Euro stable, Japan comes in to support

EuroZone sovereign debt worry is lessening a bit after Japan joined in to support the bloc.

The FTSE All-World index is up 0.2%, commodities are stronger and “Haven” bonds weaker, pushing yields higher, as players go back to growth-focused strategies that have dominated since the start of the year.
But with many major equity benchmarks near to 2-yr highs, and some commodities near record levels, the likelyhood of the EuroZone mess to keep flaring up is keeping players nervous and slowing risk asset gains.

The Euro is higher vs the Yen, but little changed against other major crosses, after Yoshihiko Noda, Japan’s Finance Minister, said the government would use some of its US$1T+ foreign exchange reserves to buy European government bonds.

Tokyo’s promise to come in to support the EuroZone mirrors supportive comments on the bloc’s assets emanating from Beijing in recent weeks, suggesting the problems in Europe could damage the Global economy.—Paul A. Ebeling, Jnr. www.livetradingnews.com

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Posted by Shayne Heffernan on Jan 11th, 2011and filed underEquities, Europe, Latest News, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site