Asian markets show great recovery and seems that the reason behind the dexelopment might be same one behind the oil price going higher.
Asia shows good recovery tempo.
Last week the traders were shocked to see Asian market and stocks fall as low as they did. Today they are stronger and are ready to fight with dollar, as can be seen by the dollar basket Index.
Japanese and Chinese markets and Indexes display better numbers as Topix MSCI Asia Pacific, Hang Seng and some other Indexes are looking much better this week. In the meantime, the greenback has shown the lowest fall in 15 months.
Although it is important to remember that beginning today, the markets will be closed for 6 days due to Lunar New Year celebration in Asia, so it remains to be seen what will happen to the markets after they re-open next week and whether this growth will be sustained.
Weak dollar seems to help other sections of the market
We already talked about Asian markets, but it seems that the recent plunge of the greenback and the fears of inflation are good not only for the Asia.
For example, it is a known fact that the weaker the dollar, the stronger the gold is. But today all of the four main traded metal are in the green. So is the oil.
There were some disputes from the Saudi Arabia, official of which said that they will never go into agreement with Russia and OPEC to withhold production and would rather see an undersupply on the market. And even after these statements the price for oil jumped.
E.g WTI futures went up by 1.4 percent. Brent futures are up 1 percent, or $0.63. The reason for such growth IS the weak dollar, as it makes the crude cheaper for the countries, which don’t use dollar as a national currency. They start buying, the demand grows, price jumps.
South African President resigns.
After a long time in the office, much of which was opposed by the people, Jacob Zuma has given up the Presidential post of South Africa. Hits to his regime started last year, when he wasn’t elected the head of his party.
Although the biggest damage was the reputation of Zuma was brought recently by the claims of corruption and unprofessionalism when he was linked to the wealthy Indian family that has received rights for contract fulfillment due to alleged personal relationship with Zuma.
Zuma was also said to be involved into the arms trading and crimes connected to it in the 1990-s.
Now one of the following people can take an empty presidential seat: deputy president, minister designated by the president, minister designated by the other members of the cabinet, the speaker.
Stock, currencies and crude overview.
This week seems to be a good one for the MSCI Asia Pacific Index as there was no dip for it so far. Today it has added to the gain and grew by 1.4 more percent.
Hong Kong Hang Sang Index is joining the process of recovery of Asian Markets and adding 2 percent this trading day.
Euro Stoxx 50 futures gained 0.7 percent.
The greenback seems to be too weak now to endure the battle with the rivals in the currency basket.
Yen is showing more teeth to the American national currency. It has climbed by 0.7% and the exchange rate for today is 106.29 yen per dollar.
Euro costs 1.2468 USD.
Silver is $16.936 per ounce. Gold is up 0.2 percent – 1.353.43 USD per ounce.
WTI is feeling better with the current price being higher by 1.3 percent than the price yesterday - $64.41 per barrel.
