Per Bloomberg, a good read I came across.
"Dec. 13 (Bloomberg) -- Asian stocks dropped, sending the benchmark regional gauge to a two-week low, and the won weakened on speculation that credit-ratings may be cut for European countries. The euro was little changed against the dollar after falling to the weakest level in two months yesterday.
The MSCI Asia Pacific Index slid 1.3 percent as of 11:52 a.m. in Tokyo. The won declined against 16 major counterparts, while the euro held at $1.3186. Gold for immediate delivery dropped as much as 0.9 percent to $1,650.93 an ounce, a seven- week low. Oil was little changed at $97.88 a barrel, while Standard & Poor’s 500 Index futures gained 0.1 percent.
The European Union summit last week offered few new measures and doesn’t diminish the risk of credit downgrades on European nations, Moody’s Investors Service said yesterday. Fitch Ratings said a comprehensive solution has not yet been offered and predicted a "significant economic downturn" in the region. Data today may show German investor confidence slid to a three-year low, while sales at U.S. retailers probably rose in November, based on a survey of economist estimates by Bloomberg.
"The ratings agencies are reminding us of sovereign downgrade risk" in Europe, said Sacha Tihanyi, a Hong Kong- based currency strategist at Scotia Capital, the investment banking unit of Bank of Nova Scotia. "The dollar will have no choice but to find support on the back of euro weakness."
Bond Auction
The Dollar Index was little changed at 79.524 after rising 1.2 percent yesterday. The European Financial Stability Facility will auction as much as 2 billion euros ($2.6 billion) of 91-day bills today, while Greece will sell 1.25 billion euros of 182- day bills. Belgium will offer 1.2 billion euros of short-term debt and Spain will auction 364-day and 553-day bills.
About seven stocks fell for each that rose in the MSCI Asia Pacific Index. The equity gauge, poised for the lowest close since Nov. 30, has fallen 17 percent this year.
The MSCI China Index lost 1.2 percent. Housing transactions in China declined in 27 out of 35 cities tracked by Soufun between Dec. 5 and Dec. 11. Transactions fell more than 60 percent in at least four cities, including Tianjin and Hangzhou.
China Gas Holdings Ltd. surged 22 percent for the biggest advance in the MSCI Asia Pacific Index. ENN Energy Holdings Ltd. and China Petroleum & Chemical Corp. will make an all-cash buyout offer for the piped-gas supplier as they seek to purchase a controlling stake, China Gas said.
German Confidence
S&P 500 futures rose to 1,230.80. The yield on 10-year U.S. Treasuries increased two basis points to 2.03 percent. Sales at retailers probably rose 0.6 percent last month, following a 0.5 percent advance in October, according to the median forecast of 64 economists surveyed by Bloomberg News ahead of the Commerce Department report today.
The ZEW Center for European Economic Research may say its index of German investor and analyst expectations, which aims to predict developments six months in advance, declined to minus 55.8 in December, according to the median estimate in a Bloomberg News survey of economists. That would be the lowest reading since October 2008.
The South Korean won fell for a fourth day, declining 0.7 percent to 1,155.38 per dollar. It touched 1,160.00 earlier, the weakest level since Nov. 28. Copper retreated 0.2 percent to $7,589.75 a metric ton, extending yesterday’s 2.7 percent decline, the most in three weeks. Gold traded at $1,654.88 an ounce. "
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