European concerns hang heavily on Asian stocks
City Index September 19, 2011 3:24 PM
<p>Asian markets closed lower today on renewed fears over European debt issues. China’s market was 1.4% lower and now down 12.8% year to date. The […]</p>
Asian markets closed lower today on renewed fears over European debt issues. China’s market was 1.4% lower and now down 12.8% year to date. The market has priced in a lot of growth consolidation in response to inflation targeting issues. While it’s good to see China addressing the inflation situation, the region is suffering from the drag to growth and sentiment.
Despite all the negative press and doomsday predictions over Chinese property, prices for new homes in August rose in all 70 cities monitored for the first time this year. Prices in Beijing advanced 1.9% from a year ago, while those in Shanghai, the nation’s financial center, increased 2.8%.
What happens in China and the sentiment around growth is important for the whole region, Australia included. The ASX200 seems to have held the all important 4,075 support level today, despite closing 1.6% lower.
Corporate news flow remains very quiet, with the exception of Premier Investments and David Jones rounding out the report season this week. The market will look to the Reserve Bank of Australia (RBA) meeting minutes tomorrow to see where the weight of argument lies with the central bank – on inflation targeting or concerns around global growth.
At the same time, all eyes will also be on the US Fed’s meeting this week with expectations of a commitment to support growth at all costs.
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.