Untitled @binary0ptions - Tumblr Blog

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/european-stocks-close-higher-yellen/

European Stocks Close Higher after Yellen

European stock markets seesawed during the afternoon, only to close higher after investors reacted to Janet Yellen’s speech at the Jackson Hole symposium. She came across as more hawkish and equities moved higher.

The pan-European STOXX 50 was up over 0.7 percent on the day as it seesawed around 3pm London time as Yellen spoke. The FTSE 100, in London was also higher as well as the CAC 40 and German stocks each up 0.4 percent on Friday.

During her much awaited speech in Jackson Hole, Yellen was upbeat about the US economy and voiced expectations that interest rate hikes were ahead. She spoke towards market speculation of whether or not the Federal Reserve (Fed) would resume tightening which began in December 2015.

Yellen Indicates Rate Hikes Boosting Sentiment on the European Continent

Yellen was a bit cautious here but indicated more rate increases were on the foreseeable horizon. This also helped to boost US stock markets, which were higher after Europe closed.

During her speech, Janet Yellen acknowledged that “the case for an increase in the federal funds rate has strengthened” for a near term rate hike. However, most Fed officials want to see more concrete evidence of a rebound in the gross domestic product (GDP) as well as the inflation rate moving towards the two percent target. It would appear that December is the most likely month for another rate hike this year.

Numerous Fed officials gave media interviews on Thursday. Esther George, Kansas City head, said she was in favor of gradually raising rates. She is a voting member of the Federal Open Markets Committee (FOMC). Stanley Fischer, the vice-chair of the Fed, said policy members are currently debating the next moves as to policy.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/european-markets-set-open-rather-quietly/

European Markets set to Open Rather Quietly

Markets on the European continent are set for a rather muted opening to start the week. Investors are following Asia’s rather mixed day and eyeing a key speech from Federal Reserve Board (Fed) Chari Janet Yellen later this week at Jackson Hole. This meeting will produce some key insights on the timing of the next Fed rate hike as well as other key monetary policy decisions an decision making processes.

In London, the FTSE 100, at the time of this report, is set to open two points lower. Stocks in Germany are set to open a point higher and in France the CAC 40 futures are one point lower.

This morning, the US Dollar was higher against most of its trading counterparts, including the yen and the euro, thanks to Fed vice –chair Stanley Fischer who said that the world’s largest economy was on target to meet their two percent inflation target.

European Investors wait on Yellen

On Friday, August 26, Janet Yellen will talk at the Fed’s annual Jackson Hole Monetary Policy Symposium. Markets will watch very closely for any comments on the state of the United States’ economic recovery and when the Fed will raise rates next.

Comments should be a bit more hawkish on the economy which should give support to the almighty Buck. These comments should also show support for US Treasuries and interest rates.

European markets are opening after a rather mixed trading session in the Asian and Pacific Rim financial markets. Oil prices also pulled back this morning.

As far as the economic and corporate calendars are concerned today, during the European trading session, both are rather quiet. There will be no major earning releases scheduled for the first trading day of the week. This could lead to some drifting where price action is concerned.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/economic-growth-japan-misses-mark/

Economic Growth in Japan Misses the Mark

Most financial stock markets in Asia reversed earlier losses to close a bit higher. However, economic growth in Japan missed the mark, showing no growth in the third quarter.

In Japan, the headline Nikkei 225, oscillated between gains and losses, to trade down 0.2 percent. The Topix, in Tokyo, was also a bit lower on the day. In Australia, the ASX 200 was up moderately in the afternoon as it tracked the financial sub-index higher. The material sub-index lost 1.47 percent and the gold sub-index lost 2.95 percent as resource plays were under heavy pressure.

Major minors each fell over two percent with Fortescue falling well over four percent on the day.

In Hong Kong, the Hang Seng Index was up 0.7 percent and the markets on mainland China were also higher, trading up over two percent. News has surfaced that the China Securities Regulatory Commission (CSRC) is preparing for the imminent launch of the Shenzhen to Hong Kong connect.

This will be very similar to the Shanghai to Hong Kong connect which will allow investors to by Chinese shares on the Hong Kong exchange. This will be positive for investors looking to invest in Chinese A-Listed shares as well as small-caps.

The financial markets in South Korea were closed for the public Liberation Day holiday.

Economic Data from Japan Shows no Economic Growth in Q3

Before the financial markets opened today, the world’s third largest economy, released its gross domestic product (GDP) for the third quarter (Q3). Their economy came in unchanged from the previous quarter, showing zero economic growth which means their economy has grown a tepid 0.2 percent year-to-date.

Economists had expected the economy, in Japan, to grow by 0.7 percent (annual) and a 0.2 percent expansion quarter on quarter.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/asian-stocks-gain-strong-nfp-report/

Asian Stocks Gain after a Strong NFP Report

This morning, Asian markets began the week higher, as Japan led the winners. Sentiment was boosted by a stronger-than-expected non-farm payroll (NFP) report out the United States. The NFP was released Friday morning, Eastern Standard Time.

In Japan, the benchmark Nikkei 225 rose nearly two percent and the broader base Topix was up nearly 1.5 percent as the yen weakened.

In the Down Under, the S&P ASX 200 was higher on the day as the financial sub-index, which is heavily weighted, rose 1.34 percent. The major Big 4 banks were up one percent each with the National Australia Bank or NAB rising 1.45 percent today.

In South Korea, the Kospi Composite was up moderately and shares in Hong Kong gained over one percent. On mainland China the stock bourses were lower on the day.

The US NFP Makes Asian Investors Cheer

The Fed has been telling us that the US economy would gather steam in the second half of 2016. This jobs report convinced investors, not only in the United States but in the Asian markets, they were right.

The NFP was another clear cut sign that that there is improving economic health in the world’s largest economy. The United States added 255,000 new jobs in July. Analysts and economists had expected a print of 180,000. The unemployment rate stayed steady at 4.9 percent and wages were up. For the year, wages are up a little over 2 percent.

There was a nice advance in workweek hours, hourly earnings and participation rate. This shows this latest NFP was a quality release. The latest NFP, before the next monetary policy meeting of the Fed, could mean a move sooner than later. There is a chance the Fed will raise rates in September or October.

After the release, US stock indices closed sharply higher with the S&P and Nasdaq setting fresh all-time highs.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/dow-sp-end-4-week-win-streak/

The Dow and S&P end a 4 Week Win Streak

US stock indices had a mixed session on Friday. This was also the last trading day of the month. Investors get some encouraging earnings from major technology companies which offset warning signs from energy companies and a disappointing gross domestic product (GDP) release.

The world’s largest economy is growing, but not robustly. This means you depend on what growth you get from individual companies and tech companies are a growth environment right now.

The tech heavy Nasdaq Composite finished at an all-time high, a new yearly high and now has a five week long streak of gains. Gains were supported by Alphabet which jumped three percent and Amazon.com which were up 0.8 percent on the day thanks to earnings that beat estimates.

The Dow Jones and S&P Finish Lower for the Week

The S&P 500, the global bellwether for the United States economy, was able to crawl higher for the day but ended lower for the week. This meant that four straight weeks of gains ended. The index did hit a new intraday high as telecommunication and utilities leading the way. However, the index was affected by falling Treasury yields, thanks to a miss with the GDP.

The Dow Jones lost about 24 points on Friday to end the week. Shares of McDonald’s and Goldman Sachs were the biggest losses. The blue chip benchmark lost three quarters of a percent for the week as it, too, snapped four straight weeks of advances.

The stock bourses, in the United States, did have a good month. The three major averages each posted gains for July. The Dow Jones was up 2.8 percent for July as it is now in a six month long streak of gains. This is the blue chip index longest win streak in over three years.

US Stocks, will open up tracking a mixed day out of Asia. European stock markets are due to open this morning as well.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/featured-headlines/japan-stop-weaker-yen/

Japan should stop with the Weaker Yen

Japan has placed a lot of resources towards keeping its currency weak. They are doing this in order to boost their exporting companies. However, a stronger Japanese Yen might be exactly what this country needs to get out of its decades long rut of disinflation and zero economic growth.

Japan’s government is famous for its quasi-promises to keep its currency weak so it and support and buy time for exporters, which make up the bulk of their economy and financial markets. By focusing only on the exporting sector, it takes away from focusing on what they should really do. Domestic economic reform.

Japan, is getting ready to fire a double barrel shotgun, this morning, specifically designed to kick start its flagging economy by easing economic monetary policy. The main goal of this looks to be wiping out the gains of a newly resurgent yen.

Bank of Japan to Announce New Easing Measures

This morning, the Bank of Japan (BOJ) is expected to announce another monetary easing blast, from its shotgun. Their two day monetary policy meeting is getting ready to come to an end today. The BOJ, shortly, will announce, if everything goes according to plan, another big round of monetary easing with an interest cut deeper into negative territory or another round of asset purchases or both.

At the same time this is happening, Prime Minister Shinzo Abe has announced plans to add ¥28 trillion of money into the economy. This is nearly six percent of their gross domestic product.

This is yet another well planned, double barrel shotgun approach in line with Abenomics to break Japan out of its decade’s long moribund economy. This plan was introduced in 2013 by PM Shinzo Abe when he gave us his three key arrows to bring back inflation and economic growth to Japan. Firstly, massive quantitative easing. Then the government would increase spending. Then structural reforms which includes changes to labor and immigration.

They have yet to really focus on the third arrow and maybe they should.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/us-stocks-gain-sp-500-hits-record-high/

US Stocks Gain as S&P 500 Hits a Record High

Friday, US stock markets moved higher for the fourth week in a row and the S&P hit a new record high. Investors digested a mix bag of corporate earnings and a stronger than expected US manufacturing data release.

At market close, on Friday, the Dow Jones was marginally higher as IBM led winners. Apple had the largest negative impact, dollar to dollar. This was the Dow’s eleventh day in a row of gains. The S&P 500 hit a new record high supported by the utilities sectors. All ten sectors were higher on the day. The Nasdaq Composite also moved higher on the day.

Earnings season is in full swing, and it is painting a good picture of where the world’s largest economy is right now. We saw okay results from IBM and Microsoft. Even General Electric beat estimates. However, shares of the conglomerate fell after reporting a two percent drop in orders for the second quarter (Q2).

GE Weighs on Stocks after Earnings Release

GE is often considered, and rightly so, the bellwether of the US economy. They posted earnings of 0.05 cents per share, beating estimates, and revenue rose 15 percent annually. The company’s earnings were helped by its aviation, healthcare and power divisions. In its press release, the company said its business was being effected by a volatile “and slow growth economy.”

Other companies also reported numbers today. On the S&P, American Airlines met estimates as did Stanley Black & Decker and Honeywell. Whirlpool also reported good earnings. Companies that missed were Skechers, Starbucks and Chipotle, even though they returned to profits.

The US released economic data on the day as well, which helped sooth some of the trepidation from the mixed earnings results. Manufacturing hit its best level since October 2016. The flash PMI rose to 52.9 from 51.3 as manufactures battled a stronger US Dollar. There was also drag from the energy sector and concern with the volatile US presidential elections. This was a good result in face of those headwinds.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/french-stock-exchange-ends-week-note/

The French Stock Exchange ends the Week on a Down Note

On Friday the French stock bourse, the CAC 40 traded lower and then closed on an inside bar to end the week. This is a bearish cue that traders should pay attention to as market get ready to open for the week in a few short hours.

Right now the French headline stock exchange is trading close to the monthly high. This new monthly high was achieved on Monday and lines up at 4,517. With price action failing to break through the new monthly high, this level is acting as the first level of technical resistance. On the downside, price action has also not broken back below the daily low, set on Thursday. This low price point is the first layer of support for the CAC 40 and lines up at 4,472. Please use the below daily MT 4 chart for today’s daily technical analysis.

CAC 40 Chart

Trading the French Stock Exchange

Should the CAC 40 manage to move higher today or lower, traders can use the average trading range (ATR) in order to help plan price projections for this particular stock bourse. Right now, the ATR is at 86. His means the bullish breakout is lining up neat 4,600. The bearish breakout is lining up near 4,390. These are the two technical levels that traders need to pay attention to this morning.

Should price action fail to break out on either side of these levels, then French stocks can be in for some consolidation, or sideways trading, this week. If this scenario happens, traders who employ a carry long strategy, might want to sit on the sidelines and wait for a breakout to occur before placing a trade. Traders can also consider a range trade approach and buy on dips and sell at peaks until the breakout occurs. Especially as the CAC 40 trades between support and resistance.

Traders should also note that ATR is likely to pick up again. The decision that that the United Kingdom made to vote “yes” to leaving the European Union has not finished playing itself out. With the appointment of a new government in place, it is a matter of time until the UK enacts “Article 50” and begins divorce proceedings from the EU. This will see a return of volatility to not only the European financial markets, but to the global financial system.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/japanese-pm-abe-wins-landslide-nikkei-soars/

Japanese PM Abe Wins in a Landslide and the Nikkei Soars

Asian markets rung in the new week on a high note as they were bolstered by the landslide win for Japan’s Prime Minister Shinzo Abe. This win helped investors to shrug off a stronger than expected non-farm payroll (NFP) report on Friday which could push the US Federal Reserve (Fed) closer to hiking rates again.

The Japanese Nikkei 225 leaped four percent and the broader Topix also rose over four percent on the day. Both indices saw solid gains despite a stronger yen. By 0930 HK time the yen was trading at 100.68 against the US Dollar.

In Australia, the ASX 200 was up nearly 1.75 as the heavily weighted financial sub-index rose 2.15 percent. There was a rally with the country’s major banks as shares of ANZ rose over three percent. The Aussie Dollar was also higher. Shares in Hong Kong also joined the regional rally today as well as stocks in mainland China. In South Korea, the Kospi Composite rose over one percent on the day.

Shinzo Abe Cruises to a Victory

On Sunday, Japan’s current prime minister, Shinzo Abe saw his ruling coalition win in a landslide. This will make it easier for him to push through his economic agenda called Abenomics.

Also on Sunday, Australia Prime Minister Malcolm Turnbull declared that his ruling coalition won the very tight and close election. The vote counting continued for a week well after the election.

Thanks to the resolution of this election crisis, the Australian Dollar is finding some support after fall most of last week against its major currency counterparts.

On Friday, the US released its NFP showing that the world’s largest economy added 287,000 new jobs versus the expected 175,000. The unemployment rate edged higher from 4.8 to 4.9 percent.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/ftse-sees-best-week-since-2011/

FTSE Sees its Best Week since 2011

Friday saw European stocks closing with solid gains as the global stock recovery continued in the wake of the shocking Brexit vote. However, uncertainty remains as the United Kingdom and European Union still need to negotiate their divorce settlement.

The Euro STOXX 50 was up nearly 0.7 percent after a choppy trading session. Most sectors ended higher with only technology and healthcare stocks showing weakness. The FTSE, in London, jumped over one percent and gained seven percent on the week. Its best showing since December of 2011. Britain’s stocks have been rising since Bank of England (BoE) Governor Mark Carney gave a dovish speech saying the central bank could inject more stimulus in light of the UK referendum to leave the European Union.

European and FTSE Stocks to Watch

Fresnillo, listed on the British FTSE, surged 7.7 percent as silver prices rebounded to a two year high on Friday. In the commodity universe, most metals were higher boosting ArcelorMittal and Anglo American. Shares of BHP Billiton finished marginally lower after a Brazilian court held up a $6 billion over the Sarmarco iron ore catastrophe.

The best performing sector, in Europe, on Friday was the auto sector. Data showed that sales for new cars we up 0.8 percent in France for the month of June. After the data release, shares of French automakers rose. Renault was up 6.7 percent and Peugeot Citroen rose 4.7 percent on the day. Elsewhere, Volkswagen surged over four percent after the automaker said a court hearing ruled they could fix some 85,000 diesel polluting vehicles.

As far as economic data was concerned on Friday, the Eurozone released its unemployment data for the month of May. The figure fell to 10.1 percent. The number came out at 10.2 percent for April. The data was released by Eurostat.

While gains were seen in the global stock markets, uncertainty remains as the UK has yet to initiate formal divorce proceedings from the European Union. Article 50 has yet to be engaged. Once this happens, volatility should ensue once again.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/european-stocks-continue-collapse-brexit/

European Stocks Continue to Collapse after Brexit

Today, Monday June 27, 2016, the first trading day for the European markets after the shocking referendum result in the United Kingdom which saw Britannia voting to leave the European Union. The fallout is set to continue today as the British Pound, oil prices and European stocks are all set to fall when Europe opens today.

As of right now, futures on the FTSE 100, in London, are down almost 200 points. The German bourse is set to open down 246 points the French CAC 40 is set to open 108 points lower when the opening bell tolls.

Investors were shocked when the UK voted to leave the EU on Friday. The ongoing uncertainty of what this means for the EU and Britain will continue into today, as the Pound continues to fall and global stocks are still digesting Brexit. Stocks in Asia were mixed this morning. No shocking selloffs but no strong buying.

Friday’s vote drew the ire of the International Monetary Fund (IMF) whose director, Christine Legarde said the financial markets “vastly underestimated” the outcome and the selloff is not quite finished as of yet. “At this point in time, policy makers both in the U.K. and in Europe are holding that level of uncertainty in their hands,” Lagarde said on Sunday. “How they come out in the next few days is going to really drive the direction in which risk will go.”

Political Turmoil in the UK sets to the Tone for European Trading

This morning, there is some political turmoil in the UK for the European traders to contend with. British Prime Minister David Cameron has resigned. He favored the “remain” camp. There is now a possible battle for leadership within the country’s ruling party. On the other side, the Labor Party, led by Jeremy Corbyn, has suffered an exodus of members from the shadow cabinet. Scotland is also rumbling that a fresh referendum to leave the monarchy is a distinct possibility as they want to stay in the EU.

The Sterling Dollar was already under pressure during Asian trading hours, down over two percent against the US Dollar. The yellow metal gold, was higher as investors are flying to safe haven assets classes. Japanese Government bonds also got a safe-haven boost today as the yield on the 20 year JGB fell to a record low of 0.09 percent.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/brexit-becomes-reality-england-votes-leave/

Brexit Becomes Reality as England Votes to Leave

This morning has been a wild wide for Asian stock markets and the Sterling Dollar as the people of the United Kingdom to vote whether or not to make Brexit a reality and leave the European Union.

In a dramatic and stunning turn at the polls, analysts and traders, failed to price in a reality in which the UK could actually leave the EU.

As vote counting finishes up, the United Kingdom is on course to exit the EU. The British Pound has hit a 1985 low. Dow Jones futures have opened up nearly 700 points down. The Japanese Nikkei 225 was down nearly eight percent at one point. The US Dollar has plummeted against the Japanese Yen, and European financial markets have yet to open.

Currency Markets in Turmoil over Brexit

The World’s currency markets are upside down and gyrating wildly as the UK marches towards independence from the European Union. This result has caught investors off guard as they failed to price this reality in. As of yesterday, many thought the UK would never vote to leave.

The “Leave Camp” received stronger than expected support in areas that they were expected to fall behind. Voter turnout was close to 80-85 percent during the voting process. Inner city areas in London, Northern Ireland and even in Scotland, showed stronger than expected leave tallies.

As expected, Wales and northern England voted in favor of leaving the EU. The pro stay vote n Scotland, shockingly, was lower than expected. At the time of this report, as the final tallies come in, the United Kingdom had voted 52 percent in favor to leave the EU. Over 342 polling areas, the majority, have now reported.

The United Kingdom is set on leaving the European Union. The next step will be a period of two year long negotiations as he EU and UK finalize their divorce. During this time expect a lot of volatility, not only in the Forex markets, especially with the Sterling and the euro but with the Dollar and sentiment linked currencies like the Australian and New Zealand Dollars. The commodity universe will also be heavily impacted.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/european-stocks-pop-higher-thanks-oil/

European Stocks Pop Higher thanks to Oil

European stocks closed higher on Friday thanks to a positive day in Asia and a rally in oil prices.

Thanks to oil, the energy sector had a good day, posting solid gains. The FTSE 100, in London, was up around one percent. The French CAC 40 was up as well as well as the German benchmark stock bourse.

It is safe to say, that European stock and financial markets have been on edge and volatile thanks to the upcoming Brexit vote this week in the United Kingdom. Polls are showing that the Leave movement has momentum.

Oil Prices Rise Supporting European Energy Plays

During the course of the day the price of the black gold, oil, ticked higher. This gave stocks a moment to breathe and relax from a tumultuous week around the looming Brexit vote. This vote, and not surprisingly, has sent volatile waves across the global financial markets. At one point, this past week, German bunds for the first time ever we trading at a negative rate. This did not support the German stock exchange, at it had a rough week.

During the day, the price of crude oil traded near $48.20 per barrel. This in turn helped to support energy plays throughout Europe. Oil and energy companies like Tullow Oil, Royal Dutch Shell, Anglo American and BHP Billiton all traded higher thanks to a pop in oil prices and a slightly weaker Dollar. A weaker Dollar tends to support commodity prices. However, some mining resource companies did not fare very well. Companies like Randgold Resources and Fresnillo were both underperformers on Europe’s stock exchanges for the day despite the recovery in resource commodities.

Across the pond, stocks in the United States did not have a great day as jitters from Europe also took hold. The Dow Jones saw its worst performing week in over a month.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/us-dollar-rebounds-asian-stocks-sink/

US Dollar Rebounds and Asian Stocks Sink

To end the week, on Friday, Asian financial markets moved lower thanks to a stronger US Dollar and weaker commodity prices. Also, Japan’s government bond yield hit a record low ahead of next week’s Bank of Japan (BOJ) meeting.

In the Down Under, the S&P ASX 200 was down nearly 50 points as the financial sub-sector lost one percent. Energy, materials and resource sectors were also under pressure thanks to a tumble in commodity prices thanks to a stronger US Dollar. The financial banks, in Australia took a hit in part due to their enormous exposure to the resource sector.

All four of the so-called Big Four Banks in Australia, which include ANZ and Commonwealth Bank of Australia closed lower on the day. NAB led losers down over one percent.

Japan Leads Asian Stock Bourses Lower thanks to the Dollar

In Japan, the Nikkei 225 was down 67.05 points as the yen kept up its strength against the US Dollar. This put pressure on the country’s exporting plays. The benchmark Japanese Government Bond (JGB), the 10 year note, fell to -0.147 percent as prices moved higher. Investors are leading towards the BOJ introducing more easing measures at their June 16 monetary policy meeting, which is next week. This increased buying of JGBs as investors hope to resell these bonds back to the BOJ, at a profit, after the meeting.

Bank shares in Japan were also mostly lower, as they are required to hold onto JGBs. Lower yields can hurt profits. There is also the possibility that the BOJ can send rates deeper into negative territory. This move will put further strain on profit margins. As a result, Shinsei Bank lost 1.86 percent and SMFG lost 1.3 percent on the day.

In South Korea, their headline stock bourse lost over six points. In Hong Kong, the Hang Seng, which was closed on Thursday, opened only to drop over one percent.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/nikkei-closes-higher-despite-stronger-yen/

Nikkei Closes Higher despite a Stronger Yen

Asian markets closed mostly higher Friday as investors waited on the all key non-farm payroll (NFP) out of the United States. This is usually a key indicator as to what the Fed will do at its upcoming monetary policy meeting.

The yen was also on the radar screens on Friday as it strengthened. The yen fell below ¥109 before the markets opened on Friday. Despite this, the Nikkei 225 managed to gain nearly 80 points to 16,642.23. Thus ending a two day losing streak. By 2:30 pm HK time the yen was at 108.75.

In corporate news out of Japan, Fast Retailing shares jumped 6.88 percent after this retailing chain that sales in Japan grew nearly six percent in May. Fast Retailing has over an eight percent weighting on the Nikkei, as of April.

In Australia, the S&P ASX 200 was up 0.76 percent as materials rose over one percent. The heavily weighted financials sub-index added 0.7 percent on the day. The stock bourse in South Korea was flat as well as stocks in Hong Kong. The stock bourses in mainland China erased gains after the Caixin Markit services PMI came in at 51.2 in May. This was below the 51.8 print the month before. New business and hiring have fallen to a three month low in the services sector in China. Both bourse in China closed marginally higher on the day.

Nikkei Shrugs off Wages Data

The Nikkei managed to shrug off an increase in wages in April. Wage growth is key to the government in Japan to drive private consumption. They also use wage growth to show a rise in inflation.

In other economic news out of Japan, the Market/Nikkei services sector survey showed an expansion of activity in this sector. For the month of May, the number printed at 50.3, which was up from the print of 49.3 in April.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/brokers/iforex-close-operations-israel/

iFOREX to Close Down Operations in Israel

Israel has been clamping down on Forex and online trading firms with harsher online margin trading regulations. These new regulations have caused another brokerage, iFOREX, part of the CLIO Financial Trading, LTD family to shut down operations in Israel. iFOREX has decided to cancel its application for an Israel Securities Authority (ISA) license and will be shutting down all operations in the country effective by June 6.

The company had been in advanced stages of obtaining a license with the ISA, but decided to abandon the effort. They join a number of Forex and other online trading companies who have also decided to abandon operations thanks to ISA limitations. The unavoidable consequence of these closures will force Israeli clients who want to trade Forex and other online financial instruments to turn to offshore and unregulated firms.

In an interview with Finance Magnates, CLIO Chief Executive Officer (CEO) Yoav Libal said that “A lack of financial worthwhileness leads us to the decision. The operation of the firm required a lot of management input and we determined that the profitability is not great enough.” He mentioned that they could have gotten the license but made a decision to stop the process. “The ISA acted fairly and honestly with us and we have no complaints against it.” He feels that there is a “negative atmosphere” about the online Forex world in Israel and that this would have a big impact on bringing clients onboard. “We were not able to bring enough clients. I support regulating the field.”

The existing clients, according to a message on their Israel site, of iFOREX have until Monday, June 6, 2016 to withdraw all funds and close all open positions. The online platform for the company works only on a close account mode. They will shut operations by the above date.

New Post has been published on Binary Options Leader

New Post has been published on http://www.binaryoptionsleader.com/making-the-news/europe-open-mixed-following-yellen/

Europe Opens Mixed Following Yellen

European markets just opened and are broadly mixed as investors are digesting comments made by Janet Yellen, chair of the Federal Reserve (Fed) on Friday at an awards ceremony.

The STOXX 600, the pan-European index, was flat at open and in Germany, their headline bourse was up around 0.16 at open. The French CAC 40 was marginally lower and financial markets in London are closed for a public holiday today.

Investors in Europe are Cautious thanks to Yellen

This mixed open for Europe follows a strong close in US financial markets on Friday and Asian bourses were higher this morning.

On Friday, at an awards ceremony at Harvard University, she mentioned that a rate hike is sooner than most think. “It’s appropriate, and I’ve said this in the past, I think for the Fed to gradually and cautiously increase our overnight interest rate over time and probably in the coming months, such a move would be appropriate,” Yellen said at Harvard’s Radcliffe Institute for Advanced Study.

These comments were supported by other Federal Reserve members, like St Louis President, James Bullard, who is in South Korea. He feels that the financial markets are “well-prepared” for a rate hike.

These comments are leading investors and analysts, this morning in Europe, to believe that a rate hike is around the corner. Maybe not in the summer but in the fall. This will lead to volatility. The equity bourses already know that there will be a rate hike sooner than later. They key takeaway with these Fed comments, is that will raise rates then we will wait another half a year before the next rate hike. However, there is still uncertainty, will they raise rates faster? Nobody really knows yet. The Fed is being ambiguous with their comments and not clear as to their path of rate hikes.

More than most likely, we will see a rate hike by the fall then the Fed will move cautiously after that.

Trending Blogs

Recently Viewed Blogs

Untitled