The Euro continued to slide against a basket of currencies in the Asian trade, some to levels haven’t seen since the currency’s 1999 debut. The Euro dropped to 1.2324 Swiss Francs briefly before bouncing it’s lows; the Euro weakened a full percentage point versus the dollar to 1.397, the lowest we’ve seen since March 17,and is expected to cross it’s 100-day moving average at 1.3969. The European debt woes continue to be a huge concern for traders, as this fear that the contagion is spreading, coupled with slowing economic growth in China has traders heading for the exits of riskier assets.
On China’s economic growth softening, Asian stocks as a whole slumped 2.2%, as people are less comfortable with the recent stock market gains. Today, HSBC Plc. released the recent Chinese preliminary Purchasing Mangers Index dropped 51.1 from 51.8 reading in April. A reading above 50 indicates expansion, so growth is slowing.
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