Binary Options News : December 18, 2013
Asian Stocks Rise As Investors Await Fed Decision
Asia saw stocks rise for a 2nd consecutive day, lead a jump in Japanese shares after Japan’s trade balance fell more than expected, and as investors await the conclusion today of the Fed Res meeting.
In Japan, the world’s third largest economy, the Ministry of Finance reported that Japan’s trade balance dropped to a seasonally adjusted figure of -1.35T, from the-1.09T recorded in the previous month. This came after analysts had been expecting Japan’s the trade balance to decline to -1.19T in November.
The New Zealand Current Account Balance declined more than expected, with the Statistics New Zealand reporting that New Zealand’s current account balance dropped to a seasonally adjusted figure of -4.78B in the last quarter, down, from -1.25B in the previous quarter.
Yesterday saw the U.S. current account deficit narrow more than expected in Q3, narrowing to a seasonally adjusted $94.8 billion in the last quarter, from a revised deficit of $96.6 billion. Analysts had been expecting deficit to widen to $100.0 billion in Q3.
Led by a surge in Japanese stocks which saw the Nikkei 225 increase 2.02%, Asian stocks headed for their 2nd positive close after snapping a 4 day losing streak yesterday. Australia’s S&P/ASX 200 lost 0.31% after a dovish speech by the RBA Governor Stevens in the Australian parliament overnight and Hong Kong’s Hang Seng Index increased 0.61% whilst the Chinese Shanghai Composite dropped 0.13% as regional tensions mount.
In busy and mixed currency markets, the AUD/USD gained 0.29% after the remarks by RBA Governor which indicated there would be further rate cuts from the record low of 2.5%. The GBP/USD gained 0.20% after falls yesterday on the back of lacklustre UK inflation data. The EUR/USD gained 0.08%, remaining steady ahead of the key Fed meeting conclusion later today. The USD/JPY was up 0.28% as the Yen reversed gains made earlier in the week. The USD/CAD was also steady at 0.05% higher.
Gold and Silver both rose as investors took bets on a possible Fed tapering decision later today.. Gold gained 0.20% and Silver increased 0.34%. Natural Gas reversed yesterday’s losses, rising 0.22% as investors looked past the brief warming trend in the weather and bought on dips. Crude Oil rose 0.21% as supply data and Fed speculation drive drove trading in the commodity.
Fed talk and speculation should dominate much of today’s attention and trading, but there remains a busy economic calendar with key data being released in Europe, the UK and the US throughout the day. The BoE publishes the minutes of its last meeting with employment data being released in the UK too. The Ifo Institute will release its report on German business climate, a leading indicator of economic health and the US will publish building permits and housing data, but all eyes should be on the outcome of the Fed Reserve meeting.
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