Broadgate: Market News 6/3
6 March 2012
Stocks fell around the world yesterday after U.S. factory orders declined and China announced the lowest economic growth target since 2004. The fall of Asian stocks marked the first two-day decline since January.
Amid data from Europe signaling slowing economic growth, European equity futures retreated. U.K. retail sales fell for a second month in February, according to the British Retail Consortium. Data will be released by the European Union’s statistics office later today, which is expected to say that gross domestic product in the euro area fell 0.3 percent in the last quarter of 2011. Experts are blaming the region’s sovereign-debt problem, which is distracting the European Central Bank from boosting the economy and focusing on monetary policy.
The Australian dollar retreated 0.4 percent to $1.0625. Central bank Governor Glenn Stevens and his board left the overnight cash-rate target at 4.25 percent, the Reserve Bank of Australia said in a statement today, calling the policy “appropriate for the moment.” Australia’s currency fell against 15 of 16 major counterparts.
Vladimir Putin won another six years at the Kremlin amid allegations of fraud. He faces rising discontent among the country’s urban middle class, with 20,000 people rallying in Moscow yesterday after the presidential election was criticized internationally for being unfair. However Russian stocks rose after the results were announced, indicating that investors disagree with the ominous predictions of anti-Putin protesters.
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