Binary Options News : November 14, 2013
Asian Stocks Higher on Japanese GDP
Asian stocks were higher in overnight trading, led by a rising Nikkei 225 after the Yen fell for the 4th in 5 days against the USD and Japanese GDP rose 0.5% in the third quarter. Also helping Asian stocks rise the highest in a month was incoming Federal Reserve Chairwoman Janet Yellen signalling that the stimulus measures in the US will stay in place until there is further improvement in the US economy.
In a statement released late last night , current Fed Vice Chairperson Yellen stated the employment market and the US economy are “performing far short of their potential” with “more work to do” on the recovery. This came after a week of positive better than expected data from the US led many to investors to believe that the Fed will begin tapering of its $85 billion a month asset purchasing scheme as early as December and not in March as being speculated on after outgoing chairman Ben Bernanke hinted towards in his last speech in October.
In Japan – the world’s third largest economy – GDP increased 0.5% in Q3, surpassing the expected 0.4% increase. However, annually, the rate of 1.9% was a noticeable slowdown from the 4.3% increase recorded in the January to March quarter and the 3.8% increase recorded in April to June period.
Boosted by the falling Yen, the Nikkei 225 of Japan soared 2.51%. Hong Kong’s Hang Seng Index increased 0.82% and the Chinese Shanghai Composite rose 0.24%.after falls yesterday at the conclusion of the Chinese Communist party meeting. Australia’s S&P/ASX 200’s climbed 0.81%, pulling back a little from gains of over 1% made in early Asian trading.
The US Dollar was mainly higher in Asian trading as the Yen weakened further against the greenback – down 0.41% on the back of the Japanese GDP figures. The AUD/USD was down 0.08% after the Melbourne Institute inflation expectation survey showed inflation up 1.9% in November, lower than the Reserve Bank of Australia’s target range of 2% to 3%. The GBP/USD was down 0.12% after making gains on a better than expected inflation report from the UK and the EUR/USD was down 0.10% on dovish comments from the ECB.
The dovish remarks made by Janet Yellen late last night sparked a rally in the precious metals market with Gold rising 1.40% and Silver increasing 1.85%. Natural Gas fell 0.48% on the back of investor profit taking and supply concerns, having hit a 2 week high in yesterday’s US trading. Crude Oil rose a modest 0.03% ahead of supply data released later today.
A packed economic calendar in both Europe and North America should ensure volumes are up and volatility throughout the day. UK retail sales data and US jobless figures should both be watched very closely as both are key economic indicators and more often than not, market movers.
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