There was slightly more bullishness in the European stock market after yesterday’s biggest decline in three months. They gained a little as investors awaited reports on U.S. jobs, services and home sales. Moreover, they got an edge when the reports came that the U.S. futures are rising; however, the Asian market yesterday was low, the trend is continuing today.
The major gainer in European trading was Tesco Plc which climbed 1.2 percent after reporting quarterly sales that matched analysts’ estimates. However, Elekta AB could not match the trend and declined to an extent and recorded a drop of 4.5 percent after posting quarterly profit which could neither match forecasts nor the expectations from the share holders.
Major Indexes in the European Market
Though there was a slight gain for the Stoxx Europe 600 Index which added less than 0.1 percent to 319.25 at 8:06 a.m. in London, the region-wide benchmark fell 1.5 percent. Thus, recording the biggest drop since August, it seemed to lose the confidence of investors who are weighing valuations before U.S. jobs data this week.
Similarly, the debacle was seen in the MSCI Asia Pacific Index which fell 1.3 percent. On the other hand, Standard & Poor’s 500 Index futures increased 0.2 percent. The major gainer Tesco is the biggest British supermarket chain in a statement said that it’s performing is “in line with market expectations for the full year” in spite of “challenging conditions in many of its markets.”
Asian Market Slow Today, the Decline Continues
Though Japan’s Nikkei Stock Average performed real better yesterday, it fell sharply today as the yen regained some lost ground. The yen which has been falling rapidly over the last couple of weeks gained strength today and that is impacting the heavily export oriented companies. Weaker Yen often gives impetus to Japanese companies’ stocks.
Whereas the yen gained strength, the Australian dollar tumbled after the country’s disappointing third-quarter growth data. Apart from massive unemployment in Australia, the declining Aussie dollar is a major concern for the Abbot government which came to power this year. Australian PM is already facing a lot of trouble on global warming issues which he denies openly.
The Abbot government in Australia is facing a lot of challenges as the latest data show that country’s economy grew 2.3% in the third quarter from a year earlier, which is a lot lower when compared with the expectations for a 2.6% rise in gross domestic product.
To contact the reporter of this story: Jonathan Millet at email@example.com