Binary Options News : August 13, 2012
Asian stocks overnight were mixed as investors reacted to weak Japanese data in different ways. The bears sold on soft Japanese gross domestic product data and the bulls bought on sentiment weak data will prompt central banks to stimulate their respective economies. This meant that Asian stocks swung between gains and losses as slowing economic growth in Japan added to signs of a deepening global slowdown, but added to the optimism that the U.S. Federal Reserve will add new stimulus measures.
Japan reported its GDP increased less than expected in Q2, expanding 0.3% according to preliminary figures, lower than the market forecasts for 0.6% growth and well below the Q1 rate of 1.3%. Compared with the same period last year, the economy expanded by 1.4%. Household spending and private consumption both increased by just 0.1% during Q2, from the previous three months. This was down from 1.2% expansion seen in the previous quarter.
Last week, the Bank of Japan left its key interest rate unchanged at between zero to 0.1% but the slowdown in demand, both external and domestic, was likely to put pressure on Japanese policymakers to introduce fresh measures to spur growth. Asian stocks were mixed on the news with Hong Kong’s Hang Seng Index down 0.12%, Australia’s S&P/ASX200 gaining 0.45%, whilst Japan’s Nikkei 225 Index was lower 0.04%.
Oil was one of the biggest movers overnight as tensions between Israel and Iran were ramped up recently. Iran which is the world’s 4th largest oil producer controls the Strait of Hormuz which 33% of all the worlds oil supply gets transported through. The increased tensions saw investors buying on possible supply concerns and ignoring the normally bearish Japanese growth data. Crude Oil was up 0.56%, trading at 93.40 a barrel.
In a relatively quiet day for the release of economic data, binary traders should look to short term debt auctions in Europe in the morning for some movement in the EUR.
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