Asian shares edged higher in early Asian trading as signs of recovery in China and the United States eased fears of deteriorating global growth. Market sentiment remained, however, vulnerable when weak corporate earnings continued to undermine investors confidence. The MSCI index for the Asia-Pacific shares were up 0,3 percent. The South Korean Kospi and Australia were also up after a new week session in New York. Both Dow Jones and Nasdaq fell.
Oil prices fell for its seventh consecutive session on Wednesday after US oil storages were reported higher than expected. Brent crude has recovered in morning trade at 108,25. NYMEX, New York crude, is at its lowest level since July trading at USD 85,73 a barrel. Copper, a reliable barometer for commodities added 0,9 % to 788,685 a metric ton. Gold which has a strong technical support level on 1700, rose to 1709 after trading close to 17600 yesterday. Silver seems to stabilize on bottom levels in the range between 31,50 and 32.
The USD dollar was stronger against an index of six major currencies. The Japanese yen is at 79,95 against the USD. The stock markets in Japan have stabilized over the last days after the steep fall in previous weeks. The yen is regarded by many investors as a “safe haven” and tend to increase on uncertainties in the market. The Euro has gained ground both against the yen and the USD, trading close to the 1,30 level against the dollar. The President of the European Central Bank, Mario Draghi, met German parliamentarians yesterday in an effort to convince law makers on the soundness of ECB’s monetary easing.
New numbers from the US housing sector gave further evidence that the sector is picking up. New single family home sales surged in September to the highest levels seen in two and a half years. Weak earnings outlooks and US multinationals missing targets, made investors nervous about a slowing economy. Apple which is the biggest capitalized company in the world is going to present quarterly results today.
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