Asia Mixed after the First US Presidential Debate

Asia Mixed after the First US Presidential Debate
by, Mike King, Bullish University

Markets in Asia and the Pacific Rim were mixed by the mid-morning session today. There was an increase in market volatility today as traders are eying the OPEC meeting in Algeria and the outcome of the first US presidential debate. All of these events will cause binary options trading strategies to change today.

In the Down Under, the ASX 200 lost around 0.7 percent. It was down one percent at one point. The heavily weighted financial sub-sector was down over one percent and energy plays lost 0.8 percent. The country’s major banks sold off as ANZ, Common Wealth Bank of Australia and Westpac were all lower. So was the National Australia Bank. This caused binary option traders to place a lot of puts on the morning.

The Kospi Composite Index, on the Korean Peninsula, was also lower but pared early losses. In Hong Kong, the Hang Seng was higher and the markets in China were also higher. The Shanghai Composite was up 0.6 percent and the Shenzhen Index was up 0.1 percent this morning.

In Japan, their headline stock bourse, the Nikkei erased early losses of 1.3 percent to close down 0.3 percent. The Topix was down 0.5 percent thanks to an overnight rise in the yen causing binary options traders to change their strategy.

The yen strengthened against the Dollar reaching a session high of 100.07 before retreating to 100.75 as of 1040 HK time. This was up from Monday’s level of 100.85. Yen traders should be adjusting their binary strategies to the upside today. The stronger yen was not good for Japan’s exporters, like Sony, Toyota and Nissan which were all lower. This means binary options strategies with stocks were adjusted for puts.

The yen moved higher after Bank of Japan Governor Haruhiko Kuroda told business leaders a t a meeting in Osaka, Japan, that the central bank is ready to use every policy tool to achieve its two percent inflation target. This includes cutting short term interest rates further into the negative territory.

Kuroda underscored his determination, along with the central bank, to use all policy means to achieve this inflation target. However he did nothing or said nothing to dampen the market sentiment that the central bank’s policy will achieve this goal.

Looking at the broader currency market, binary options strategy had to change as the US Dollar index fell from last week’s $96 (and higher) to 95.359.

Investors also had their first look at the two leading candidates in running for the president of the world’s largest democracy, the Unites States. The debate was between Hillary Clinton (D) and Donald Trump ®. The markets were searching and are continuing to gauge which of these two presidential hopefuls are the least worst for the global financial markets.

One candidate is a known bad for the financial markets and the other candidate is an unknown bad. If any of these two candidates amp up rhetoric, then the financial markets will react with a lot of volatility as the day progresses.

Turning our attention to oil prices, Monday saw a recovery amid growing volatility as the world’s largest producers of the black gold are currently meeting in Algeria to discuss oversupply concerns. Investors are hoping they can reach an agreement to curb the production of oil.

During Asian trading outs US WTI Crude was down 0.20 percent at $45.84 per barrel after climbing over three percent in the US session. The global benchmark, WTI Brent was down 0.2 percent at $47.24. During the US hours it was up over three percent. Binary options traders will need to be careful with their binary options strategy during the day.

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