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Asian Stocks Lower on Bernanke Testimony, Chinese Data

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Binary Options News : May 23, 2013

binary options news caricature u.s. fed reserve chairman ben bernanke belgian waffle square pie chart from may 23 2013

Asian Stocks Lower on Bernanke Testimony, Chinese Data.

Asian stocks found themselves under strong pressure in overnight trading as Fed Chairman Ben Bernanke confirmed yesterday that the central bank of the world’s largest economy could reduce its rate of asset purchases “in the next few meetings.”

Initially stocks made gains in Asia, after the USD enjoyed a roller coaster ride pre and post Bernanke speech, but the surprisingly weak flash reading for May of China’s Purchasing Managers Index, sent stocks tumbling whilst the USD firmed up. China’s Purchasing Managers’ Index for May dropped to 49.6. with the new orders index falling to 49.5, it’s worst reading since September last year. The disappointing May flash reading is the first time since October 2012 that China has fallen below the 50 level, which indicates an economy in contraction. Following on from the release of soft Chinese economic data points last month, many analysts are showing their concern for the world’s second largest economy and have questions the Chinese 2013 GDP growth forecasts.

Stocks

The weak data from China, hit Asian stocks hard with Japan’s Nikkei 225 initially making gains before plummeting to 5.51% down. Australia saw its S&P/ASX 200 index fall 1.92% on the news, as China is Australia’s largest trading partner. this was also the case of New Zealand’s NZSE 50 which was also fell on the Chinese data, as China is also New Zealand’s largest trading partner. Hong Kong’s Hang Seng dropped 1.96% whilst the Chinese Shanghai Composite plummeted 1.32%.

Currencies

The USD found itself as a safe haven asset for investors after US Federal Reserve chairman Ben Bernanke told Congress that it is too early to finish the central bank’s monetary stimulus program valued at 85 billion a month or indeed raise interest rates which have been between the record lows of 0 and 0.25% since December 2008. The EUR/USD was down 0.14% whilst the USD fell 1.09% against the JPY. There were also strong gains for the greenback against its commodity linked cousins – the Aussie – 0.86% higher and the CAD – 0.16% higher, whilst after disappointing data released from the UK yesterday, the GBP continued to slide, down 0.07% against the USD.

Commodities

Bernanke’s comments yesterday saw Crude Oil and Gold both fall, however, bottom feeders have been snapping up nicely priced positions in the precious metal overnight and Gold has gained 0.45% whilst Crude Oil was down 1.15%. Chinese data helped send Copper down 1.96%, but Natural Gas increased 0.57% over supply issues and cold weather persisting in parts of the US.

Today’s Outlook

European markets will not get much of a chance to digest to the Bernanke comments and Chinese data as a raft of key PMI data is released throughout Europe. increases are expected which should boost the Euro. Later in the day attention will turn to the speeches made by FOMC member Bullard and ECB President Draghi, whilst Jobless numbers in the US should be closely followed, making today another strong day of trading ahead.

 

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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

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Asian Stocks At 5 Year High

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Binary Options News : May 22, 2013

marissa mayer cartoon from optionsclick binary options news of 5.22.2013Asian Stocks At 5 Year High

Asian Stocks headed for their highest closing since before the financial crash of 2008, as the Bank of Japan confirmed that it will expand the supply of money in the Japanese economy – the world’s third largest – by 60 to 70 trillion Yen (JPY) a year, as per the pledge made in April. Japan’s Finance Ministry announced that the country’s trade deficit widened to a much larger than expected figure of 879.9 billion Yen for April. Whilst exports increased 3.8% to 5.78 trillion Yen, imports also increased, rising 9.4% to 6.66 trillion Yen. The April deficit now makes it the tenth consecutive monthly trade deficit as the weaker JPY increased the cost of imports more than it boosted exports.

As many investors await the comments by Fed Reserve Chairman Ben Bernanke later today, it was the BoJ driving markets forward in an otherwise low volume start to the Asian trading session with little movement seen in the currency markets. Shares yesterday, closed at an all time high in the US as Federal Reserve officials appeared to encourage investors to believe that the Fed will continue to support the world’s largest economy with its bond purchasing program, something many had feared the Fed would reign in.

Stocks

Yesterday saw The Dow Jones increase 0.34% to a record close, The S&P 500 index rose 0.17% to 1,669.16, also to a record close whilst the Nasdaq increased 0.16% to 3,502.12 , its highest finish since October 2000. Overnight, Japan’s Nikkei 225 gained 1.79%, Hong Kong’s Hang Seng was 0.01% higher whilst the Shanghai Composite was 0.02% higher.

Currencies

The US Dollar was mixed to lower ahead of the Bernanke testimony later today – 0.07% lower against the EUR, but 0.07% higher against the JPY. The only real significant movement was seen in the AUD/USD – down 0.28% as shares in Australian mining companies and continued declines in the commodity markets hurt the Aussie.

Commodities

The mixed fortunes in the commodity markets continued with Crude Oil falling during the Asian trading session following the release of weekly inventory data from the American Petroleum Institute. Gold was 0.01% lower whilst Silver gained 0.09% amid investor uncertainty leading up to the latest Bernanke testimony.

Today’s Outlook

Key retail data from the UK will be released in the morning and will be closely followed. The GBP has been the worst performing currency of 2013 and further disappointing figures from the UK will continue to pressure the GBP. German 10 year debt auctions are followed by Canadian retail figures and the all important Ben Bernanke testimony in the US later in the day, making today a potentially strong day of trading ahead.

 

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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

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Yen Lower and Gold Rebounds as Bank Of Japan Meets

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Binary Options News : May 21, 2013

japanese currency comic from may 21, 2013Yen Lower and Gold Rebounds as Bank Of Japan Meets

The Japanese Yen was lower in all of its 16 major currencies pairings as the Bank of Japan began a 2 day policy meeting. Asian stocks retreated from their 5 year high in a low volume trading session as many investors wait on the sidelines until the Fed Reserve statement tomorrow.

The Japanese Economy Minister Akira Amari said overnight that the strong yen is in the process of being corrected and that he wants the exchange rate to settle at a level more in-tune with Japan’s economic fundamentals. The Bank of Japan has implemented large scale monetary easing measures aimed at steering Japan from deflationary decline whilst boosting growth. This has caused the JPY to plunge to new lows against the USD not seen since the financial crash of 2008.

Stocks

Asian stocks were generally mixed in overnight trading with Japan’s Nikkei 225 posting a 0.07% increase as the BoJ meets today. Chinese trade conditions came under the spotlight as ministers in the EU accused China – the world’s second largest economy – of having a ‘free ride’ in trading. Chinese stocks were mixed on the whole after it agreed with India to further cooperation regarding their shared border. A US and China summit has also been scheduled for next month in the US. The Chinese Shanghai Composite gained 0.03% whilst Hong Kong’s Hang Seng Index dropped 0.26%.

Currencies

The USD enjoyed mixed fortunes in the currency markets as many investors await the outcome of various central bank meetings. The EUR/USD was up 0.07% whilst the USD/JPY gained 0.24%, as the Yen fell against all its major currency pairs on Yen correction talk. The Aussie gained 0.22% against the USD on intervention talk by the RBA and the Canadian Dollar fell 0.07% against its American cousin.

Commodities

The central bank intervention talk and investors snapping up nicely priced positions, helped Gold and Silver post a rebound in Asian markets. Following on from heavy falls yesterday, Gold gained 0.86% and Silver rose 0.92%. Crude Oil firmed on a strengthened USD and was up 0.05% whilst warmer temperatures being forecast saw Natural Gas decline 0.29%.

Today’s Outlook

A raft of key data from the UK dominates this morning’s economic calendar with better than expected U.K. economic data continuing to support the GBP which has traded higher against the EUR and USD of late. This afternoon, keen eyed investors will follow the words of FOMC Membar Bullard , SNB Chairman Jordan and BOC Governor Carney all very carefully, looking for signs of monetary policy action.

 

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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

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Asian Stocks Head Towards 5 Year High

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Binary Options News : May 20, 2013

binary options news caricature bullish asian stockAsian Stocks Head Towards 5 Year High

The trading week kicked off in Asia with stocks in the region heading towards a 5 year high as the risk on sentiment inspired by better than expected consumer spending data from the US on Friday saw investors move into stocks and away from the precious metals markets.

Last night saw Japan’s Economy Minister Akira Amari announce that further declines in the JPY may begin having a negative effect on its citizens and the government’s ability to handle such declines. However, led by strong gains in its utilities companies, the Japanese stocks have become the best performing stocks in the world, passing the 15000 mark and hitting levels not seen since the financial crisis of 2008.

Stocks

Japan’s Nikkei 225 surged 1.38% even though Economy Minister Akira Amari voiced his concerns over a falling Yen. Japan’s Topix index rose 1.4%, up 48% for the year and now the best performing index of 2013. the weakened South Korean Won, meant there was a rise of 0.20% for the South Korean Kospi index, this despite tensions heightening with North Korea testing missiles over the weekend. The Chinese Shanghai Composite hit a 7 month high last week, making it the third consecutive week of gains, and continued to gain in overnight trading as data released showed new home prices increased in 68 out of 70 Chinese cities for April.

Currencies

In an otherwise low volume trading session in the currency markets, the USD was mixed to lower even though Gold and Silver – both traded in US Dollars – plummeted.

Speculation continued from Friday that the US will end its bond buying program valued at $85 billion a month. The USD/JPY was down 0.45%, whilst the AUD/USD gained 0.33% after Goldman Sachs predicted at the end of last week that the commodity linked Aussie will decline further against the greenback.

Commodities

The bearish sentiment in the commodity markets continued as strong data points from the US weighed on gold and Silver from last week whilst sending US stocks to record highs.

Gold was down 1.64%, trading at 1342.15, whilst Silver plummeted 4.86% as it was revealed that George Soros, the billionaire financier, reduced his exposure to the precious metals. Natural Gas rose again, up 1.55% as cold weather continues in the US and parts of Europe. Crude Oil was down 0.26%, as general bearish sentiment in the commodity markets continue.

Today’s Outlook

National holidays in Canada, Norway and Switzerland should contribute to a lower volume trading session in both Europe and the US later today. The UK is set to release private sector data on house price inflation with positive figures forecast which should boost the GBP against the USD. Elsewhere, it is expected the bearish sentiment in commodities are expected to continue as investors move into equities.

 

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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

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Stocks and USD Close Week On A High

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Binary Options News : May 19, 2013

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Stocks and USD Close Week On A High

The trading week ended on Friday with strong upturns for global stocks and the USD as consumer sentiment came in better than expected and inflation in both the US and the Eurzone fell to its lowest levels in years.

In the US – whose economy – the largest in the world – is 70% consumer driven – it was reported that the Thomson Reuters/University of Michigan’s preliminary consumer sentiment index increased in May to 83.7 from the 76.4 recorded in April. This easily surpassed analyst expectations for an increase to 78.0 and helped send the US stock markets to a fourth consecutive weekly increase, reversing earlier losses that stemmed from comments made by Federal Reserve Bank of San Francisco President John Williams, who signaled that the that monetary authorities could start to unwind the stimulus programs introduced over the last 12 months by as early as this summer.

Currently, the Federal Reserve has a quantitative easing program in place buying $85 million of assets a month which is aimed at weakening the USD and making its exports cheaper, whilst flooding the market with liquidity. As a result Stocks rise and the US stock markets have risen to levels not seen since before the financial crash.

Stocks

The close of US trading on Friday saw US stocks join Euro stocks and finish higher. The Dow Jones Industrial Average closed 0.80% higher, the Nasdaq Composite index increased 0.97%, whilst the S&P 500 index ended Friday 0.95% higher. In Europe, France’s CAC 40 closed 0.56% higher, Germany’s DAX 30 finished 0.34% higher and the UK’s FTSE 100 finished 0.53% up.

Currencies

The US Dollar made strong gains on the Fed comments and the sentiment data. The EUR/USD hit a fresh 6 week low, down 0.37% whilst there were also heavy gains for the USD against the GBP – 0.65%, JPY – 0.90 to a 4 and a half year high, AUD – 0.73% and the CAD – up 0.83% to a 2 and a half month high.

Commodities

The star of the commodity markets was Natural gas which rose 3.23% as a cold weather snap hit both Europe and the US. It was a different story however in the precious metals market as Gold and Silver both fell on the consumer sentiment and hawkish Fed Reserve comments. Gold tends to trade inversely to the USD and a strengthened Greenback sent Gold plummeting 2.105 and Silver down 2.07%. Crude Oil gained on the consumer data, ending Friday 0.78% higher at 95.91 a barrel.

 

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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

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