Strong open forecast for Asian markets
City Index September 15, 2011 4:07 PM
<p>Asian markets are expected to recover from yesterday’s losses after gains in European and U.S. markets overnight. Moody’s credit rating changes to French banks did […]</p>
Asian markets are expected to recover from yesterday’s losses after gains in European and U.S. markets overnight. Moody’s credit rating changes to French banks did little with the market already expecting the news. The S&P 500 gained 1.4% to close at 1,188.68 while the Stoxx Europe 600 Index added 1.5%. The euro rose versus 15 of 16 major peers, climbing 0.5 percent to $1.3751.
In Asia, China is apparently willing to buy bonds from nations involved in the sovereign debt crisis, National Development and Reform Commission Vice Chairman Zhang Xiaoqiang said in an interview with the media yesterday. That commitment and ability should help offset weaker than expected growth estimates published yesterday.
In Australia, Myer Group is expected to unveil its 2011 earnings today. Having reaffirmed guidance, all eyes will be on the composition of the earnings number and the outlook for 2012.
Mining giant Rio Tinto has successfully placed US$2bn of fixed rate bonds, utilising the very low debt costs currently on offer in the market. Maturity and cost look very attractive.
Gunns is expected to update the market on an agreement with the Tasmanian government today and could also announce a European JV partner for its $2.5bn pulp mill project.
Australia’s SPI share futures index was pointing to a 1.8% rise ahead of the open.