New Overnight Developments Abroad: Investors Turn More Risk Averse

September 21, 2009

Stocks have fallen by 1.0% in South Africa, 0.7% in Hong Kong and 0.3% in Australia, Taiwan, and South Korea.  In Europe, the German Dax, British Ftse, and Paris Cac have traded 1.4%, 0.8%, and 0.8% lower.

The dollar has risen 0.8% against the yen and kiwi, 0.7% relative to the Australian and Canadian dollars, 0.6% versus the Swiss franc, 0.4% against sterling and 0.3% versus the euro.  The rand fell 1.2%, hit by lower platinum and gold prices.  Goldman Sachs predicts a weaker yen in the final quarter of 2009.

Gold slipped under $1000 for the first time in six days and is presently off 1.0% on balance.  Oil lost 1.8% to $70.73 per barrel.

Ten-year bund yields are unchanged, while gilts firmed a basis point.

Japanese markets were closed for Respect for the Aged Day.  They will remain shut on Tuesday for a national holiday and Wednesday for the autumn equinox.

The British Rightmove house price index climbed 0.6% in September, trimming its 12-month decline to 1.5% from 3.1% in the year to August.

Australian motor vehicle sales firmed 0.3% in August after a drop of 6.9% in July.  Compared to a year earlier, such fell 6.2% after dropping 10.3% in July.

Swiss M3 grew 7.7% in the year to August, the same 12-month rise as booked in July.

Russian retail sales fell 9.8% in the year to August, their greates 12-month drop since August 1999.

A report from the OECD warned of persistent risks to Euroland financial institutions.  An ECB official, Tumpel-Gugerell, said banks hold key to getting past the crisis.

New Zealand consumer sentiment improved to a 29-month high in September.

Next year’s government budget was presented in Sweden, providing for a 1% of GDP stimulus.  GDP is projected to expand 0.6% in 2010, 3.1% in 2011, and 3.8% in 2012.  Debt is projected to peak marginally above 40.0% in 2011.

Producer prices in Slovenia fell 3.3% in the year to August after a drop of 3.0% in the year to July.

South Korea’s Finance Ministry expects slower growth in 3Q09 than in 2Q09.

The U.S. index of leading economic indicators and Canada’s monthly report on securities transactions with non-residents arrive later today.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.

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