Binary Options News : July 31, 2012
Stocks Continue Ascent on Stimulus Talk
Asian stocks continued to increase for the 4th consecutive day as speculation increased that the ECB and Fed Reserve in the US may stimulate their respective economies, weakening the Euro and the USD and pushing up the prices of stocks globally.
During Asian trading overnight, Hong Kong’s Hang Seng Index was up 1.06%, Australia’s S&P/ASX200 was up 0.81%, whilst Japan’s Nikkei 225 Index was up 0.84% as yesterdays meeting between US Treasury Secretary Tim Geithner and the German finance minister Wolfgang Schaeuble ended with a joint statement saying that they “emphasised the need for ongoing international co-operation and coordination to achieve sustainable public finances, reduce global macroeconomic imbalances, and restore growth,”
Yesterday also saw the release of Spanish GDP which showed that its economy contracted 0.4% on year in the second quarter, meaning the country remains firmly entrenched in recession. Also released in Europe was the European Commission’s index of economic sentiment across the Eurozone which fell to 87.9 in July compared with 89.9 in June after analysts were expecting a reading of 88.7. All of which heaping more pressure on Mario Draghi ahead of Thursday’s interest rates decision. Speculation has increased that the ECB will restart its bond buying programme, known as the Securities Markets Programme (SMP.) This was suspended in January but enables the ECB to purchase government debt from banks helping to reduce the cost of borrowing for governments. Such measures which would hopefully be able to tackle Italy and Spain’s high borrowing costs.
The heightened talk of stimulus measures sent stocks up in Europe with Spain’s Ibex finishing 2.8% higher, the FTSE 100 increasing 1.2% and Germany’s Dax closing 1.3% higher.
Although markets are awaiting the Fed’s interest rate decision on Wednesday and the ECB interest rate decision on Thursday; there is a wealth of important data released today which should cause volatility in the markets and create some good profit opportunities for the Binary Options trader. German and Spanish retail sales figures are released as well as German and European unemployment and Italian and French PPI.
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