Global concerns may push Asian stocks lower yet again
City Index November 23, 2011 8:52 PM
<p>With US and European markets into the red overnight, Asian stocks are expected to trade lower again today. During the US trading, the S&P500 was […]</p>
With US and European markets into the red overnight, Asian stocks are expected to trade lower again today. During the US trading, the S&P500 was 2.2% lower at its close, losing around 7.6% in the past six trading sessions as global doubts around growth and debt contagion grip markets.
Losses were extended after a much weaker than expected German bond auction, indicating even the strongest nations among the eurozone are not immune from the nervousness.
In the US, durable goods data came in as expected. Americans pulled back on spending in the month of October while manufacturers received less orders for durable goods official numbers showed.
All 10 industry groups in the S&P500 were lower with financials and materials booking the largest falls. This will no doubt resonate with Asian markets as high growth exposures continue to be sold down. In Australia, the S&P/ASX200 index is very heavily skewed towards resource stocks and banking shares.
In Australian corporate news, department store operator David Jones reaffirmed a very bleak sales position for the first quarter of 2012. Comparable sales were 11% lower compared to the same period last year and down 11.2% on an absolute basis. It’s no secret discretionary retailers have been doing it tough for a while now. The stock is likely to sell off in early morning trading.