Binary Options News : October 16, 2012

US Retail Sales Boost Stocks

Global Stocks gained in overnight Asian trading after the US released better than expected retail sales figures providing a boost to global exporters. The US Commerce Department reported that retail sales increased by a seasonally adjusted 1.1% for September, surpassing market expectations for a 0.8% rise. Retail sales for August were revised up to a 1.2% increase from the previously reported 0.9% increase. Core retail sales, which do not include automobile sales, increased by 1.1%, healthily beating market calls for a rise of 0.6%.

The positive data showed some strength in the US economy – the world’s largest – and lifted spirits amongst investors who moved out of the liquid safe haven of the USD to take positions in stocks. Also encouraging investors to move into stocks was expectations that the Reserve Bank of Australia may loosen its monetary policy soon to boost growth.

Investors appeared to shrug off a report by the New York Federal Reserve’s index of manufacturing conditions which showed that manufacturing activity in New York state contracted for the third consecutive month; improving to -6.2 in October from -10.4 in September, but missing analysts’ predictions for a -4.5 reading.

Stocks

Asian stocks gained on the US retail sales figures with the regional benchmark index heading for its biggest gain in two weeks. Hong Kong’s Hang Seng Index was up 0.22%, South Korea’s Kospi Index added 0.91%, and Australia’s S&P/ASX200 was up 0.18%, whilst Japan’s Nikkei 225 Index was up 1.43%.

Currencies

The USD was down against most major currencies as investors moved out of yesterday’s greenback positions. The US Dollar was most notably down 0.20% against the Euro and down 0.31% against the JPY.

Today’s Outlook

In what promises to be another high volume day of trading with plenty of volatility in the markets, the U.S. is to release consumer price inflation and industrial production data as well as treasury long-term purchases and the capacity utilization rate. Worth also keeping an eye on the release of the Reserve Bank of Australia minutes from its most recent policy meeting. The minutes contain important insights from the central bank’s perspective, into current and future economic conditions and are indicators of future monetary policy. European stocks and indices indicate a higher opening when European markets open.

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