Markets eyeing US jobs numbers tonight
City Index November 4, 2011 6:57 PM
<p>Asian markets are set for gains today but market sentiment will remain fragile going into the U.S. jobs report tonight local time. On the U.S. […]</p>
Asian markets are set for gains today but market sentiment will remain fragile going into the U.S. jobs report tonight local time.
On the U.S. economy, we note Starbucks’ profit result as a sign that corporate in America are still generating and growing quite healthy profits. Net income in the period ended Oct. 2 increased to $358.5 million, or 47 cents a share, from $278.9 million, or 37 cents, a year earlier, the Seattle-based company said today in a statement. Starbucks is not just a U.S. business but a global franchise with key interests in Asian growth. The profit result came despite higher raw material costs.
In regional economic news, U.S. Treasury Undersecretary for International Affairs – Lael Brainard – told reports China will make commitments on currency flexibility as part of a Group of 20 action plan that will call upon export-oriented economies to boost domestic consumption.
The comments are ambitious – we don’t think China will rush into any sudden movements, instead preferring to take a prolonged measured approach while managing inflation and other imbalances. Still, it seems that there is perhaps more co-operation between G20 members to get some agreements from the current round of meetings beyond just Greece. The next few days will be interesting.
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