Binary Options News : August 7, 2012

Stocks continue upward trend

The upward movement in global stocks continued in Asian trading as speculation increased that central banks around the world will implement stimulus measures ahead of key central bank meetings.

Asia

Asian trading overnight saw stocks increase to a 3 month high with Hong Kong’s Hang Seng Index gaining 0.44%, Australia’s S&P/ASX200 rising 0.39%, whilst Japan’s Nikkei 225 Index was 0.74% higher. The Bank of Japan is currently holding a monetary policy meeting later today. The BoJ implemented measures earlier this year to stimulate its economy saw the yield on Japan’s 10 year debt rise for a second day ahead of the two-day policy meeting with the 10 year yield hitting 0.72 percent on 23rd July , the lowest level since June 2003.

Europe

Stocks climbed again yesterday in Europe with the FTSE finishing 0.37% higher, the DAX closing up 0.77% and the CAC ending the day 0.81% higher, as German Chancellor Angela Merkel gave support to the  bond buying plan announced last week by the ECB. Speculation heightened that the ECB will move to act to slash the borrowing costs for debt ridden Spain and Italy.

Oil

Oil traded close to its highest close in more than two weeks before a U.S. report showed crude inventories fell to a three month low. Oil –which had seen some support over last week’s U.S. jobs report was also suffering as Tropical Storm Ernesto gained strength in the Caribbean. Having finished yesterday at $92.20, its highest since July 19th, it is currently $91.94, down 0.29%.

Outlook

Today the focus will be on when Federal Reserve Chairman Ben Bernanke is due to speak at an event in Washington, D.C with his comments closely followed of hints of stimulus measures. However the binary options trader should look to the release of Italian and UK production figures and German manufacturing orders  for increased volatility in the EUR as downward trends are expected

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