Strong bounce in US and European markets may push Asian stocks higher

<p>The strong bounce in US and European markets may provide the much needed boost to Asian stocks today. The S&P500 gained 2.9% at its close […]</p>

The strong bounce in US and European markets may provide the much needed boost to Asian stocks today. The S&P500 gained 2.9% at its close in New York, capping last week’s losses.

The Australian dollar continues to claw back losses, last trading slightly above U$0.99.00 cents and looking to test parity again should global risk appetite return. Perhaps a blemish on the Asian session will be news that ratings agency Fitch has changed its outlook on the U.S. fiscal position while maintaining its credit rating at AAA.

In regional economic news, markets are starting to price in more rate cuts in countries like the Philippines and Thailand as the impact from Europe starts to curtail regional growth rates. With inflation now a lesser risk to growth, central bankers are juggling the need to stimulate growth in the short term while making sure medium to long term targets on price controls are not at risk.

In Australian corporate news, technical and laboratory services group Campbell Brothers is set to unveil its interim profit today. The group has already guided to a $100m interim profit so the market will be looking at the earnings composition and comments on future growth targets.

In resources, Cameco has dropped its hostile pursuit for Hathor exploration which clears the way for Rio Tinto to push with the C$654m uranium deal.

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