level observed by traders, the 200 day moving average; the NASDAQ rallied 1.2%. With Monday's close the S&P 500 is now flat for the year - a lot of volatility to end up exactly where it began.
After a quiet day Monday, earnings season will renew in earnest Tuesday.
The euro had a strong session climbing 0.7% against the greenback to settle near $1.30, which puts it within striking distance of its two-month high. Conversely, the dollar index dropped 0.5% to set its lowest level since early May.
In the commodities market, crude oil finished just under $79, while gold fell 0.4% and silver gained 0.55%. Industrial metals have taken much of the 'fast money' from precious metals the past two weeks.
European markets rose slightly as investors had their first chance to react to a series of tests that assessed the health of the continent's big banks. Regulators said only seven of the 91 banks tested would struggle if the European economy and government debt problems worsened. Britain rose 0.7%, Germany 0.5%, and France 0.8%.
Asian stocks were mixed with a drop of 0.6% in India, offset by gains in China (+0.7%) and Japan (+0.8%).
Mark Hanna, known in the financial community as "TraderMark," provides his insightful daily market coverage in this column, exclusive to Euro Pacific Capital.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Please feel free to repost with proper attribution and all links included.
Monday, July 26, 2010
By:
Mark Hanna - FedEx said its international overnight and ground delivery businesses are doing better than expected, and that it expects a moderate global economic recovery. The shipping company raised its earnings forecast for the three months that will end Aug. 31. Six weeks ago, investors were disappointed by FedEx's forecast.
- The Commerce Department said new home sales rebounded from a record low in May to an annual rate of 330,000 units, more than economists expected. The gain came after sales hit a record low annual rate of 267,000 in May. Sales are still down 72% from their peak annual rate of 1.39 million in July 2005. June's number was still weak, but investors were relieved that it wasn't worse.
After a quiet day Monday, earnings season will renew in earnest Tuesday.
The euro had a strong session climbing 0.7% against the greenback to settle near $1.30, which puts it within striking distance of its two-month high. Conversely, the dollar index dropped 0.5% to set its lowest level since early May.
In the commodities market, crude oil finished just under $79, while gold fell 0.4% and silver gained 0.55%. Industrial metals have taken much of the 'fast money' from precious metals the past two weeks.
European markets rose slightly as investors had their first chance to react to a series of tests that assessed the health of the continent's big banks. Regulators said only seven of the 91 banks tested would struggle if the European economy and government debt problems worsened. Britain rose 0.7%, Germany 0.5%, and France 0.8%.
Asian stocks were mixed with a drop of 0.6% in India, offset by gains in China (+0.7%) and Japan (+0.8%).
- Japan's exports rose for the seventh straight month in June, driven by machinery and steel products, indicating that overseas demand continues to underpin recovery in the world's No. 2 economy even amid a stronger yen.
- Exports climbed 27.7% from a year earlier. With demand lackluster at home, Japan has depended on Asia, and China in particular, to fuel its recovery.
Mark Hanna, known in the financial community as "TraderMark," provides his insightful daily market coverage in this column, exclusive to Euro Pacific Capital.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Please feel free to repost with proper attribution and all links included.
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