Muted trading in Asia; Qantas announces joint venture with China Eastern airline
City Index March 26, 2012 11:30 AM
<p>The new trading week brought a muted response to Asian markets with caution on traders’ minds. The regional MSCI Asia Pacific index was last trading […]</p>
The new trading week brought a muted response to Asian markets with caution on traders’ minds. The regional MSCI Asia Pacific index was last trading 0.2% lower while S&P500 index futures were pointing to a modest 0.2% gain when shares resume trading tonight.
There are renewed concerns over the European debt situation following on from Italian Prime Minister Mario Monti’s caution that Spain’s inability to meet fiscal targets will trigger another round of tension.
The euro weakened slightly to last trade at 1.3254. The Australian dollar was also weaker ahead of private sector lending numbers due out tomorrow, last trading at 1.0450 against the US dollar but most regional traders were focused on the Japanese Yen as it retreated from its largest weekly gain for the year last week. The dollar was last buying 82.70 Yen.
Gold was steady at US$1662.oz while copper looks set for more gains at around US$3.83/lb.
In regional corporate news, Australian airline Qantas announced plans to launch an Asian budget carrier out of Hong Kong. Under the deal, Qantas-owned Jetstar, will form a joint venture with China Eastern to create Jetstar Hong Kong.
The venture adds to Jetstar’s recent regional initiatives. The new airline will initially use short-haul Airbus A320 aircrafts to service routes in Asia including China.
Both joint venture partners will contribute around US$99m over a three year period with plans to have a fleet of 18 planes by 2015. Qantas shares closed 2% higher.
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.