By FX Empire.com
Although sentiment continues to be present as officials from all over the world are showing real intention to solve the debt crisis and prevent the global economy from falling into another recession, markets are falling in the afternoon hours as markets await a vote from Slovakia and ahead of a bond auction inItaly.
Caution is seen in Europe today as the outlook of Europe’s debt crisis will be put to test ahead of a bond auction inItalyand ahead of the earnings report from JP Morgan Chase later today from the United States with expectations of weak results. Slovakia is also set to decide on the European bailout plan by tomorrow.
A report from China showing that China’s exports slowed in September and the world’s second largest retailer, Carrefour SA, lowering its 2011 profit forecasts and for the second time in three months, is also contributing to today’s losses seen in Europe. The FTSE 100 fell as of this writing 0.48%, DAX fell 0.51% and CAC 40 fell 0.60%.
Meanwhile stocks in Asia rose today, where the MSCI Asia Pacific Index was 1.1% higher at 15:05 in Tokyo after in Australia the unemployment fell to 5.2% in September for the first time since March, while China unveiled measures to help small companies, and Bank of South Korea kept the its seven day repurchase rate at 3.25% to sustain the economy.
The Feds said yesterday that officials considered last moth to prolong the asset purchasing program since growth is seen uncertain. Yesterday the European Commission President Jose Barroso called for a reinforcement of bank protection, quickly initiate the European rescue program and provide Greece with its next tranche.
Caution left its mark on the currency and commodity markets as well. The euro fell today trading around 1.3720, while the pound fell to trade around 1.5690 although the trade balance inUKshowed that deficit narrowed in August as exports rose. The AUD is almost unchanged trading around 1.0155.
Meanwhile the dollar index is rising as investors are seeking safe haven till they get more confirmation on the outlook of the global economy. The USD is trading around 77.20, while the yen gained to trade around 76.82. the dollar’s rise pushed gold to the downside trading around $1672.10, while oil fell trading around $84.25 after the US showed gasoline demand fell the most in five years.
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