Strong bounce in US and European markets may push Asian stocks higher
City Index November 29, 2011 4:36 PM
<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.
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.