Binary Options News : April 10, 2013
Investors Mull over Surprising Chinese Trade Deficit
A report from China shows that the country has a trade deficit for March. Imports have risen 14.1 per cent from the previous year. This blasted expectations of a 6per cent rise. Meanwhile exports which gained 10 per cent from the previous year have underwhelmed analysts who were expecting a 11.7 per cent growth. This is also a decline of 21.8 from the month of February. This leaves the world’s 2nd largest economy with a deficit of $884 million. Now compare that to the month before where there was a trade surplus of $15.3 billion.
Inflation figures from China boosted stock prices with a growth of 2.1 per cent from the previous year. This is a drop from Feb’s increase of 3.2 per cent inflation and lower than analyst expectations of 2.4 per cent. It’s thought that this lower than expected figure could ignite a slackening monetary policy in the country.
The Chinese trade deficit didn’t have a chance to impact the Asian stocks which closed mixed yesterday. The Hang Seng was up 0.2 per cent, the Australian ASX 200 finished down 0.15 per cent and the The Nikkei which had touched 5 year highs several days ago closed up 0.7 per cent from the previous day.
US stocks gained yesterday as news for the Q4 earnings began to hit the wire. By the end of the US session the DJIA was up 0.41 per cent, the S&P 500 gained 0.35 per cent and the NASDAQ gained 0.48 per cent.
The NZD holds firm against the USD in Wednesday overnight trading near its 17 month high as Chinese import data boosts support for the New Zealand dollar. The pair touched the high of 0.8538 late in the session. The pair’s highest level since Sep 2, 2011. Meanwhile the neighboring Australian dollar gained 0.16 per cent in the session to touch 1.0517 which is the pairs 2 and ½ month half. The EUR held firm at almost a 3 week high against the USD today as investors await the Fed Reserves minutes later today. EUR/USD touched 1.3091 in Asian session. EUR/JPY crept up by 0.03 per cent to 129.56.
Crude oil prices lower in Asian overnight trading on back of the US Energy Information Administration EIA forecast. EIA commented that the consumption of global oil will increase by 1 million barrels a day. This is still below their forecast which caused oil prices to drop by 0.23 per cent to trade at $93.98 per barrel. Gold prices slipped slightly in early Asian session as investors profit-lock after Tuesday s session.
US earnings begin to be announced, it’s expected that there will be modest gains.
US central bank in today’s meeting expected to put an end to its QE shortly after discussions around this topic at the past few meetings.
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