Weak U.S. Housing Data Proves Friendly For Asian Markets
Binary Options Strategy | Jul 23, 2013 04:11AM ET
China’s benchmark, the Shanghai Composite, led Asian markets higher today as weaker than expected U.S. home sales released overnight raised investor hopes that the U.S. will not begin to taper back QE2 anytime soon.
Weak Home Sales data for existing homes hurt markets yesterday as they slipped 1.2 percent in June, missing expectations for a 1.5 percent rise. The report is helping to convince investors that the massive U.S. stimulus package will not be reduced anytime soon as Fed Chair Bernanke stated he needed to see definite signs of economic recovery before beginning during his testimony before Congress last week.
STOCKS
The Shanghai Composite on mainland China led winners today jumping 2 percent to cross the 2,000 level for a second straight trading day. The Nikkei rose 1 percent and the Australian S&P/ASX saw its third straight record setting day.
The DJIA rose a mere 1.81 points to close at 15,545.55, please see the below chart. The Dow traded in a narrow 60 point range the entire day. The NASDAQ rose 12.77 points and the S&P 500 posted another record closing at 1695.53. This was its fourth straight day of gains.
In Europe, the PSI 20 in Portugal rose 2.41 percent as President Anibal Cavaco ruled out an election wanting to keep her coalition together. The DAX closed a bit lower as did the FTSE. The French CAC was a bit higher on the day, up 0.40 percent.
CURRENCIES
The U.S. Dollar is trading weaker versus all its major trading partners. The buck appears to be gaining some strength against emerging currencies. The EUR/USD (1.3197) continues to move higher to test 1.3270. The GBP/USD (1.5371) is also higher and traded briefly above 1.5400. Should the pair break that level we can test 1.5500 next.
COMMODITIES
Gold (1335.00) rose sharply overnight. We are still looking bullish and can test the resistance at 1350.00 with a break higher targeting 1375.00 this week. Brent WTI Crude (108.25) still has strong support at 108.00. While above that level, we can test 109.00 or higher.
Silver (20.32) is trading near a critical level. While above 20.00 we can test 21.00 and then 21.50. However, we need a break above 20.60 to confirm this bullish move. Copper (3.192) is still moving higher. It looks like we can test the key 3.20 level today or tomorrow. A failure to break that level can be bearish for the embattled metal.
TODAY’S OUTLOOK
Europe will focus a bit on Portugal which is on track with its bailout plan and its incumbent president refused early elections. The U.S. will release some data later today, the FHFA Home Price Index will be watched thanks to the weak housing data released yesterday. They will also release the Richmond Fed Manufacturing Index.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.