Monthly Archives: May 2012

Euro Fears Dominate Markets

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binary options news comic koala can't be eur saviorEarly Asian trading highlighted the growing investor fears that the crisis in the Eurozone is spreading from Greece to Spain. Europe, being a key export market for Asian manufacturers, remained the focus, as it has done for most of the week, and saw Asian stocks suffer at the thought of losing that key export markets growth.  Hong Kong’s Hang Seng Index fell 1.32%, Australia’s S&P/ASX200 was down 1.04%, whilst Japan’s Nikkei 225 Index fell nearly 2% before rebounding to being 1.34% down. Topping the list of concerns was the fact that yields in the Spanish debt auctions have increased to nearly 7% in recent sessions and remain high, whilst borrowing costs in Italian auctions increased too. Over  in Greece, new polls suggest the left wing Syriza political party is gaining ground ahead of June 17 elections, on the back of opposing austerity measures attached to bailout funding.

Speaking of bail out funding – providing a much needed boost to the beleaguered Euro was the European Commission proposing that the money set aside for aiding governments should be used to bail out ailing banks directly. The EU commission also pushed for more integration through a euro-wide “banking union” and a single deposit protection scheme to protect savers. After hitting 22 month lows against the USD, the EUR/USD was up 0.18%, valued at 1.2389.

The largest fall in the currency markets was seen in the USD/JPY pairing, down 0.38%, trading at 78.76. This was mainly due to the National Association of Realtors in the US reporting that pending home sales fell 5.5% in April, well beyond expectations for a 0.1% decline.

Today promises to be another big day for the Euro as unemployment data in Germany is released, Italian Consumer price index and French consumer spending. The monthly figures from France are expected to remain in the minus at -0.7% but still be an improvement from the previous 2.9%.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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USD Makes Gains, Facebook Hits New Low

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binary options news comic strip euro facebook tradingThe USD made gains against most of the major currencies as Spanish concerns continued to weigh upon investors seeking a safe haven. Fears that the Spanish situation will only get worse were fueled by yesterdays debt auctions which saw yields and cost of borrowing reach nearly 7% and talk of more rescue funding being needed from a government already battling enormous borrowing costs, record unemployment and falling retail sales. The Spanish woes sent Asian stocks down with Hong Kong’s Hang Seng Index down 2.20%, Australia’s S&P/ASX200 falling 0.90% and Japan’s Nikkei 225 Index dropped 0.98% at time of writing.

Gaining in Asian trading was the greenback, enjoying its safe haven status and rising in most major currency pairs. The USD was up 0.28% against the EUR, trading at 1.2468 and was up against the GBP, increasing 0.17%, trading at 1.5615. Against the commodity linked Aussie, the USD was up 0.50%, trading at 0.9799. The AUS generally does better when the commodity markets increase, which wasn’t the case this morning. After enjoying a bounce yesterday during European trading, the commodity markets saw falls. Gold and Silver both declined – Gold down 0.15%, trading at 1548.75, whilst Silver fell 0.54%, trading at 27.653.

The other news dominating financial headlines was that Facebook shares fell below $29 for the first time since their launch at $38. One reason for the fall in shares since its initial public offering (IPO) is that Tuesday was the first day that options on Facebook stock began trading. Options are a form of derivative, which enables bets on the future direction of the stock. It appears that most investors are betting Facebook shares will head lower.
Today, European stocks indicate a lower opening and there should be increased volatility when In Europe, European Central Bank President Mario Draghi is to speak later today and in the US pending homes sales figures and numbers on mortgage applications are released.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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Japanese Unemployment and Spanish Fears Subdue Markets

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binary options editorial cartoon of the econTrading proved to be more than a bit subdued in Asian markets despite China allowing direct trade of the yuan with Japans Yen. In a move aimed at promoting trade between the two biggest economies in Asia, it will take out the need to use the USD as an intermediary. The initiative starting on June 1st follows on from December when the leaders of Japan and China agreed to mutually promote direct trading between the two currencies based on market principles.

Despite the positive news coming from China, there was a raft of data coming from its new foreign exchange partner – Japan. In figures released last night Year-on-year household spending rose 2.6% in April, slightly better than forecasts for a 2.4% gain, while retail sales increased 5.8% on the year, worse than expectations for a 6.3% gain. Japan’s unemployment rate increased to 4.6% in April, up from 4.5% in March, slightly worse than expected, as markets had an expectation that the rate would be unchanged, sending Japanese equities lower in early Tuesday trading.

Also hurting volumes of trading was news from Spain. Whilst Europe waits on Greek elections on June 17th the yield on the Spanish 10 year bond rocketed to 6.47%, the highest it has been this year. The Spanish government is set to arrange a 19 billion euro recapitalization package for one of its largest commercial lenders, Bankia. This sparked global demand for the USD in a risk-off session, as concerns continued that Spain may need to rely on sovereign debt to pop up the financial institution.

Gold has been finding favour as a safe haven – up 0.29%, trading at 1575.85 whilst the currency markets saw moderate movement with the USD down or up less than 0.10% against most major currencies.

The highlight of today, commanding most investor focus will be the release of German CPI figures. Spanish retail sales are released and not expected to be good potentially adding more pressure to the EUR when European markets open.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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Greek Election Hopes Buoys Markets

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binary options news cartoon European Central Bank loves debtsAsian markets begun the trading week boosted by renewed hope that Greece’s pro-bailout political party is gaining ground in the polls ahead of June 17 parliamentary elections, reducing concerns that Greece may heading for an Euro exit. Conservative Greek political party New Democracy has been steadily increasing in the polls, indicating that the Greeks want to stay with the euro. Previously, expectations that the leftist Syriza party would do well in  the 17th June  parliamentary elections on a stand of rejecting the bailout terms have sent shockwaves around world markets. The positivity that is surrounding Greece managed to shrug off Lloyds of London, who stated that they are prepared for a greek exit and the riling of Greeks, incensed by IMF head Christine Lagarde suggesting that the Greek people were avoiding paying tax.

The optimism that Greece may yet avoid an exit from the eurozone sent stocks higher early in the session – Hong Kong’s Hang Seng Index increased 0.16%, Australia’s S&P/ASX200 gained 0.66%, whilst Japan’s Nikkei 225 Index increased by 0.08%. In currency news, the EUR made significant gains against the USD – up 0.61%, trading at 1.2592. The EUR was also up against the Swissie, increasing 0.07%, trading at 1.2020.

The USD fell against most major currencies as the Greek optimism sparked an appetite for risk. The US Dollar index, which measures the greenback against a basket of 6 weighted currencies, was down 0.54%, valuing the USD at 82.08. Against the JPY, the USD was down 0.34 but it was against the commodity linked AUD that saw the USD make the biggest declines – down 0.98%.

Today is a holiday in the US and Switzerland which generally lowers levels of trading and don’t expect too much bounce on the USD when European markets open. Italian business confidence data is published at 8am GMT, but investor focus will be on unemployment, retail sales and household spending figures released in Japan later in the evening.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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Mixed Trading Week Ahead

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Whilst the Euro saga continues, this week seems to be no different.  A look at the economic calendar for the forthcoming week indicates strong market volatility with the release of some important data:

Monday
Monday is a holiday in the US and Switzerland which generally lowers levels of trading. Italian business confidence data is published at 8am GMT, but eyes will be on unemployment, retail sales and household spending figures released in Japan later on the night.

Tuesday
The highlight of Tuesday, commanding most investor focus will be German CPI figures released. The German Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers. Eyes will be firmly on Germany, being the most powerful economic member state of the Eurozone, to lead the regions debt crisis. Spanish retail sales are released and not expected to be good.

Wednesday
The Aussie should see some movement as MoM retail sales figures and quarterly construction work data are released in Australia. The Swissie may experience some rare movement as the KOF indicators, which predict the direction of the economy, are released. The Euro focus will continue with the release of money supply and private loans figures. Money supply YoY is expected to be down fro 3.2% to 3.0%

Thursday
A big day for the Euro as unemployment data in Germany is released, Italian Consumer price index and French consumer spending. The monthly figures from France are expected to remain in the minus at -0.7% but still be an improvement from the previous 2.9%.

Friday
The trading week ends with Chinese, Hungarian and Spanish manufacturing PMI, Swiss retail figures and European unemployment rate data. If Chinese manufacturing is down, expect Asian stocks to fall but once again the economic well being of the Euro and the Eurozone should take center stage.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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