Gold still losing some shine; Euro continues to weaken

<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.

 

 

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