Daily Market Review: 1st October 2013


The US government has entered shutdown mode and investors are still holding out for the possibility that later this month the US will be able to raise its borrowing limit and be able to start paying off its creditors. Investors are worried although the event of a US default on its debts is not at present being given serious consideration. Nevertheless the lack of unity in capital hill is beginning to create an atmosphere of uncertainty that could affect markets throughout the rest of the week and beyond.

The on-going chasm between realities on the ground and the state of the US equities markets continues as the DOW, the S&P 500 and the Nasdaq all closed higher, the Nasdaq touching 13 year records.

Apple has catalysed a great deal of this positive movement, with shares in the tech company rallying more than 2%.

US drug giant Merck will be cutting a total of 8500 jobs, this figure is in addition to the 7500 jobs already slashed by the company. The company is seeking to cut its annual expenditure by a staggering 2.5 billion dollars and is also said to be discontinuing a large number of drugs that it currently has under development due to them having a lower chance of success in the current economic climate. The company has managed to get many fewer drugs through the regulatory approval stage and has also experienced delays in getting new products to the market. Merck stock rose off the back of the news, an impressive rise of around 2% was registered, however the broader ecconomic outlook leading to these stock gains looks decidedly grim.

September saw car manufacturers in the US entering a slight downturn after an impressive summer performance. Analysts are predicting a recovery even though GMC sales have been show to have slumped by 11%. Ford and Chrysler are two of the US companies shown to have outperformed the market in September with one of the strongest Septembers in years.

US manufacturing also seems to be on the up, with a rise in output beating the past 2.5 years of performance from the sector.

Trades of the day: US government pressures and a booming stock market are a recipe for a weaker dollar. Binary options traders locking-in CALL trades on EUR/USD set to expire mid-to-end of the week are looking good.

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, also known among professionals under her nickname “Moneymaker”, is an experienced stock broker and Forex trader. Promoting and guiding new traders to the binary options market is Nancy''s way of saying "thank you" to the industry that helped her realise her dreams.