Global Wrap: Asian Markets Declining As Commodities Drop

www.TheLFB-Forex.com The Forex Trader Portal

Current Futures: Dow +14.00, S&P +1.90, NASDAQ +3.50

The Japanese Nikkei has declined 0.8 percent during the Asian session. The declines were led by a fall in U.S. markets as worries surfaced about the strength of the U.S. economic recovery. Some companies based in Japan took a hit as the yen strengthened.

Producer prices in Japan have fallen at a record pace even as the recession forces companies to make do with fewer laborers and less materials. The report stated that companies paid less for energy and unfinished good which declined 8.5 percent. As the nation recovers from its worst post war recession the concern over deflation is mounting.

Meanwhile, Australian consumer confidence hit a two year high in August and this is the third month in a row that consumers are more optimistic about the economy. The sentiment index gained 3.7 percent according to the Westpac report. With higher consumer and business confidence being seen, it is unlikely that Governor Stevens will cut the interest rate further.

The MSCI Asia Pacific index has also declined to 112.00, losing 0.7 percent after gaining nearly 1.8 percent over the past two days.

Overnight, the Japanese Nikkei lost 84.89 points (-0.80%) to 10,500.57. The Australian S&P/Asx advanced 1.40 points (0.03%) to 4,333.40.

Crude oil for August delivery was recently trading at $69.52 per barrel, higher by $0.07.

Gold for August delivery was recently trading up by $2.00 to $949.60.

Treasuries failed to gain on the day even as investors braced for auctions of $23 billion worth of 10 year notes on Wednesday and another $15 billion worth of 30 year bonds on Thursday. Yield on the 10-year note rose 9.7 basis points to 3.772%.

TeamLFB provides forex related market analysis and trade signals