Binary Options News : September 10, 2012
Asian markets have opened the trading week and have traded mostly higher the real direction on the week only coming from the US and Europe as markets head into an important week where central bank intervention and stimulus will be tested, Hong Kong on Monday was up 0.23% to 19,848 Shanghai Composite up 0.3% to 2134. The Nikkei fell 0.03% at 8869, the KOSPI fell 0.25% to 1924, and the ASX 200 was up 0.2% to 4333.
As European markets open this week all eyes will be all about the German Constitutional Court ruling that is pending and whether markets believe what the ECB is doing can solve the European Crisis on Friday the DAX was up 0.7% to 7214, Eurostoxx 50 up 0.5% to 2538 and the FTSE was up 0.3% at 5794 on Friday’s close. European gains where a continuation of Thursday’s ECB announcement of outright monetary transactions (OMT).
US equities also managed to punch out more gains on Friday the DJIA +0.1% to 13307 having already taken out the 2008 levels the next key levels look to be the October 2007 record levels of 14198, the S&P500 +0.5% to 1437 this is the highest level on equities since May 2008 where the S&P500 cash was trading 1440.24 pre 2008 crisis levels. All market eyes will be on the Fed this week for Thursday’s outcome.
Treasuries and Commodities
As Treasury open the week on what some tip to be a critical week as markets await the Fed’s action for possible further QE. Treasuries closed on Friday at 1.661 on the US10 Year Treasury Notes. With European bond yields crashing on the news of the OMT from the ECB – Italian 10 years trading back down to the 5.03% from previously being around the 5.847% at the end of August and the Spanish 10 year yields are down from the August closing highs of 6.86% to 6.03% on Friday’s close. Gold moved higher on hopes of US QE it was up 2% at 1737.60 also copper has been rally that the measure from the US will stimulate the world’s largest economy New York Copper closed on Friday up 3.7% to $3.64 /lbs.
Dollar Index sank on the news of new initiatives from the ECB and prospects of another round of QE from the Fed which lead it to fall again 1.1% to 80.234. Eyes now turn to the Fed at its September 13 meeting. EUR/USD rallied 1.5% overnight to 1.2818 as the markets took a bid from pending US QE. The Pound also was down 0.2% at 1.5992. Yen bounced off Fridays lows to be up 0.1% to 78.265 in the Asian session. AUD/USD has traded down 0.4% in the Asian session to trade down to 1.0343.
Stimulus is still the word with the talk on US FOMC likely to pull the trigger on QE on September 13. Market concerns over the German Constitutional Court ruling that is pending this week. This week will be critical to see if market can continue to believe that the ECB action will be sufficient enough to solve or improve the current EU crisis. Monday: China (Tentative) Trade Balance, EUR Sentix Investor Confidence.
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