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.
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