Binary Index Trading - Informational Articles

Regularly updated information, news, current affairs, advice & tips relating to online binary index or options trading on intraday markets from the World's No.1 Index Trading Alert Provider.

Domestic Equities in China will Join MSCI's Global Benchmark Indices

Domestic equities in China will join MSCI’s benchmark indices. The decision, announced by the New York based index compiler. A move that should help the capital market of the world’s second largest economy edge towards becoming more globally integrated. 

After three failed attempts, it has finally succeeded and it will give China’s $6.9 trillion stock market a bigger role in everything. The Emerging Markets Index previously excluded mainland traded stocks due to concerns about restrictions on purchases by overseas investors and flawed rules in listed companies trading suspension. The gauge currently only includes shares of Chinese companies listed in Hong Kong or the US.

 

According to the index compiler, China’s A shares will initially represent a 0.73% weighting in the MSCI Emerging Markets Index and the weighting could increase further over time if China implements more changes in its market reform. 

The full inclusion of domestic Chinese stocks in the widely tracked MSCI Emerging Markets Index could pull more than $400 billion of funds from asset managers, pension funds and insurers into mainland China’s equity markets over the next decade.

MSCI made its decision after the Chinese regulators made it easier for foreign investors to access mainland equities through the two Stock Connect trading links between Hong Kong and Shanghai/Shenzhen and restricted the number of trading suspensions by listed companies. 

It had ejected inclusions over the past three years, citing concerns including capital controls and listed company abuse of the trading halt rules. 

 

However, months ago the MSCI moved to relax its investment criteria by cutting the number of stocks to 169 from 448 in a bid to address curbs on repatriating capital from China and concerns over the country’s high number of suspended stocks.

The revised proposal helped address these issues because the 169 stocks can be easily accessed by foreigners through the “Stock Connect” link launched in 2014 and significantly expanded in December.

MSCI said it planned to add the 222 stocks and will begin a review of the A-shares and include them in provisional indices beginning in August.

 

 

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Asian Stocks Gain Higher, Set for a Strong Week

Asian markets gain higher during opening, the dollar climbed above 111 yen Monday after Japan posted a surprise trade deficit for May.

The Nikkei Stock Average was up 0.6% in early trade, with a softer yen aiding a move back above 20,000 points. Australia’s S&P/ASX 200 was up 0.5%, Korea’s Kospi SEU 0.6% and Hong Kong’s Hang Seng Index gained 1%.

 

 

In Japan, economists had expected a modest trade surplus for May. Instead, the country reported its first deficit since January. Still, local stocks shrugged off the report as the exports data in Japan continue to reinforce the growth story for Japan’s economy.

Japan’s exports increased 14.9% for May from a year earlier, the biggest rise since January 2015, marking the sixth consecutive month of increases. But the figure came in lower than an 18.2% increase expected by economists.

Asian market could find index provider MSCI's annual market classification review a key event to follow. MSCI will decide tomorrow whether to include a group of China A-shares in its main emerging market index.

If approved, it would give investors easier access to the China markets, create more liquidity for the shares and prompt funds all over the world to pour billions into the country's stocks. For China, acceptance by MSCI would mark a key step for Beijing as it seeks to open up its financial markets and attract foreign capital. 

 

While, oil prices pulled back in Asia after ending in positive territory last week. July Nymex was down 0.3% at $44.60 a barrel, while August Brent fell 0.2% to $47.25.

 

 

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Tech Stocks in U.S have Tumbled Sharply

US tech stocks slid again overnight as investors continued a recent move away from the year’s best performing sector. Bearish analyst reports on the two tech titans contributed to the latest bout of selling. Both the S&P 500 and Nasdaq Composite fell, though tech shares pared some of their early losses into the close.

The declined follows the worst two day drop for the sector in nearly a year. But tech remains up 17% this year, almost twice the 8.7% rise for the overall S&P 500.

Shares of Google’s parent Alphabet closed down 0.8% as Canaccord Genuity downgraded its rating of the stock to hold from buy. Eventually, the downgrade triggered a broader tech selloff.

Apple shares ended 0.6% lower, paring earlier sharper losses. Microsoft declined 0.5% overnight, Facebook dropped 0.3% each also pared sharper early losses. 

Snap Inc who held its initial public offering earlier this year has dropped 4.9%. While the tech sector has fallen 4% in the past week, the overall S&P is only off about 0.2 percent.

 

 

 

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Stock Market in Australia Extends Rally

Australian stock market is higher today, extending gains from the previous session, following the positive lead overnight from Wall Street. In mid-day trades, the benchmark S&P/ASX 200 Index is adding 24.90 points or 0.43% to 5,797.70, off a high of 5,804.80. The broader All Ordinaries Index is rising 25.20 points or 0.43% to 5,827.00.

The AUD is lower against the U.S. dollar today after iron ore prices fell sharply. In early trades, the local unit was trading at US$0.7537, down from US$0.7550 on Tuesday. 

Gold miners are also advancing. Newcrest Mining is adding 0.4 percent and Evolution Mining is rising more than 1 percent. The major miners are mostly lower amid the sharp fall in iron ore prices. 

BHP Billiton is adding 0.7 percent, while Rio Tinto is losing 1 percent and Fortescue Metals is lower by more than 1 percent.

Among oil stocks, Oil Search is up 0.6 percent and Woodside Petroleum is rising 0.3 percent, while Santos is declining almost 1 percent. 

 

Westpac Bank revealed that consumer confidence in Australia ebbed again in June, as its index slipped 1.8 percent to a score of 96.2. That follows the 1.1 percent decline in May to 98.0. 

The index has declined in three straight months and continues to rest beneath the break-even line of 100 that separates optimists from pessimists.

 

Nevertheless, investors are cautious ahead of the release of Chinese economic data and the Federal Reserve's monetary policy decision later in the day. 

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DAX Index Closes Trade at 0.59% Higher

DAX index has closes trade at 0.59% higher. The index is currently at 12,757.75 points. On the release front, German ZEW Economic Sentiment dipped to 18.6, missing the forecast of 21.6 points. Eurozone ZEW Economic Sentiment improved to 37.7, beating the estimate of 37.2 points. In the US, the Federal Reserve is expected to increase interest rates by a quarter-point.

European stock markets were slightly lower on yesterday, as a result of sharp losses on the Nasdaq, which dropped 1.8% on last week session. Major technology stocks were all down by more than 3 percent. Key German financial stocks responded with losses, notably Deutsche Bank and Commerzbank.

The best performers of the session on the DAX were Lufthansa which rose 3.00% or 0.550 points to trade at 18.875 at the close. 

The worst performers of the session were Beiersdorf which fell 0.69% or 0.660 points to trade at 94.780 at the close. Deutsche Telekom declined 0.44% or 0.075 points to end at 16.880 and Henkel & Co was down 0.36% or 0.45 points to 124.65. 

DAX volatility index, which measures the implied volatility of DAX options, was down 6.39% to 12.60.

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Latest in Stocks

ASX 200 (5741, 1.1%) is up 63 points as it continues to push higher into late arvo trade. 

Its going from strength to strength today after defying the early pointer from futures trading that suggested the recent sell-off in tech stocks on Wall Street would send the local index lower.

 

Dow (21235.67, -0.17%) is slowly inching up towards 21600 and could possibly test 21400 on the upside this week. Support remains at 21000 and while the index is trading above 21000, the trend remains bullish.

 

Dax (12690.44, -0.98%) fell sharply yesterday instead of breaking above 12850. We could possibly see some trade within the 12650-12850 region in the near term before testing 13000.

Shanghai (3138.67, -0.04%) has enough scope on the upside towards 3160-3170 for the next couple of sessions.

 

Nikkei (19885.72, -0.11%) is holding above 19825 and could move up towards 20000 in the coming sessions. Near term looks bullish.

 

Nifty (9616.40, -0.54%) has been fluctuating within the 9700-96500 region and could possibly continue to do so for some more sessions. 

Immediate support is seen near 9600 which could extend to 9550 on the downside. Overall the index could be ranged sideways before rallying to higher levels.

 

 

 

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Global Stocks Update

Dow (21136.23, -0.23%) came off from resistance near 21230 and may test 21000 on the downside before bouncing back towards 21300 and higher in the medium term. Near term could see some consolidation or a corrective dip but overall long term looks bullish.

 

Dax (12690.12, -1.04%) is also in a short correction mode and could rise back soon towards 13000.Downside could be limited to 12600 just now.

 

Shanghai (3127.91, +0.83%) has risen sharply breaking the immediate resistance near 3120 instead of testing lower levels of 3050 as mentioned yesterday. 

While the index sustains levels above 3120, it could move higher towards 3170 else a re-test of 3070 is possible.

ASX (5644.7, -0.4%) on track for a fourth straight session in the red and a fall of more than 5 per cent since its recent high at the start of May.

 

Nikkei (19936.42, -0.22%) Resistance near 20200 has held well for which fell sharply in the last 2-sessions. 

It could test 19820 in the next 2-sessions before again bouncing back from there.

 

Nifty (9637.15, -0.39%) is in a corrective mode now and could extend losses to an extent of 9600-9550 levels. 

Thereafter a rise back towards 9700-9800 is possible in the near term.

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Berkshire Hathaway Acquired 200 Million Stakes in Lanxess AG

Berkshire Hathaway acquired a $200 million stakes in Lanxess AG. Lanxess shares jumped 2.9 percent to 65.06 euros by 0936 GMT after the news, even though the stock was trading without the rights to a 0.70 euro/share dividend for the first time.

In a regulatory filing, Lanxess said that Berkshire Hathaway’s General Reinsurance subsidiary took a stake that reached just over 3 percent on May 19. The shares held by General Re  whose total financial investments excluding cash holdings stood at about $22 billion at the end of last year, were worth about 180 million euros ($200 million) at that time.

General Re’s stake in Lanxess crossed the 3 percent threshold after Lanxess on May 11 beat consensus estimates for first-quarter earnings on strong sales of engineering plastics and synthetic rubber, but the company warned at the time that demand would soften later this year. 

Shares in Lanxess, a former unit of Bayer whose products include pesticide ingredients, construction pigments and leather chemicals, earlier this month reached four-year highs. The company has said that after recent acquisitions worth a combined 2.6 billion euros more strategic steps could be in the offing in the second half of the year.

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Stocks in USA Dropped Further

U.S. stocks dropped after JP Morgan and Bank of America warned of revenue weakness, offsetting gains in defensive plays.

JPMorgan blamed lower volatility for a 15 percent decline in trading revenue in the current quarter compared with last year, while Bank of America said trading revenue in the second quarter was on track to be 10 to 12 percent lower than last year.

 

Financials .SPSY rallied more than 20 percent in the wake of the U.S. presidential election on hopes of fiscal stimulus and deregulation under President Donald Trump, but they have struggled in recent weeks. The sector is now down 0.3 percent on the year.

Measures of market volatility are at rock-bottom, hitting trading desks at big banks. The U.S. stock market's main gauge of investor anxiety .VIX closed at its lowest level in over two decades on May 8 and has not topped its long-term average of 20 since November. It did, however, hit a seven-day high of 11.30 on Wednesday.

JPMorgan shares lost 2.1 percent while Bank of America was down 1.9 percent as the two biggest weights on the S&P 500. Goldman Sachs fell 3.3 percent, the biggest drag on the Dow. 

Energy stocks down 0.4 percent, also lost ground. Oil prices touched a three-week low as rising output from Nigeria and Libya fueled concerns that OPEC-led output cuts are being undermined. U.S. crude settled down 2.7 percent at $48.32 a barrel and Brent settled 3 percent lower at $50.1.

 

Dow Jones Industrial Average fell 20.82 points, or 0.1 percent, to 21,008.65, the S&P 500 lost 1.1 points, or 0.05 percent, to 2,411.81 and the Nasdaq Composite dropped 4.67 points, or 0.08 percent, to 6,198.52.

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Global Stocks Update

Dow (21080.28, -0.01%) was closed yesterday. As mentioned yesterday, 21200 is an important resistance for the near term. 

In case it breaks on the upside, the index could rally towards 21400-21600 else a fall back towards 21100 is possible in the coming sessions.

 

Dax (12628.95, +0.21%) is stable and may continues to remain sideways within 12800-12400 (broad region of trade for at least this week.

Shanghai (3110.06, +0.07%) looks bullish in the near term towards 3170. A small dip to 3070 is also possible before the index starts to rise higher.

 

Nikkei (19576.19, -0.54%) seems to be confused on which direction to take. Immediate movement within 19500-20000 is possible but only if it breaks on either side, can we confirm on further direction. 

For now, some sideways consolidation is possible.

 

Nifty (9604.90, +1%) has been rising in line with our expectation. 9700-9800 is on the cards for medium term.

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Global Market Review

Asian equity futures open to a mixed start today. Hong Kong is on holiday and markets in China are shut for a second day after the U.K. and U.S. were closed Monday, depressing volumes and limiting price movements

South Africa’s rand declined for a second day after President Jacob Zuma survived a bid by some members of his party to oust him.  Italian assets fell as former Prime Minister Matteo Renzi raised the prospect of an early election.

The key challenge for investors remains gauging the ability of the world’s economy to withstand rising borrowing costs. Despite the record highs posted by global equities, the rally in bond markets suggests traders are cautious. 

Fed Bank of San Francisco President John Williams reaffirmed his view that a total of three interest-rate increases makes sense for the world’s biggest economy this year.

 

Main Market  Movers:

  • The euro fell 0.2 percent to $1.1138 as of 7:41 a.m. in Tokyo. The yen was flat at 111.25 per dollar.
  • Gold was down 0.1 percent at $1,267.36 an ounce.
  • Treasury 10-year futures were at 126 1/4, up 2/32, after the market was closed Monday. The yield on 10-year Treasuries was 2.25 percent at the end of last week.
  • The rand fell 0.2 percent to 12.9959 per dollar, adding to the previous session’s 0.6 percent decline.
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Crude Oil Plummeted Sharply

 

Crude oil prices plummeted to below $50 a barrel after an extension to a global output agreement disappointed investors looking for more.

The Organization of Petroleum Exporting Countries (OPEC) reportedly have agreed on a nine-month extension to a production cut agreement, which was set to expire at the end of June.

 

Stocks in Tokyo and Sydney opened lower, with energy producers dropping the most. Oil held losses after falling the most in three weeks as OPEC stuck to the most predictable outcome in its plans to limit production.

Commodity currencies maintained losses against the dollar. The S&P 500 Index reached a fresh record on Thursday while the U.S. currency strengthened as retailer results boosted confidence in the American consumers’ ability to buoy economic growth.

 

Global equities are on course for the best week since April, trading at a record high after six weeks of gains, as investors bet global economic growth can withstand higher U.S. interest rates as soon as next month.

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Markets And You explains What are Stock Indices?

What are Stock Indices?
A stock index is a statistical indicator measuring the combined value of underlying stocks within a particular index. Simply put, stock indices worldwide will move either low or high depending of the financial situation acted upon by investors in reaction to a serious of factors. Factors may include an important company announcement about a new product launch, financial results, political situations, internal company structure changes or economic announcements. A significant change in any one stock within a particular index group will reflect in the overall value of that index.
Australian Index Trading analysis company Markets And You Pty Ltd track these important announcements and directions of individual stocks. That information provides us with the bigger picture to the direction the group of stock indices will move as a whole. This direction is then provided in real time to our clients.
Types of Indices
Stock market indices may be classed in many ways, a global or world stock market index includes companies within the location they are traded or located. A national index signifies the performance of the stock market of a given country and reflects investor attitude of the performance of its economy. The most represented market indices and nation indices are composed of stocks of giant companies listed on the nation’s big stock exchanges such as the American S&P 500, the Japanese Nikkei 225, the British FTSE 100, and our own ASX 200. Markets And You for like to point out that sometimes the most popular Indices are not the best ones to trade upon for most profitable results.
Markets And You Preferred Indices
Through years of research Markets And You have developed best trading systems that have indicated which are the most reliable markets to trade. These markets include the
• XJO (Australian Stock Exchange) – ASX 200. Otherwise known as the Australian Securities Exchange (ASX) is the primary stock exchange in Australia.
• IBEX (Spanish Stock Index) – IBEX 35. This is the IBEX 35 (an acronym of Iberia Index) it’s the benchmark stock market index of the Bolsa de Madrid, Spain's principal stock exchange.
• BEL20 - Belgian Stock Index. The BEL20 is the major stock market index of Euronext Brussels.
• CAC – (Paris - French Stock Exchange – CAC40). The CAC 40, is a French stock market index.
You can view all Markets And You other preferred markets on their website www.marketsandyou.com

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Stock Market Indices explained by Markets And You

Stock Market Indices explained by Markets And You - A typical successful FALLS trade.

Before getting started with Index Trading, you need to understand the basics of "what are Stock Market Indices?"

If you don’t know this terminology or understand how to define a Trade Index, then starting to trade the market will become like flipping a coin or even worse like choosing the red or black on the roulette table at the casino after you have had a few to many drinks. Chances are not good.

To help you get started with trading the market, specifically Index Trading, it is best to understand the terminology and how it fits into the big picture of the stock market.

Below are 5 short descriptions to help understand ‘what are Stock Market Indices explained by Markets And You.

1. Indices is the plural for an Index. An Index is the term used for a group of stock market publicly listed uppermost businesses within a region.
2. There are numerous Stock Market Indices within the world. Index Trading company, Markets And YOU focuses on analysing the following leading Indices: The Australian Index (ASX 200); The UK Index (FTSE100); The French Index (CAC40); The Dutch Index (AEX); The German Index (DAX), The Spanish Index (IBEX), The Euro 100 Index (EURO100), The Swiss Index (SMI), The Euro 50 Index (EURO50) and The Belgian Index (BEL20) just too name a few.
3. An Index will rise or fall as the average of all shares within this group change in value. This is called an Index indicator.
4. You never actually own an Index (as you would a stock), you can only ever take a ‘position’ on a particular Index, whether it will either RISE or FALL.
5. Taking a position on a Stock Market Index is a form of Binary Options trading.

Traditionally, the investors purchase the asset they invest in and the value of the profit and loss is determined upon the changing value of the purchased asset.

 

$10 10% $11

  Trade Amount      Direction        Percentage Gain                  Total Return on investment

 

In comparison - Index Trading allows you to profit from any Country’s stock market movement no matter if that market RISES or FALLS in value over any specific time period. This unique type of trading enables you to trade and profit in ALL market conditions. In addition to this, the ROI (Return on Investment) per trade is much higher and achieved much faster (usually over a 1-hour period) when compared to traditional Stock Market trading methods.

 

$10 88% $18

  Trade Amount          Direction          Percentage Gain                    Total Return on investment

 

If you intend to start Trading Stock Market Indices, do it with the assistance of an experienced trader and start learning how to trade an Index that is easy to follow. This may include a choosing a popular Index that is common to your own time period and will fit into your own schedule.
This way, whether you are working or retired you can still find the time to listen to your trainer and better understand how to place the trade. Never make an uneducated prediction based off old or non-interactive charts.
Trading Stock Market Indices needn’t be a tedious task.

Taking small steps will help you see positive results and your trading account rise. Limit the stress and risk by learning from an expert trading team such as Markets And YOU.

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