China has beat Japan as the second-largest economy in the world. With an average GDP growth of 10% for the last 30 years, a population of 1.4 billion, first place in the world’s and consumption and production of coal, steel and energy, and the world’s largest exporter and second-largest importer of good, the country stands a chance at becoming number one soon. (It is also ranks first-place in the world in coal production).
Other news in China is the country’s allowing foreign investors to invest in the Chinese market. A pilot program will allow foreign investors to buy bonds in the Chinese market using Chinese currency.
Shanghai is set to become a world leader in finance by 2020. As a result, they are tapping into corporate investment abroad and could allow foreign companies to sell shares in Shanghai as early as next year. Rumor persists that Shanghai may allow foreign investment in yuan-dominated private equity and venture capital funds as well in the near future.
Since the yuan ended its peg against the dollar on June 19 it has risen by .5 percent. Announcement of the end of the peg causes a 4.8 percent increase in Hong Kong yuan deposits in June. China is now making it easier for yuan transactions between banks and companies in Hong Kong as well as those transferring cash in order to buy wealth-management products.
The rise of the yuan currency combined with rising sentiment about China’s future could make it a good short-term investment for binary options and forex traders.
Best Month in a Year
——————————————————————————————
One great way to make binary options work to your advantage is to trade based on monthly and quarterly earnings reports. Options can be predicted to rise or fall shortly before these news releases. If you do the research you can capitalize on these movements in the market. But more on this strategy at a later posting. Now let’s concentrate on our monthly report.
——————————————————————————————–
Stocks did better this month than they have in an entire year. Sixteen of the thirty DOW stocks ended higher at the end of July, including Home Depot (up 1.6% at $28.51) and Boeing (up 1.4% at $68.14). Intel (down 1.7% to $34.46) and Merck (down 1.7% to $34.46) ended lower than expected.
Stock Market Summary
DOW- ended at 10,466 points, rising 7.1% for the month. Earlier in the day the DOW fell almost 120 points, but it ended a point below the day’s opening. It ended with a fall of .01% for the day.
Nasdaq Composite Index– ended three points higher, at 2,255.
DAX- Germany’s DAX index rose .2%.
IBEX- Spain’s IBEX fell 1.2%.
Nikkei- Japan’s Nikkei stock average fell 1.6%.
S&P 500- ended at the same rate at 1,102, rising 6.9% for the month and .01% for the day.
News Events of the Month-
Technology News-
Research in Motion (RIMM) shares jumped 3.3% to $57.53 after announcing its plans to release a tablet competing with Apple’s iPad in November, the “Blackpad.” In addition, it will announce a rival to the iPhone next week.
Economic News-
The US government reported slow growth in the period of April to June, with a GDP of an annual rate of 2.4% in the 2nd quarter compared with the 2.5% predicted by economists.
Spain’s credit rating is likely to be cut, as it faces mounting unemployment at 20% and rising debt.
Congress voted on a $2 billion cash for clunkers program, a new program offering Americans a cash incentive for trading in gas guzzling automobile for fuel efficient alternatives. This program should help stimulate the automobile industry.
Currencies-
The dollar rose against the British pound and Euro but fell against the yen.
Savings and Consumer Spending-
Consumer sentiment for July rose to 67.8 and not the expected 66.5.
Commodity Market
Oil, gold, and copper all rose in price.
Gold- $13.30 to $1,181.70 per ounce.
Copper- up 2.15 cents to $3.3115 a pound, up 12% for July.
Oil- closed at $78.95, up 4.39% from last month.
Employment
Increased to 9.6% from 9.5% for last month for the US market.
Private employers added 90,000 jobs to the payroll, an improvement since June.
Sales and Manufacturing
Manufacturing activity slowed to its lowest level since December. Reports of Midwest manufacturing rose to 62.3 this month from 59.1 for last month.
Oil Prices
Among the different developments likely to influence oil prices for both the short and long-term future are:
Obama’s decision to delay drilling near Alaska until 2011
Increasing general restrictions on rigs and platforms in US territories
Regulations causing fewer jobs than expected for the future
Increased demand for oil during the summer months
Chinese gasoline demand is weak in light of increased sales for vehicles in 2010
When crisis like these happen in the markets, it can be a good time to invest in binary options.
Oil prices this past week rose in light of the public’s sentiment that the world economy is recovering. Crude oil rose to $78 dollars a barrel, in spite of a greater than expected supply of US crude stockpiles, according to the US Energy Information Administration. Oil prices are expected to rise further as the summer progresses and demand for oil increases.
BP Stock Prices
BP stock has risen more than 9% as budgeting of $20 billion has been set aside for a clean-up policy. BP insists that they will find companies who carry responsibility for the disaster and have them pay their due. BP seems to have enough money to carry the financial burden of cleanup, according to most sources. In addition to the cleanup costs, Obama has said he will demand that an additional fund be set up to compensate those affected by the oil spill.
Today’s announcement that day-to-day operation will be handled by managing director Robert Dudley, who is experienced in handling sensitive assignments for BP in Russia and Africa could also affect stock prices.
This strategy is called gaming the news ticker.
You want to make the most out of your trades.
Is there a way to place trades knowing in advance information that makes the likelihood of you profiting from the trade higher than those without this information?
No, we’re not talking about inside trading. We’re talking about responsible research on market indicators. You should research your favorite stocks and securities to find out when they report their quarterly earnings.
Place trades right after an official earnings release statement. Do your research on whether or not an instrument has usually fallen or risen after an earnings report.
For how long does it rise or fall? How quickly? By how much?
Place your trade accordingly. This is information a responsible trader has that many don’t bother to research. Research them and you will be ahead of the game.
