Binary Options News : December 2, 2013
Asian Stocks Mixed and USD Down As US Retail Set To Disappoint
Asian stocks were mixed to lower and the US Dollar tanked as the US headed towards their weakest holiday retail results since 2009.
Strong data from Asia helped push the greenback lower with the HSBC PMI report from China, the world’s 2nd largest economy, beating market forecasts. The HSBCChinese manufacturing PMI came in with a final reading of 50.8 for November surpassing the market forecast of 50.5, and higher than the flash estimate of 50.4,. It was however, lower than October’s final reading of 50.9, but still above the 50 mark which indicates an economy in expansion; below 50 and the economy is seen as contracting.
Data released yesterday showed that the manufacturing purchasing managers’ index in China remained steady at 51.4 in November, an 18-month high, beating market forecasts for a decline to 51.1.
Meanwhile in the US, the world’s largest economy, the holiday season from Black Friday to Cyber Monday is set to disappoint the markets with the least amount of shopping activity seen since 2009. Retailers in the US squeezed out t a 2.3 percent sales gain on Thanksgiving and Black Friday, which was in line with expectations, but makes it the the weakest holiday results for 4 years.
Overnight, Asian stocks were mixed to lower as Japan’s Nikkei 225 was 0.04% lower. Australia’s S&P/ ASX 200 was down 0.76% after gross operating profits from Australian companies increased more-than-expected in the last quarter and housing units approved in Australia fell -1.8% in October, which was less than the expected -5.0%. The Chinese Shanghai Composite fell 0.81%, rebounding from being down 1.64% in early trading, on the back of the HSBC PMI data which was down from October’s reading whilst the Hong Kong Hang Seng Index gained 0.41%.
The US Dollar was down in nearly all its major currency pairings as the retail sales over the holiday season disappointed markets. The US Dollar which tracks the USD against a basket of 6 weighted currencies was down 0.10%, after rallying from being 0.20% down early in the Asian session. The AUD/USD gained 0.55% after a spate of data releases from the world’s 12th largest economy, revealed the room for a rate cut from the record low 2.5% wasn’t that likely. The EUR/USD was up 0.09% after unemployment in the Eurozone fell and the GBP/USD was 0.20% higher. The USD/JPY was up 0.05% as the Yen weakening policies continued in Japan.
Profit taking helped push the prices in the precious metals market lower after recent gains at the back end of last week. Gold was down 0.37% and Silver was 0.98% lower in Asian trading. Crude Oil continued where it left off on Friday with gains, rising 0.60% as technical levels and global expansion helped push the price away from a near 5 month low. Natural gas was down 0.72% as profit takers continued to cash in after the commodity peaked at a 5 month high last week.
In a week dominated by Central bank rate decisions, there is plenty to move the markets in the economic calendar. Today, the Eurozone will publish revised data on its manufacturing PMI, with Spain and Italy releasing individual reports. Switzerland is to release the results of its SVME manufacturing PMI, whilst the UK will publish its manufacturing PMI. Over in the US, Federal Reserve Chairman Ben Bernanke is to speak in Washington and the US Institute of Supply Management will publish its manufacturing PMI. Expect lots of heat on the USD throughout the day.
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