Monthly Archives: August 2012

Markets Down Pre-Jackson Hole

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Binary Options News : August 30, 2012

binary options news comic strip hurrican isaac and the 2012 gop conventionMarkets Down Pre-Jackson Hole

Overnight Asian trading saw the greenback fall against most major currencies as investors moved out of the USD, stocks and commodities in preparation for the annual symposium at Jackson Hole, Wyoming on Friday.

US

Yesterday saw the release of GDP figures in the US which showed that its economy expanded at an annualised rate of 1.7% from April to June, higher than the 1.5% previously estimated, but a slowdown from 2% in the first three months of the year.

The release of strong housing data and an upward revision to the U.S. GDP figures yesterday sparked talk that the Fed will possibly hold off any further stimulus measures. The Federal Reserve’s Beige Book showed that manufacturing is still struggling a bit but continues to show signs of recovery. The National Association of Realtors announced that its pending home sales index increased by 2.4% in July, better than the expected 1.0% increase.

For the last 2 years Bernanke has used the conference of the world’s central bankers Jackson Hole, Wyoming, to indicate the Fed’s intentions and investors are expecting much of the same having sold positions last night in preparation.

Market Moves

The USD was down against most major currencies; falling 0.11% against the EUR, dropping 0.01% against the GBP, down 0.12% against the JPY, and down 0.16% against the AUD. The US Dollar index which measures the USD against a basket of 6 weighted currencies was down 0.09%, trading at 81.50.

In the commodities markets, Gold was down 0.19%, Silver down 0.57% and Crude Oil down 0.50%. At the time of writing Hong Kong’s Hang Seng Index was down 1.47%, Australia’s S&P/ASX200 was down 1.19%, whilst Japan’s Nikkei 225 Index was down 1.21%.

Today’s Outlook

Although investors are awaiting the Jackson Hole tomorrow; there is a raft of market moving data released today with German unemployment figures released in the morning along with GB mortgage data and Italian 5 and 10 year debt auctions. Jobless numbers in the US released in the afternoon and Japanese CPI and unemployment figures published later in the evening make this a potentially busy day on the trading front with European stocks indicating a lower opening.

 

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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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Stocks Increase Ahead of US GDP Data

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Binary Options News : August 29, 2012

binary options news cartoon bernanke merkel fiscal follliesStocks Increase Ahead of US GDP Data

In what was a low volume trading session overnight, Asian stocks increased ahead of today’s report on U.S. economic growth and Fed Chairman Ben Bernanke’s monetary policy speech later this week

Europe

The Euro found support in European markets yesterday but as down in Asian trading against most major currency pairs following on from ECB President Mario Draghi canceling his trip to the U.S. Federal Reserve’s annual conference in Jackson Hole, Wyoming. This was taken by the markets as a sign that the European Central Bank may soon join in intervening in sovereign debt markets to reduce the borrowing costs.

Yesterday saw Italy’s 2 year government debt bonds auction with borrowing costs falling. 3.0 billion euros of bonds maturing in May 2014 were sold with an average yield of 3.06%, down from 4.86% at a similar auction last month. In Spain yesterday, 1.67 billion euros of 3 month bills were sold with an average interest rate of 0.95%, down from 2.43% this time last month.  Yesterday also saw the debt ridden Spanish region of Catalonia ask for a bailout of 5bn euros. Catalonia represents 20% of the Spanish economy which contracted further in Q2, shrinking by 0.4% between April and June after a 0.3% drop in the previous three months.

US

Better than expected data from the US housing sector overshadowed soft U.S., consumer confidence which fell to its lowest levels in 9 months in August. The Standard & Poor’s/Case-Shiller home price index published yesterday showed the first annual increase since 2010 with a gain of 0.5% from June 2011 after a 0.1% contraction had been expected.

The Conference Board showed that its consumer confidence index declined to 60.6 in August from 65.4 in July, which is still higher than the 45.2 index level of August 2011 but lower than the market expectations for a 66.0 reading.

Today’s Outlook

Binary traders today can expect movement in the Euro on the release of German CPI figures. Afterwards the focus will be on the US where key Quarterly GDP figures are released. Gas and Oil inventories published today causing movement in the Gas and Oil prices, but overall the attention will be on the USD in what promises to be a busy trading session with plenty of profit opportunities.

 

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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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Investors Flock to USD

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Binary Options News : August 28, 2012

binary options news cartoon a tale of two armstrongsInvestors Flock to USD

The US Dollar found favour as a safe haven investment in overnight trading as soft confidence data from Germany and a downgrade of its own economy by Japan added to the fears of a global economic slowdown.

Germany

The largest economy in Europe reported a worse than expected business confidence report which helped send investors fleeing the riskier assets and into the greenback. The German research institute Ifo announced that its the business confidence index  softened to its lowest level since March 2010 coming in at 102.3 for the month of August, down from a revised figure of 103.2 for the month of July and just off from the market forecasts of a  102.6 reading. The current assessment index fell lower than the analyst’s expectations, dropping to 111.2 in August from 111.5 in the previous month and slightly better than the expected reading of 110.8.

The disappointing data came just a week after monthly orders for manufacturing goods fell at their fastest rate since April 2009 with top manufacturing firms like Thyssenkrupp and Opel have cutting working hours due to falling export demand.

Japan

Asian stocks fell after the Japanese government lowered its assessment of its own economy, – the first time this has happened since October 2011, slashing its view on personal consumption, home-building, exports, imports and industrial production. The Japanese Cabinet Office that a cooling global economy may produce less demand from Japan’s key export sector, with a rising Yen making exports more expensive.

Market Movement

The disappointing news from Japan – the world’s third biggest economy sent the regional benchmark index heading for a three week low with Asian trading overnight seeing Hong Kong’s Hang Seng Index fall 0.17%, Australia’s S&P/ASX200 drop 0.03%, whilst Japan’s Nikkei 225 Index dropped 0.87% The Euro was down against most major currencies following on from the soft German confidence data, falling 0.12% against the USD and 0.06% against the GBP.

Today’s Outlook

As investors await the speech made by Fed Reserve Chairman Ben Bernanke later in the week, the focus stays on the USD as the U.S. releases a report on consumer confidence today – a good indicator of economic health and then industry data on house price inflation is released, making it  day for healthy movement in the USD.

 

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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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Monday Morning Binary Business Blast

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Binary Options News : August 27, 2012

binary options news cartoon of USD and EUR talking greek bailout

Equities

Asian markets were mixed on Monday with the Hang Seng index in Hong Kong down 0.5% to 19,785. China is down to lowest levels since March of 2009 on reports over the weekend of the magnitude of the fall in corporate profits. Shanghai Composite on the back of this is down 1.4% to 2062. The Nikkei was up 0.2% to 9085, the KOSPI also fell 0.1% to 1917, and the ASX 200 fell 0.1% to 4343.

European markets on Friday finished with the Dax up 0.3% to 6971, Eurostoxx 50 up 0.2% to 2434 and the FTSE was unchanged at 5776. European gains were on speculation that the ECB may look to cap peripheral European yields in the bond purchase program, some comments caution this as the ECB may not be open to unlimited bond purchases.
US equities on Friday finished on a positive note with the DJIA +0.8% to 13158, the S&P500 +0.7% to 1411 as markets seem to turnaround in the session as the news started to gain on the ECB bond purchase prospects.

Treasuries and Commodities

Treasuries are trading up 0.1% in premarket session in what some expect to be cautious trading ahead of the 3 Day Jackson Hole Symposium which starts on Wednesday – yields on Friday finished the week at 1.68%.  Gold moved higher in the Asian session up 0.13% to 1675.10 as speculation mounts over QE from the Fed.  Brent Crude Oil was up 0.9% to 114.62 in early hours of trading.

Currencies

The Australian Dollar continues to be under pressure in the local session it was down 0.2% to 1.0381. Dollar index is trading up 0.1% in the afterhour’s session to 81.69. The Euro is down 0.1% to 1.2499 in quiet Asian trading.  The Pound is up 0.1% to 1.5813. Yen is up 0.1% to 78.718 in what has been very tight Asian session.

Economic Outlook

It still all about the chance of more stimulus from the Fed and the possibility of China. Markets are expected to trade cautiously ahead of the Jackson Hole Symposium which kicks off on Wednesday. Markets will be keen to hear any clue this week as to likelihood of more central bank intervention. Combining this with the chance ECB may cap peripheral European yields.

 

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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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Weekend Financial Market Analysis

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Binary Options News : August 26, 2012

binary options news cartoon neil armstrong product placement on the moon

Weekend Financial Market Analysis

Equities

Asian markets closed weaker on Friday with the Hang Seng index in Hong Kong falling 1.25% to 19,880 fuelled largely by China which was down to lowest levels since March of 2009 on concerns over corporate profits the Shanghai Composite was down 1% to 2092. The Nikkei fell 1.2% to 9070, the KOSPI also fell 1.2% to 1919, and the ASX 200 fell 0.8% to 4349.

European markets ended the session on a positive note with the Dax up 0.3% to 6971, Eurostoxx 50  up 0.2% to 2434 and the FTSE was unchanged at 5776. European gains were on speculation that the ECB may look to cap peripheral European yields in the bond purchase program, some comments caution this as the ECB may not be open to unlimited bond purchases.

US equities also finished Friday a positive note despite the negative week the DJIA +0.8% to 13158, the S&P500 +0.7% to 1411 as markets seem to turnaround approx. 1 hour into the session as the news started to gain on the ECB bond purchase prospects.

shanghai composite index graphShanghai Composite Index Lowest level since March 2009

Treasuries and Commodities

Most of the focus came late in the session when reports broke that the ECB is planning to cap peripheral bond yields by promising unlimited purchases of debt on secondary markets. Combining this ECB bond buying hopes with the likelihood that the Fed will also look to stimulate the US further gave US treasuries a bid for most of the week and saw yields bottom out on Thursday at 1.67% on the US 10yrs but Friday trading looked to be some book squaring and yields finished the week at 1.68%.  Gold moved higher for the eight day to close up 0.04% at 1673.40 but the move on Friday seemed to have bulls battling the bears and the it closed on a doji it will be interesting to see if buying comes back in this coming week. Natgas was under pressure on Friday and was down 4.7% at 2.703 close

us ten year t-notes yield chart - august 26 2012US 10 Year T-Notes Yield

Currencies

The Australian Dollar has been under pressure the last four sessions and Friday was no exception where it was down 0.4% to 1.0396. Dollar index was largely under pressure for most of the week but Friday look to be some shorts covering and it popped 0.3% to 81.60.

The Euro looked to take a rest on Friday and was down 0.4% to 1.2512 after rallying the first 4 session in the week.  The Pound also was also down 0.4% at 1.5800 against the US Dollar. Yen bounced 0.2% to 78.65 having been sold hard on Wednesday.

USD Index graph for the binary options news of 2012 august 26US Dollar Index

Economic Outlook

Stimulus still is the word with the talk on US FOMC likely to pull the trigger on QE and talk also on China. Combining this with the chance ECB may cap peripheral European yields helped some risk assets. China concerns are mounting though. Monday looks set to release the German IFO Business Climate, US FOMC Member Pianalto will speak.

 

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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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