Binary Options News : August 12, 2012
The close of the trading week saw US stocks increase and the US Dollar down as weaker-than-expected Chinese trade data was released fueling market views that the central banks across the world ill intervene to boost their respective economies.
In Europe, the European Central Bank this week cut its forecast for economic growth in 2012 to 0.6%, down from its previous forecast of1%. The ECB also forecast a 0.3% contraction in growth for 2012, slightly worse than its previous forecast for a 0.2% contraction. European Central Bank President Mario Draghi has said monetary policy officials will do whatever it takes to bolster the economy with much investor focus on failing Spain and ailing Italy.
Stocks rising in the US meant that there was a 5th consecutive week of gains for both the Dow Jones and the S&P 500. At the close of U.S. trading, the Dow Jones Industrial Average finished 0.32% higher; the S&P 500 index gained 0.22% whilst the Nasdaq Composite index closed up 0.07%. Federal Reserve officials have said they cannot rule out rolling out a third round of asset purchases from banks. The quantitative easing measures tend to weaken safe-haven currencies like the dollar and send stocks rising as interest rates are pushed as low as possible to make stocks an attractive investment.
China reported during the week that its trade surplus narrowed unexpectedly in July, dropping to $25.1 billion from a $31.7 billion surplus after economists had been expecting a $35.1 billion surplus slowing demand for Chinese exports scared markets worldwide as fears the global economy may be facing tougher times than first thought. The Chinese have given themselves room to implement monetary policies as weak economic indicators indicate a tepid recovery in the world’s second largest economy.
The trading week starts with a quiet day on the economic calendar. Investor thoughts on when not if monetary policies will be implemented should continue to drive market sentiment providing volatility and profit opportunities. However, keen binary traders will keep an eye out for Japanese GDP figures released overnight for strong market movement.
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