Making the News

This section of the site covers trending financial topics and stories that are making the news.

European Stocks Close Higher after Yellen

cac 40, france, french, europe,european

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…

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European Markets set to Open Rather Quietly

european, German DAX

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…

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Economic Growth in Japan Misses the Mark

The Economy in Japan

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…

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Asian Stocks Gain after a Strong NFP Report

nikkei, topix, asian

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…

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

dow jones, S&P

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…

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Japan should stop with the Weaker Yen

abe, boj, japan, abenomics

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…

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

US Stocks, NYSE, Nasdaq, S&P

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…

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The French Stock Exchange ends the Week on a Down Note

cac 40, france, french, europe,european

On Friday the French stock bourse, the CAC 40 traded lower and then closed with an inside bar ending the week. This is a bearish cue that traders should pay attention to as the markets get ready to open for the week. Right now the French headline stock exchange is trading near its monthly high. This new monthly high was set last Monday, July 11, and lines up at 4,517. With price action failing to break through the new monthly high, this upside barrier is acting as the first level of technical resistance. On the downside, price action has yet…

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Japanese PM Abe Wins in a Landslide and the Nikkei Soars

abe

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…

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FTSE Sees its Best Week since 2011

london, ftse, brexit

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…

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European Stocks Continue to Collapse after Brexit

brexit, europe, euro, european

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…

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Brexit Becomes Reality as England Votes to Leave

brexit, england,uk, euro, eu

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…

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European Stocks Pop Higher thanks to Oil

european, German DAX

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…

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US Dollar Rebounds and Asian Stocks Sink

asian, nikkei, japan, china, gdp, dollar, yen

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….

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Nikkei Closes Higher despite a Stronger Yen

asian, nikkei, japan, china, gdp, dollar, 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,…

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iFOREX to Close Down Operations in Israel

iforex

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. iForex joins a number of Forex and other online trading companies who have also decided…

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Europe Opens Mixed Following Yellen

european, German DAX

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….

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Roche Jumps 4% as Europe Bourses Gain

roche

On Friday, European stocks managed to eke out some small gains as oil prices went south and shares of Roche leaped four percent on the day. For the day the STOXX 600, the pan-European benchmark, was up 0.2 percent. For the day the benchmark was up a solid 3.4 percent for the week. The other major European bourses we slightly above the flat line for the day. This included the French CAC 40 and the FTSE 100, in London. Sectors, on these exchanges, were mostly mixed with autos, energy and mining stocks coming under some selling pressure on the day….

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Shares of Italy’s UniCredit Bank Jump 7%

unicredit

On Friday, major European stock bourses rose, reversing earlier losses, following Wall Street higher even though there are renewed concerns that the US Federal Reserve (Fed) will raise rates sooner than later. The June rate hike is back on the table as well as other rate hikes in 2016. The pan-European STOXX 600 closed up over one percent on Friday and was up nearly one percent for the week. In the United Kingdom, the FTSE 100 was up 1.7 percent as was the French CAC 40. In Germany, their headline stock bourse rose 1.2 percent but finished lower for the…

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Nikkei Manages a Small Weekly Gain

nikkei, topix, asian

On Friday, Asian markets retreated even further with Japanese equities coming under pressure on the Nikkei thanks to a stronger yen. Japan’s benchmark stock bourse, the Nikkei 225 seesawed most of the day closing down 234 points or 1.4 percent at 16,412.21. However, for the week the index was up 1.89 percent. The Kospi, in South Korea was up down over 10 points and stocks in Hong Kong lost over 1.5 percent. In China, both mainland bourses were down modestly to flat to end the day. There was also weakness, for Japan’s exporting stocks like Toyota, Nissan and Sony as…

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Energy Plays Weigh on US Indices

dow jones, S&P

US markets closed rather mixed overnight on high volume. There were gains in healthcare which offset losses in materials and energy plays. It would appear that capital is rotating into safe haven plays. There is concern over the strength of the US economy as well as drag with oil prices. Concerns over a continued growth in China is also not helping and a stronger Dollar is weighing on corporate bottom lines. A stronger Dollar is also not helping the commodity world as well as metal plays sold off. The black gold, crude oil, lost over 2.7 percent to close at…

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Asia has a Muted Reaction to GDP from China

asian, nikkei, japan, china, gdp, dollar, yen

Last Friday, Asian and Pacific Rim markets closed mixed. Traders showed a rather muted reaction to the latest gross domestic product (GDP) number out of China. Their GDP came in-line with forecasts. The Australian S&P ASX 200 was up over 38 points to close at 5,157.48 as the energy and materials sub-indices outperformed.  Both reversed early losses to close up near one percent. The heavily weighted financials sub-index was up nearly half a percent on the day. The Australian headline stock bourse was up 4.4 percent for the week. In Japan, the Nikkei 225 snapped a three day win streak,…

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Japan Loses Ground in a Mixed Day

asian, nikkei, japan, china, gdp, dollar, yen

Asian markets were mostly mixed this morning to start the new week. Shares in Japan lost ground as the USD/JPY Forex pair is strong hovering around the ¥111 handle. The Japanese Yen has been there since last Friday. In the Down Under, the S&P ASX 200 was up marginally at 0.64 percent. The headline stock bourse in Japan, the Nikkei 225, reversed gains to close down around 0.3 percent. Across the Korean Straight, the South Korean Kospi was flat on the day. Australia’s bourse was supported by financial which rose 0.96 percent. The country’s Big 4 banks, ANZ, Westpac, NAB…

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The Nikkei Index Leaders Winners

asian, nikkei, japan, china, gdp, dollar, yen

This morning, Asian markets, traded higher after most were closed on Friday for a religious holiday. The yen weakened and boosted stocks in Tokyo higher on the Nikkei 225. A weaker yen often bodes well for Japan’s exporting stocks, like Nissan Motors, Toyota and Sony. Profits for exporters increase as the yen loses value. Japan’s benchmark bourse, the Nikkei 225 rose modestly on the day. The Topix was also higher. In South Korea, the Kospi was moderately higher. In China, the Shanghai Composite was higher but it was the Shenzhen which led China’s stock markets. The Shenzhen was up over…

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Shanghai has a Good Day as Asia Falls

shanghai

At the time of this report, Asian markets were mixed to lower as there is very little economic data to go on. This will be a holiday shortened week as most Western markets will close for Good Friday. With the absence of data from China, the Shanghai Exchange was the leader in the Asian and Pacific Rim markets today. The South Korean Kospi lost early gains to trade moderately lower on the day. The Australian stock bourse, the S&P ASX 200 was also lower on the day. The energy sector dragged this market down, as it she over one percent. The…

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Asian Markets Look to Extend Gains from Friday

asian, nikkei, japan, china, gdp, dollar, yen

Asian stock markets traded mostly in the green to start he week off. Traders are taking a better view of the recent European Central Bank (ECB) monetary policy decision to expand its QE program and cut rates into the negative. In Japan, the Nikkei 225 jumped nearly two percent as it extended Friday’s modest gain. Across the Korean Straight, the South Korean Kospi was also higher as it extended gains from Friday. In Hong Kong, the Hang Seng Index was index was up over one percent. In the Down Under, Australia’s S&P ASX 200 was also up on the day…

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US Crude Oil Rises 9.5% for the Week

crude oil

US crude oil prices were higher for the day on Friday after losing ground on Thursday. Sentiment in the black gold was boosted by a strong US Job report and technical buying in crude oil after prices breached key technical resistance levels. New crossed the wires, on Friday that the US oil rig count fell by 8 to 392 in operation. This time last year, there were 922 rigs in operation. For the day, internationally traded WTI Brent futures were up $1.63 to close at $38.70 a barrel. Its counterpart, WTI US Crude rose $1.35 per barrel to close at…

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Germany’s DAX Has Good Day on Friday

european, German DAX

European markets, and especially the DAX in Germany, were sharply higher to close the week. Markets saw a rebound in mining stocks as oil prices boosted sentiment. Positive corporate news, save for only bad news from the Royal Bank of Scotland, also helped. The European STOXX 600 was up 1.5 percent on Friday, just under session highs. Nearly all the sectors saw solid gains. For the week, the STOXX 600 was up 1.6 percent. In Germany, the DAX soared nearly two percent. The FTSE 100 in London, rose 1.4 percent and stocks in France rose 1.6 percent as the CAC-40…

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Markets in Asia Rise as the Nikkei Surges Higher

asian, nikkei, japan, china, gdp, dollar, yen

Financial markets in Asia were mostly higher to kick the week off as mainland China and Taiwan opened after the long Lunar New year holiday. The Nikkei surged higher after last week’s dramatic selloff. However, shares in China lost ground as weaker-than-expected trade data hurt sentiment. Japan’s Nikkei 225, retraced some of Friday losses as it surged over six percent on the day. The broader Topix was up over seven percent in morning trade. From the first of February till now, the Nikkei had been down as much as 12.88 percent. China Opens Lower Today thanks to Trade Data Going…

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5 Best Binary Options Brokers in 2016

You are no longer required to invest whopping amounts of money in order to become a part of the famed Wall Street. With the introduction of the Internet however, many low-initial-investment platforms have popped out all over the web. One of the simplest trading platforms to get into is binary options, which owes its name to the fact that you basically get to choose whether or not a stock will go up or down. In order to find the best binary options broker, you should not pay much attention to the bonuses they are offering because chances are that this…

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Asian Markets Beaten up Again

Asian markets climb

Asian financial markets remained mostly lower to kick off the week today. They extended losses from Wall Street’s dramatic pounding on Friday. However, markets in China wavered between gains and losses all day. At the time of this report, the Shanghai Composite was up 0.08 percent in a volatile day. The market was up 0.60 percent at one point and down 1.84 percent at one point. The Shenzhen Composite was the same. Up 1.13 percent and down two percent at one point. The CSI300 was up 0.2 percent. China will Hit the Markets with Data China is set to release…

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Identity verification in Binary Options

automated trading

There have been many controversies and confusion among many newcomers to the online binary options trading world about the process of identity verification and the requirements imposed by binary options brokers. Most of the concerns are centered on the possibility of identity theft by unscrupulous brokers. So why do binary options brokers have to ask their clients to provide sensitive information like copies of your passport or driver license, credit card and utility bills?   Prefer to Trade Forex with Alpari.com? Security Requirement First of all, it should be stressed that all licensed and regulated binary options brokers are legally…

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European Markets to Open Lower Today

European markets, both stock and financial markets, are getting ready to open their doors to kick the week off. Traders are still digesting the potential impact of the brutal terrorist attacks in Paris on Friday night. Right now, at the time of this report, London’s FTSE is expected to open around 45 points lower. The DAX in Germany is now down 145 points in pre market trading and the French CAC is down 111 points at 4,696. Investor confidence has been shaken to the core after a series of coordinated terror attacks in Paris killed 132 and left hundreds injured. The…

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The Dow Jones sees its best Week Since March as it closest up 100

The Dow Jones (DJIA) closed mildly higher to finish the week as crude oil prices continued to fall and investors remain shaky before the key Federal Reserve Board’s policy meeting next week. The major indices reversed opening losses, during a see saw session before closing around a half a percent and near session highs. The US financial markets are in a wait and see mode going into next week’s Fed policy meeting. The DJIA fell 85.75 points to close up 102.69 points. Both McDonalds (NYSE: MCD) and United Health (NYSE: UNH) led the way. The blue chip Dow Jones saw…

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Trading SpotOption’s Ladder Options Contract

Ladder options

Ever since the introduction of the ladder options contract by SpotOption in its new Gen 2 platform, there has been a lot of hype about this new options contract. Most binary options traders are actually clueless as to why there is so much hype over this new type of options contract especially by the more experienced traders who are familiar with spot forex trading. The main reason is the ladder options trading strategy is one of the more frequently employed trading strategies by forex traders. Essentially, it gives the trader more control over the outcome of his trade. Presently, only…

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China Tells the G20 that their Stock Market Correction is Almost Over

Apparently, China’s stock market is almost done with its correction of the bubble burst in August. Since then the mainland bourse has shed over forty percent. This revelations comes from Zhou Xiaochuan, in a statement to the G20 finance ministers. The markets fell sharply after a deb fueled injection caused them to move higher earlier in the year.  This has forced Beijing to launch a number of stimulus policies to stem the bleeding as the markets have fallen forty percent from their highs in June. According to the Financial Times, Xiaochuan told his counterparts this at the recent G20 meeting…

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What is Next After the Greeks said “NO!!”

The Greek rejection of the repayment terms offered by its international creditors will drive the markets today and this week. Opening bells in Asia saw a bloodbath after the Nikkei plummeted over two percent and the Hang Seng lost over three percent. European Markets are pointed to open sharply lower today. The Dax, Cac-50 and FTSE are all showing red at open. The euro was down over two percent versus the yen after the news. US Futures are also sharply lower, once percent down at the time of this report. If you want to gauge the contagion, watch the bonds…

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Markets Rattled as Greece Imposes Financial Controls

The Eurozone, the International Monetary Fund (IMF), Greece and the entire Troika are walking a tight wire as the negotiate Greece’s payback of its enormous pile of debt they owe to their creditors. Last night, the Greek Government announced that they will close down their banks for the entire week to prevent a run on the banks as people are looking to withdraw large amounts of cash from ATMs. This morning, global financial markets are being hammered. From the Forex markets to the stock and bond markets. This morning, when the Asian markets opened with investors being extremely jittery and…

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French Regulator AMF Steps Up Efforts to Stop Unscrupulous Brokers

AMF

Recently, the French financial regulatory agency “Autorité des marchés financiers” (AMF), have come down hard on unscrupulous and unauthorized binary options and forex brokers. The AMF recent “Mystery Shopper Campaign” conducted on forex and binary options brokers operating in the country have brought to attention some of the dubious and underhand practices employed by these brokers. Following the dismay result of the mystery shopper campaign, the AMF is now stepping up efforts to warn traders of these wayward brokers. The Mystery Shopper Campaign was aimed at 29 of the most visited websites dealing in forex and binary options trading that…

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TechFinancials to be traded on AIM

Optionfair website

TechFinancials, the owner of OptionFair and leading binary options trading platform provider has recently just settled the details of its IPO offering on the London Stock Exchange’s AIM market. Based on the order book, TechFinancials had only managed to raise $5.25 million, falling far short of the targeted $10 million. This puts its pre-IPO value at $25 million. Although, the company is well known as a leading online trading platform provider, the bulk of its revenue actually comes from the binary options trading brand that it own. According to the details listed in its prospectus, TechFinancials managed to gross $7…

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Trading The USD/RUB With Binary Options

USDRUB

Generally, the ruble is not a frequently traded currency in the forex market and its value is seen as being relatively stable. However, over the last few months, the forex market has seen some interesting developments with the Russian ruble. The national currency of the 6th largest economy in the world has lately been trading at  all time lows not seen since the Russian financial crisis in 1998. Image source: http://www.theguardian.com Since the beginning of this year, the ruble has lost nearly 50% of its value against the USD. The Russian central bank in its bid in trying to shore…

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NADEX to Offer Binary Options to Non-US Traders!

Nadex

Over the past few years, the binary options industry has evolved to become one 0f the most competitive industrys for a financial services provider to be involved in. The situation is no better for NADEX, the only US authorized binary exchange. In order to improve its growth prospect, NADEX is currently embarking on a program to make it more appealing to the international market specifically the neighbouring countries such as Canada and Mexico. This is considered a good move by many as the U.S financial markets are recognized as one of the most tightly regulated markets around the world. Binary…

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A Year After Cyprus Banking Crisis

cyprus banking crisis

It has been more than a year since the Cyprus banking crisis. Since then, a lot of developments had happened in the tiny Mediterranean republic. Although the Cyprus financial sector took a severe beating, two good things did come out from the crisis. One is the weeding out of the weaker players in the financial industry and permitting the more robust companies to stay in the game. The other good thing which came out from the crisis is the reforms undertook by the financial authorities to shore up the financial industry with stricter enforcements of regulatory infringements. Lax Regulatory Oversight…

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How to Find Market Volatility

US Stocks, NYSE, Nasdaq, S&P

Article Summary: U.S. TIPS yields have been very volatile all year pointing to insecurity in U.S. growth and recovery. Global economic data has been weakening and slowing. Especially in the EU which is bordering on deflation. Japan’s inflation missed the mark as prices are being fueled by the April tax hike and not by consumers. We are seeing global equity, currency and commodity markets exhibiting historically low volatility. However, we have a key element standing out. A seemingly stable economic environment. Looking at Treasury Inflation Protected Securities, the long form for TIPS, which measures U.S. economic growth expectations has been…

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Bitcoin Firms Fight Regulation

A Short History of Bitcoin

China which is home to three of the biggest Bitcoin exchanges has released a joint letter to New York regulators warning them that their proposed rules on the cryptocurrency will have vast consequences. The letter was signed by the chief operating officers of BTCChina, Huobi and OKCoin. They argue the new proposals levied by the new “BitLicense” under the New York State authorities are too broad and should only apply to businesses with connections to the region. They state they are organized under the laws of the People’s Republic of China and do not believe the law to be appropriate…

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Economic Analysis: The German GDP Contracts

As expected the German economy lost a lot of momentum in the second quarter. It contracted widely for the first time this year and France’s economy came in flat… again. The shock: the German gross domestic product (GDP) contracted by 0.2 percent this past quarter thanks to a negative balance in exports, construction costs and weak foreign investments. There is no big reason to be overly excited concerned about today’s GDP result. The contraction is more of a result of the Ukraine crisis and sanctions against Russia. There were also many holidays in May and continued problems in Italy and…

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The Battered Sterling Is in For More Pain

The Sterling, better known as the British pound (GBP) has seen one nice rally the last year or so. This has abruptly come to an end and the drubbing is far from over. The GBP began this recent rally back in July 2013 and hit a high, in early July 2014 of $1.7190. Traders had expectation the Bank of England (BOE) would begin to normalize monetary policy by hiking interest rates for the first time since 2007. The GBP/USD has now lost nearly two percent to close at $1.6855 at the close of Asian trading on Thursday, August 07, 2014….

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China’s Economy Seems to be Stabilizing

Summary: China’s economy is showing signs of stabilizing. GDP grew at two percent quarter on quarter and on an annual basis was up 7.5 percent. Consumer spending is solid as retail sales was up to 12.3 percent for the second quarter. China released economic data last week that was a bit promising. Real gross domestic product (GDP) was up two percent (not on an annual basis) per quarter. This is stronger than the 1.5 percent we saw the previous quarter. On an annual basis, the GDP grew at 7.5 percent in the second quarter from the 7.4 percent we saw…

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The UK’s Binary Options Industry

One reason for the popularity of binary options is down to the motivation which investors have in looking for alternative means of investment opportunities in the light of global recession over recent years. While binary trading is considered high risk, most investors are quite willing to accept the risk as they have lost faith in the traditional methods of investing especially those from the UK and Europe. To cater for the fast expanding UK market, many binary brokers have opted to set up shop in the UK. The UK Binary Options Market Although binary options trading is a relatively new…

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U.S. Fed: No Rate Hike Anytime Soon

As expected, the Federal Reserve released their minutes yesterday. They discussed procedures of how and when to raise rates but did not signal that the rates would be raised anytime soon. This calmed the markets. The FOMC (Federal Open Market Committee) did discuss what were the right “mix of tools” that would be used to control rates going forward and what would be needed to normalize rates. FOMC members generally agreed to start considering their options for normalization of rates. They agreed it was prudent to start this process and to clearly communicate this process to the public well before…

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The Nikkei is Due for a Rebound

Fridays session

The Nikkei had a blowout year in 2013. However, since then, the Japanese stock market seems to have lost its allure. Now, we could be set for a nice turnaround. We could get a nice aggressive outperformance in Japan’s benchmark index (Nikkei), especially since there are high hopes for new stimulus form the Bank of Japan (BOJ). A rally of 20 percent from its current levels could be in the cards this year. We could rally from 14,090 to 17,000 by year’s end. By the end of 2016, the Nikkei should target 18,250 to 18,500. Year to date, the Nikkei…

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The Fed Could Become More Hawkish

Often, Wall Street is asked questions about how they feel the Federal Reserve (Fed) is doing or what direction they think the Fed will take. As traders and market makers speak, we get a sense of the markets and how they will react when the Fed makes a move. The feeling now is that Yellen and Co. will adapt a more hawkish tone over the next two years. The Street is looking for the Fed Funds rate to be at one percent by the end of 2015. In March, most expected the rate to be around 0.80 to 0.83 percent….

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US Housing Market 2014

US Home sales

The US economy has been held back thanks to the housing market. It appeared, this past spring that was going to change. This week’s data showed sales and new construction sputtering as mortgage rates moved up from record lows. This week’s data shows we need more than the start of the spring home buying will be needed to get this market going.  We saw existing home sales slipping 0.2 percent in March. Some of this could be aftereffects from a brutal winter, but sales have fallen by 15 percent since hitting a high in July. A shortage in supply could…

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The Once “Fragile Five” Currencies are Back in Favor

Fragile Five Now the Fabulous Five

The “fragile five” economies and their currencies which had been out of favor and and subjected to extreme high volatility have returned to favor in what we call carry trade. Some traders are now calling these same weak, fragile currencies the “high five.” Which currencies are we talking about? The five currencies are the: the Indian rupee, Turkish Lira, Brazilian Real, South African rand and Indonesia’s rupiah. Since February’s end these five currencies are among the top performers. They could be a great hedge to play with lower volatility in the Forex markets in 2014. Often,and this has what investors…

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Rates to Stay Steady in Australia for Now

The Royal Bank of Australia or RBA released its minutes from its last policy meeting. Interesting enough, they think that economic developments over the last month or so were not serious or too much of a concern to change policy. In other words, its key lending rate will remain steady for some time as the bank sees enough signs that low rates are spurring economic growth. The minutes, from their April 1 policy meeting, did admit they are concerned with their currency as it is unusually high by “historical standards.” The RBA feels the current exchange rate is not helping…

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The USD/JPY Sells Off. Is it Done?

The USD/JPY has sold off sharply this week. The selloff caught many investors and analysts by surprise but why did this happen? What are the underlying causes and is their more losses yet to come? Everyone should be asking whether or not the Dollar – Yen will continue to decline. Let us look at some history of this week’s trading, after the selloff. On Tuesday we saw the USD/JPY rally 1.4 percent to a three week high at 101.50. This was the biggest intraday loss for the Dollar in over eight months and came after Bank of Japan chief Haruhiko…

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Why a Weak Yuan is Bad for Corporate China

We could now see earnings, in the corporate world of Chinese businesses, take a hit. Especially for those firms who have positioned themselves for a strengthening Yuan. So far, since February of this year, China’s currency has tumbled nearly 2.7 percent versus the U.S. Dollar. This has surprised many investors and many analysts. There was a time when Yuan appreciation was assured. As of yesterday, Tuesday April 1, the USD/CNY was at 6.2165. Could this be an anomaly? A temporary detour on the Yuan’s appreciation path? Maybe or maybe this weakness will become a more permanent fixture in the Forex…

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ANALYSIS: The Cost of Crimea for Russia

Russia has suffered some stiff sanctions since invading the Crimea and taking land away from the Ukraine. The United States and the European Union have shown their displeasure with Russia’s President Vladimir Putin and have levied sanctions that seem to be having an effect. One problem worth noting is the scale of funds being pulled out of Russia. This is becoming clearer to the world and to Russia itself. If it worsens, then they could be forced to impose some form of capital control. This would help to halt the flight of investment money leaving the country.   Some Central…

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The Fed Makes Waves: Yellen Changes the Game

At her first policy meeting as chair, Janet Yellen tapered back the QE program and changed the Fed’s view on when interest rates will rise in the future. The Federal Open Market Committee (FOMC) voted to further reduce its asset purchase program or quantitative easing (QE) by another $10 billion per month to $55 billion of asset purchases a month. The FOMC also changed its language. They amended their remarks concerning when interest rates would rise as unemployment met and fell through the target 6.5 percent. Their new remarks gives Yellen and Company (the Fed) more leeway when deciding to…

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Carney Shakes up the Bank of England

Bank of England (BOE) Governor, Mark Carney, has pledged that he will be appointing a new Deputy Governor who will lead what he is calling a “root branch” that will review the bank’s strategy. This comes after the BOE suspended an official for a Forex market manipulation scandal that has shaken the bank. Carney stated that no BOE official condoned this manipulation of the Forex market as he faced tough questions from members of the British Parliament. He defended the BOE against any suggestion that they should have been more “alert” to what was going on. “It is possible foreign…

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Trading Floating Pair Options

Trading floating pairs

Pair trading is a relatively new form of trading binaries that is developed by a few brokers to pit the relative performance of two underlying assets against one another. If a trader predicts which asset will perform better, he gets to close in the money. the main benefit of pair trading is the fact that a trader need only to be concerned about the performance of the two underlying assets and not be worried about what’s going in the market (unless there is a direct bearing on the two assets concerned). Because of this, pair trading is regarded as being…

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Analysis: BOE Five Years and Super Low Rates

Today they Bank of England, as many had suspected, kept monetary policy steady and the key lending rate at its record low. What does this mean? There are pros and cons to this move. For the last five years, Wednesday being the fifth year anniversary, the United Kingdom thru the Bank of England (BOE) have kept their benchmark rates at record lows. This has salvaged the economy but it has also created problems. The good: the English economy is growing again. We have an improved target of two to three percent for 2014. This is up from 1.8 percent in 2013….

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Japan Gets Inflation. Is Good Right?

We have now gotten eight months of price increases in Japan. This suggests Japan is finally shedding the weight of a decade plus of deflation, however, is this the right kind of inflation? Is it the one we like to see, the one supported by wage increases? The core consumer price index (CPI), not including food prices, rose 1.3 percent iin January per annum. We had expected this number to come in at 1.2 percent and follows the 1.3 percent rise we got in December. December’s rise was the fastest inflation expansion seen since October 2008. While this bring the…

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Brazil Slows Monetary Tightening

Brazil is slowing how fast it is tightening monetary policy as they indicate a possible  policy reversal. On Wednesday, they signaled they are nearing the end of a rate hiking cycle that has threatened to put their economy into a recession. The Brazilian Central Bank (BCB) voted unanimously to hike is key rate by 25 basis points on Wednesday, They broke a 6 straight hike of 50 basis points that has the rate at its highest in well over two years. They also kept their post decision remarks unchanged. They removed one phrase and added the decision had been taken…

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Is Beijing Going to Change Currency Policy Again?

This week has seen the Yuan (CNY)hit a seven month low versus the U.S. Dollar. Is this what the People’s Bank of China (PBOC) and Beijing need to widen the Yuan’s trading band? The Yuan fell below its official fixed price point for the second straight day, earlier today, after its fell below its midpoint on Tuesday. This is the first time it has happened since September of 2012. This has led to increase chatter that the PBOC is intervening in the open market trying to increase volatility ahead of any possible currency reforms. This could include widening the trading…

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Don’t Rule out Abenomics Yet

nikkei, topix, asian

Last year saw some hectic gains in the Nikkei as the market shot higher. Japanese stocks are simply downshifting to a slower and steadier pace. Economic reforms also need lag time to see their effect on the economic cycle. Economic behavior, social behavior is not an instant change. This goes for citizens of the United States as well as in Japan. The Japanese people have endured a decade and a half of deflation and stagnation. That is a huge toll on ones psyche and it will take them a long time to see the good. They need to see a…

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AnyOption Offer Trading of Candy Crush Maker and Alibaba Pre-IPO

Candy crush and Anyoption

In view of the hotly anticipated upcoming IPOs of two major players in the digital economy, leading binary broker anyOption have decided to offer its traders to the opportunity to trade pre-IPO options on the e-commerce giant Alibaba and the publisher of candy crush, King Digital Entertainment. Although, both these companies have yet to announce their IPO launch dates and finalize the opening prices and the numbers of shares to be sold, anyOption’s traders especially those who are U.S based can still profit from these IPOs by hedging on their closing market value in the first day of trading. The…

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Australia Has to Do Better with Their Economy

Recently, the International Monetary Fund (IMF) praised the state of Australia’s finances. Still the Reserve Bank of Australia (RBA) has to do better. The IMF annual report, which came out this past Wednesday, highlighted how well Australia’s economy has performed as compared to the other regional economies since the financial crisis of 2009. However there are a number of risks looming on the horizon which threaten to derail Australia. We have the slowdown in China, a local property market full of growing bubbles and an overvalued domestic currency. Challenging Position for Australia The economy, while still growing, is growing below…

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China’s Continuing Property Problem

The world likes to focus its attention on China’s shadow-banking issues so much so, that we have neglected another real problem that is, maybe even worse. It is the long bubbling property sector that poses an even greater threat to the world’s second largest economy. Over the past year, we have seen housing prices across many cities in China set record highs. This is despite Beijing’s four year campaign to cool the property market. We even had many local governments being forced to implement a new round of curbs this past November. These efforts included raising the minimum deposit for…

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Cross-Selling of Binary Options and Spot Forex

Since their debut into the retail financial trading world, in 2008, the binary options industry has been experiencing an explosive growth. If there have been any doubts about whether this phenomenal growth is just a passing trend before then, this is no longer the case now. Beginning from 2013, the binary options industry has drawn the interest of the online forex brokers who are keen to explore the opportunities offered by binary options. In 2013, the binary trading industry have the entrance of several leading online forex brokers such as Alpari, , IG Group and recently the Swiss-based Forex bank…

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China Dumps US Bonds but Still Loves US Debt

In December, China sold $48 billion worth of U.S. Treasuries. This is the most they have sold off in two years. Is China about to dump its Treasury holdings? Is China’s love affair with U.S. Debt over? It is hardly likely they will give up being the world’s biggest holder of U.S. debt anytime soon For many years, there has been widespread debate that China, which has the world’s largest foreign exchange reserve, would begin to diversify from its holdings in U.S. Treasuries. There has been some thoughts they would reinvest capital into Europe. The Data of Treasury Holdings is…

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Bank of Japan Stands Pat on Policy

BOJ Govenor

The Bank of Japan (BOJ) kept monetary policy the same today. They also maintained their upbeat view on the state of the economy as well and seemed unconcerned over the ebbing momentum seen in recent growth reports. This indicates added stimulus is still far down the road. The BOJ also decided to extend special loan facilities for up to one year. They were set to expire in March. They hope to drive funds to banks and then banks lend money to borrowers. They also voted keep their pledge of increasing the money base steady at an annual rate of ¥60…

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Eurozone Economy Expands as Optimism Wanes

The Eurozone is about to publish the gross domestic product or GDP for the final quarter of 2013. We expect to see a modest rate of growth as optimism is waning. This means a weak and uneven recovery going forward. The single currency bloc is expected to show the economy grew at around 0.2 percent (quarter on quarter) for the last quarter of 2013. While this is not a growth rate to write home about, it is in line with the consensus of a modest recovery in the Eurozone. In the third quarter, the GDP came in a 0.1 percent….

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Philippine Economy is Sitting Pretty for Now

That Philippine economy looks like it is sitting nice and pretty, while looking nice and strong. It is showing solid growth and on track to continue. But are there concerns for worry developing? So far the Philippine economy has racked up one impressive track record of growth. We saw their economy expand 7.2 percent in 2013. This made it one of the best performers in the global economic arena. They continued to grow despite a devastating typhoon that hit the island nation in November. As it has grown, inflation has stayed at a very manageable 4.2 percent with the country’s…

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Yellen Begins Her Congressional Testimony and Sees Many Positives

The new chair of the Federal Reserve Bank, Dr. Janet Yellen has begun her very first testimony to the U.S. Congress. She has, right out of the starting gate, promised less money printing and to continue the policy of low interest rates. These are her first public remarks since taking over the reins from Ben Bernanke last month and she is very optimistic about the state of the recovery for the U.S. economy. Her projections for unemployment and inflation are quite upbeat. In her testimony before the House Financial Services Committee she feels the recovery has gained traction, especially in…

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Unemployment Rate Can Force Yellen’s Hand

The rapid fall in the unemployment rate will make reshaping the U.S. Federal Reserve’s promise of easy money a top priority for incoming Fed Chair Dr. Janet Yellen. She will probably avoid tying policy to specific labor targets going forward. Over a year ago, former Federal Reserve Chief Ben Bernanke promised to keep rates at record lows until the unemployment rate fell to 6.5 percent. This was pledge that policy makers had hoped would hold until sometime around mid-2015.   Now read: Yellen Begins Her Congressional Testimony and Sees Many Positives NFP Misses the Mark and Unemployment Falls The non-farm…

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ANALYSIS: BOE and ECB Leave Rates on Hold

BOE and ECB Leave Rates Pat Both the Bank of England (BOE) and European Central Bank (ECB) have decided to leave rates and forward guidance unchanged. The ECB have made the decision to hold off on any policy decision to combat the increasing deflationary pressure in the single currency bloc. Even though the consensus was for no change in rates, the downward revision in inflation as well as the inflationary outlook was seen as a possible trigger for the ECB to make a move today. The ECB held its main rate at the record low of 0.25 percent. It also…

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Volatility in Emerging Markets Thanks to Fed Policy

There are some hopes that markets will soon normalize but this hope is one based on fiction. We are seeing increasing weakness in the emerging markets (EM) as well as increased volatility thanks from the policy emanating from the Federal Reserve Board’s policy on quantitative easing. We have seen the EM come back into the spotlight the last several weeks. There have been selloffs in the currencies for Turkey, Brazil, Argentina and South Africa. All of these countries have one thing in common. They operate huge current account deficits. The reduction on QE has reminded investors how vulnerable these economies…

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Why you Should Not be Buying Treasuries Now

We have seen the safe havens benefit as the global equity markets have been routed the last few weeks. Even Treasuries have seen some recovery, does this mean we should be parking our capital here? Not right now. It’s not the Time to be Buying Treasuries Now The rally we have seen in the price of bonds, whether it is the US treasury 10 year or the 10 year German Bund, we are likely to see them pull back and rates go higher again after this equities correction ends and stocks recover. This is an aberration and not the new…

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The US Economy is Cooler than the Weather

dow jones, S&P

We have seen a flurry of weaker than expected data emerging from the United States over the last week. First housing data was softer than anticipated now weaker U.S. manufacturing numbers coupled with China’s own slowdown in this area is indicating a steeper correction is in store for equity markets worldwide. Overnight the U.S. benchmarks experienced a bloodbath. The S&P 500 was 2.3 percent lower, the DJIA fell over 326 points and the Nasdaq Composite is back below 4,000. This morning the Nikkei has fallen nearly 3.5 percent which is a 12 percent correction from the beginning of the year….

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Why China Could Avoid the Hard Landing this Year

As China is bringing in a New Year, the Year of the Horse, there are many positive signs to look at and some solid reasons why the world’s second largest economy is not in for a hard landing in 2014. This potential for a hard landing has concerned investors for the last couple of years as China’s policy makers face the tough road of structural reform while continuing to guide the country economic growth which has seen decades of double digit growth. This growth has been driven by investment and is now being driven to a more stable consumption growth…

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The Fed Gives Emerging Markets the Cold Shoulder

Even though the Federal Reserve Board made no mention of the emerging markets (EM) in their statement yesterday, it does not mean the EM are not in their sights. The Fed is keenly aware of their turmoil, they are just focusing on the US economy, and rightly so. Yesterday, the Fed’s policy board, known as the Federal Open Market Committee or FOMC, decided to stick to the course and reduced the quantitative easing (QE) by another $10 billion a month. We had thought they would address the sharp selloff in the emerging markets seen over the last few days from…

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The Fed Continues to Wind Down QE: What it Means for the Markets

Bernanke

The Federal Reserve’s policy board, the Federal Open Market Committee (FOMC) has just announced they are shaving another $10 billion off their quantitative easing (QE) program. This brings the total amount of treasury and mortgage backed purchases to $65 billion a month. Last month the Fed announced they were starting to wind the QE program down with its first taper. U.S. Markets Sharply Lower at Open We had thought the market’s reaction to the continuation of the QE wind down was going to be muted. However, U.S. equity markets were sharply lower at the open with the Dow Jones opening…

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Illegal Solicitation of U.S Based Clients by Binary Brokers

Illegal Solicitation of U.S Based Clients by Binary Brokers

Since the middle of 2013, we have seen a surge of activities by U.S financial regulatory agencies cracking down on offshore based binary brokers.  The move followed the ouster of online casinos in 2011 from operating within the jurisdictional domain of U.S regulatory authorities. here have been debates that binary options are nothing more than a form of gambling disguised as financial trading. In fact in 2011, an article was featured in Forbes highlighted this issue. Sadly for quality websites like this one, that is the first article people find in Google. Despite the warning issued by the SEC and…

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Will the FOMC Burst the Equity Bubble?

The United Federal Reserve is set to begin its monthly policy meeting this week. It will be another test between them and U.S. equities investors as this is the last meeting outgoing chair, Dr. Ben Bernanke will chair. He is set to leave this month and Dr. Janet Yellen will take over the reins of keeping the world’s largest economy on track. The Federal Open Market Committee (FOMC) will meet this week on January 28 and end on January 29. They are expected to reduce the asset purchase program by another $10 billion a month, purchasing only $65 billion a…

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Abenomics Must Succeed for the Region’s Sake

abe, boj, japan, abenomics

Japan is in the middle of an ambitious plan to get its battered economy out of the deflationary rut it has been in for almost a decade. If it falls flat this year and fails, the entire region especially the emerging markets will be affected. The first two parts of Abenomics has worked well as we have seen the creation of inflation and economic growth. However, Prime Minister Shinzo Abe faces his toughest challenge, part three. It is called structural reform. There is also some fears the tax hike in April will hurt the recovery to a point of it…

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Inflation Complicates Matters for Australia

Today brought us a surprising uptick in Australia’s inflation rate. This will cause the central bank and its policy makers to pause and think. They will have to decide whether it is feasible to cut rates to spur the economy or raise them to stymie inflation. The CPI or consumer price index rose 0.8 percent in Q4 2013. This too annual inflation to 2.7 percent. This is at the Reserve Bank of Australia’s (RBA) upper target range of three percent. We saw a sharp increase in fruits and vegetables, tobacco and travel costs. A more Hawkish Stance From the RBA…

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China’s Debt Problem – Can it be Contained?

The local debt levels in China has been rising and is now a clear and definitive problem. Why? China, the People’s Government and the Peoples Bank of China (PBOC) have no idea how high the debt really is. They are simply unaware of its true extent. China’s Surging Debt Problem The state auditor has released that the total outstanding debt held by local governments is now almost $3 trillion by June of 2013. This means that debt by local governments has surged 67 percent since 2011. Still, it is hard to truly assess local debt. There is a growing feeling…

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Deflation is the Next Global Economic Monster

Today’s data regarding inflation, in Europe, managed to meet expectations. Inflation in the United States is expected to show a bit of an uptick. However, if global central banks do not deal with weakening prices, we could see a downward spiral that will shock economies and cause irreparable damage. Inflation is not a bad thing if it is moderate. Economies need rising prices to spur their economic growth. Deflation, is the monster that must be fought decisively. It must not be allowed to occur. The outlook for advanced economies, like the Eurozone, the United Kingdom and the United States, are…

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The Global Economy is About to Turn the Corner

After a tumultuous year in 2013 that saw emerging market economies sputter, QE coming to and end and deflation setting in the European Union, is the global economy poised for acceleration in 2014? The answer is yes, as we should see acceleration in 2014 and here is why. The World Bank is forecasting global economic growth for strengthen by 3.2 percent this year. We should see 3.4 percent in 2015 and 3.6 percent in 2016. Global growth came in a t 2.4 percent in 2013. High Income Countries Should Drive the World Economy Acceleration is expected from the high-income countries….

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The Bank of England Should Leave Forward Guidance Alone

Once upon a time, not so long ago, many countries had politicians and governments setting base interest rates. This whole central bank, where a supposedly independent and politic free organization that sets economic policy, is a recent invention. The Federal Reserve Board of the United States just recently had its 100th birthday. Let us not forget that commerce and trade that involves currency transactions is at least 2,000 years old. The Bank of England is a Newcomer to Policy Decisions In the grand scheme of things, the Bank of England (BOE) only got its mandate to set economic policy and…

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ANALYSIS: Can the Fed Ignore a Poor NFP?

Friday’s shocking drop off in December job creations (non-farm payrolls or NFP) stunned the financial world and members of the Federal Reserve Board (Fed) itself. Still, it is very unlikely the Fed will alter its plan till more data shows an economy that is faltering or weakening. The NFP showed a staggering, abysmal 74,000 jobs created in the month of December. The unemployment rate fell to 6.7 percent. We had expected 200,000 jobs and an unemployment rate of seven percent. A Weather Related Hiccup in the Job Market This is falloff can be contributed to the recent blizzard and sub-arctic…

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ANALYSIS: Under Pressure Bank of England Stands Pat

Yesterday, the Bank of England (BOE) shocked no one as they left their key rate at a record low of 0.5 percent and its asset purchase program (QE) at £375 million. Under Pressure Bank of England to Change its Forward Guidance There is increased pressures on the BOE to change its “forward guidance” as the U.K. continues to show economic improvement. Mark Carney, the new BOE Governor said last August that they would not raise the main lending rate from 0.5 percent until unemployment hit 7 percent. The unemployment rate is currently at 7.4 percent. It hit a high of…

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How Inflation Could Cause the Fed to Taper Hastily

We could finally see inflation start to creep in to the U.S. economy in 2014. With growth indicators strengthening and growing, the Federal Reserve scaling back its QE program, we could see inflation becoming a serious problem in 2014. Even if it does not rise, the very thought of it can cause a shock to the economy this year. Why is Inflation a Concern in 2014? Economic growth will strengthen this year. The job market has been improving. Unemployment is declining. We are seeing an increase in factory utilization. This will lead to a modest rise in inflation this year….

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Austerity for Asia, Is it Needed?

Over the last several years we have seen countries like Greece, Italy, Ireland, Spain, the United States and even Japan endure austerity measures to right their economies. Is it Asia’s turn? Probably, as they are now struggling to gain ground. Austerity for Asia? The Asian markets and economies are the key growth engines for the global economy. We are seeing some countries, like Indonesia, showing deteriorating conditions. These countries must implement reforms to shore up their economies and get back on track for growth. Asian economies must implement austerity, as the rest of the world has done, to raise the…

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A Difference In Opinion: Yellen vs Plosser

The great recession, and I am not talking about the Great Depression of 1929, but the more recent economic downturn that occurred in 2008. This last economic downturn could have done permanent and irreparable damage to the United States’ industrial output. However, certain ultra-dovish moves like super low interest rates and a massive asset purchase program known as quantitative easing have appeared to have helped. Or have they and where do we go from here? Yellen vs Plosser We have a difference in opinions between the next Chair of the Federal Reserve, Dr. Janet Yellen (current vice chair) and Philadelphia…

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Going Against the Grain: China’s GDP Could be Explosive in 2014

China has set its target for a seven percent growth for its Gross Domestic Product (GDP) in 2014. They are famous for meeting and even exceeding expectation. There are those of us who think China can once again return to double digit growth in 2014 as the global demand for its products will ignite exports and growth. It is feasible to see a GDP growth of 9.5 to 10.1 percent this year in China. This will be quite a surprise but not out of reach. The U.S. Dollar is gaining strength, as the Dollar increases in value, demand for China’s…

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The Challenges Asia Must Overcome in 2014

Asian economies and their financial markets have some challenges lying ahead of them as we enter 2014. These challenges, if not met and surpassed with success, can lead to a dismal year. What does Asia have to overcome in 2014? Let take a look. We have ongoing inflation concerns in the emerging markets as well as Japan and China. The other two is the developing role of Japan in the regions politics and economy. For each of these risks, they are very finely balanced with a significant challenge ahead. The lack of inflation we have seen in Japan has seen…

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PBOC Acts to Avert a Credit Crunch

We have been following a developing story since late last week when China’s interbank lending rates shot up Wednesday as investors worried about a looming withdrawal of liquidity from the financial system. This was coming even as the People’s Bank of China was injecting money in open market operations. This started to worry analysts and investors that China could be facing another credit crunch. This past Wednesday, we saw the benchmark interbank rate hit its highest level since the cash crunch late June 2013. This was due to the country’s largest banks not supplying liquidity through loans. The seven day…

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The Eurozone in 2014, Politics in Focus

The European Central Bank and heads of state might have a handle on the Eurozone debt crisis but at what cost politically? We are also seeing strong indications that deflation could be setting in which could cause more unpopular decisions. In return, this could mean that 2014 is a year of political turmoil in the European Union. One country standing out for all types of concerns is France. They have plans, ideas and hopes to restructure their struggling economy. However, these will be met by stiff opposition at every turn making them difficult if not impossible not achieve. The GDP…

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