TEHRAN, October 03 - Asian shares slipped on Wednesday as oil prices near four-year highs threatened to roil emerging economies, while the euro rebounded from six-week lows on reports Italy will reduce its budget deficit more quickly than expected.
TEHRAN, Young Journalists Club (YJC) - Asian shares slipped on Wednesday as oil prices near four-year highs threatened to roil emerging economies, while the euro rebounded from six-week lows on reports Italy will reduce its budget deficit more quickly than expected.
Spreadbetters pointed to a firm start for the European markets amid hopes Rome could stave off a debt blow-out. E-Minis for the S&P 500 and the Dow were up 0.1 percent, while E-Stoxx 50 added 0.2 percent.
The euro was boosted by a report published by the Corriere Della Sera newspaper, saying Italy would reduce its budget deficit to 2 percent of gross domestic product (GDP) by 2021.
The report came after the coalition government said last week that it planned to run a deficit of 2.4 percent over the next three years, in a move that tripled the previous target and worried investors in both Italy and the European Union.
“The big market mover in the last 24 hours has been Italy and the concerns around its debt so the latest news is being considered a much better outcome than was priced into the market,” said Kyle Roda, Melbourne-based analyst at IG.
“The news has prompted some buying, we’re seeing a bit of a relief rally.”
The euro jumped 0.3 percent on the news to $1.1585, snapping five straight days of losses that had pushed it to a six-week trough of $1.1506.
Italian BTP futures opened 98 ticks higher while German Bund Futures slipped as the spread between the two narrowed.
Sentiment in Asia remained jittery in Asia as investors considered how a new trade pact between the United States, Mexico and Canada could impact the ongoing U.S.-Sino tariff warm as it contained a clause forbidding deals with non-market countries, like China.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent with Hong Kong’s Hang Seng index down 0.4 percent.
Japan’s Nikkei closed 0.7 percent lower while Indonesian shares fell 0.4 percent and India’s Nifty 50 faltered 0.8 percent.
China’s financial markets are closed for the National Day holiday and will resume trade on Oct. 8. South Korea was also closed for a public holiday.
Source: Reuters
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