Asian markets traded mixed, shrugging off Tuesday’s steep drop in US shares. The Nikkei settled down .2%, the Kospi gained .3%, and Australia’s ASX 200 rose .4%. Modest inflation figures from Australia helped the index reverse from early losses, on hopes of an interest rate cut. The Shanghai Composite rallied .7%, and the Hang Seng rose .5%.
A similar performance was seen in Europe ahead of the European Summit. The FTSE rose .5%, while the DAX fell .5% and the CAC40 slipped .2%. Germany’s parliament approved an expansion of the EFSF bailout fund. Banks swung in a wide range, closing down nearly 1% after rising more than 1% earlier in the day.
Boeing gained 4.5% after beating earnings forecasts. Meanwhile, Ford shares slumped 4.5% even though it beat analyst forecasts. Sprint dropped 7% after reporting a loss in subscribers that was more than expected. Amazon shares closed down 12.7% on a weak outlook which prompted several brokerages to cut their price targets on the stock.
Currencies
The Canadian Dollar rallied 1.2% to 1.0045, reversing Tuesday’s losses. The Euro ended flat at 1.3908, while the Pound and Australian Dollar both slipped 2%. The Yen touched another record high against the dollar, before settling down .2% to at 76.23.
Economic Outlook
Investors are anxiously waiting for a deal regarding Greece’s debt. The market is looking for a 50% haircut on the debt.
Wednesday’s reports were upbeat, as new home sales rose, and durable goods orders jumped.