Negative leads from the US may dampen Asian trades today
City Index September 29, 2011 10:20 PM
<p>Declines are expected across the Asian region today. Consensus estimates are for Chinese growth to continue moderating and possibly slowing to 5% by 2016. Even […]</p>
Declines are expected across the Asian region today. Consensus estimates are for Chinese growth to continue moderating and possibly slowing to 5% by 2016. Even if that doesn’t occur, the current expectation is one of lower growth assumptions.
Commodities have accordingly adjusted in price with copper taking large declines, last down to around $3.23/lb. Overnight, the S&P500 Index lost 2.1% to 1,151.06 at the close in New York after climbing 0.8% earlier and rallying more than 4% over the previous three sessions.
The Euro weakened 0.2% to $1.3554, erasing a 0.8% advance. Ten-year yields rose two basis points to 1.997%, rallying off recent lows but still at historically depressed levels. Australian miners are expected to take heavy losses today, in response to lower commodity and energy prices.
Canadian stocks were 2% lower overnight in response to commodities selling off.
In Australian corporate news, uranium producer Paladin Energy has successfully placed 59.8m ordinary shares to raise around A$68m. The offering to institutional investors comes at a significant discount when given the large price decline over the past few months, but should ease balance sheet pressures until the uranium price rebounds. This could take a while but the long term fundamentals of uranium and new capacity still being added in nuclear power, even post Fukushima, are all positive for those with a patient time horizon.
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.