North Korea’s 3rd Nuclear Test Affects Asian Markets

Binary options investors maintain a level of caution with currencies ahead of Obama’s State of the Union Speech and the G20 summit starting on Thursday. Commodities across the board still falling which might make a positive call option for binary options traders. GBP to watch for this morning ahead of CPI, RPI and PPI releases. President Draghi to give a speech later in the morning which will affect the EUR and later today the US Fed Budget Balance could show a fall which should add some pressure on the USD.

Stocks

Japan’s Nikkei 225 reopened today after yesterdays’ national holidays. It bounced up 1.88% after the current head of the Asian Development Bank Haruhiko Kuroda commented that Japan has the ability to apply further monetary stimulus over the course of this year. Kuroda is seen as a frontrunner to be the next Bank of Japan Governor. Bank of Japan last month disappointed traders by saying they would affirm to Fed Reserve style asset buying but not until 2014.

Shanghai Composite Index and Hong Kong Hang Seng are also closed today to celebrate the Chinese New Year. The markets that are functioning in the region saw mixed trading ahead of North Korea carrying out its 3rd nuclear testing since 2006. This had a knock on effect on South Korean Won and Kospi index.

Australias S&P/ASX 200 Index gained 0.1per cent as sentiment increases that the Reserve Bank will cut the country’s interest rates by 50 points. The figure in Australia is currently 3% which means that just a 25 point decrease will see Australian interest rate as a record low.

New Zealand NZSE 50 lost 0.6per cent after Taro Aso minister of Finance n Japan commented he would announce at next G20 meeting that Japan is trying to arrest deflation.

Eurozone stocks decreased this morning as investors keep a wary eye on G20 nations meeting on Thursday. EURO STOXX 50 fell 0.31 per cent, the French CAC40 declined by 0.24% and the German DAX 30 dropped by 0.25%. ECB Pres. Mario Draghis announcement on Thursday they would keep a close watch on the impact of the strengthening euro which fired market speculation that a cut in the interest rate was still a possibility.

US stocks closed fairly flat to low that saw major activity in the finance and tech sectors to counter decreasing demand in energy stocks. At close of US training the DJIA closed down by 0.16per cent, NASDAQ dropped by 0.06% and S&P 500 edged down by 0.06 per cent. Last Friday the US Commerce Department announced positively moving trade deficit in the US of $38.5billion as compared to $48.6 in November. Expectations were of a narrowing to $46billion. Leading performers in DJIA included Microsoft, Pfizer and BoA.

FX

Japanese Yen reached its lowest low against the USD since May 2010 before edging back slightly to 0.10% against the Greenback. USD stayed steady against most of the majors while investors wait for the Obama State of the Union speech at the G20 summit. The USDX gained 0.13per at a value of 80.49.

Commodities

Wise investors stayed clear of the commodities during Asian session which fell across the board. Gold continued its demise by falling 0.12per cent as did Silver which fell 0.10%. Natural Gas stayed around its five week low and Crude Oil fell by 0.09% too.