Binary Options News : October 3, 2012
Asian stocks were lower in overnight trading as the Chinese service industry expanded at its weakest rate since March of last year and the Asian Development Bank reduced its growth forecast for 2012 and 2013 for the Asian region.
The HSBC China Manufacturing purchasing managers index came to 47.9 for September, marginally from 47.6 for August, whilst China’s official factory purchasing managers’ index reached 49.8 in September, up from 49.2 for August. Despite the gains, the official numbers failed to reach the 50 threshold which separates an expanding economy with a contracting economy.
The Asian Development Bank reduced its estimated growth forecast for Asia (excluding Japan) from 6.6% to 6.1%, the slowest pace since 2009, with inflation expected to be 4.2% instead of 4.4%. The ADB singled out the slowing growth in both China and India as the main reasons for the cut in estimates
The weak and disappointing data all released this week substantiated the negative outlook imposed by the ADB with manufacturing in China showing a contraction for the 2nd consecutive month, Japanese industrial companies becoming more pessimistic over future prospects and exports from South Korean falling. At time of writing, Australia’s S & P index was down 0.28%, whilst Japan’s Nikkei 225 was down 0.47%.
The US Dollar made gains against most major currencies in Asian trading, continuing the gains made from yesterday as traders looked for a safe haven awaiting news of a Spanish bailout. A Reuters report yesterday that suggested that Spain may request a bailout over the next days initially bolstered the euro but investor uncertainty kicked in and investors flocked to the safe haven liquidity of the greenback. The USD was up 0.22% against the EUR, up 0.23% against the Swissie, up 0.12% against the Japanese Yen and up 0.58% against the Aussie.
Expect a higher volume trading day today, creating plenty of profit opportunities for the Binary Trader as the U.S. will release industry data on non-farm employment change which is a key indicator of economic health and nearly always has a significant effect upon the markets. This is followed by a report by the Institute for Supply Management on non-manufacturing activity and then government data on crude oil stockpiles.
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