Asian Markets Mostly Lower on Oil and OPEC

Asian Markets Mostly Lower on Oil and OPEC
by, Mike King,

Asian markets were mostly lower this morning, despite strong gains by Wall Street overnight. Wall Street was boosted by solid consumer confidence numbers and by the first presidential debate. This morning saw a selloff in oil prices, forcing binary options trading strategy to shift direction, once again.

In Australia, the ASX 200 was slightly lower erasing early gains. Most sectors were lower and the heavily weighted financial sub-sector was flat. It gave up early gains as well. The energy sector was also lower on the day.

In Japan the Nikkei 225 lost over 1.5 percent and the Topic was over 1.6 percent lower. There was heavy pressure on exporting plays thanks to a stronger yen causing binary options traders to shift strategies.

Binary options traders should note that the yen strengthened against the Dollar to 100.23 by midmorning. By 1048 HK time the USD/JPY Forex pair was trading around 100.57. A top heavy tone is likely to prevail in this Forex market as there is very little resilience attached to the Dollar right now. There is also nervous jitters in the background thanks to a loss of confidence in the Bank of Japan. All of this will affect binary options trading strategy in this Forex pair.

Stocks were also affected by a stronger yen, causing binary options traders to adjust strategy with equities. Toyota, Nissan and Honda were all lower. Sony and Mitsubishi Electric also fell on the day and Sharp bucked the downtrend to trade slightly higher.

On the Korean Peninsula, the Kospi Composite Index lost ground and stocks in Hong Kong also sank on the day Shares in China were also lower as the Shanghai Composite lost 0.2 percent and the Shenzhen Composite lost 0.1 percent.

The down day in Asia follows a strong showing on Wall Street as sentiment in the States was boosted by a perceived win by Hillary Clinton in the first presidential debate. She is perceived a as the one to keep the status quo. There was also upbeat economic data as consumer confidence printed higher than expected for the month of September. This data underpinned sentiment in the States.

The DJIA was up 133.47 points on the day and the S&P 500 also gained. The Tech heavy Nasdaq Composite rose over 48 points to close at 5,305.71.

Looking at the currency market, another development affecting binary options trading strategy, was the gain in the US Dollar Index. This index measures the strength of the Buck against a basket of currencies. However, the US Dollar is still below the close from last week. This is suggesting that the Forex market is willing to sit out with the Dollar and focus more on risk-related plays, for the time being.

Turning our attention to the oil market, there is a lot of volatility making it hard for binary options traders to get a good read on the direction of oil. OPEC is set to meet one last time at 1500 London time today to attempt to come to an accord capping production at current levels.

Iran has refused to even consider anything put forward by its regional rival Saudi Arabia. They will continue to produce at current levels as they are gaining back lost market share during the time of globally imposed sanctions. This will cause the fiscal situation in Saudi Arabia to continue to erode as well as the price of oil.

During the Asian trading hours, price of US WTI Crude fell 0.11 percent to trade at $44.62 per barrel at 1100 HK time. Price fell over 2.7 percent in US trading hours. The global benchmark, Brent Crude was up 0.2 percent after falling nearly three percent in US trading hours.

 

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