Binary Options News : May 9, 2013
Asian stocks reversed some its gains made over the last few days as the US Dollar continued to slide in most of its pairs on the back of a strengthened Japanese Yen.
Last night it was the turn of South Korea to cut interest rates – following on from India, ECB and Australia, with the central bank lowering its benchmark rate from 2.5% down to 2.25%, making it the first rate cut there in 7 months. Japan’s recent aggressive monetary policies have made South Korean exports, which account for more than 50% of the South Korean economy, more difficult. Since November 2012, the Japanese Yen has fallen almost 20% against the USD, whilst the South Korean Won has gained nearly 9% against the USD and more than 20% against the JPY in the same period.
After reaching record highs in yesterday’s trading, Japan’s Nikkei 225 made gains before pulling back to be 0.59% down as South Korea lowered its borrowing costs, creating export competition for Japan. South Korea’s Kospi Index gained 1.18% as it became the fourth central bank to lower its interest rates in a week. The Shanghai Composite of China dropped 0.86% after its National Bureau of Statistics reported that the country’s consumer prices increased 2.4% for April whilst producer prices fell 2.6%.
Australia’s S&P/ASX 200 Index was 0.03% lower despite the Australian Statistics Bureau reporting that the Australian economy added 50,100 new jobs last month, nearly five times more than analysts had been expecting.
In more subdued trading in the currency markets, the USD again found itself under pressure with large declines against the Aussie – down 0.68% and the JPY – down 0.29%. Investors still appear to be waiting on the currency sidelines as central bank intervention talk heightens around the globe. Elsewhere, the EUR was up 0.03% against the USD, whilst the GBP/USD was up 0.04%.
Warm weather forecasts, possibly heralding the start of summer, continued to weigh heavily upon the price of Natural Gas – down 1.13% in Asian trading. US supply data kept Crude Oil down in price – 0.24% lower in Asian trading, whilst bottom feeders and profit takers ensured there were mixed fortunes in the precious metals markets with Gold down 0.19% and Silver gaining 0.46%.
This morning’s focus could well be on the UK and the GBP with industrial and manufacturing figures released in the UK. No change is expected in the UK interest rate decision made today, but the afternoon brings US jobless claims which will be closely followed.
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