Binary Options News : December 1, 2013
Markets Mixed at Black Friday Close
Both Stock and Currency markets closed mixed on Friday as approximately 97 million people planned to shop online or in-store on Black Friday, with approx. 140 million planning to do so Friday through till Sunday, the National Retail Federation said. The estimated figure is down from the 147 million who shopped in the same period last year. Late profit taking in a shorter-than-usual US trading session saw many gains erased despite positive news from India and Japan.
India, which has seen its currency – the Rupee – fall 25% in value against the US Dollar between January and September of this year, announced its economy grew more than expected in the last quarter. The 10th largest economy in the world, grew at an annual rate of 4.8% in the second quarter, up from the 4.4% recorded in the previous quarter. Although the faster than expected expansion pleased markets, this was the 4th quarter in a row that the Indian economy, Asia’s 3rd largest, expanded at a rate under 5%. The Indian economy has been weighed down by a number of different factors, such as high inflation – 10.1% in October, a weak currency, high interest rates – currently 7.75% and a fall in foreign investment.
Meanwhile in Japan, the world’s third largest economy; consumer prices rose at their fastest rate in 5 years, suggesting Japanese monetary policy battling deflation appear to be working. Consumer prices, excluding food, increased 0.9% from the previous year with prices now risen for five consecutive months. Prices excluding food and fuel increased 0.3% for the month of October, from the previous year – the largest jump in 15 years as the Japanese Yen has weakened 24% against the US Dollar since the start of 2013, part of an aggressive monetary policy aimed at making Japanese exports cheaper.
Friday’s closing bell saw US Stocks fall as investors sold shares in the final half hour of a shortened trading session, wiping out the earlier gains made caused by a rally in online retailers amidst the Black Friday sales. The Dow Jones Industrial Average finish down 0.07%, the S&P 500 index close 0.08% lower, but the Nasdaq 100 index finish 0.50% higher. Previously in the day, European stock markets also closed mixed with France’s CAC 40 finish down 0.17%,Britain’s FTSE 100 fell 0.06%, whilst Germany’s DAX close up 0.19%.
It was mixed trading in the currency markets as well as the stock markets as the USD gained against the EUR – up 0.11%, gained against the JPY – up 0.15%, gained against the CHF – up 0.07% and posted a 0.31% gain against its Canadian cousin; the CAD. The USD/CAD almost hit a 4-month high after the release of Canadian GDP data which showed that Canada’s economy expanded faster than expected in September. The USD did post declines against the GBP – down 0.17% and the AUD – down 0.08% in a thin trading session with low trading levels. Despite poor data from the UK this week, the GBP remained supported after the BoE said that risks to financial stability seemed to be lower than expected due to the stronger outlook for expansion.
Black Friday sales and expansion in the Indian economy helped push up prices in the precious metals market. India is the 2nd largest consumer of Gold, which saw its price rise 1.04% to $1250.80 a troy ounce on Friday with Silver posting a 1.62% increase to 20.000 a troy ounce.. Crude Oil bounced off a near 5 month low to rise 0.52% to $92.78 a barrel, as global economic growth forecasts overshadowed the Iranian nuclear deal agreement. Meanwhile Natural Gas hit a 5 month high, rising 1.57% on Friday as cold weather in Europe and the US boosted demand levels.
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