Asian markets expected to open lower on the back of weak offshore leads

<p>Asian markets are expected to open lower on the back of weak offshore leads. Researchers at the Federal Reserve of San Francisco rate the chance […]</p>

Asian markets are expected to open lower on the back of weak offshore leads. Researchers at the Federal Reserve of San Francisco rate the chance of the U.S. economy entering into recession in 2012 as 50%. This may prompt US Federal Reserve Chairman Ben Bernanke to pursue another round of quantitative easing early next year which will see a large reaction across all global markets.

The Japanese Yen continues to appreciate against the US dollar with the USD/JPY just above 77.00 at the time of writing. The news comes as Japan yesterday reported positive GDP numbers, the first such in a year. Europe’s woes continue, dampening any EUR rally, last trading against the USD at around 1.3630.

In regional economics, Australian Prime Minster Julia Gillard is expected to introduce the notion of lifting uranium sales from Australian producers to India. The shift could add around $1.7bn in export revenue to the Australian economy among other regional trade benefits. The most obvious winners from such a move would be Australian miners BHP Billiton, Energy Resources of Australia (ERA) and Paladin Energy (PDN) among other junior explorers.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.