Senin, 14 November 2011

Expectations give Europeans, Asian stocks Pumped

Asian stock indexes and the euro currency managed soared in early trading this week, Monday, November 14, 2011.
Substitution of new leaders in Italy and Greece, are expected to bring about change. The new leadership is believed to be taking decisive action to save his country from bankruptcy and fend off the threat of widespread financial crisis in the eurozone.
Italian President has appointed former European Commission official, Mario Monti on Sunday local time, to lead the new government. Meanwhile, in Greece, Lucas Papademos, the former vice president of the European Central Bank, has also been sworn in as prime minister of Greece.
The two leaders were selected to encourage reforms and austerity plan to restore the credibility of those countries that are currently 'in tatters'.
"If you look at the weekend, everything went according to plan. Thus, we see a positive reaction," said Michael Turner, an analyst at RBC Capital Markets in Sydney, Austrlia as reported by Reuters pages.
In Asian markets, Japan's index, Nikkei 225 stock average rose 1.5 percent. While stock indexes in Asia Pacific outside of Japan, MSCI had gained 0.8 percent.
The euro traded against the U.S. dollar is also positive, as entrenched in the U.S. $ 1.3770, up about 0.2 percent, after it was up high to the level of U.S. $ 1.3811 in early trading.
However, the brokers wary of the possibility of interruption of the positive market sentiment. Especially, as the Italian plan to sell its five-year bonds worth 3 billion euros earlier this week, whether the market is acceptable.
As is known, the Italian bond yields soar to 10 years over seven percent last week. In fact, predicted to rise again to a higher level. Previously, a similar thing also happened in Greece, Ireland, and Portugal when looking for a bailout.
Meanwhile, commodity markets in the global market had gained a higher than normal. U.S. crude oil prices rose above the level of U.S. $ 99 per barrel, Brent crude oil rose 0.3 percent to U.S. $ 114.44 per barrel. As for gold, rose 0.2 percent to around U.S. $ 1.792 per ounce

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