Broadgate: Market News 26/3
26 March 2012
Asian stocks fell for a second day, extending last week’s loss, as corporate profits trailed estimates and amid concern that exporter earnings are deteriorating. Of 631 Chinese companies listed which have reported earnings since January 9, more than half have missed analysts’ estimates, according to data compiled by Bloomberg. The yen weakened after its biggest weekly advance this year. It gained 1.3 percent against the dollar last week, breaking a six-week losing streak. The Japanese currency has weakened 11 percent in the past six months, the worst performance among 10 developed-nation currencies.
Italy’s Prime Minister Mario Monti warned over the weekend that Spain could inflame the European debt crisis. Monti highlighted Spain’s struggle to control its finances, arguing that the country “hasn’t paid enough attention to its public accounts.” This comes ahead of a finance ministers meeting in Copenhagen starting on March 30, where euro-area ministers will seek agreement to raise a 500 billion-euro ($664 billion) ceiling on bailout funding.
European stocks last week tumbled by the most this year, sending the Stoxx 600 down 2.5 percent, as data from China to the U.S. and Europe raised concerns about the strength of the global economic recovery. However, a report today may show German business confidence held at a seven-month high this month, indicating that Europe’s largest economy will return to growth.
In the U.S., pending home sales data for February and the Dallas Federal Reserve manufacturing outlook survey are scheduled for release today. Other U.S. economic reports this week may show that manufacturers in the world’s largest economy probably received more orders for durable goods in February.
BP added 0.6 percent to 480.4 pence. The Sunday Times reported that the company has started its biggest auction of North Sea fields, putting up assets valued at 2 billion pounds ($3.2 billion) after the U.K. offered tax breaks for the industry.
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