Category Archives: Stocks

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 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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Asian Stocks Down Despite Japanese GDP

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Binary Options News : May 16, 2013

Asian Stocks Down Despite Japanese GDP

Asian stocks were lower in overnight trading as a decline in Japanese banks following on from lower earnings forecasts offset a report released showing that the Japanese economy expanded faster than had been expected by analysts for the first quarter.

Gross domestic product in the world’s third largest economy – Japan – grew at a rate of 0.9% for the three months of this year compared to the previous quarter – Q4 of 2012, showing a yearly rate of 3.5%. The Japanese economy grew at a rate of 1% at the end of 2012 as the economy started to venture out of the recession – part caused by the tsunami and earthquakes of 2011. The news appeared to vindicate Prime Minister Shinzo Abe’s aggressive policy stimulus measures with the growth rate of 3.5% now meaning that Japan is outpacing the US, which expanded 2.5% in Q1, and the eurozone, which contracted 0.9% for the same period.

Stocks

Most Asian stocks were lower with Japan’s Nikkei 225 down 1.19%, falling below the 15000 mark, but sill an amazing 45% higher since the start of the year. Australia’s S&P/ASX 200 Index dropped 0.63% as shares in mining and materials companies fell on weakened commodity prices. South Korea’s Kospi increased nearly 1% as the USD/JPY declined and there was also gains for Hong Kong’s Hang Seng and China’s Shanghai Composite as the markets continue to show signs of undervaluing shares in these indices.

Currencies

In another subdued trading session in the currency markets in Asia, the Euro continued its declines as disappointing stats released in the eurozone yesterday indicated recession. The EUR/USD was down 0.11% as the greenback made tentative gains against its currency pairings. The GBP was stable after comments from the Bank Of England Governor yesterday, whilst the Aussie was down 0.21% against the US Dollar as gold prices fell again.

Commodities

Gold continued to slide after hitting a 4 week low on the soft US and eurozone data and was down 0.27% in overnight trading. Silver also declined – down 0.23%. Natural Gas reversed a portion of its recent declines – rising 0.45% as cold weather hits parts of Europe and the US. Crude Oil was down 0.45% after rising yesterday on supply data.

Today’s Outlook

CPI figures in the eurozone should prove bearish for the EUR, whilst a raft of data released in the US including key CPI data, as well as FOMC member Fisher speaking, should all be closely followed to drive markets.

 

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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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Risk On Sentiment Continues As Stocks Rise Again

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Binary Options News : May 8, 2013

May 8 2013 editorial cartoon of the DJIA bull run for the binary options news

Risk On Sentiment Continues As Stocks Rise Again

Stocks and Indices around the globe continued to rise as favourable data from the US, Germany and China saw the Dow Jones index in the US close above the 15,000 mark for the first time. European stocks yesterday and now Asian stocks overnight all rose as positive data and central bank talk continued to bolster a risk-on sentiment that has seen global indices surpass levels last seen pre-2008 financial crash.

China – the world’s second largest economy accelerated its trade growth for April, with exports surging 14.7% compared with the previous year and up 10% in March. This beat analyst expectations and means that China now has a $18.2 billion trade surplus, reversing an unexpected March deficit of $884 million, even though imports also increased 16.8% from 14.1%.

Stocks

The Chinese trade balance data helped boost the risk on sentiment that first saw Japan’s Nikkei break the 14000 mark for the first time since 2008 and kept on gaining last night, up 0.57%. This was followed by Germany’s DAX reaching a new record high before the US trading session saw the Dow Jones index close above the 15,000 mark for the first time.

Overnight in Asia, New Zealand’s NZSE 50 gained 0.23% as talk of the Reserve Bank of New Zealand cutting its 2.5% interest rate gathered pace. It was a similar story in Australia, gaining 0.68% as talk heightened of a rate cut from 2.75% before July. Hong Kong’s Hang Seng rose by 0.54% whilst the Shanghai Composite was up 0.48% on Chinese trade balance data.

Currencies

The risk on sentiment saw movement into the Euro, with gains of 0.28% against the USD and up 0.30% against the GBP. The USD has dipped since German factory orders boosted the EUR in yesterday’s European trading session. It continued its losses in the Asian session, down 0.18% against the JPY, and down 0.13% against the Aussie, boosted by the Chinese data.

Commodities

Investors took advantage of the weakened USD and snapped up nicely prices positions in the commodity markets following on from recent falls. Gold gained 0.45% and Silver was up 0.51%. Crude Oil reversed earlier supply data release losses and gained 0.35% in the Asian session. Natural Gas continued to fall – down 0.61% as a warmer weather trend settles in the US.

Today’s Outlook

German Industrial Production data will be driving early European markets with European indices again expected to show a higher opening. Comments from FOMC Member Stein should be followed whilst key AUD, NZD and China data released overnight makes late trading a potentially volatile trading session.

 

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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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