Binary Options NewsHeadlines of today’s daily binary options news:
The Asian markets traded broadly higher today on optimism stemming from Chinese export figuresThe Nikkei jumped to three-month closing high today following strong employment data from the U.S.The Japanese economy grew much faster than expected in the first quarter at an annualized 6.7% Kumagai Gumi Co plunged 5.7% today had its worst trading day of the last four months on defectsHyundai Group announced today that it will investigate a sale of its logistics business to Orix CorpChinese exports gained much more than analysts expected in May, delaying broad slowdown concerns
Home prices in China will fall 5% this year as developers and construction companies cut prices Stocks in India soared following the announcement of the nation’s new, investor-friendly reform plansThe European markets are trading mixed with a higher tendency through midday on economic figuresCredit Suisse Group AG is trading 1.7% higher today on news that it may sell a stake in a trading unitThe International
Monetary Fund has admitted its folly in underestimating the U.K. Economy’s strengthGecina SA is trading around 1.4% lower today after plunging in the early session on a major share saleWall Street experienced a higher session after traders learned that jobs data was in line with estimatesU.S. nonfarm payrolls and unemployment rate data supported optimism throughout
Friday’s sessionVeriFone Systems Inc surged around 8.6% to finish the week after reporting a very strong second-quarterNovavax, Inc plunged 7.9% in the last session following the announcement of a secondary offeringAngie’s List Inc soared 11% on reactions to its new tiered pricing structure and analyst upgrades The Asian markets traded broadly higher today on optimism that stemmed from much better-than-expected Chinese export figures.
The Nikkei jumped to the highest closing level of the last three months in the first session of the week today. Japanese equities were pushed nicely higher following positive employment data from the United States, one of the largest trading partners of the nation. Investors are rotating into stocks that are sensitive to better economic growth data.
The Japanese economy grew much faster than economists predicted in the first quarter of this year. The nation saw an annualized 6.7% increase in gross domestic product for the first three months of 2014 according to the Cabinet Office in Tokyo.
The forecasts for the period were much lower than the real figure at 5.6%, and the nation’s current-account surplus shrank in April year-over-year according to another study. Japan has significantly ramped up business investment in the last year to help rebound from a forecasted contraction and many years of deflationary pressure.
Kumagai Gumi Co saw strong selling pressure throughout the entire session today, and the firm ended up having its worst trading day of the last four months. The construction company announced that an apartment complex it built has major defects.
Construction flaws were discovered in the supporting pillars of a completed building in Yokohama City. The building is only eleven years old, but residents are being asked to move to temporary shelters while further investigation commences. Analysts were very negative toward the situation, saying that future earnings and the company’s overall reputation are greatly at stake. The same thing happened back in March to Mitsubishi Estate Co because of an issue with a residential complex, and the effects have been dramatic.
Hyundai Group, the South Korean automobile conglomerate, announced this morning that it will pursue negotiations regarding the sale of a major business unit. The company is planning to ease a cash crunch by raising around $3.2 billion from asset sales, and the firm will now entertain the idea of selling its logistics unit to Orix Corp of Japan.
Most of the details are not being disclosed at this point, but people close to the matter say the entire business will be sold. Orix has been increasingly looking to expand investment across Asia due to its view of economic growth in the region.
Hyundai has recently sold its liquefied natural gas shipping operations, and the company will also explore the sale of Hyundai Securities and its two financial units. The firm has a massive chunk of debt maturing in 2015 but is strapped for cash in the meantime. Much to the chagrin of traders betting against the near-term future of the Chinese economy, Chinese exports surged more than analysts predicted in May.
The data shows yet another area supporting the economy as many international traders try to time the nation’s economy slowdown. The nation is trying to ramp up infrastructure spending to offset the declining gross domestic product.
Overseas shipments jumped 7% from last year’s comparable period compared to the average prediction of 6.7%. Imports dropped only 1.6%, which left the nation with a trade surplus of $35.92 billion. As demand in the United States and across the eurozone increases right on pace, China believes that economic growth will have a better chance of reaching the stated target increase of 7.5%.
Policy makers are expected to pull back to some extent on expansionary measures as they seem to be having the anticipated effect. New data released this morning shows that home prices across China will likely see a 5% decline in the current calendar year.
Developers are reportedly slashing prices to meet unreasonable sales targets as the property market in the world’s second-largest economy continues to cool down. The swing from last year to this year will likely be dramatic, as 2013 saw a massive 11.5% gain in housing prices compared to this year’s projected loss.
Standard & Poor’s says that sales volume is likely to increase in the second half of this year and rise 10% for the full year, which is undoubtedly being spurred by the drop in prices. As the property market grew year after year, sales targets for developers continued to follow the same path, eventually becoming unsustainable.
There is still a large amount of inventory in some of the regional markets within China according to analysts in Hong Kong. Compounding the issue, developers are experiencing a notable lack of access to capital which tightens overall operations and puts even more pressure on the firms to meet targets. Most experts believe that the decline is not over, as some smaller cities are still seeing a lack of demand even as supply increases.
Stocks in India were greatly higher today following the release of the new, investor-friendly reform agenda. People were very hopeful that the election of Narendra Modi would usher in a new era of focus on industry, which would inevitably support the economy a great deal and open up unprecedented expansion.
This seems to be coming to fruition in Modi’s early leadership, as the new agenda released today was heralded as being focused on job creation through public and private investment. The top priority on the agenda will be containing inflation. The Nikkei added 0.31%, the Kospi lost (-0.27%), the Sensex added 0.72%, the Hang Seng added 0.73%, and the Shanghai Composite added 0.03%. The European markets are trading mixed with a higher tendency through the midway point in Monday’s session as strong economic figures bolster optimism. Following last week’s unprecedented monetary stimulus measures, investors are becoming more hopeful for the future of the eurozone.
Credit Suisse Group AG is trading nicely higher today after it has finally received some positive press following months of regulatory issues with the European Union and the United States. The company is considering selling part of a new trading unit that was set up last year to deal with interest rates electronically.
The second-largest bank in Switzerland said that the platform is a joint venture with high-frequency trading firm Tower Research Capital LLC. The venture trades United States Treasury securities and other fixed-income instruments according to regulatory filings, and Credit Suisse has been moving clients over to that unit in preparation for a major sale that would significantly reduce capital requirements for the firm.
Many of the world’s largest banking conglomerates have looked for new and innovative ways to either ditch or reinvent their fixed-income businesses as spreads near zero and profit margins erode dramatically. The company was only able to come up with $1.67 billion in the first quarter from fixed-income trading, which is 25% lower than the comparable period one year earlier.
Shares are trading 1.7% higher. Managing Director of the International Monetary Fund, Christine Lagarde, admitted this morning that the global financial body made a grave mistake in predicting the trajectory of the United Kingdom’s economy. Lagarde plainly stated, ‘We got it wrong.’ She went on to explain on the Andrew Marr Show on BBC yesterday that the recent actions of Mario Draghi have surprised a great number of officials, and the resulting strength of the British economy is not far behind in the surprise factor.
Data is pointing towards a likely increase in U.K. gross domestic product of 2.9% this year, which will make it the fastest growing economy in the Group of Seven nations. Investment is joining up with consumption as an engine to power the economy forward, according to Lagarde, who then admitted that the outlook for the nation is now much more sustainable than when skeptical comments were made one year ago.
Lagarde is a former finance minister of France, and speculation has surfaced that she is next in line for the presidency of the IMF. Gecina SA has found some spotlight in an otherwise news-light day in Europe after Metrovacesa SA announced that it will part ways with its stake in the firm.
Gecina plunged early in the session but has recovered a great deal through midday. Metrovacesa used to be the largest property developer in Spain by market value, and it agreed to terms today that outline the sale of its 27% ownership in the French developer.
The sale will generate around $2.11 billion by current share value, and the buyers will likely include such institutional investors as Blackstone Group LP. The institutional investors will be given a discount of around 10%, and the deal should close between the end of July and the end of September.
Norges Bank will take on 9% of the firm’s shares; Credit Agricole Assurances will purchase a 4.7% stake; and a jointly owned affiliate of Ivanhoe Cambridge Inc and Blackstone. Shares are trading around 1.4% lower. The FTSE 100 added 0.20%, the DAX added 0.06%, and the CAC 40 lost (-0.17%). (8:40am EST) Wall Street experienced a nicely higher session on Friday after traders learned that jobs data came in right in line with economists’ estimates; futures are trading lower as the open approaches.
Traders around the world were closely watching the employment data from the United States at the end of last week. Investors were optimistic towards equities after learning that the economy added 217,000 jobs outside of the agriculture sector, which was very close to the predicted addition of 218,000 for the period. In addition, the U.S. Unemployment rate stayed constant at 6.3% despite predictions by experts that the indicator would tick up 10 basis points. Hourly earnings were also in line with expectations with an increase of 20 basis points.
VeriFone Systems Inc was one of the strongest performers in New York on Friday after reporting a very strong second quarter. The firm also made massive changes to its forward outlook following the financial release. VeriFone was able to post revenue of $466.8 million in the quarter, which was nicely ahead of the 16.5% industry average for revenue growth.
The higher revenue translated to $0.37 per diluted share in earnings, prompting executives to upwardly revise their expectations for future financial performance. Analysts got the picture very clearly, and Piper Jaffray changed its price target for the coming fiscal year from $31 per share to $36 per share. Shares surged around 8.6% to the close.
In the last trading session of last week, Novavax, Inc saw noted pessimism from the Street. The company announced after the close on Thursday afternoon that it will be conducting a massive secondary offering of shares. The company will raise $100 million in stock with a 30-day option for joint underwriters Citigroup and JPMorgan Chase to buy as much as $15 million in additional shares. The company has seen a massive 140% increase over the past five years in its shares outstanding, which translated into a 45% increase overall.
Investors were less than thrilled with the news, however, because this will be second time in the last year that shareholders have been diluted by the introduction of new shares. Analysts were hopeful about some financials though, and the company still has more than $110 million in cash on hand with a burn rate of only $20 million per quarter.
Shares plunged 7.9% on strong volume. Angie’s List Inc has been hammered more than 25% lower year-to-date while still trading at a massive 44 times next year’s expected profit figure. Analysts have lined up to say that the company is extremely overvalued, which has taken a heavy toll on the firm’s share price.
These same analysts were much more positive at the end of last week, however, in response to the company’s new tiered pricing structure. One major analyst from Bank of America took the opportunity to reiterate its price target of $16 per share for the next twelve months, which represents a major move in the context of the very poor financial report from back in February. The company has admitted to focusing on top-line growth at the expense of profits as it figures out how to better position itself in the market. Shares soared 11% on the news. The Dow Jones added 0.52%, the S&P 500 added 0.46%, and the Nasdaq added 0.59%.
Today’s M&A news:Man Group PLC, the largest publicly traded hedge fund in the world, said today that it will purchase Pine Grove Asset ManagementLLC. The firm has not disclosed the agreed sum to be paid for the New Jersey company that charges investors a fee to pick credit hedge funds on their behalf. The deal should close in the third quarter of 2014.
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