Broadgate: Market News 10/5
10 May 2012
Asian stocks swung between gains and losses as forecasts for higher earnings by companies including Toyota Motor Corp. offset concern that Greece will be forced out of the euro and signs that China’s economy is slowing.
“The market’s swinging between pessimism and the drive to buy shares after they’ve dropped a lot,” said Tokyo-based market strategist at Sumitomo Mitsui Trust Bank Ltd., which has about $414 billion in assets. “While there are some risk-off moves from Greece concern, investors are not pessimistic enough to take risk off the table entirely.”
Of the 484 companies on the MSCI Asia Pacific Index (MXAP) that posted quarterly earnings since April 10, 174 exceeded analysts’ estimates, while 188 fell short, according to data compiled by Bloomberg News.
Political changes in France and growing instability in Greece threaten to derail austerity plans and worsen Europe’s debt crisis. This influenced the decline of the Dow Jones Industrial Average (INDU) yesterday for a sixth straight day, the longest losing streak since August.
In addition to concerns about Europe, U.S. stockpiles climbed, causing oil to trade near the lowest price in more than three months. Futures were little changed in New York after falling for six days. China’s crude imports fell to the lowest in four months in April.
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