Binary Options News : December 9, 2013
Asian Stocks Rise on Global Optimism
The trading week kicked off in Asia with a rise in Asian stocks as better than expected data from the world’s two largest economies – the US and China – fueled global economic optimism.
Following on from the US jobs report on Friday which saw the unemployment figure fall from 7.3% down to 7.0%, with more than 200,000 new jobs created in November, China announced it is loosening the controls in its financial sector and allowing more freedom in its interest rate movement. This was announced just after the National Bureau of Statistics of China reported that Chinese PPI increased to an annual rate of -1.4%, from -1.5% in the previous month, in line with analyst expectations.
The National Bureau of Statistics of China also reported that Chinese CPI surprisingly dropped to an annual rate of 3.0%, down from 3.2% in the previous month. Analysts had been expecting the Chinese CPI to stay at 3.2%.
The positive news from China and the US, overshadowed the GDP report from Japan – the world’s third largest economy as Japanese gross domestic product increased less than expected in the last quarter, rising to a seasonally adjusted 0.3%, from the 0.5% recorded in the previous quarter. This came after analysts had expected Japan’s GDP to increase by 0.4%.
The positive data releases fueled an optimistic global outlook with the risk on sentiment boosting Asian stocks. Continued prospects for more aggressive monetary easing by the Bank of Japan saw the Nikkei 225 close 2.29% higher, whilst Hong Kong’s hang Seng Index rose 0.27% and China’s Shanghai Composite Index rose 0.05% after the Chinese announcement of financial reforms. A poor jobs report in Australia saw the S&P ASX/200 fall 0.80%.
In mixed currency markets, the US Dollar was steady against its rivals, up 0.01% against the Euro ahead of a key German trade balance report. The USD/JPY was up 0.195 as BoJ Kuroda hinted at more Yen weakening policies ahead. The GBP/USD was up 0.06% whilst the greenback was 0.07% higher against the Swiss Franc and 0.21% higher against the Australian Dollar. The US Dollar was 0.22% higher against its Canadian cousin after recent gains in the CAD were cashed in on.
Natural Gas was the star mover in the commodity markets, rising 1.20% on cold weather forecasts and investors buying on dips after a bout of profit taking on Friday sent prices lower. Global economic optimism boosted Crude Oil – up 0.08% as the prospect of increased demand boosted prices. Precious metals swung from gains to losses with early session rises wiped out and reversed on profit taking with Gold falling 0.02% and Silver dropping 0.08%.
The German trade balance figures will be eagerly anticipated as Germany is the driving force in the Eurozone. The Euro group of finance ministers in the Eurozone is to hold talks in Brussels and the UK’s Bank of England Governor Mark Carney will speak at an event in New York with his comments expected to be closely watched.
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