The upbeat manufacturing data from the United States and China helped divert market attention from euro woes yesterday, but risk aversion was reignited ahead of Germany’s and Portugal’s bond auctions.
Germany will sell 5 billion euros of bonds today while Portugal will sell 1 billion euros of bonds, this renewed fears over Europe’s huge refinancing needs and the difficult conditions faced by the banking system.
Investors will follow today the US factory orders numbers which probably climbed in Nov. the most in four months and which could improved the outlook for global growth even more after yesterday’s upbeat ISM numbers.
Germany released today a disappointing PMI Services report, while Europe witnessed a rise in its PMI Services to 48.8 in Dec. from 48.3. Meanwhile UK witnessed a fall in the PMI construction.
Bernanke announced yesterday that for more transparency starting this month the Feds will be announcing forecasts for the federal funds rate, yet the dollar rose today trading around 79.75 on risk aversion.
In Asia stocks climbed today on the first full trading session for 2012 after upbeat U.S.and European economic data yesterday, MSCI Asia Pacific Index rising 1.1% at 15:49 p.m. inTokyo.
In Europe stocks fell before the bond auctions where DAX fell 0.59% while CAC 40 fell 0.62%. The euro witnessed losses as well trading as of this writing around the 1.3033 level while the pound fell to 1.5620.
The AUD fell today trading around the 1.3050 level as the dollar is strengthening yet the Japan the yen continues to strengthen to the central bank’s agony trading as of this writing around the 76.60 level hurting exports even more.
Although oil prices eased today trading with some downside bias around the $102.75 in a correctional move following yesterday’s sharp gains, tensions overIrancontinue which kept gold prices up around the$1608.75.
Originally posted here
