07.12.201015:08 Forex Analysis & Reviews: Fundamental Analysis, December 07, 2010

Asia's stock markets have traded this morning on a mixed trend due to investors' expectations that the Chinese central bank will raise the interest rate this week. As such, the Hong Kong stock exchange rose 0.6%, the Tokyo exchange declined by 0.1%, the Seoul exchange advanced by 0.4%, Taiwan's exchange weakened by 0.1%, the Shanghai exchange retreated by 0.3%, whereas the Singapore stock exchange was trading without change.

Wall Street trading closed yesterday on a mixed trend due to statements by the United States Fed chairman regarding the need for future economic stimuli, as well as renewed concerns over the spreading of the European debt crisis. By the end of the trading day, the Dow Jones Industrial Average declined by 0.2% to a level of 11,362 points, the NASDAQ index strengthened slightly by 0.1% to a level of 2,594, while the S&P 500 index weakened slightly by 0.1% to a level of 1,223 points.

In Europe, concerns over expansion of the credit crisis are mounting again, after Moody's ratings agency lowered by two levels the Hungary's credit rating yesterday to only one level above junk bonds. This is the lowest investment level existing in the company. Furthermore, it has been stated that the company is considering further downgradings. The S&P ratings agency has left Hungary's rating last month at its lowest BBB- investment rating.

In the global currency market, the United States Dollar is continuing to weaken against the world's leading currencies, having lost 0.20% against the Japanese Yen to 82.55 Japanese Yen for one United States dollar. Again the Euro the dollar loses about 0.4% to 1.3330 United States dollars for one Euro, whereas the British pound strengthens against the dollar by 0.5% to a level of 1.5750 United States dollars for one British pound.

On the commodities market, gold closed at an all-time high after the statement of the Fed chairman regarding the need as well as renewed concerns over the spreading of the European debt crisis, broadened the appetite of investors for the precious metal as an alternative investment. Furthermore, silver closed at a 30-year high, while oil broke a two-year record, closing over 90 United States dollars for one barrel of oil. The price of gold, having risen by 29% since the beginning of the year, had closed yesterday at 1,416 United States dollars for one ounce of gold, after a 0.7% climb at the New York commodities exchange. Crude oil futures for January had closed in New York at the end of a volatile trading day, reaching a level of 89.38 United States dollars for one barrel of oil, completing a 0.2% climb.