Binary Options Roundup 12/29/2012
Binary options on the Australian markets ended the last full trading day of the year with a bang. The ASX200 rose 23.3 points to 4671.30. Australian stocks closed at a fresh 19-month high and capped the last 2 weeks where stocks rose in 12 of 14 sessions. Iron ore prices rose and that helped resource stocks. Rio Tinto closed up $1.08 to $66.53, BHP Billiton rose 41 cents to $37.40, and Fortescue Metals closed up 11 cents to $4.64. On binary options for banking stocks, ANZ closed up 9 cents to $25.00, Westpac rose 17 cents to close at $26.27, Commonwealth Bank was up 13 cents to $62.25, and NAB closed 7 cents higher at $25.02.
Yen Weakness Continues And Japanese Equities Rally
The Japanese Yen weakened to 89.835 to the Australian dollar. In the New Year, Yen weakness looks set to continue as Japan’s new Prime Minister Shinzo Abe pledges to print money and to take control of the Bank of Japan. Yen weakness is good for Japanese exporters. A weaker yen increases exporters profits and thus shares will rise. The Nikkei ended 2012 up 22.9 percent and closed at 10,395.18. Keep in mind that the Japanese market is well off its high of almost 39,000 that was last seen in 1989. Japanese stocks have plenty of room to run and 2013 looks to be a good year for the Nikkei. The trade is long Japanese stocks and short the Japanese Yen.
US Investors Dump Stocks Ahead Of The Weekend
US stocks got hammered ahead of the fiscal cliff deadline on Monday. Lawmakers have to reach an agreement this weekend or else there won’t be a deal and the US goes over the fiscal cliff where automatic tax hikes and spending cuts take place. The S&P 500 Index closed down 1.10 percent to 1402.43, the Dow Jones Industrial Average down 1.21 percent to 12,938.11, and the NASDAQ down 0.86 percent to 2960.31.
Commodities Hold Steady Ahead Of Fiscal Cliff
Binary options on commodities held fairly steady in quiet trade ahead of weekend talks among US lawmakers. Iran announced that they would hold exercises in the Strait of Hormuz and that was supportive for crude prices. Investors weren’t looking to dump their gold in case lawmakers fail to reach a deal on the fiscal cliff.
Brent oil binary options fell 18 cents to $110.62, while West Texas Intermediate fell 25 cents to $90.62. Gold and silver had a fairly quiet day. Gold was down $6.10 to $1657.60, silver down $.16 to $30.08, copper down $.0075 to $3.5935 a pound, and the hardest hit in the metals markets were platinum and palladium. Platinum was down $10.30 to $1521.50 and palladium down $11.50 to $697.00.
Binary Options Outlook For Next Week And The New Year
Markets will all be focused on whether the US Congress and President Obama can reach a deal to raise the debt ceiling and avoid the fiscal cliff. Tax hikes and spending cuts are inevitable, but a deal must be reached to avoid hurting the middle class and driving the US economy back into recession. If a deal is reached, the world will breathe a sigh of relief and we look for a rally in equity and commodity markets. If not, binary option puts will be the play for binary traders. We like everyone else in the world is waiting with baited breath to see if a deal can be reached over the weekend.
As always, be sure to check back for the latest updates and we’ll post as soon as a deal among US lawmakers is reached (or not?). Good luck and prosperous trading in the New Year!
