Broadgate: Market News 29/3
29 March 2012
The Stoxx 600 fell 1.1 yesterday to a three-week low after Federal Reserve Chairman Ben S. Bernanke said that the U.S. jobless rate is still too high and that economic recovery is not guaranteed, while European Central Bank Governing Council member Jens Weidmann said that the euro-area’s debt crisis can not be solved by simply increasing rescue funds.
Chinese equities traded in the U.S. dropped to the lowest level in three weeks on concern that a slowdown in the world’s second-largest economy is eroding profits. Japanese stock futures and Australian equities fell after orders placed with U.S. factories for durable goods rose less than economists estimated and oil prices dropped, lessening demand for riskier assets.
The yen advanced against all 16 of its major counterparts amid speculation that Japanese companies will repatriate overseas earnings before the end of the fiscal year on March 31.
European governments are preparing for a one-year increase in the ceiling on rescue aid to 940 billion euros ($1.3 trillion) to keep the debt crisis at bay, according to a draft statement written for finance ministers. Finance chiefs may decide at a meeting in Copenhagen to run the 500 billion-euro permanent European Stability Mechanism alongside the 200 billion euros committed by the temporary fund, a European official told reporters in Brussels yesterday.
Economic data may show that Germany’s unemployment in March has held at the lowest level in more than two decades.
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