Asian Markets Lower as Investors Eye US Politicsby, Mike King, Bullish University
Asian markets were lower across the board to start the week off. Sentiment this week will be dominated by the first US presidential debate and by an OPEC meeting today in Algiers. This will have an impact on binary options strategy for the day.
In Australia, the ASX 200 lost 0.2 percent as the heavily weighted financial sector lost 0.25 percent on the day. The energy sector reversed earlier losses to trade flat and materials lost 0.05 percent. Energy prices will provide a challenge for binary options traders today.
Major banking plays in The Down Under were all lower. ANZ, Commonwealth Bank of Australia were all lower. National Australia Bank (NAB) also fell while Westpac gained. The Australian Dollar was also a bit volatile in the Asian trading session making it hard for Forex and binary options traders to get a good read on direction.
In Japan, the headline stock bourse, the Nikkei 225 lost some ground while the South Korean Kospi Composite Index also lost ground. In Hong Kong, the Hang Seng Index dropped nearly 0.8 percent. The markets in China were also lower on the day. The Shanghai Composite lost 0.6 percent and the Shenzhen Index lost 0.8 percent.
Asian and Pacific Rim traders had a sell day after both Europe and the United States took hard won wins off the table on Friday. Binary options strategy should follow this pattern into European trading hours as well as the US early trade at open.
US presidential nominees Hillary Rodham Clinton and Donald Trump are going head this evening in Hofstra, New York in the first debate of the presidential election. Recent polls are showing the candidates are even, head to head. The election for President of the United States is in November, nearly one month away.
Should Trump have a good performance, then safe haven assets will benefit. Japanese Government Bonds, the yen, Swiss franc, German bunds and gold. Binary option traders will need to adjust strategy as risk on assets like emerging market currencies and stocks will lose ground. High yield bonds and US equities could also move lower if he performs well. This debate could also fail to meet expectations, as the bar is set low with two apparently unpopular candidates running. Still binary options traders need to watch this event closely.
Investors survived the major bank monetary policy decisions from the US Federal Reserve and the Bank of Japan. Both central banks delivered very little, with high expectations expected. This is what could happen with this first presidential debate between Clinton and Trump. There is a series of debates before November and the candidates will try and play the first one relative safe instead of fighting with one another so early on.
In the currency markets, this morning, the US Dollar index was at $95.44 at 1100 HK time. It was at $96 the week before until the Fed released its policy decision to keep rates as is. The Japanese yen was at 100.95 this morning, down from 102.40 from last week. The yen is gaining strength, as investors are losing faith in the Japan’s central bank. Binary options traders should expect bearish momentum to continue in the USD/JPY Forex market today.
This also put pressure on Japan’s exporter plays. Shares of Toyota Motors, Nissan Motors and Honda were all lower on the day. Shares of Nikon rose this morning. A stronger yen means less profits and puts selling pressure on these exporting plays. Even in stocks, binary options traders should continue to see selling pressure in companies who export goods from Japan.
The Australian Dollar fell lower this morning, as the sentiment linked currency came under selling pressure. The AUD/USD was trading at 0.7610, down from 0.7680 seen last week. Binary options strategy should reflect selling pressure in this Forex market as well.
Looking at the oil market, price of the black gold also moved lower as hopes for a deal among OPEC members capping supply are fading. OPEC is meeting today in Algiers. WTI US Crude did manage to edge out gains, thanks to a weaker Dollar. The Global benchmark Brent also remains under pressure. Binary options strategy and trading should reflect the weakness in oil today.