Australia Midweek Binary Market Update 11/28/2012

Australian binary options on stocks are lower today.  The ASX 200 was last down 10.6 points to 4446.20.  Investors are disappointed with US politicians and the lack of progress in resolving the fiscal cliff.

Metals and mining stocks are the weakest today.  BHP Billiton was down 34 cents to $33.86 while Rio Tinto was down $1.18 to $56.60.

The Australian dollar binary option remained lower following a decline yesterday amid speculation a report tomorrow will show a slowdown in capital expenditure growth, damping the outlook for the economy and the currency.

The so-called Aussie dropped for a third day versus the yen as investors boosted bets the Reserve Bank of Australia will lower borrowing costs at its next meeting on Dec. 4. Demand for the New Zealand dollar was tempered after the country’s central bank Governor Graeme Wheeler said manufacturing has been hurt by the local currency’s gains and as Asian stocks retreated.

Traders are pricing in a 67 percent chance of another reduction Dec. 4 to 3 percent, swaps data compiled by Bloomberg show. That would match the half-century low of 3 percent at the height of the 2008-2009 global financial crisis. In response to that rate and government handouts of as much as A$21,000 to buyers, house prices surged an annual 19 percent in the first quarter of 2010.

Binary options on China’s stocks fell, dragging the benchmark index to its lowest level since 2009, as trading activity slumped. Materials and industrial companies led losses.  The Shanghai Composite Index slid 0.7 percent to 1,977.43 at the 11:30 a.m. local-time break, heading for its lowest close since Jan. 16, 2009.

Oil binary options traded near the lowest price in a week in New York after an industry-funded report showed rising stockpiles in the U.S., the world’s biggest crude consumer.

Futures were little changed after slipping 0.6 percent yesterday. U.S. inventories gained 1.96 million barrels last week, data from the American Petroleum Institute indicated. An Energy Department report today may show supplies increased by 350,000 barrels to 374.8 million, according to the median estimate of 11 analysts in a Bloomberg News survey.

Crude for January delivery was at $87.19 a barrel, up 1 cent, in electronic trading on the New York Mercantile Exchange at 12:25 p.m. Singapore time. The contract decreased 56 cents yesterday to $87.18, the lowest since Nov. 20. Prices are down 12 percent this year.

Brent for January settlement rose 13 cents to $110 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $22.82 to West Texas Intermediate, compared with $22.69 yesterday.

As always good luck trading and be sure to check back for the latest updates!