CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

US concerns continue to drag Asian stocks down retail stocks lead Aussie stocks down

Article By: ,  Financial Analyst
July 14, 2011 5:48 PM

Asian markets went to negative territory today on the back of ratings agency Moody’s decision to review its credit rating on the US government. The MSCI Asia Pacific Index slid 0.5%, while futures on the Standard & Poor’s 500 Index sank 0.4%. The region was also focusing on the situation in India following deadly bombings in Mumbai. 

The US dollar declined 0.3% to $1.4212 per euro as of 1:23 p.m. in Tokyo, while the yield on 30-year Treasuries added one basis point. The cost of insuring Asian corporate and sovereign debt against default was the most since September. 

Japan’s Nikkei 225 Stock Average fell 0.7%, while South Korea’s Kospi Index declined 1.1%. The Bombay Stock Exchange Sensitive Index fell after three bombs in crowded neighborhoods of Mumbai killed at least 17 people last night. The attack was the deadliest terrorist strike since 2008, when a siege by 10 gunmen derailed peace talks with Pakistan. India’s Sensex has lost 9.8% this year, the second-worst performer among key indexes in the world’s 10 biggest markets, as the Reserve Bank of India boosted borrowing rates to tackle accelerating inflation. Companies on the measure are valued at 15 times estimated earnings, compared with 11 times for the MSCI Emerging Markets Index.

Singapore’s dollar pared gains after a trade ministry report showed the economy shrank in the second quarter. Singapore’s GDP for the three months to June 30 fell 7.8% on a seasonally adjusted and annualized basis, compared to a revised 27.2% increase in the first quarter of 2011. 

In Australia, the ASX200 was 1% lower in late afternoon trade with all eyes focused on the retail sector following an earnings downgrade by high-end department store operator David Jones yesterday. David Jones shares dropped as much as 18%, sending many other listed Australian retailers into negative territory. 

Mining giant Rio Tinto pared earlier losses after its second quarter production report. CEO Tom Albanese said “this quarter was also characterised by continued strong prices for most of our metals and minerals, but with worsening adverse exchange rates and some input cost pressures”.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024