Gold still losing some shine; Euro continues to weaken
City Index December 19, 2011 3:51 PM
<p>Asian stocks are set for mixed leads, possibly down but not as large as offshore markets overnight given the extent of Asian declines yesterday. US […]</p>
Asian stocks are set for mixed leads, possibly down but not as large as offshore markets overnight given the extent of Asian declines yesterday.
US stocks declined overnight after comments from European officials failed to ease debt concerns. Bank of America continued to decline, down more than 4% and back below the $5 level where it hasn’t traded since March 2009. US financials continue to trade on weak sentiment, having fallen significantly this year. The S&P500 was 1.2% lower at its close.
In currencies, the Australian dollar continues to fall further away from parity against the US dollar, last trading at 0.9895. The Japanese Yen also gave away yesterday’s gains with the dollar back above the 78.00.
Weakness continues for the Euro also, back below 1.30 against the US dollar with more weakness likely in 2012 as net short positions continue to grow at record levels.
All eyes will be on the Reserve Bank of Australia’s monthly meeting minutes which will be released this afternoon Sydney time. The minutes will detail the urgency and considerations for this month’s rate cut, with signals for more action next year watched closely by traders.
In corporate news, Newcrest mining – one of the world’s top five gold miners – will find some sellers following its production downgrade late yesterday afternoon. Gold was last trading at US$1593/oz.
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.