Data causes concern (ISFM) (13-01-2011)

Markets are presenting a mixed picture today, as relief after the successful European bond auctions gives way to interest rate decisions and jobless claims.

Temporary relief of the debt strain on peripheral European countries helped most Asian markets gain today, as resource-sector shares were sought after by investors, and Hong Kong and Shanghai markets rose for a third straight session, while Australian stocks rallied in relief that a flood in Queensland state had peaked. Conversely, South Korean shares retreated after a surprise interest-rate increase by the central bank, and Indian stocks plunged on the outlook of Infosys Technologies Ltd.

In Europe, most stock markets fell today ahead of rate decisions from the Bank of England and the European Central Bank; Spanish stocks, however, rallied again after a successful bond auction, albeit at yields, but stronger demand.

Both the Bank of England and the European Central Bank left interest rates unchanged while in his statement after the decision announcement, the European Central Bank's president warned that inflation may remain high for months, raising questions about the possibility of an eventual interest-rate hike, and urged governments to bolster measures to tackle the Eurozone debt crisis. The euro extended gains against the dollar as a result, also after the weak U.S. jobs data.

On Wall Street, sticks opened lower, after the report from the Labor Department showing that more people than expected filed for first-time jobless claims.

Source: ISFM