2:48 PM
Dayal madan
Continued fall
In global equities
The British Minister of Finance, John Osborne, is presenting his budget proposal for the House of Commons later today. The budget is said to be a balancing act between austerities and growth stimuli. The budget is closely followed by credit rating agencies which lately has voiced concern over England’s large deficits and indicated a possible down rating.
The equity markets continued to fall after Monday’s sessions pointed towards a possible correction after months of gains. After negative markets in Europe both Dow Jones and Nasdaq ended in negative territory. Dow Jones was down 0,52 %. All Asian stock exchanges are down this morning. The MCI Asia Pacific index is falling 0,70 %. Fear for slowing growth in China is seen as the main reason.
EURO is stronger trading at 1,3270 up 0,50 % against USD. The boost in Euro is seen as a result of the Greek parliament ratifying the EU/IMF package. The South Korean Won is falling against most other currencies. Oil and metals are up in morning trade after steep falls yesterday. NYMEX is back at 107 and Brent trades at 124,47. Gold has recovered from low 1642 and trades at 1652.
The Chinese leader, Wen Jiabao, signalized recently that he foresees a growth on 7,5 % I 2012. This is still a very high growth rate, but metal producers are calculating and building into their forecasts a slower growth in mental export to the Asian giant and adjusting their guiding accordingly. An indication of the slower growth in China was further illustrated when the biggest shipbuilder, Heavy Industries Group Holdings, this morning presented its result for 2011 announcing a 60 % loss in profit resulting in a steep, 73,6 % fall, in its share price following the announcement.
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