The euro dropped and oil slid as Italy prepares to sell bonds before elections that may determineGreece’s future in the currency bloc. Treasuries rose ahead of data forecast to show a drop in U.S. retail sales.
The MSCI Asia Pacific Index (MXAP) of shares swung between gains and losses, and was up 0.3 percent as of 2 p.m. in Tokyo, while Japan’s Nikkei 225 Stock Average gained 0.7 percent on volume 22 percent below the 30-day average. Standard & Poor’s 500 Index futures slipped 0.2 percent and oil dropped 0.4 percent. The euro lost 0.1 percent to $1.2493. Credit-default swaps on Asian bonds dropped to the lowest in a month.
MSCI’s Asian gauge of shares has fallen 12 percent from its peak this year on Feb. 29 as Europe’s debt crisis intensified, the U.S. recovery showed signs of losing steam and China’seconomy slowed. Photographer: Andy Rain/Bloomberg
June 13 (Bloomberg) -- Craig Ferguson, a currency hedge fund manager at Antipodean Capital Management in Melbourne, talks about the European sovereign debt crisis and its implications for global currencies. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
June 13 (Bloomberg) -- Barclays Plc Chief Executive Officer Robert Diamond talks about his company's business strategy and Europe's debt crisis. Diamond said the euro region is likely to survive even as the sovereign debt crisis slows economic growth and weakens the currency. He speaks in Hong Kong with Rishaad Salamat on Bloomberg Television's "First Up." (Source: Bloomberg)
June 13 (Bloomberg) -- Mauro Guillen, a professor at the Wharton School of the University of Pennsylvania, talks Europe's sovereign debt crisis. He speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
June 13 (Bloomberg) -- Scott Wren, senior equity strategist at Wells Fargo Advisors LLC, talks about U.S. stocks, the implications of Europe's debt crisis for markets and his investment strategy. Wren speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
June 13 (Bloomberg) -- Pranay Gupta, chief investment officer for Asia at Lombard Odier, talks about the outlook for global financial markets and economies. Gupta also discusses Felda Global Ventures Holdings Bhd.'s initial public offering. He speaks in Hong Kong with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
Fitch Ratings said it sees significant risk of further capital outflows from the euro area. Italy plans to auction 6.5 billion euros ($8.1 billion) of debt today as Greece prepares for general elections on June 17. Reports from Japan, South Korea and Australia showed signs of economic resilience.
“In the lead up to the elections, markets are quite nervous about the outcome and what it could mean for the rest of Europe,” said Belinda Allen, a senior investment analyst at Colonial First State Global Asset Management in Sydney, which oversees about $145 billion. “In the meantime, the improvements in the data we’re getting out of Asia is being been ignored.”
MSCI’s Asian gauge of shares has fallen 12 percent from its peak this year on Feb. 29 as Europe’s debt crisis intensified, the U.S. recovery showed signs of losing steam and China’s economy slowed.
Whitehaven Coal
Hutchison Whampoa Ltd. (13), which operates ports in Germany and Spain, slipped 1.5 percent in Hong Kong.Whitehaven Coal Ltd. (WHC) jumped 4.1 percent after the Australian coal producer rejected a conditional takeover offer from its largest shareholder. Canon Inc. (7751), the world’s biggest camera maker, slid 0.9 percent in Tokyo.
Economic reports today showed that Japanese machinery orders rose in April at more than three times the pace estimated by economists and South Korean unemployment fell to a four-month low. Moody’s Investors Service said Australia’s economic strength is “very high.”
If Greece exits the currency bloc and there is material contagion to periphery countries, all 17 euro members would likely face downgrades, Fitch’s head of Asia Pacific sovereign ratings Andrew Colquhoun said in Singapore today.
Greece’s election may determine whether the nation abides by spending reductions imposed upon it to receive two international bailouts and stay in the euro. Spain on June 9 became the fourth of the currency union’s 17 states to ask for a rescue.
Oil fell for the fourth time in five days in New York amid speculation OPEC will keep production quotas unchanged even after prices dropped 16 percent this year. Crude for July delivery dropped as much as 82 cents to $82.63 a barrel.
Euro Drops
The euro snapped its advance from yesterday and the dollar strengthened against the majority of its major peers. The greenback added 0.1 percent to 79.64 yen.
The yield on the 10-year Treasury note fell one basis points, or 0.01 percentage point, to 1.65 percent, according to Bloomberg Bond Trader prices. U.S. retail sales probably declined 0.2 percent in May after rising 0.1 percent the prior month, according to the median estimate of economists in a Bloomberg News survey taken before data are released today.
The cost of protecting Asian bonds against default fell, according to traders of credit default swaps. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japandeclined 2 basis points to 190 basis, Royal Bank of Scotland Group Plc prices show. The gauge is poised for its lowest close since May 15, according to data provider CMA.
sources: www.bloomberg.com
