Binary Options News : July 9, 2013
Chinese Data Sends Stocks and Gold Higher
Asian stocks and gold rallied from their largest slump in the regional benchmark for fortnight following the release of Chinese inflation data overnight and China’s central bank announcing it is tightening the rules on the interbank bond market trading by making all transactions to be actioned through the National Interbank Funding Center in an attempt to boost transparency.
China’s National Bureau of Statistics announced that annual consumer inflation in China increased to 2.7% for June, up from May’s 2.1% reading. China’s producer prices dropped 2.7% in June after recording a 2.9% fall in May. This came after analysts had been expecting a consumer inflation reading of 2.5% and factory prices to decline 2.7%. CPI dropped 0.2% on a monthly basis after economists had been expecting a flat zero reading.
The Chinese data helped push gold higher after the inflation accelerated more than expected in June, helping boost demand for the precious metal as an investment hedge, jumping the most for a week. Meanwhile, the Bank of Japan announced that M2 money supply in Japan increased by a seasonally adjusted 3.8% for June after recording a 3.5% increase in the previous month. after analysts had been expecting an increase of 3.4% in June.
The positive Chinese and Japanese data saw most Asian stocks gain with Hong Kong’s Hang Seng Index rising 0.62%, Japan’s Nikkei 225 rising 2.43% and Australia’s S & P 200 rising 1.69%. South Korea’s Kospi added 0.27%, whilst the Chinese Shanghai Composite gained 0.36%.
The USD was mixed in overnight trade as initial gains in the Asian session were reversed by news of a successful deal to award Greece the next bailout funds filtered through and boosted the Euro and the appetite for risk. The EUR/USD was up 0.12%, the GBP/USD was unchanged, but the USD/JPY was up 0.24% as the slide in the Japanese Yen continues. The AUD/USD was 0.03% higher, whilst the CAD/USD was down 0.06%.
The late sell off in the USD overnight helped the commodity markets make gains as Crude Oil continued to rise on Egyptian unrest – up 0.10%. Gold rose 1.835 and Silver gained 2.16% as investors took advantage of recent declines in the commodity markets prices to snap up nicely priced positions in the precious metals. Natural Gas pulled back from a 3 week high on profit taking and was down 0.19%.
Today’s focus is very much on the UK with key UK Manufacturing production and Trade balance both released at 08:30 GMT. It is expected that industrial production in the UK will post another gain in today’s news after the UK CIPS/PMI Manufacturing Index reached a surprise 25 month high in last week’s June report.
* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com