Markets are calm with some appetite for risk ahead of the German, French meeting today, where German Chancellor Angela Merkel and French President Nicolas Sarkozy will meet today inBerlinfor the first time in 2012 as they resume their efforts for find solutions for the euro-zone’s debt crisis.
Yet caution is present before the start ofUSfourth-quarter earnings season. The euro extended its losses today against the dollar and the yen before recovering slightly after the German trade balance surplus widened and ahead of the German, French meeting today.
Data today may show that theUSconsumer credit will decline in Nov. while the German industrial production is expected to decline in Nov. to -0.5%.Germanywill sell today 4 billion euros of six-month bills, whileFrancewill auction 7.7 billion euros of debt maturing in 364 days or less.
Asian stocks dropped on Monday trading volume was slightly thinner in Asia as the Japanese markets were closed for a public holiday afterIndia’s Prime Minister cut his economic growth forecasts, while Australia’s retail sales unexpectedly stalled in Nov. spurring bets that the central bank will cut rates.
In Europe stocks were mixed ahead of the German, French meeting as the two parts are resuming their efforts to resolve the euro-zone’s debt crisis, with DAX falling 0.24% while CAC 40 gained 0.23% as political and economical conditions in Europe seem to be unstable, while growth outlook remains subdued.
As investors await a rescue plan from the leaders ofGermanyandFrance, risk appetite improved, sending the euro towards the 1.2765 level from the lowest at 1.2664, and the pound to 1.5435 from the lowest at 1.5393, after the dollar index was pushed down towards the 81.00 level from the highest at 81.50.
The AUD is also gaining trading around 1.0225 despite the poor retail sales data, while the yen is strengthening trading around 76.85. The dollar’s decline opened the way for gold to gain trading as of this writing around $1619.55, yet oil is dropping trading around $101.35 on worries over Iran.
Originally posted here
