Binary Options Daily Analysis: Asian Equities Slide as China Tightens Property Rules!
The USD is broadly higher versus the majority of its peers this morning. The AUD/USD has tumbled 0.57% to $1.0146. The dollar has also gained ground versus the kiwi and euro. Traders still do not have the confidence to take big risks today. However, this may change as the trading day passes by. Therefore, you will need to pay attention to all the data as it is published from the leading economies later on.
There is little demand for the euro today in spite of the publication of positive economic data. The EUR/USD pair is lower today by 0.11% at $1.3003. The EUR/GBP cross has dived 0.19% to 86.42 pence. Traders have decided to ditch the European single currency this Monday due to the woes of the Eurozone. There are fears that the debt crisis in the region will only get worse. The EUR may slide further later on this Monday.
The yen is weaker against the dollar following the declines made by Japanese stocks earlier this morning. The yen has dived into the abyss, as traders foresee the Japanese currency making further losses in the months ahead. With such aggressive stimulus talk by officials, it is no wonder why the JPY is so bearish. The JPY has lost ground today versus the GBP and a number of other peers. Its losses versus the dollar may be extended during the U.S. session.
Asian equities capped their second straight trading session of declines as China tightened property rules. This is an attempt to cool the property market. There are fears that the bubble may burst. Therefore, in some senses, the move is a relief to traders.
The MSCI Asia Pacific Index slipped 0.8 percent to 133.59. China’s Shanghai Composite Index fell 3.7%. Hong Kong’s Hang Seng Index slipped 1.5%. Japan’s Nikkei 225 Stock Average gained 0.4%. Taiwan’s Taiex Index retreated 1.2%. South Korea’s Kospi Index slipped 0.7%. Australia’s S&P/ASX 200 Index slumped 1.5%.
BHP Billiton Ltd. fell 2% to A$35.57. Rio Tinto dived 3.7% to A$63.65. Noble Group made losses of 2.1% to S$1.15.
This has already led European stocks to slump this Monday morning, as traders feel that there will be big losses ahead. With the lack of positive data as of this late, it is understandable why stocks are so bearish.
The crude oil binary option did make some big losses during the previous trading week. In fact, crude has slumped for 2 weeks in a row. This is after the energy was one of the best performing commodities. It is continuing its dive this morning. Crude is down 5 cents at $90.63.
Traders just do not have the confidence to open Call options in crude oil today. There is so much going against crude oil at the moment. As a result, traders have largely sold the commodity.
The greenback has been one of the most bullish currencies.
This has really hurt crude prices. To top this all off, there was a rise in crude inventories last week. This put additional downward pressure on oil. It may be the case that the commodity will continue sliding in the hours ahead.
One of the weakest currency pairs in recent trading weeks has been the pound sterling. The poor U.K. construction data has only added to this bearishness. However, the pair has made a mini comeback in the past hour, as there are a number of financial indicators pushing it higher. The pair is up for the day by 0.09% at $1.5049.