Tag Archives: market news

Stocks Soar and Metals Plummet on US Jobs

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Binary Options News : June 9, 2013

binary options news political caricature of POTUS barack obama and CP xi jinping at their pals talks from 6/9/2013

Stocks Soar and Metals Plummet on US Jobs

The end of the trading week saw US stocks make strong gains and the metals market making heavy falls as US employment increased by more than had been expected by economists during the month of May.

The largest economy in the world – the U.S. economy – added 175,000 jobs for May, surpassing market expectations for a 170,000 increase following on from the 149,000 jobs that were created in April. The headline US unemployment rate increased to 7.6% in May – approx 11.8 million people, up from the 7.5% recorded in the previous month as more people entered the job market, which pleased the markets.

The figures released for May makes it the third consecutive month that non-farm payrolls have increased by less than 200,000, heightening concerns that the US’s policies of austerity may be harming its economy. The number of long term unemployed in the US – those that have been jobless for 27 weeks or more remained unchanged at 4.4 million accounting for 37.3% of the total unemployed. Whilst the May jobs report provided a strong indication that the US economy is improving, the much anticipated recovery won’t be strong enough most likely to force the Federal Reserve to reduce or stop altogether its $85 billion a month asset purchasing stimulus programs which provides a double win for the US stock markets.

Stocks

The double win for equities provided by the US jobs figures on Friday was to be seen immediately with as the Dow Jones Industrial Average closed 1.38% higher, the S&P 500 index closed 1.28% higher and the Nasdaq Composite index closed up 1.32%. In Europe, France’s CAC 40 closed up 1.53%, Germany’s DAX 30 closed 1.92% higher and the FTSE 100 closed 1.20% higher.

Currencies

The USD strengthened on the better than expected jobs data from the US, which halted talk of tapering the stimulus policies in place. The USD was up 0.17% on the EUR, up 0.33% against the GBP, up 0.56% against the JPY, 1.16% against the AUD and up 0.71% against the CHF

Commodities

The US Jobs report and the strengthened USD meant heavy falls in the metals markets with Gold and the USD usually trading inversely to each other. gold fell 2.36%, Silver fell 4.95% and Copper dropped 1.55%. There was an upturn in Crude Oil however, as the improved jobs data indicates a stronger economy requiring more Crude Oil – up 1.52% at the close of trade.

 

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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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After the Gold Rush (Sell-Off)

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Binary Options News : April 17, 2013

After the Gold Rush (Sell-Off)

Asian stocks were higher in overnight trading, seemingly heading towards ending the 3 day losing streak which has seen global markets suffer on global growth fears. Behind the rise in Asian indices was the IMF raising its GDP outlook for Japan – the world’s third largest economy – to 1.6%, up from 1.2%. The reasons being touted for this is the aggressive stimulus policies put into place by new prime minister and the newly elected head of the Bank of Japan which has seen the Yen lose value, making exports cheaper. This has already resulted in Japanese shares being the best performing Asian shares of 2013.

Also helping boost market sentiment in the Asian trading session was the release of improved housing starts data in the US and encouraging industrial production figures, also from the US. Housing starts increased 7% from February to hit 1.036 million making it the first time that monthly housing starts have totaled more than 1 million in nearly 5 years. Boosting the mild risk on sentiment that has been glaringly absent over the last few days was the Federal Reserve reporting that U.S. industrial production increased 0.4% for March,surpassing the forecasts for a 0.2% increase, even though there was a surprise 1.1% increase recorded in the previous month.

Stocks

Japan’s Nikkei 225 climbed 1.20% on the improved IMF outlook for Japan which lifted Asian stocks from a 3 day losing streak. Hong Kong’s Hang Seng gained 0.27% and Australia’s S&P/ASX 200 increased 0.98% after its major banks posted string results. South Korea’s Kospi index continued to decline, falling 0.31%, just a day after the South Korean government announced a 17.2 billion USD stimulus plan. Although tensions have abated a little with North Korea, investors are still staying away from South Korean investments.

Currencies

The USD was once again ‘THE’ investment to go to in Asian trading with gains made against most major currency pairs. The strong data points from the US helped push the greenback 0.88% higher against the JPY, 0.33% higher against the AUD and 0.12% higher against the CAD. There was also moderate gains of 0.03% against the EUR and 0.02% against the GBP.

Commodities

The commodity markets once again proved a volatile hunting ground for binary traders. Despite no dramatic plunges in price as seen earlier in the week, there was still strong movement as bottom feeders and profit takers ensured swings in the precious metals markets. After making tentative increases, Gold was down 0.77% and Silver down 0.65% as the strengthening USD turned gains into losses late into the Asian session. Crude Oil was unchanged at time of writing.

Today’s Outlook

Positive data is expected from the UK this morning which should provide a boost to the GBP. This is followed by German 10 year debt auctions and speeches by BoC governor Carney and the FOMC member Rosengren, making today a day promising a volatile’s 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 Shares/Euro Tumble On Cyprus Fears

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Binary Options News : March 18, 2013

Editorial cartoon of Barack Obama at an Irish Pub on St. Patrick's Day

Asian Shares/Euro Tumble On Cyprus Fears

Asian stocks, as expected, tumbled as the trading week begun following on from the developments in troubled Cyprus. Stocks in Asia moved towards their biggest single session of decline in 8 months after a shock decision by the EU and IMF to demand that all bank customers in Cyprus to pay a levy in return for a national bailout valued at 10bn euros. Although the deal has yet to be ratified, news of the deal created a stampede to the cash machines as savers attempted to withdraw their money making this the first time depositors have taken a loss in a eurozone bailout/rescue.

The levy plan being supported by newly elected Cypriot President Nicos Anastasiades which has been delayed without explanation since its announcement, will mean that savers with under 100,000 euros deposited in Cyprus banks must pay 6.75% and those with savings higher than 100,000 in their accounts must pay 9.9%. It is expected to raise 5.8 billion eur to aid the country’s troubled banks which are in danger after losing 4.5 billion eur on Greek bonds invetsments.

Stocks

Asian stocks plummeted on the Cyprus news with Japan’s Nikkei 225 falling 2.63%. Hong Kong’s Hang Seng dropped 2.2%, whilst Australia’s ASX 200 was down 2.05% at time of writing. New Zealand’s NZSE 50 is down 1.02% and South Korea’s Kospi is 0.55% lower as investors moved out of the risky assets like stocks and the EUR and into the safe haven of the USD

Currencies

The USD was the main beneficiary in Asian trading as investors reacted to the Cyprus deposit levy news. There was massive movement away from the Euro which saw big declines against the GBP – down 1.29% and unsurprisingly against the USD – down 1.37%. The EUR fell to a three-month low against the US dollar. down from late Friday’s mark of around $1.30. The greenback also made heavy gains against the AUD – up 0.45% and the CAD – up 0.41%, yet the USd was down 0.98% against the JPY which also enjoyed safe haven status.

Commodities

It was mixed trading in the commodity markets in Asia as Gold moved above 1600 a troy ounce before settling back to 1596 – a rise of 0.21%. The strengthened USD saw Silver slide 0.59% and Copper down 2.35%, whilst Crude Oil fell on the news that Saudi Arabia and Iraq increased their oil production for the month of January; Crude Oil was down 1.15%. Natural Gas continued to extend gains on supply data and bad weather forecasts.

Today’s Outlook

It certainly promises to be a hectic trading session when European markets open. Although a quiet day on the economic calendar front, the EUR/USD is expected to fall further – possibly down to 1.2750 and European stocks are expected to see similar falls seen in Asia overnight, making today, a very strong day of trading for the keen eyed binary trader.

 

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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 Rise, Nikkei at 4 1/2 Year High

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Binary Options News : March 5, 2013

webcomic of the pressing of a big red panic button with JPY and EUR symbols in the background, from the binary options news of march 5, 2013Asian Stocks Rise, Nikkei at 4 1/2 Year High

Asian stocks continued their two day advance as expectations grow for aggressive monetary easing policies to come from the Bank of Japan. The newly nominated Haruhiko Kuroda, has made promises to make more aggressive monetary moves to hit the 2% inflation target rate, sending Japanese stocks higher for a second day.

It wasnt just the Nikkei that surged, Asian stocks rose for a second consecutive day on the back of the Chinese National People’s Congress which left its economic growth target for the year unchanged at 7.5% and set a lower inflation goal of 3.5%. 2012 saw an economic expansion of 7.8% in the world’s second largest economy, its weakest performance in 13 years and analysts had feared that asset bubbles were beginning to form in the Chinese economy. Only last week, Beijing announced more plans to temper the booming property market.

In Australia overnight, the Reserve Bank of Australia kept its benchmark interest rate unchanged at its record low for March, but maintained that the door was open for cuts in the future.

Stocks

Japan’s Nikkei 225 hit a four and a half year high on the back of easing talk and closed 0.27% higher. Australia’s ASX/200 Index ended up 1.3% higher on its interest rate decision and flexibility on the future, ending just short of the 4 and a half year high reached last week. Hong Kong’s Hang Seng Index increased 0.14% following on from the NPC in China.

Currencies

The AUD and the JPY were the biggest movers in the currency markets in overnight trading. The AUD/USD was up 0.47% on the back of the RBA interest rate decision and a rise in commodities. The Aussie is a commodity linked currency and generally enjoys gains when commodity prices rise. The other big mover in the markets was the USD/JPY – down 0.39% on BoJ easing talk. The USD was generally down against other currencies as investors moved out of safe haven USD positions.

Commodities

Having seen falls this week, Crude Oil traded higher – up 0.49% as traders took advantage of recent falls in price and the weakened USD. Gold and Silver also made gains and found some safe haven status of its own for traders with Gold rising 0.52% and Silver rising 1.51%. Natural Gas extended gains made earlier and rose by 1.23% as unexpected cold weather hits the eastern side of the US.

Today’s Outlook

High volume trading seen in Asia should spill out into European markets despite concerns over political instability in Italy and a sense of caution engulfing markets ahead of the upcoming European Central Bank policy meeting. Today will see the release of revised data on service sector activity and official data on retail sales in the Eurozone, which should be closely followed and later in the US the Institute of Supply Management is to release a report on service sector activity.

 

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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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Italian Elections Concern Markets

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Binary Options News : February 26, 2013

former surgeon general c. everett koop and euroman in the binary options news cartoon of february 26 2013Italian Elections Concern Markets

Asian stocks fell substantially overnight as concerns grow over the outcome of the Italian elections in which former Italian Prime Minister Silvio Berlusconi’s conservative party is in a surprise position to take a majority in the senate of Italy. A victory by Berlusconi and a majority for his party in the senate would most likely ignite increased talk that the aging Lothario will stop austerity measures implemented by the current Prime Minister Mario Monti, raising concerns that Italy may have to leave the single currency and the Eurozone further down the road.

The inconclusive result disappointed markets who like stability and not uncertainty in the political arena. The election result raised fears that the political deadlock would cause a delay in the economic reforms. The center – left bloc won the lower house by a very small margin, but failed to get an overall majority making it difficult for a singular party to vote through plans to get an ailing economy moving again, and will certainly impact upon the process of Italy reducing its levels of public debt.

Stocks

Japan’s Nikkei 225 reversed all the gains made from yesterday, closing down 2.26% whilst Hong Kong’s Hang Seng dropped 1.16% and Australia’s ASX was down 1% as exporters led the fall in Asia as concerns grew that exports to the key export market of Europe would suffer. The drop in the Japanese stocks has come after the Tokyo exchange has enjoyed a sizable surge over the past few months.

Currencies

The currency markets were relatively stable in Asian trading with no real significant movement seen as investors moved out of shares ahead of the Bernanke testimony later today. The USD/JPY rebounded a little – up 0.15%, whilst the NZD/USD fell to a 3 week low.

Commodities

The commodity markets were once again mixed in overnight trading, Gold found favour as a safe haven after the markets showed their concerns over Italy. Gold was up 0.52%. Natural Gas continued to rise, reaching a 5 week high on cold weather forecasts, whilst Oil slid 0.88% as investors moved out of riskier assets

Today’s Outlook

Expect a busy day of trading ahead in the binary options markets as heightened volatility and key speeches by BoE governor King and Fed Chairman Bernanke today will drive the markets when European markets open. New Home Sales in the US later today are expected to show an improvement which could well boost the USD as a safe haven asset.

 

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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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