Tag Archives: options market news

G8 comments kick start markets

Posted on by
Reply

binary options news cartoon obama biden together on issuesAfter a disappointing week last week which saw the markets regress in the wake of political uncertainty in Greece raising fears of a Euro break up, the new trading week began with a jolt provided by the G8 meeting at the weekend. The Group of Eight meeting brought together leaders of the world’s most industrialized nations, who announced their support for keeping Greece within the eurozone.

Their expression that debt-ridden Greece and other European nations can be restored back to health not through austerity measures alone but with a balance of belt-tightening measures and economic policies that drive growth caused the dollar to fall and saw the appetite for stocks and other higher-yielding assets rising. At the time of writing (4.49am GMT) the US Dollar Index which measures the USD against a basket of 6 weighted currencies was down 0.07%, valued at 81.17 whilst Japan’s Nikkei 225 was up 0.48%, valued at 8652.50.

Asian trading received another boost when Chinese Premier Wen Jiabao pledged to do more to kick-start Chinese growth expressing the need to stay with a “proactive fiscal policy and a prudent monetary policy” . The markets were also buoyed by sentiment in Japan that monetary policy authorities will weaken the yen to boost exports. Whilst this boosted stock prices in Asia, the Japanese Yen suffered as a result – down 0.24% against the USD, valuing at 79.21 Yen.

Today, investors should be looking at European stock futures indicating a higher opening in what is a quiet day in the economic calendar. Canada has a national holiday so expect subdued trading in the CAD and the only data released in Europe is short term debt which doesn’t have the gravitas as the long term debt in the eyes of investors. However, early Asian trading is indicating a return of risk appetite so we can expect some good and maybe surprising market volatility.

 

* * * * * * * * * *
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.

GD Star Rating
loading...

China Grows But Europe Contracts

Posted on by
Reply

binary options news caricature graphing tourism versus price of oilAsian stocks were broadly lower this morning despite China reporting its manufacturing activity increasing for the fifth month in a row. Dominating sentiment by investors was the fear that the reduced demand from a contracting Europe will damage key export markets for the likes of China and Japan as Spain announced its GDP shrinking by 0.3% in Q1 of 2012, having shrunk by 0.3% in the final quarter of 2011. This puts the Spanish economy in its 2nd recession since 2009 and follows the surprise news last week that the UK has entered a double dip recession.

As Hong Kong markets are closed for a  public holiday today, the Nikkei 225 of Japan reopened after its on holiday yesterday and promptly declined – at current time of writing 4.31am GMT – the Nikkei was down 1.42%, valued at 9385.50. The S & P of Australia was up 0.57%, valued at 4492.60, having fell over 1% increase earlier in the trading session.

Offering some comfort to investors was the release from China, who relies strongly on its manufacturing and export sector for growth, of the official Purchasing Manager’s Index (PMI) increasing to 53.3 in April from 53.1 in March – the 5th consecutive month of expansion. Although the growth rate is slower than the same time last year, the steps Beijing has taken to boost the economy appear to be having an effect. The central bank of China reduced the amount of money that banks hold in reserve twice over the past couple of months, in an effort to try and boost lending. This saw Chinese banks extend 1.01 trillion yuan in new loans in March, higher than the forecast of 800 billion yuan.
Today at 2pm GMT in the US – the ISM is released whilst at 5pm GMT – Gov Carney speaks in Canada. Later on at 10.45pm GMT the New Zealand unemployment rate is released. Today should see some good profit opportunities as investors look for bargains and consolidate positions.

 

* * * * * * * * * *
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.

GD Star Rating
loading...

Watch out for US Advanced GDP Data

Posted on by
Reply

binary options news editorial caricature occupy weekend tradingAfter all is said and done the markets will be eagerly anticipating tomorrows Advanced GDP data which is the first clue to whether the US is still moving closer to a recovery in 2012. Market expectations are for q/q annualized rate of 2.6%. Last month’s data released on final GDP qoq for 2011 showed that the US economy grew by 3% in the 4Q of 2011. Market expectation is that the US economy is likely to show signs of a slowdown with the forecast at 2.6% for 1Q 2012.

With Europe heading into a recession, the threat of a greater crisis in Europe still looming and increasing prospects that China is slowing then it’s hard to understand how the US is moving in such a different direction with housing in the US still looking very grim and unemployment improving somewhat but if China continues to slow then there will be question marks on the US recovery too.

Despite the recent IMF upgrade to world GDP to 3.53% forecast for 2012 somehow markets have not reflected this post the IMF announcement but have rather focused more on Europe and China. Bottom line financial markets are like to be cautious going into the Advance GDP release scheduled for tomorrow.

 

* * * * * * * * * *
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.

GD Star Rating
loading...