European concerns weigh down on Asian markets
City Index May 23, 2012 12:05 PM
<p>Asian stocks were again lower with traders unable to shrug off European debt concerns ahead of an upcoming summit. Japan’s outbound shipments grew by 7.9% […]</p>
Asian stocks were again lower with traders unable to shrug off European debt concerns ahead of an upcoming summit.
Japan’s outbound shipments grew by 7.9% compared to the same period last year for the month of April but, given last year’s disruptions, the number was below estimates of around 12%.
The trade deficit widened to $6.5bn, again slightly larger than market expectations.
The US dollar yen pair was last trading at its intraday low of 79.46 despite the print and renewed speculation that the Bank of Japan is ready to undertake some significant and large intervention policies.
The MSCI Asia Pacific index was last trading 2% lower – a significant fall with losses across the board. Australia’s ASX200 index fared slightly better, down by only 1.25% at its close.
The Australian dollar last traded at 97.68 US cents with gold again sluggish at US$1558/oz and copper pointing to losses, last at US$3.44/lb.
All eyes are on Europe ahead of tonight’s summit. The euro dollar was last buying 126.71, weighed down by former Greek Prime Minister’s comments highlighting a real risk that the country could in fact leave the economic bloc.
Tonight’s meeting Asian time marks the 18th crisis meeting since the financial crisis emerged.
Germany looks ever more isolated as Chancellor Angela Merkel, the dominant figure in more than two years of crisis-fighting, heads to the Brussels summit. She remains unable to stifle calls for measures she opposes, including common European bonds, the use of European money to recapitalise banks, a bigger rescue fund and extra time for debt-burdened countries to cut spending.
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.