Asian financial markets preview 28 Oct28 October, 2010, 9:00. Posted by Zarathustra
Tags: Asian daily (Discontinued), Investment
US markets were mixed, with DJIA –0.39%, S&P –0.27%, but NASDAQ +0.24%,while European markets were largely down, with FTSE –1.07%, DAX –0.69%, and CAC –0.96%,and Japan opens lower in early trading. After the rally for weeks on high expectation of quantitative easing, suddenly investors realise that the quantitative easing will probably be not as large as what Goldman Sachs expects, as Wall Street Journal reported that perhaps the Fed will take a more gradual approach, and Fed dealers poll found that they are expecting some $100bn purchase each month.
Together with the renewed worries on Greek and Portuguese debt, EUR dropped before US$1.38, while the dollar index (DXY) strengthened to 78, and the overall stock markets dropped. As I have said quite repeatedly, the European debt crisis has not been solved but just forgotten. As long as investors refocus on these issues, together with the likely disappointment on QE2 and uncertainties with the mid-term election will be the likely reasons for any massive corrections.
HK/China equities preview
ADR stocks traded in New York were mixed. Bank of China (3988.HK), Agricultural Bank of China (1288.HK) and PetroChina (857.HK) all reported better-than-expected earnings, so after some massive losses yesterday in Hong Kong, I believe the markets might open flat or slightly higher in Hong Kong.