More gains expected in Asia as Berlusconi offers to step down
City Index November 9, 2011 7:38 PM
<p>Asian shares should expect more gains today particularly given yesterday’s lackluster performance. Europe remains the key talking point, with news out in the past few […]</p>
Asian shares should expect more gains today particularly given yesterday’s lackluster performance. Europe remains the key talking point, with news out in the past few hours that Italian Prime Minister Silvio Berlusconi has offered to resign.
There should be some optimism around the announcement with expectations a change in leadership will see a stronger focus on addressing Italy’s fiscal position.
Regional issues are also weighing on Asian shares. An admission by Japanese firm Olympus that losses were hidden does little to boost corporate confidence. Olympus has admitted that three of its top executives colluded to hide losses from investors.
Shares were last down almost 30% following the news. There will be a series of confidence building among other key corporate that will be mindful of skeptics who might draw similar distinctions with their businesses.
Oil continues to also trickle higher on the back of renewed Middle East tensions. Light crude and Brent were last trading slightly below US$96 and US$116 per barrel, respectively.
Traders are nervous ahead of the release of an International Atomic Energy Agency (IAEA) report which could find Iran sought to miniaturize a Pakistani nuclear weapon design to fit on its ballistic missiles.
Iran shares the Strait of Hormuz water channel with neighboring Arab states. This waterway accounts for almost 33% of total daily world seaborne oil shipments, hence the sensitivity around oil markets of which Asian countries are major consumers.
GAIN Capital UK Limited (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.