Euro Trades Lower on Greece, Portugal Worries

123jump.com Staff
18 Jan, 2010
New York City

European markets traded higher but the euro edged lower. The benchmark index in Greece dropped nearly 2% as the EU regulators and Greece government review ways to lower Greek budget deficit in 2010 and after. Asian markets closed higher. Richemont SA quarterly sales increased 2%.

[R]9:40 AM New York – European markets traded higher but the euro edged lower. The benchmark index in Greece dropped nearly 2% as the EU regulators and Greece government review ways to lower Greek budget deficit in 2010 and after. Asian markets closed higher. Richemont SA quarterly sales increased 2%.[/R]

Markets in Asia closed higher and in Europe advanced. U.S. markets are closed today for Martin Luther King Jr. holiday.

The euro traded near its one month low level against the dollar as investors focus on possible impact of Greece bailout. One euro fetched $1.4384 and 0.88 pound.

Greece remained the focus of European investors as regulators from the EU and Greece negotiate plans to lower budget deficit. The benchmark ASE index dropped 1.9% with banks leading the decline. Alpha Bank declined 4%.

Greek sovereign bond premium to German bonds inched to the record high in March and hovered near 268 basis points. Similar premiums for Portuguese bond was near 94 and Spanish bond traded at 73.

UK home prices increased according to the latest survey.

Earnings Review

Taylor Wimpey plc, the UK house builder said that “market conditions in both the UK and North America during 2009 were better than those experienced in 2008 although they still remained challenging.” At the end of the year net debt has been reduced to £750 million and substantially below the £1,529 million at December 31, 2008.

Cie. Financiere Richemont SA, Swiss jewelry maker said for the three months ending in December were 1.585 billion euros, an increase of 2% and 7% on a constant currency basis. Asia Pacific region sales increase 25% and the Americas region sales declined 2%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 127.02 or 1.16% to 10,855.08, and Hang Seng index in Hong Kong decreased 194.15 or 0.90% to 21,460.01, and CSI 300 index in China higher 17.95 or 0.52% to 3,500.68. ASX 200 index in Australia increased 11.50 or 0.23% to 4,911.10. The FTSE Bursa KL Composite index in Malaysia was lower 0.59 or 0.05% to 1,297.99.

The Kospi Index in South Korea increased 9.98 or 0.59% to close at 1,711.78. SET index in Thailand closed higher 0.37 or 0.05% to 746.89. JSE Index in Indonesia decreased 4.54 or 0.17% to 2,642.55. The Sensex index in India increased 86.78 or 0.49% to 17,641.08.

Europe Markets Review

In London FTSE 100 Index traded higher 34.53 or 0.63% to 5,489.90, in Paris CAC 40 Index increased 22.36 or 0.57% to 3,976.74 and in Frankfurt DAX index traded higher 29.73 or 0.51% to 5,905.70. In Zurich trading SMI increased 32.81 or 0.50% to 6,608.83.