Binary Options News : September 19, 2012
Asian stocks received a boost in overnight trading as the Bank of Japan expanded its easing program and boosted asset purchases; following on from the Fed Reserve’s third round of quantitative easing last week.
The world’s third largest economy grew at half the rate initially estimated in the second quarter and the JPY reached a seven month high of 77.13 against the US dollar when on the 13th September the Federal Reserve announced its open ended strategy to purchase mortgage backed securities via the buying of $40 billion a month of mortgage debt.
The past five years has seen the JPY gained about 48% and the appreciation in the Yen has made it more difficult to export its goods and the Bank of Japan took the step of increasing its asset purchase fund to 55 trillion from 45 trillion whilst keeping its lending facility unchanged at 25 trillion JPY. The Bank of Japan also announced it was keeping its interest rates unchanged at 0.10%.
Asian trading overnight saw Hong Kong’s Hang Seng Index increase to 1.05% valued at 20,818.80, Australia’s S&P/ASX200 increase by 0.35% to be valued at 1458.15, whilst Japan’s Nikkei 225 Index increased by 1.59% to be valued at 9268.5.
Despite growing tensions with Iran and the West, most recently highlighted by the various military and naval drills in the Strait of Hormuz which accounts for the transportation of approx 35% of all transported oil, Crude Oil gained 0.63% in Asian markets overnight as investors snapped up cheap positions, ending a selloff sparked by concerns over the state of the European economy. A barrel is now priced at $96.22.
Investors should expect some movement in the USD and US stocks when Housing Starts, Building Permits and Existing Home Sales figures all get released in the US later today. Although an increase is expected in the number of Housing Starts, there are declines expected in both Building Permits and existing home sales.
* * * * * * * * * *
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.