Uncertain markets in Asia, pending the Fed meeting
THEMSCI Asia Pacific regional index it is roughly stable at mid-day and quotes a p/e of 13,2, versus 16,4 for the S&P500 and 15,4 for the Stoxx Europe 600. The Monetary Fund lowered US growth to 2% for this year (the latest forecast gave it at 2,8%) after the disappointing first quarter. But the momentum during the year should be better, and in any case this forecast confirms the slowness of the withdrawal of the monetary stimulus. The Fed will confirm the measured step of another $10 billion reduction in bond purchases at its two-day meeting starting today.
The Topix in Tokyo is gaining 0,3%, and registers a valuation of 1,2 book value, compared with 2,7 for the S&P 500 and 1,9 for the Stoxx Europe 600: the yen share just below 102 against the dollar. In China, data on direct non-financial investments in May mark a sharp decrease (-6,7%) compared to a year ago, against the expectations of an increase by analysts.
The euro strengthens slightly, at 1,356 and gold, which had exceeded 1280 yesterday, is unable to hold it and records 1271 $/ounce in the early Asian afternoon. Even oil drops a little from its recent highs and WTI is at 106,6 $/b (Brent is 112,6). Stable equity futures on Wall Street and London.
