Binary Options News : January 6, 2014
USD Continues Ascent and Asian Stocks Lower on Chinese Data
Asian markets opened with a negative reaction to further weak data being released from China, following on from soft data releases from the world’s 2nd largest economy at the back end of last week.
Last week saw China’s non-manufacturing purchasing managers’ index drop to 54.6 in December from 56.0 in November. Overnight it was the release of the Chinese HSBC PMI data, which tracks sales, inventories ,employment, and prices of 400 private services sector companies, which disappointed markets. The Chinese HSBC PMI was down to 50.9 after previously being 52.5.
The data sent Asian stocks lower and continued the US Dollar’s safe haven status except against the Japanese Yen, which found itself higher against the USD, which without clear reasoning why in the markets, was subject to safe haven status buying itself, as investors bought in dips in the charts.
With Japan’s Nikkei 225 reopening after an extended holiday break, it ended 2.06% lower as much of the global optimism seen at the back end of last year appears to have abandoned the markets for the time being. Hong Kong’s Hang Seng Index was 0.74% lower and the Chinese Shanghai Composite index fell 1.93%, whilst the Australian S&P Asx/200 was down 0.47% on the news from China, its largest trading partner.
The USD picked up where it left off on Friday with gains against the EUR – up 0.07%, the GBP – up 0.34% and the CHF – up 0.13%. The USD/JPY was down 0.47% and the Dollar cousins of the greenback continued to rise against the USD with the CAD up 0.08% and the AUD up 0.02%. The US Dollar index which measures the US Dollar against a basket of 6 weighted currencies was up 0.03%.
The record low temperatures in North America continues to push the price of Natural Gas higher, up 0.58% in overnight trade, despite supply levels showing to have increased last week. Precious metals started the week still finding investor favour, with Gold rising 0.23% and Silver rising 0.16% as reports emerged of increased physical demand from China. Crude Oil rebounded from last weeks news of increased supplies in the US and increased international output, especially in Libya, to rise 0.11% to $94.07 a barrel.
We can expect European stocks to open lower following the trend set in Asian markets of a risk off sentiment. Germany will release preliminary data on consumer price inflation, accounting for the majority of overall inflation. The UK will publish service sector activity data, a leading indicator of economic health, whilst in the US, factory orders data and the Institute of Supply Management data on service sector activity will be published.
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