Asian shares dip amidst slowing economic recovery
Worries about trends in global growth, drove down U.S. and European equities, commodities and Asian markets on Wednesday. Earnings forecasts continue to be revised downward, say analysts.
(Page 2 of 2)
U.S. crude futures fell 0.5 percent to $86.29 a barrel early on Thursday, just above a four-month low of $86.06 hit earlier in the week.Skip to next paragraph
Subscribe Today to the Monitor
In addition to growth worries, the euro zone faces renewed risk of political uncertainty as Italy's divided parliament begins voting for a new state president on Thursday, a crucial step towards resolving the stalemate since the inconclusive election in February and to carry on with fiscal reforms.
The euro steadied around $1.3032, above Wednesday's one-week low of $1.3001.
The euro fell 1.1 percent on Wednesday for its biggest daily decline against the dollar since June, weakened by talk of a euro zone interest rate cut. The dollar also drew support from signs of economic weakness in Britain and Canada.
The dollar inched down 0.2 percent against the yen at 97.89 yen after touching a low of 95.67 yen on Tuesday, while the euro fell 0.3 percent to 127.54 yen, still above Tuesday's low of 125 yen.
Data from Japan's ministry of finance showed on Thursday that buying of Japanese equities last week by foreign investors hit a record high since the ministry began collecting the numbers in 2005, reaffirming the positive view on Japan and its strong push to beat deep-rooted deflation.
The capital flows data also confirmed Japanese investors have yet to actively seek returns from overseas assets despite falling domestic yields, with Japanese investors last week selling 332 billion yen of foreign bonds.
Gold, which on Monday triggered the wide market sell-off and led the liquidation of assets across the board after weaker-than-expected Chinese and U.S. economic reports stoked growth concerns, remained vulnerable.
Spot gold was down 0.2 percent at $1,373.51 an ounce early on Thursday, still some $100 below Friday's close. Bullion touched its lowest in more than two years of $1,321.35 on Tuesday.