Broadgate: Market News 7/2
7 March 2012
Australian economic growth missed estimates and Asian stocks fell for a third day, the longest stretch this year, amid debt fears in Europe and before the deadline on Greece’s debt swap.
Australia’s gross domestic product advanced 0.4 percent in the fourth quarter, half the pace forecast by economists, according to a Bureau of Statistics report in Sydney.
A housing slump has been blamed for deterring consumer spending, and tourism has dropped, sending bond yields falling. The Australian Dollar touched a six-week low against the USD.
The data from Australia’s economy adds to signs Europe’s debt crisis may be hurting global growth.
Export-oriented countries in Asia would be impacted by affairs in Europe. That concern, along with a looming deadline for Greece to reach a deal with creditors over a bond swap to secure a second aid package, has sent Asian equities lower for a third day.
Forecasts that Europe’s debt crisis may slow economic growth, and the uncertainty regarding a potential Greece deal, have also impacted on the investment appeal of commodities and equities. Gold looks like it may decline for a fourth day in the worst run this year. It has lost 2.6 percent in the past three days.
Oil on the other hand rose 0.6 percent to $105.30 a barrel. It climbed from the lowest price in more than two weeks amid forecasts that gasoline supplies are falling and employment is increasing in the U.S., the world’s biggest consumer of crude.
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