2012/07/04

Follow the money

Asian stock markets rose Tuesday amid expectations for the Federal Reserve to take further steps to help spur weak global growth.

The Nikkei 225 index rose 0.7% to 90,66 points, despite the worse ISM figure in the US.  

The Hang Seng Index closed the day up 1.5% at 19735 points after markets in the city reopened form a holiday yesterday.

ICE Arabica coffee futures rebounded its highest since May 18. September arabica futures jumped 3.4 percent, to close at $1.8045 per lb.

The growing deceleration in manufacturing activity is grim. That is the reason for expectations that central banks will take actions to avoid a downward path. ISM figure from the US dropped to its lowest level sine July 2009. A similar measure of factory activity in EU also held steady at its lowest level since June 2009 and the jobless rate in the currency bloc rose to a record high in May.

But China's services sector expanded at its fastest pace in three months for June. Some commodities' price rebound along with the hope of central banks measures and the rebound in demand in China. Copper hit a six-week hike on Tuesday.





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