Asian stocks fell after the U.S data that was released yesterday where the ISM non-manufacturing PMI disappointed the USD investors, whereas the new home sales showed a slight improvement in the last month in the U.S. economy.
The Japanese yen that was trading at a 6-year low level against the major currencies, is now taking some correction where the yen pairs including the EUR/JPY and GBP/JPY are falling which means that the Nikkei index is also facing a bearish movement at least for now.
A fund manager from White Funds Management in Australia, Mr. Angus, stated that the markets would likely remain softer in the coming weeks ahead as the chances of tapering the stimulus plan is likely and that impact would be negative on the stock markets.
Qantas Airways, dropped by a significant rate of 17% as the company forecasted a loss for the six months period that would be ending this December.
China Mobile Gains on 4G
On the other hand, the China Mobile Ltd. gained after winning the approval given by the state where the mobile company is now allowed to go ahead with its commercial service on a 4-G wireless network.
Gold Testing Resistance
The metal gained substantially yesterday after the U.S. economic indicators didn’t show satisfactory improvement in the non-manufacturing sector of the U.S. economy, hence leading the metal from the 1215 area up to the 1251 resistance level.
Currently gold is trading at 1238 where a move above yesterday’s high could take it up to the 1264 and 1275 resistance levels, but it depends on what kind of outcome we get from today’s crucial fundamentals including the unemployment claims of the U.S. economy.
To contact the reporter of this story: Jonathan Millet at email@example.com