Following the sharp losses witnessed yesterday amid worries from the deepening debt crisis in Europe, markets seam to be moving in relatively tight ranges ahead of the keyUSemployment data.
As demand for higher-yielding assets dropped, the euro reached its lowest level in 16 months against the US dollar and reached an 11-year low against the yen, trading as of this writing around 1.2790.
The euro’s decline fuelled concerns that the euro zone might not be able to find a comprehensive solution to the debt crisis, which will make it more difficult for European banks to raise capital, thereby might become more exposed.
Asian stocks dropped today were under pressure today as sentiment is weak and investors avoided risk amid ongoing worries overEurope’s condition. Nikkei 225 fell 1.16% while Hang Seng was down 1.17%.
In Europe stocks rose today ahead of the closely-watched US jobs repot expected to show the US economy might added 155 K jobs in Dec. adding to evidence the economy strengthening. DAX rose 0.46% while CAC 40 rose 0.79%.
Data today may show that the European consumer confidence fell in Dec. to the lowest in more than two years while Europe’s retail sales andGermany’s factory orders might dropped, yet theUSmight added 155K jobs in Dec.
The improvedUSdata is sustaining confidence as of this writing, where the USD is moving with some downside momentum around the 80.85 level, while the pound rose to trade around the 1.5505 level.
The dollar’s slight weakness opened the way for crude oil to jump above the $102.00 level on continued worries about Iran, after falling as low as $101.30 on global growth concerns. Gold is almost unchanged at $1622.25.
Originally posted here
