Bank Of Japan Meeting Hints At Further Easing, Asian Stocks Higher

Published 03/12/2013, 06:17 AM
Today’s Binary Options Outlook:

Binary Options Traders, expect a volatile and busy day. Watch out for the CPI figures in Germany and Italy which will move the EUR, as well as the trade balance in UK which will give an idea to the economic outlook.

Binary Options Round-Up
It seems that Japan are getting ready to inject more money into their economy after the release of the Bank of Japan policy meeting minutes. This generally pushed Asian Stocks to trade higher overnight.They also flitted around their highest level in 19 months yesterday, dropping off a little after the Bank of Japan Deputy Governor Kikuo Iwata commented that more easing measures are necessary. He treads the path of the nominated Governor Haruhiko Kuroda, who early this week said that following the asset buying programme will not be sufficient to bring the rate of inflation to 2 per cent.

Japans Business Index Survey gained in Q4 to -4.6 from -10.3 in Q3. The BoJ also said that Japan’s Corporate Goods Index gained to -0.1 per cent last month from -0.2 per cent in the previous month.

Stocks
During the late Asian session, the stocks corrected themselves as traders became wary over recent increases. The Hang Seng in Hong Kong dropped 0.7 per cent, the ASX/S&P 200 closed 0.6 down and the Nikkei which had gained 0.35 earlier in the session finished down 0.3 per cent. Consumer prices in Beijing gained 3.2 per cent last month from 2 per cent the previous month. This fans the fire of doubt that the Government will inject more cash into the economy. Meanwhile below expected Industrial Production figures in China fan the fire of doubt on the Global economy. January's figure of 10.3 contracted to 9.9 per cent in February, which was below the expected figure of 10.5 per cent.

The weak Chinese data and the news of the Italian credit downgrade did not affect US stocks as they reached even newer highs in US trading. Yesterday, the Dow Jones closed up 0.235 per cent, while the S&P 500 and NASDAQ closed up 0.32 per cent and 0.26 per cent respectively.

Forex
The USD was again the life boat for investors seeking a safe haven in overnight Asian trading. The USD gained against most of its counterparts undoing its losses from this week. The USDX, the Dollar Index was up 0.23 per cent.

The USD also hit 3 and ½ year highs against the JPY this morning, touching 96.72 in Asian trading. This comes off of optimistic data from the US. Meanwhile comments from the Bank of Japan regarding further QE kept the JPY down.

The EUR was down against the USD this morning; the pair touched 1.3012 in Asian trading, and then stabilized at 1.3016. The EUR is under pressure over worrying economic and political data. The EUR was also down against the GBP and the JPY.

Commodities
Gold prices crept up this morning, (even after a strengthening dollar) after speculation continues as to whether further monetary easing will occur across the globe. Gold tends to be where investors move to in such cases, as the metal is seen as a safe bet against currency and stock volatility, and also as a hedging tool against inflation. Gold futures for April delivery were trading at $1582.10 troy ounce in European morning session, a 0.25 per cent gain on the previous day. Crude oil lost its value by 0.37 per cent after release of Chinese data and Natural Gas rebounded after reports of bad weather across the US and Europe.

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