Uncertainty continues to be the prominent theme today in Asia even after the re-election of Barrack Obama; namely uncertainty and growing fears over how the looming US fiscal cliff will affect the global economy.
US equity markets saw heavy losses as fear griped the markets over what the future of the worlds largest economy has to offer with added concerns over the performance of European core as German industrial production printed a big miss. Asian equity markets have followed suit and trade firmly in the red.
In the FX market focus has been on Australasian currencies; at the start of the session we had Kiwi unemployment for Q3 come in much higher than expected (7.3% Q/Q vs Exp. 6.7%) translating instantly into weakness in NZD which remains firmly below the 0.8200 level. Then, later in the morning session we had Australian employment change for October exceed street expectations by a large margin and consequently supported a move higher in AUD.
Looking forward we enjoy the first day of 18th National Congress of the Communist Party of China where the hand over of power will happen; concluding on November 14th. So far Chinese equity markets have failed to be lifted by this once in a decade transition and we should see more clarity towards the end of the event with the appointment of the news leaders next week.
08 Nov 2012 - 02:34 - - Source: Newswires
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