World stocks and the euro under pressure (ISFM) (24-01-2011)

World stock markets and the European common currency were under selling pressure today as investors were booking profits. The euro also fell from its off two-month high as the region’s economic recovery was there, albeit a bit unsteady.

Earlier in Asia, concerns about rising inflation encouraged investors to consolidate profits after strong rallies in 2010, although capital movements were limited to the region rather than being expatriated. Japan's Nikkei average gained on bargain hunting among beaten down stocks with expectations of robust earnings.

In Europe, Ireland's politics were in focus after its junior coalition party withdrew from Prime Minister Brian Cowen's government on Sunday, while an explosion at Moscow’s Domodedovo Airport grabbed the markets' attention. Stocks in the region were mostly lower to start the week, amid losses for automotive and technology stocks.

The euro was down half a percent at $1.3569 but only after hitting a new two-month high of $1.3648 in early Asian trading. Spot gold rose around 0.5 percent to around $1,350 per ounce, after posting its third consecutive weekly loss.

On Wall Street, U.S. stocks began the week struggling to hold on to mild opening gains as investors digested quarterly earnings from fast-food giant McDonald's Corp.

Source: ISFM