Asian Stocks Drop As Euro Approaches Two-Year Low :-
Asian stocks dropped and the euro fell to a two-year low as Spanish borrowing costs rose and China damped speculation of large-scale economic stimulus. Oil and metals prices slid. The MSCI Asia Pacific Index lost 1.2 percent as of 10:55 a.m. in Tokyo, led by shares of resources and energy companies. Futures on the Standard & Poor’s 500 Index declined 0.5 percent. The euro weakened 0.3 percent to $1.2465 and the Australian dollar retreated 0.6 percent. Crude fell 0.4 percent to $90.41 a barrel in New York and copper dropped for a second day in London.Asian Stocks Drop As Euro Approaches Two-Year Low
China has no plan to introduce stimulus measures of the scale seen during the global financial crisis, the official Xinhua News Agency said yesterday. The world’s second-biggest economy is forecast to expand 8.2 percent this year, the slowest since 1999.
Spain’s 10-year bond yield rose to the highest level since November yesterday as the central bank said the nation is sinking deeper into recession, fueling concern Europe’s debt crisis will worsen. “Chinese authorities do see downside risks to growth this year,” said Dwyfor Evans, a Hong-Kong based strategist at State Street Global Markets, part of State Street Corp., which has $1.9 trillion under management. “They will continue addressing the slowdown but it’s hard to assess if it will be enough.” The MSCI Asia Pacific Index is headed for a 10 percent decline this month, which would be the biggest loss since October 2008, amid signs of a deepening slowdown in China and as European leaders pressure Greece to meet bailout terms and stay in the euro. Greece will hold an election next month that may settle the matter.
Spanish Banks The euro has lost 5.9 percent this month, headed for its largest monthly drop since September, and touched $1.2458 today, the weakest level since July 1, 2010. Spain backtracked yesterday on a plan to use government debt instead of cash to bail out Bankia, as Prime Minister Mariano Rajoy struggles to shore up the nation’s lenders without overburdening public finances. “It’s all about what happens with Spain and their banks, and what could be the scenario in terms of how much money they ask for,” said Mary Nicola, a currency strategist at BNP Paribas SA in New York. “But there’s still that Greek shadow.” The Hang Seng Index dropped 2 percent today in Hong Kong, leading declines among major Asia equity benchmarks. CNOOC Ltd., China’s biggest offshore oil producer, slid 2.7 percent, dropping to its lowest level this year. The price of crude has tumbled 14 percent this month in New York, the biggest decline since May 2010. The yield on benchmark 10-year Treasuries slid three basis points, or 0.03 percentage point, to 1.72 percent. The U.S. Labor Department is scheduled to release its monthly employment report later this week. U.S. payrolls probably climbed by 150,000 workers this month after a 115,000 gain in April.
IMPACT OF EURO SLID TO A TWO YEAR LOW :- (AT 8:35 AM INDIAN STANDARD TIME)
WE ARE SEEING CLEARLY IN THE ABOVE INTERNATIONAL MARKET WATCH THAT HOW MUCH EURO IS MAKING PRESSURE IN ALL THE INDEX FUTURES AS WELL IN COMMODITIES.
AMERICAN MARKET :-
DOWJONS FUTURE @ 12525, -52 POINTS DOWN, -0.42% DOWN
NASDAQ 100 FUTURE @ 2545.61, -13.50 POINTS DOWN, -0.53% DOWN
S&P 500 INDEX FUTURE @ 1325.13, -7.50 POINTS DOWN, -0.57% DOWN
EUROPEAN MARKET :-
FTSE 100 INDEX FUTURE @ 5349, -27 POINTS DOWN -0.50% DOWN
ASIAN MARKET :-
HONGKONG INDEX HANG SEN 40 @ 18641 @ -414.46 POINTS DOWN, -2.18% DOWN
NIKKEI 225 @ 8571.90, -85.18 POINTS DOWN, -0.98% DOWN
TAIWAN @ 7237.07, -105.22 POINTS DOWN, -1.43% DOWN
COMMODITY MARKET :-
GOLD (SPOT) @ $1546.92, -$7.80 POINTS DOWN, -0.50% DOWN
SILVER (SPOT) @ $27.70, -$0.15 POINTS DOWN, -0.54% DOWN
CRUDE OIL @ $90.29, -$0.58 POINTS DOWN, -0.64% DOWN
COPPER @ $3.41, -$0.03 POINTS DOWN, -0.88% DOWN
US BOND MARKET :-
US NOTE @ $133.88, +$0.19 POINTS UP, +0.14% UP
US BOND @ $147.94, +0.38 POINTS UP, +0.26% UP
AFTER SEEING ALL THE ABOVE SITUATION, INDIAN MARKETS ARE ALSO EXPECTED TO NEGATIVE TODAY.
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