Binary Options News : April 23, 2013
The overnight release of disappointing PMI in China – the world’s second largest economy – caused Asian shares to end a 2 day winning streak and head towards lower closes
The flash Chinese HSBC Purchasing Managers’ Index for April dropped to 50.5 from the 51.6 recorded in March after a February reading of 50.4. Despite the fall, readings over 50 indicate an economy in expansion whilst readings below 50 indicate an economy in contraction. The new export orders index in China dropped to 48.6 in April from the 50.5 recorded in March,highlighting that the global economic recovery is still tepid. The China’s PMI report comes just one week after it was announced that the Q1 GDP grew by 7.7%, after analysts had been expecting growth of around 8%, raising concerns over the growth in China
Yesterday in the US – the world’s largest economy – , the National Association of Realtors announced that existing home sales fell 0.6% to a seasonally adjusted annual rate of 4.92 million in March after analysts had been expecting an increase for March. Despite the disappointing fall, the number was still 10.3% higher on a yearly basis.
In a more subdued Asian session than we saw yesterday, Asian shares were lower on Chinese PMI data and the lingering affects of the US home sales data. Japan’s Nikkei 225 was 0.32% lower, but still up on the week after near 2% gains made yesterday. The PMI data helped send the Shanghai Composite Index of China down 2.1% as it headed for its largest single day decline since March 28th and Hong Kong’s Hang Seng Index, which fell 1.21%.
In a stable trading arena, the currency markets once again experienced low volume trading with the USD/JPY once again taking centre stage. The USD/JPY was down 0.51% as the markets viewed the Japanese Yen as a well priced asset and moved in after seeing the JPY consistently fall against the USD on the back of aggresive monetary policies implemented by the BoJ. The Aussie fell against the USD, as China is Australia’s largest trading partner. The release of the Chinese PMI sent the AUD down 0.39% against the USD. Elsewhere, the USD made gains of 0.2% against the EUR and 0.21% against the GBP.
Natural Gas continued to fall in Asian markets, down 0.28% as warmer weather forecasts and profit taking kept its price lower. Crude Oil started the Asian session higher as investors digested the US Home sales data, but on the release of the Chinese PMI – global growth concerns were raised and the price of Crude Oil was 0.77% lower. Profit taking and a strengthened USD meant Silver was down 1.10%, but Gold gained 0.18% on the soft US Home sales data and technical demand.
Today is expected to be a busier trading session when European Markets open. A raft of PMI data is released in Europe before the U.S. unveils official data on new home sales and preliminary data on manufacturing activity in a packed economic calendar
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