Markets Up at Close of First Week of New Quarter

Oct. 7, 2011 - PRLog -- Today in trading in Asia, stocks rose for the second day in a row, while the South Korean won and metals appreciated on the back of European politicians’ efforts to contain the region’s debt crisis. The Euro is trading against the dollar at the highest level in a week.

The MSCI Asia Pacific Index added 2% by the close of trading in Tokyo. Futures on the Standard & Poor’s 500 Index are trading 0.1% below their closing before the publication of unemployment data in the US. Contracts on the Euro Stoxx 50 rose 0.3%. The Korean won rose 1.1%, while the Euro only rose slightly this week – 0.3% to reach $1.3425. Bronze and zinc both rose less than 1% on the MSE in London. Oil underwent a 0.2% correction in New York after the biggest two-week growth in seven months.

European Central Bank President Jean-Claude Trichet announced yesterday that the ECB is resuming purchases of covered assets and will again provide annual lending to private banks. DT Trading economists believe that resuming the program of purchasing only those bonds which the seller physically has will allow the Bank to avoid giving speculators “excess” liquidity. The European regulatory authorities recently began to prohibit uncovered sales of so-called contracts on bank shares and sovereign debt. The program of buying this kind of debt is also in line with the policy to optimize fund disbursement from the European Financial Stabilization Fund (EFSF).

German Chancellor Angela Merkel and French President Nicholas Sarkozy will meet in Berlin on October 9 to discuss Greece’s debt problems. The country is inching closer to default because of the civil unrest and the population’s unwillingness to bear the cost of the economic austerity plan. According to DT Trading analysts, the two leaders will discuss a partial default option for Greece at their upcoming meeting.

Data from the US being published today at 12:30 GMT may show an increase in the number of non-agricultural jobs; last month, the number of jobs created wasn’t enough to lower the unemployment rate from 9.1%, where it has been frozen since July of this year.

DT Trading Limited Analytical Department

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