More Jobs in America
February 06, 2012 | 07:33 AM
Posted by David Mason
Asian stocks were on the rise in early trading, boosted by positive employment numbers in the United States. Non-Farm Employment Numbers show that the U.S. market has added 243,000 jobs. The indices from Japan, Australia and Hong Kong were all up this morning, with Australia’s S&P/ASX200 show the greatest gain, at 1.08%. Indices in Europe did not imitate their counterparts in Asia, with the CAC 40, the DAX 30 and the FTSE all heading south. Mixed results in the United States, with the Dow Jones industrial down 0.23% and the S&P 500 up by 0.25%.
Old firm Japan hit hard
Growing signs that the Japanese economy is sinking into recession are becoming harder and harder to ignore. The Japanese electronics giant Sony has more than doubled its annual loss projection for the fiscal year ending on March 31. Panasonic and Sharp are also reporting grim predictions, with both estimating that they will lose more money this year than at any other time in their history. One of the main reasons for this dreadful showing by Japanese companies is the strong Yen, which continues to hamper Japanese manufacturing. Next door, South Korean electronics firms are blossoming, due in part to a weak Won. The USD/JPY is up this morning by 0.19% and trading at 76.75.
Positive American data nudges Aussie down
The Aussie is down against the greenback this morning because of strong employment figures that were released on Friday. The bank of Australia will be announcing interest rates later today. The AUD is also down against the Yen, but up against the Kiwi, trading at 1.2899, an increase of 0.07%. Leaving the Australian Dollar, the EUR/USD is down this morning by 0.71% and trading at 1.3064. The GBP/USD is down as well, trading at 1.5768, a decline of 0.29%.
Bernanke Testifies Again
Fed Chairman Ben Bernanke will be testifying yet again. After experiencing a rather busy schedule last week, Bernanke will be testifying before the Senate Budget Committee tomorrow. As always, the Q&A session will influence investors greatly, with plenty of opportunity available to vigilant traders. The economic calendar will remain quiet until Thursday, when a press conference by the European Central Bank will take place. Also on Thursday, the Unemployment Claims report in the United States will be released.
Commodities are down this morning, as economic data from the U.S. has created positive investor sentiment towards the USD. Gold is down 0.30% and currently valued at 1735.05. Crude oil is down as well, trading at 97.27 USD per barrel.