Euro continues to weaken; mixed leads may spell flat open for Asian stocks
City Index January 6, 2012 3:30 AM
<p>Asian markets may have another flat open today on the back of mixed leads overnight. The S&P500 was 0.3% higher at its close on better […]</p>
Asian markets may have another flat open today on the back of mixed leads overnight.
The S&P500 was 0.3% higher at its close on better than expected jobs data but the official numbers are out tonight Asian time, so the jury is still out on what the final print for new jobs created will be.
Reporting season in the US is also expected to officially kick off on January 9th as Alcoa goes to market with its numbers.
Despite the mildly positive news in the US overnight, European stocks continued to decline, dragged down by financial institutions on recapitalisation plans.
The Euro continued its freefall, last trading at around 1.2780 against the US dollar. The Australian dollar meanwhile continues to trade near a record high against the Euro, last slightly above 0.80 after falling slightly below that level during yesterday’s afternoon Asian trading session.
In regional corporate news, Japan Airlines is set to return to the market after a period of bankruptcy protection. News services report the group is planning an initial public offering that could make it the world’s most valuable carrier as the value of regional competitors, including Australia’s Qantas, have declined significantly over the past six months.
Reports suggest Japan Airlines could seek to raise as much as 1 trillion yen of stock as early as September, enough to see it surpass Air China as the world’s largest airline by market value.
StoneX Financial Ltd (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.