Binary Options News : June 23, 2013
Markets Stable After Choppy Week
The closing bell on Friday marked the end of a volatile week with the final hour of trading being what’s called the ‘The Witching Session’ – the once quarterly expiry of stock futures, stock options, and index options which result in even heavier trading in the last hour of the trading session in the US. This provided an appropriate end to a week which saw the US appreciate 3.7% against the JPY, AUD and NZD, 1.85% against the GBP and 1.7% against the EUR with the CAD at its weakest level in 1.5 years and the AUD and NZD are at their weakest levels for over 2.5 years.
It was also a week that saw the largest two day decline in global equities for 21 months, with the S&P 500 in the US falling below the 1,600 mark extending its losses to beyond 5% since May. The Commodity markets took a battering too with Thursday seeing Gold fall 6.5% in one day alone as investors reacted to Wednesday’s clearest indications provided by Ben Bernanke, that the Federal Reserve is to start scaling back its stimulus programs, valued at $85 billion a month, in the near future, even as early as September.
The last week of high volatility and high volume trading provided a fertile trading ground for binary options traders who invest in the direction of the asset and not purchase the asset directly. This allows for traders to invest in costly assets such as Gold and Oil without having to spend thousands of dollars on a single asset and distort their investment portfolio.
Stocks & Indices
After a global sell off sparked by the Fed stimulus moves, US Stocks finished mixed to higher on Friday.The S&P 500 index closed 0.27% higher, the Dow Jones Industrial Average finished 0.28% higher, whilst the Nasdaq Composite index closed down 0.22. European indices, not benefiting from the witching session finished lower with France’s CAC 40 closing 1.11% lower, Germany’s DAX 30 finished 1.76% lower and the the FTSE 100 in the UK finished 0.70% lower.
In a week that saw the USD take safe haven status for investors, with large gains against just about all its major currency counterparts, the currency markets started to stabilize on Friday, with traders having digested Wednesday’s Fed comments. The EUR/USD closed 0.73% down, a 2 and a half week low, the USD/CAD hit a 19 month high on soft data emanating from Canada on Friday, closing 0.73% higher, whilst the USD/JPY closed 0.60% higher.
The strengthened USD was ignored by some investors moving back into the commodity markets, taking advantage of nicely priced positions after heavy falls this week. Gold closed 0.73% higher and Silver closed 1.07% higher as bargain hunters came out in forceon Friday afternoon. Crude Oil and Natural Gas both extended losses on the strengthened USD with Crude Oil falling 1.325 and Natural Gas ending a three day rally and closing 2.04% down.
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