Moody’s downgrade Greece while OPEC boost oil prices (ISFM) (08-03-2011)

A day after Moody’s downgrading Greece; prices were in focus on today’s session as there were tries to be kept down, with key members of the Organization of Petroleum Exporting Countries increasing oil output. 

The OPEC hoped that such an increase would make up for any shortfall caused by the unrest in Libya. Hoping that OPEC will boost oil production, stocks were in advance contrary to oil prices with European markets trading higher supported by telecom and auto stocks and Asian stocks ending the session with gains as merger activity bolstered Tokyo shares.

Japan’s Nikkei Stock Average added 0.2%, Australia’s S&P/ASX 200 rose 0.2% and South Korea’s Kospi Composite tacked on 0.8%. Hong Kong’s Hang Seng index ended 1.7% higher, while the Shanghai Composite rose 0.1%.

In Athens, stocks were tumbled as the market got a first chance to react to the prior day's downgrade of Greek government bonds by Moody's to B1 to Ba1 while according to the agency, Athens may not meet the required criteria for support from the European Union and International Monetary Fund after 2013.

Oil fell $1.02 to $104.72 a barrel in electronic trading and gold futures were little changed at $1,434.70 an ounce in electronic trading on Globex.

U.S. stock futures pointed to a slightly higher start for Wall Street on Tuesday, with

Dow Jones industrial average up 27 or 0.2 percent at 12,105, Standard & Poor's 500 up 5 or 0.4 percent at 1,314 and Nasdaq 100 futures up 3 or 0.1 percent at 2,328.

Source: ISFM