Attention turns to Europe with US markets closed $DXc1
- Published: 04 September 2012
- Attention turned to Europe overnight as the US markets were closed due to the Labour Day long weekend. European stocks rallied after weaker factory data highlighted the weakness in economic growth and increased the likelihood for potential further stimulus from the world's major central banks
- Moody's Investors has changed its outlook on the European Union to negative, warning that it might downgrade its Aaa rating if it moves to cut its rating on Germany, France, Netherlands and the UK
- Spain announced that the government would inject funds into the ailing Spanish banking giant Bankia in order to help meet its obligations
- Miners rose in Europe overnight as poor manufacturing data from China added to the belief that further stimulus would be injected into the world economy and commodities would move higher. Both BHP and Rio Tinto's London listed stock rallied overnight
- DOW +0.69%, S&P500 +0.51% and NASDAQ +0.60% (Markets Closed)
- The USD was slightly weaker overnight as weaker economic data raised the markets expectation of further stimulatory measures. AUD below 1.0300
- Gold has moved to five month highs and Crude also holds a bullish tone
