Positive US lead may trickle to Asian shares
City Index November 29, 2011 3:30 PM
<p>Asian stocks are expected to open mixed today after positive offshore leads from the U.S. and Europe. Ahead of the Asian open, Luxembourg Finance Minister […]</p>
Asian stocks are expected to open mixed today after positive offshore leads from the U.S. and Europe. Ahead of the Asian open, Luxembourg Finance Minister Luc Frieden told reporters that a plan put together last month to expand the European Financial Stability Facility’s (EFSF) fire power to 1 trillion Euros would be very difficult to reach, forcing some to re-evaluate the immediacy of a practical outcome to the ongoing debt crisis.
The EUR/USD remains stuck in a range between 1.33-1.34, with stiff resistance at levels above that. The AUD/USD has also fallen back, now testing parity again, before the Australian market open.
In corporate news, American Airlines’ parent AMR Corp has filed for bankruptcy after failing to reach a desired outcome from recent labor negotiations. The Texas-based company listed US$24.7 billion in assets and US$29.6 billion in debt in Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan. The news comes as Australian airliner Qantas is stuck in a compulsory arbitration process after much publicised staffing issues.
In other Australian corporate news, food distributor Metcash reported an uninspiring 1.4% rise in underlying earnings. The rate of growth has slowed from a recent strong run of profits, mainly at the expense of a lagging Coles operation over the past decade, but all that has now changed. The earnings result is a good read into the health of Australian retailers, particularly in the staples space, where the pace of earnings growth has recently dried up.
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.