Alcoa, the largest aluminium producer, opened the result season posting a fourth-quarter profit after the closure of the trading session yesterday night. The company expressed cautious optimism that the demand for aluminium will continue to grow in 2013m helped by global growth in aerospace and construction markets. Alcoa-shares rose 1,3 % in after hour trading. The results of the first major company to report results, were welcomed news for investors which breathed a sigh of relief hoping other reporting companies would follow suit.
Asian shares rose Wednesday morning after a couple of days of profit taking on optimism on companies fourth quarterly results. The Asian-Pacific MSCI-index and Australia were up 0,4 %. Analysts have been cautious in their forecasts for the fourth quarter which generally is expected to present results in line with the third quarter. The Japanese Nikkei erased Monday’s losses and climbed 0,5 % as the rebound in the USD/JPY lost steam. USD rose from 86,825 yesterday to 87,43 yen to a dollar. The Bank of Japan, BOJ, is considering further monetary easing during its 21-22 January meeting and double the inflation target to 2 %.
The EURO/USD is steady on 1.3075 after reaching on 1.3120 yesterday. Euro/Yen is trading at 114,35 off from yesterday’s lows of 113,35. Statistics released yesterday shows that unemployment in the Eurozone continue to raise reaching 11,8 %. Greece and Spain are hardest hit with unemployment on 25 % with alarming number of unemployed between 18 and 25 years reaching above 50 %. The unemployment figures had no immediate effect on the Euro. There is no major news in the Eurozone before the ECB’s (European Central Bank) meeting on Thursday.
Oil prices are flat with NYMEX, New York crude, trading at 93.17 and Brent just below USD 112 a barrel. Gold prices have picked up and trade at 1658. There is also a firmer trend in silver trading at 30,44 after reaching a peak on 30,55 yesterday.
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