Binary Options Market News
Market Intelligence – Binary Options Stocks and Financial Markets
Asian binary options stocks slid to their lowest level in nearly three months on Thursday and the euro wobbled as Greece’s debt troubles deepened and fresh U.S. data indicated its economic “soft patch” could drag on longer than expected.
Greek Prime Minister George Papandreou said he will form a new cabinet on Thursday and seek a vote of confidence from his fractious Socialist party to push through a harsh austerity bill, as riot police battled tens of thousands of protesters in the heart of Athens.
Greece must pass the new campaign of tax rises and spending cuts to receive a new EU/IMF bailout and a 12 billion euro aid tranche that Athens needs to pay back debt that matures in August.
Euro zone officials, meanwhile, said a new three-year financing program for Greece may be delayed until next month due to differences over how to involve private investors.
The euro fell to $1.4154, lows not seen since May 27, before recovering a bit of ground to $1.4190, little changed from late Thursday levels, and finding support around its 100-day moving average.
A further test of the euro zone will come later in the day by way of a government bond auction in Spain, another country struggling with budget deficits, unemployment and social unrest.
Escalating tensions in the euro zone and data showing the U.S. economy is facing a troubling mix of weaker growth and higher prices triggered heavy binary options forex and commodities selling on Wall Street, adding to pressure on Asian equity markets and other riskier assets on Thursday.
“We have got used to fairly disappointing data from the U.S., so I think today’s fall is mostly prompted mostly by euro zone problems,” said Takashi Ohba, a senior strategist at Okasan Securities.
In Japan, the Nikkei fell 1.1 0.9 percent, with growth-sensitive shares such Canon and Mazda Motor Company underperforming.
Other Asian markets also retreated, with the MSCI Asia ex-Japan index .MIAPJ0000PUS down 1.7 percent. Shares of materials and technology companies were among the weakest performers on fears of faltering global growth.
Hong Kong’s Hang Seng Index fell through a key chart support at its March low, slumping 1.5 percent to its lowest level this year.
Foreign bearishness about Chinese binary options equities, partly over corporate governance issues, have made investors increasingly cagey about the outlook for the Hang Seng with short-selling seeing a pick-up to levels last seen eight months ago.
In binary options commodities markets, oil prices recovered in Asian trade after a more than 4 percent slide in the U.S. session as the rising dollar and signs of further economic weakness fed demand worries.
August Brent crude futures jumped $1.56, topping $114 a barrel, in the wake of a slightly recovering euro and a larger-than-expected draw in U.S. crude stocks.
Gold lost its footing on dollar strength.
Spot gold fell $3.32 an ounce to $1,526.5 an ounce after rising for a second straight session to around $1,533 on Wednesday as equity markets tumbled. Gold is well below a lifetime high around $1,575 touched in early May.
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Emerging Market Report – Binary Options Market Update
If emerging countries have been the only fully functional engine of the world economy since the credit crisis, then the rising chorus of concern about the outlook for binary options financial markets there must arouse alarm.
Anxiety about the U.S. slowdown and pumped-up world inflation has prompted many to quietly cross fingers that these economies — which generated almost three quarters of world growth over the past two years — will again save the day.
But with China in the vanguard of the emerging world and now the world’s second largest economy, it’s not hard to see why fears of inflation and the policy agility to control it, as well as nagging doubts about data transparency, are a worry for all.
This week’s news of a rise in Chinese consumer inflation in May to a 34-month peak of 5.5 percent and further tightening of bank reserve ratios in response did little to soothe the nerves.
Shanghai’s speculative B binary options share index, the hard-currency section of the local market used by overseas players, has now lost some 28 percent in past six weeks as overseas confidence ebbs.
For many, the turn on China is just a bellwether for the rest of emerging markets. So far this year, MSCI’s emerging index has underperformed its global counterpart by just 2 percent. There are some who think that’s just for starters as global liquidity tightens.
Even a year ago, identifying a committed emerging binary options market bear would have been tricky. Suddenly, they are everywhere.
Deutsche Bank’s top emerging equities strategist John-Paul Smith, who sees emerging market equities underperforming developed markets by some 15 percent by year end, told Reuters last week he sees a “significant chance” of a major sell-off.
U.S. market strategist Richard Bernstein talked of “monstrous” risks to emerging markets this year. And JPMorgan’s emerging market research chief Joyce Chang warned of steeper interest rate rises to come in the emerging world this year.
On top of monetary tightening fears, Nomura and Natixis analysts both flag worries about electricity shortages in Chinese cities as price controls deter companies from expanding capacity while more use of generators shoves up diesel costs.
“Investors appear to have underestimated the impact of electricity shortages and credit tightening in China,” Nomura told clients. “While equity markets have recently corrected, investors do not appear to have re-adjusted their expectations.”
That tallies with Bank of America-Merrill Lynch’s June fund managers’ survey, which showed binary options asset managers still marginally favor emerging markets over the United States even though they’ve more than halved overweight positions since late 2010.
So is there a major shakeout coming?
With the exception of the credit shock and synchronized global recession of late 2008 and early 2009, emerging markets — and, at least partly by extension, commodity prices — have been the investments of the past decade.
The reasoning is fairly clear — a dramatic expansion of the world economy to absorb billions of new workers and consumers from China to India to Brazil and an intensive growth and demographic story that would endure for decades.
While few doubt that is what has happened or even question projections for their rising share of global output by 2050, the concern is that there is many a slip between cup and lip.
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Binary Options Day Trading
Market update for Binary Options Traders
Evidence that China may avoid a hard landing for its high-flying economy lifted riskier binary options assets such as stocks on Tuesday, though high-yielding euro zone debt was pressured as talks on a new bailout for Greece dragged on.
It was required to pay a higher yield — 4.96 percent versus May’s 4.88 percent — but attracted a larger percentage of foreign buyers than the previous auction, reflecting market expectations Greece will secure a second rescue package to stave off default, at least over coming months.
The cost of insuring Greek debt against default over five years rose, as did the yield on Greek government bonds, to a record high.
But Greek stocks reversed losses to put in modest gains and European shares were otherwise buoyant.
Euro zone finance ministers were to meet in Brussels where the crisis and a disagreement between European Central Bank and a clutch of euro zone states led by Germany over whether Greece should restructure will take center stage.
Financial and binary options markets were focused on data from China which was interpreted as negating the need for aggressive tightening by policymakers.
China’s inflation accelerated in May to a 34-month high of 5.5 percent, while retail sales came in marginally higher than forecast and industrial output was slightly lower.
Although a little above expectations, the inflation data suggested Chinese price rises were not out of control and that growth was being managed.
After the data, China’s central bank increased the reserve requirement ratio for its commercial lenders by another 50 basis points, its sixth increase this year, extending its campaign to tame inflation.
“A measured slowdown in the Chinese economy is just what investors want, with today’s figures providing some hope that this is just what is unfolding,” said Keith Bowman, equity analyst at Hargreaves Lansdown. World stocks as measured by MSCI. were up more than half a percent while the pan-European FTSEurofirst 300 gained three-quarters of a percent.
Earlier, Japan’s Nikkei closed barely changed from the previous day.
Greece’s trials did little to discourage binary options investors from buying the euro, which rose more than a quarter a percent against the dollar to $1.4440.
Despite the debt crisis, the single currency has climbed 8 percent against the dollar on the binary options market this year, nearly 7 percent against the yen and 2.5 percent against the pound.
This is primarily due to differing expectations for interest rate rises. The ECB is expected to tighten policy for the second time this year in July while the U.S. economy is struggling, pointing to a continued period of ultra-low interest rates there.
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Binary Options Currency Update
Rescue Package for Greece – Binary Options
The euro strengthened on Monday, though its gains appeared short-lived as major European powers continue to haggle over a fresh rescue package for Greece, while Asian binary options stocks extended a seven-week losing streak on fears the global recovery is losing steam.
European shares were set to open broadly stable after Friday’s selloff, according to financial spreadbetters.
Concerns over a sputtering U.S. economic recovery, slowing growth in China and India and festering problems in the euro zone pushed the MSCI index of Asia Pacific shares outside Japan down by nearly 1 percent to a 2- month low before regaining some ground to be 0.6 percent lower.
With the Federal Reserve’s $600 billion bond purchase program set to expire by the end of June, investors have sought refuge in safe-haven assets like U.S. Treasuries even as politicians in Washington wrangle over extending its debt ceiling and the world’s biggest economy lurches toward a technical default.
That kept the dollar near a one-week high against a basket of binary options currencies and supported around 80 versus the yen, a day before a Bank of Japan meeting where it will consider expanding a loan program aimed at supporting certain industries, according to sources.
The euro edged higher after falling by nearly 2 percent last week, its worst weekly performance since mid-May. But its gains are expected to be limited by disputes among policymakers ahead of a meeting next week at which euro zone leaders are due to finalize a new rescue package for Greece.
It was up slightly at $1.4344 after dropping as far as $1.4285 on EBS in very early Asia trade and down from a one-month peak of $1.46966. Traders cited broad short-covering kicking in after players failed to chase the euro’s early drop.
Ironically, the single currency’s latest bout of weakness came after ECB President Jean-Claude Trichet last week signaled a July rate hike, an indication that binary options market players are expecting fewer rate increases after that.
“The euro had been bought on hopes for rate hikes, but it seems like after the one that was signaled last week takes place in July, the next ones may not follow suit that quickly,” said Teppei Ino, a currency analyst at Bank of Tokyo-Mitsubishi UFJ.
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Commodities Prices Falling – Binary Options Commodities Trading
Gold fell almost 1 percent on Friday for its biggest one-day decline in a month, as a binary options forex related dollar rally coupled with losses in crude oil and commodities prompted investors to sell ahead of the weekend.
Bullion also came under liquidation pressure as Wall Street resumed its slide following weaker Chinese trade data, and the euro tumbled more than 1 percent on the binary options online trading market as fears over Greece’s debt returned to the forefront.
“Precious metals are being lumped into the commodity basket today. There is risk-off selling, and anything in the commodities complex is getting clobbered,” said Mark Luschini, chief investment strategist at financial services firm Janney Montgomery Scott, which manages $54 billion in assets.
In terms of Binary Options Commodities, spot gold fell to a one-week low at $1,525.74 an ounce and was down 0.7 percent at $1,532.14 by 2:35 p.m. EDT (1835 GMT).
The metal was down 0.5 percent for the week, poised to snap a three-week winning streak. Despite Friday’s loss, the metal is up 5 percent in the past five weeks on a string of bleak U.S. economic data including a weak jobs report last week.
U.S. gold binary options futures for August delivery settled down $13.50 at $1,529.20, after trading between $1,526.70 and $1,546.50.
COMEX binary options gold futures volume was around 125,000 lots, the highest this week but 40 percent below its 30-day average. Volume has been lackluster since last week, with bullion prices largely rangebound.
Analysts said gold could extend its slide if prices fell below key support at its 20-day moving average of $1,524, a level it has held for the past three weeks.
Sterling-priced gold, meanwhile, rose to a record 951.78 pounds an ounce as the underlying price of the precious metal remained supported while sterling fell after disappointing UK industrial output data.
Talk of large-scale, official-sector selling of gold earlier in the session, which proved unfounded, accelerated the drop in the yellow metal, traders said.
Silver slid 3.2 percent to $36.32 an ounce, sending the gold/silver ratio — the number of silver ounces needed to buy an ounce of gold — to above 42. Since May, it has steadied between 40 and 45 after hitting 28-year lows below 32 in April.
WEAK ECONOMIC DATA IN FOCUS
China’s appetite for overseas copper supplies remained sickly and iron ore buying showed signs of ending a strong run, and that weighed heavily on equities and commodities across the board, Janney’s Luschini said.
“In the shorter term, the weaker economic numbers set up liquidation of binary options assets, even as it is bullish longer-term because the (U.S.) government is expected to do more stimulus,” said Frank McGhee, head precious metals trader at Integrated Brokerage Services.
Support from inflation concerns after U.S. import prices rose for an eighth straight month in May was offset by a lackluster performance in the S&P and a $3 drop in U.S. crude futures after top exporter Saudi Arabia said it was offering more oil to Asian customers.
While gold is on the defensive, persistently low interest rates, concerns over euro zone debt and a weak outlook for the U.S. economy count in its favor longer-term, analysts said.
The end of a $600 billion U.S. government bond-buying program, or the second round of quantitative easing, this month is also fueling economic worries.
The flood of Federal Reserve money that has supported Wall Street and the rest of the U.S. economy for 2-1/2 years will shrink to a trickle with the conclusion of the Fed’s bond purchases on Friday.
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Asian stocks fell for a seventh consecutive day on the binary options market on Friday, led by selling in technology counters on wariness about the broader economic outlook, while the euro held above one-week lows as worries about the euro-zone’s debt problems outweighed a likely interest rate rise by the European Central Bank next month.
European shares are set for a weaker start, with bookmakers seeing main indexes down between 0.2-0.4 percent.
Economic data from two of Asia’s economic engines – China’s trade data and India’s industrial output were broadly in line with market estimates and failed to provide any fresh triggers to cautious binary options traders.
“Equity valuations are neither expensive nor cheap if you look at most markets in Asia today. I don’t think valuations are flashing a buy or sell signal at this point in time,” said Binay Chandgothia, chief investment officer at Principal Global Investors.
“So you keep going back to other factors, i.e. your perceptions on growth, your perceptions on macro policy,” he said. His firm manages more than $200 billion in assets worldwide.
Japan’s Nikkei – trading at just 1.1 times book value, the cheapest in the region — jumped more than 1 percent, though gave up a big chunk of its gains by the close.
Australian shares were up 0.2 percent, easing slightly from the 1 percent gains after they opened, while Korean shares turned lower pressured by an interest rate hike.
The MSCI index for Asia-Pacific shares outside Japan slipped 0.4 percent, heading for its seventh consecutive week of losses and is down for the year.
The Chinese stock market also trended lower on concerns over further monetary tightening from Beijing. Chinese shares were the worst performers in the region in May.
Shares of Tencent Holdings, China’s most valuable Internet company, dropped 3.7 percent to a two-month low and weighed on the broad market in Hong Kong, underscoring the bearishness in technology binary options shares on Friday.
The MSCI index for Asia-Pacific technology shares outside Japan led declines, falling two percent, led by a 7 percent fall in smartphone maker HTC Corp and weakness in Hynix Semiconductor.
BONDS DRAW FUNDS
Even as equities registered yet another torrid week, bonds continued to outperform as data from fund tracker EPFR Global showed emerging market bond funds received new money aggregating $1.4 billion in the week to June 8, an eight-month high, compared to tiny outflows from equity funds.
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Binary Options News
Daily Binary Options Market Update
Stocks extended losses and the Nasdaq fell more than 1 percent on the binary options market on Wednesday, with Federal Reserve Chairman Ben Bernanke’s assessment of the economy keeping worries alive about the U.S. economic recovery.
The Dow Jones industrial average was down 27.66 points, or 0.23 percent, at 12,043.15. The Standard & Poor’s 500 Index was down 5.36 points, or 0.42 percent, at 1,279.58. The Nasdaq Composite Index was down 27.45 points, or 1.02 percent, at 2,674.11 which will interest binary options commodities traders.
There are some very important and interesting announcements today which bear relation to the Binary Options market, as follows:
- 2:00am JPY – Prelim Machine Tool Orders
- 2:45am EUR – French Final Non-Farm Payroll Quarterly Report
- 8:30am EUR – ECB Press Conference
- 7:50pm JPY – Tertiary Industry Activity
These are worth keeping in mind as they are particularly pertinent to movements in the binary options market.
Commodities trading has seen some further action on the binary options market, Brent crude rose to $118 on Thursday after Saudi Arabia failed to convince OPEC to raise output targets, and data showed U.S. crude stocks fell sharply last week.
Brent crude for July delivery climbed 31 cents to $118.16 a barrel by 0223 GMT, adding to gains of more than a dollar the previous session. U.S. crude rose 66 cents to $101.40.
OPEC talks broke down in acrimony on Wednesday, underlying concerns about the group’s willingness to help control prices, perhaps leaving the oil market more open to speculative attack.
As the only OPEC member with significant spare capacity, Saudi Arabia will now raise output unilaterally.
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Binary Options Update – Weak US Jobs Data Jolts Global Stocks and US Dollar – Hot Picks 5th June 2011
Wall Street capped off a fifth straight week of losses on Friday and Treasuries rose as much slower-than-expected U.S. job growth stoked fear that the world’s largest economy was in a protracted slowdown.
The euro hit a one-month high against the dollar on news international aid would be available to Greece as early as July, while the U.S. jobs data hurt the greenback against the yen.
Oil prices traded off their lows after the Institute for Supply Management said the U.S. services sector staged a modest recovery last month from April’s slump.
But that was not enough to dispel entirely the unease stoked by the U.S. Labor Department’s monthly report, which showed the economy added the fewest jobs since September.
The jobless rate rose to 9.1 percent in May as high energy prices and the effects of Japan’s earthquake bogged down the economy.
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