US jobs package and a recovery in US services boost daily outlook for binary traders

Asian stocks rebounded from a three- day drop that left valuations at the cheapest level since 2008 (see China Life, our stock pick below), while copper rose for the first time in five days. The Australian dollar gained after the economy grew at a faster-than-forecast pace and Treasury 10-year yields climbed above 2 percent.

In the US all eyes are on President Obama’s job package, a proposal of $300 billion in tax cuts and government spending to boost the US economy. Meanwhile the Eurozone problems remain and their markets got hit yesterday — the German DAX has fallen over 5%. The sell-off has abated today and has enabled the US futures to recover from their worse levels–the S&P 500 furtures were marked down 30 points before recovering.

Trade the News: Today’s Key Economic Events Summarized

Manufacturing Production in the UK and BOC Rate Statement in Canada are the main events today.

In the US, the Beige Book is published at 7:00pm, one of 3 books (Green, Blue & Beige) that the Federal Open Market Committee (FOMC) uses to decide on the next interest rates. During the day, Charles Evans, Federal Reserve Bank of Chicago President, is also due to deliver a speech in London.

In Canada, the Bank of Canada (BOC) Rate Statement at 2:00pm, a key tool that the BOC uses regarding the monetary policy, economic conditions & outcome of future decisions. More in Canada, Overnight Rate, 8 times per year valuation for short term interest rates; a 1.0% is predicted this time with no change from the previous rate.

Finally in Canada, Ivey Purchasing Managers’ Index (PMI) at 3:00pm, monthly survey (175 selected managers) to value relative level of business conditions, a rise of 1.3 points to 46.7 points is forecasted.

In Europe, the German Industrial Production at 11:00am, a main valuation to the manufacturers output regarding mines & utilities; a rise from -1.1% on August to 0.6% this time is expected.

In Great Britain, Manufacturing Production at 9:30am, an important and primary key to value the manufacturers output, a rise from -0.4% on August to 0.1% now is estimate. Finally in Britain, Industrial Production at 9:30am, with no change from August expected.

In Australia, Gross Domestic Product (GDP) released at 2:30am, main quarterly measurement increased to 1.2% over 1.0% in the previous quarter.

In Japan, Leading Indicators, index that is based on 12 economic indicators increased to 106% in August up from 105.9% forecast. Later in Japan, Bank Lending is to remain -0.5% similar to the previous release. Finally in Japan, Current Account is about to slightly rise from 0.92T to 0.99T.

Timezone: GMT

Abbreviations represent currency.

Currency Hot Pick of the Day (85% Return)

EUR/JPY
Downward trend

Advanced Traders
We observe that both the UK currency and single European unit, shown here, have eased to test the August low against the Japanese Yen, at Y123.307, and Y108.03, respectively. If these yield, the March floor, at Y122.365 and Y106.61, will be the next target for bears.

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Commodity Hot Pick of the Day (85% Return)

Crude Oil
Short-term pullback

Advanced Traders:
Crude Oil followed equities lower. The front month chart appears to be reasserting its downtrend off the May high. There may be some short-term support around $80, both a horizontal and rising trendline level.

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Index Hot Pick of the Day (85% Return)

S&P 500
Trading sideways with downward bias

Advanced Traders
The S&P 500 failed at the top of its range of the past month. The medium-term trend has reasserted down and we expect to continue to trade cautiously until a concrete bottom is confirmed.

Momentum is no longer oversold so the index has the potential to weaken further and even break the August low (1101.54). In the meantime we expect the sideways range to continue.

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Stock Hot Pick of the Day (85% Return)

China Life
Poised for a rebound?

Advanced Traders:
Chinese stocks rose the most in two weeks as the China Securities Journal said the central bank may ease monetary policy, Greece pledged to speed up austerity measures and U.S. service industries unexpectedly expanded.

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While the US market is closed for Labor Day weekend, binary traders will look at downward pressure on Asian shares and FTSE 100 as a result of Friday’s weak employment numbers

The fact that US unemployment continues to stay high should not surprise anyone. The world’s largest economy has deep structural problems and it will be some time before these problems can be solved. If the US were to slip into a double-dip recession, the world can hardly ‘decouple’.

Meanwhile stocks fell for a third day, while oil slid after U.S. job growth stalled last month and amid concern Europe’s sovereign-debt crisis will worsen. The Dollar Index headed for its longest winning streak in eight months and German bunds advanced, driving 10-year yields to a record low.

Trade the News: Today’s Key Economic Events Summarized

Keep an eye out on Services PMI in the UK for high impact trading.

Euro impact

In Europe, Retail Sales, a key gauge for consumer spending and overall economic activity; expected to reduce from 0.7% in August to just 0.1% now.

More in Europe, the Final Services Purchasing Managers’ Index (PMI), due to remain at 51.5 points similar to the survey on August.

Finally in Europe, the Sentix Investor Confidence, about to further reduce from -13.5 points in the August survey to -17.5 points this time.

GBP impact

In Great Britain, Services Purchasing Managers’ Index (PMI), the monthly survey to value the business conditions in the services industry, 54.3 points is expected this month similar to last time 55.4 points.

More in Great Britain, British Retail Consortium (BRC) Retail Sales Monitor, is due to remain 0.6% similar to August report.

AUD impact

In Australia, the AIG Services Index, a measurement of the business conditions of service-based companies based on a monthly survey, at 48.8 points expected to be similar to the previous month.

Later in Australia, Company Operating Profits is to be released, a quarterly report that is about to rise from -1% the last time to 3.1% now.

Finally in Australia, Melbourne Institute (MI) Inflation Gauge due to remain 0.3% like on August.

Timezone: GMT

Abbreviations represent currency.

Currency Hot Pick of the Day (85% Return)

USD/CAD
Slight uptick

Advanced Traders
Last week Canadian domestic growth rate has rebounded in June after 0.3% drop in the previous month. This rise was in line predictions indicating Canadian economy is back to expansion. Will this trend continue?

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Commodity Hot Pick of the Day (85% Return)

Copper
Retreat continues on weak demand

Advanced Traders:
Copper for three-month delivery retreated as much as 0.9 percent to $8,990.25 a metric ton on the London Metal Exchange, extending a two-day loss. Nickel slipped 0.7 percent, aluminum lost 0.6 percent, while tin dropped 1.2 percent.

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Index Hot Pick of the Day (85% Return)

FTSE100
Poor US Job Data Ends Technical Rally?

Advanced Traders
At a range of 5800-6000 the FTSE 100 is now in a dense ceiling. Overall, unless we see a string of better than expected economic news elsewhere, stocks will continue to struggle. And, September is usually a bad month for equities.

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Stock Hot Pick of the Day (85% Return)

BP
Downward bias

Advanced Traders:
BP is struggling to overturn the medium-term downtrend. From the January peak of 510p, the oil giant has failed to make new price and relative highs since.

The latest downside breakout is particularly brutal. With no further support until 300p, the stock could easily re-test this low (see right). Meanwhile, BP’s relative strength is poor and looks set to underperform the market.

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Discussions around new stimulus have binary traders on notice

Signaling the Standard & Poor’s 500 Index will rebound from its biggest in the past few weeks, the US stock futures rose, amid speculation the Federal Reserve will reveal further measures to support the economy. Still Gold futures increased for a sixth day while Schlumberger Ltd. (SLB), the largest oilfield-services provider, rose in Paris amid speculation the civil war in Libya may be drawing to a close.

Platinum and other commodities gain ground, will Gold hit $2,000 in today’s session?

Meanwhile the U.S. equity benchmark S&P 500 edged up to 1,123.82, still a 16% loss since July 22. Dow Jones Industrial Average also gained slightly to 10,854.65 yesterday. Platinum climbed to a three-year high as concern about slowing economic growth and debt crises spurred demand for tangible assets as a protection of wealth.

Trade the News: Today’s Key Economic Events

9:30am GBP – BBA Mortgage Approvals It’s a leading indicator of housing market demand – most home purchases are financed with a mortgage, so it provides an excellent gauge of how many qualified buyers are entering the market.

10:00am EUR – German ZEW Economic Sentiment It’s a leading indicator of economic health – investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity.

3:00pm USD – New Home Sales It’s a leading indicator of economic health because the sale of a new home triggers a wide-reaching ripple effect. For example, furniture and appliances are purchased for the home, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction.

Timezone: GMT

Abbreviations represent currency.

Currency Hot Pick of the Day (85% Return)

USD/CHF
General uptrend

Advanced Traders
The Swiss Franc hit 0.7906 during European late morning trade, the daily high; the pair subsequently consolidated at 0.7859, rising 0.09%.

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Commodity Hot Pick of the Day (85% Return)

Gold
Upward trading on high volumes

Advanced Traders:
Gold is trading at a record high of $1,910 after rising 1.99%. Will it cross the $2,000 threshold today?

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Index Hot Pick of the Day (85% Return)

S&P 500
General Downtrend. Rose slightly.

Advanced Traders
The S&P 500 had a small brake starting this week with a 0.41% increase to 1123.82 as Fed watchers look for signals of a new stimulus.

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Stock Hot Pick of the Day (85% Return)

Citigroup
Downward momentum

Advanced Traders:
Citigroup’s shares are trading below the split-adjusted price of $28 that they hit on the day the bank’s Fed loans peaked in January 2009. The stock fell 0.04% to 26.76.

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Trading binary options involves risk and may not be suitable for everyone. Only speculate with money you can afford to lose. A Product Disclosure Statement for this product is available from our website and should be considered in deciding whether to acquire the product. StartOptionsis a trading name of Market Punter Pty Ltd (ABN 86 137 016 490) which is authorized and regulated in Australia by the Australian Securities and Investments Commission (Authorized Representative No. 337740).

U.S. index futures and Asian shares retreated in another day of trading, while gold prices cleared $1,800 in bullish trading. Dexia SA (DEXB) led banks lower while government bonds rose after two Federal Reserve officials said the U.S shouldn’t act to protect equity investors and Sweden’s financial regulator said banks aren’t prepared for a freeze in money markets. A gauge of European carmakers plunged almost 4 percent. Holcim Ltd. (HOLN) sank 6.3% as the world’s second- biggest cement maker reported profit that missed estimates. Meanwhile the yen strengthened, while oil and copper fell. The yield on 10-year Treasury notes declined five basis points as investors continue to seek safety assets.

Major indexes continue to drop

U.S. stocks tumbled some 3% in early trading yesterday, weighed down by bank shares, as a report that regulators were intensifying their review of European banks’ U.S. units shook up investors. Standard & Poor’s 500 Index futures sank 4.46% to 1140.65. The NASDAQ dropped 5.22% to 2380.43 while the FTSE 100 lost 1.33% to 5,026.23.

Trade the News: Today’s Key Economic Events

7:00am EUR – German PPI m/m It’s a leading indicator of consumer inflation – when manufacturers charge more for goods the higher costs are usually passed on to the consumer.

1:30pm USD – FOMC Member Dudley Speaks Federal Reserve FOMC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

Timezone: GMT

Abbreviations represent currency.

Currency Hot Pick of the Day (85% Return)

EUR/JPY
General uptrend, fell slightly in yesterday’s session

Advanced Traders
The value of the JPY continued to rise, pulling the pair down 0.50% to 109.18.

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Commodity Hot Pick of the Day (85% Return)

Gold
Trading upward

Advanced Traders:
Gold hit a new high of 1866.3 with a 2.43% increase in brisk trading.

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Index Hot Pick of the Day (85% Return)

S&P 500
Overall downward trend

Advanced Traders
The S&P 500 index is in free fall with a recent decline of 4.46% to 1,140.65.

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Stock Hot Pick of the Day (85% Return)

SPDR Gold Trust
General uptrend

Advanced Traders:
The SPDR Gold Trust (GLD) was trading up 0.03% ahead of the latest numbers. It was climbing 1.4% in pre-market trading.

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Trading binary options involves risk and may not be suitable for everyone. Only speculate with money you can afford to lose. A Product Disclosure Statement for this product is available from our website and should be considered in deciding whether to acquire the product. StartOptions is a trading name of Market Punter Pty Ltd (ABN 86 137 016 490) which is authorized and regulated in Australia by the Australian Securities and Investments Commission (Authorized Representative No. 337740).