Soft US markets overnight may dampen Asian shares

<p>Asian stocks are set for a soft open when trading resumes today. US markets were down overnight with the Dow Jones Industrial average down 0.2% […]</p>

Asian stocks are set for a soft open when trading resumes today. US markets were down overnight with the Dow Jones Industrial average down 0.2% and the S&P500 shedding a modest 0.3%.

The Nasdaq was lower by 0.5% as Dell – one of the world’s largest maker of computer technology – shed almost 6% after reporting numbers that missed market estimates. Dell’s miss was driven by lower sales as it struggles to compete with mobile technology.

Benefits from streamlining are also taking a little slower to realise. Today’s decline comes after solid gains in the stock over the past few months.

In commodities, gold rallied on strong volumes overnight, trading last at US$1775/oz. Silver was similarly stronger, rising above US$34/oz.

In currencies, the Australian dollar was soft after foreign minister Kevin Rudd announced his resignation late yesterday Sydney time. It’s unclear at this stage if the resignation will lead to Rudd challenging Prime Minister Julia Gillard’s position but more will be known over the next few days.

The Australian dollar last traded at 1.0630 against the US dollar. The Euro remains above 1.32 against the US dollar while the dollar has managed to finally rise above the 80 mark against the yen, last trading at 80.25.

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.