Market Summary

      Stock Market

·         Australian stocks sank to their lowest point in July so far after a sharp sell-off on renewed concerns over the carbon tax and international debt woes.

·         Asian stocks fell on European debt-contagion worries as financial shares plunged.

·         India’s Sensex Index set for three-week low on slowing factory output and Infosys sales beat forecast.

Forex Market

·      Indonesia’s rupiah and South Korea’s won will drive Asian currency gains for the rest of 2011 as central banks use appreciation to ward off inflation.

·      Australian dollar and New Zealand dollar dropped to two-week lows amid global recovery concerns.

·      Technical Analysis: Australian dollar may hit to three-month low versus yen.

·      The euro edged down, snapping earlier gains, and falling to the lowest in almost four months against the yen.

      Commodity Market

·   Crude oil dropped for a third day on European debt worry and increasing U.S. stockpiles.

·   Gold fell for first time in seven days as Europe’s debt crisis elevated U.S. dollar.

·   Wheat edged down for a second day as ‘risk-off mood’ overshadows financial markets.

    Bond and Yields

·    Japanese government bonds rose for a second day. The yield on the benchmark 10-year security declined two basis points to 1.11 percent as of 9:15 a.m. in Tokyo at Japan Bond Trading Co. 

·    Treasuries climbed on safety demand as Europe crisis remains contagious.

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