The trifecta of regional fiscal
uncertainty continues to weigh on the minds of investors. Japan, the
world’s #3 economy, appears on course for recession following reports
that the island nation’s economy shrank by 3.5% last quarter. The
data comes as a surprise to many economists as the second quarter was
revised up to a .3% growth rate. Japan’s Nikkei 225 lost nearly 1% by
the close of trading in Asia. In Europe, Greek lawmakers passed a 2013
budget over the weekend, a big step towards persuading
lenders to free up more bailout funds. However, with a €5 billion
payment on the books for this week, those lenders might not be pulling
out the checkbooks just yet. Here in the U.S. consumers seem confident
following Friday’s report from the University of
Michigan. However, President Obama is scheduled to meet with lawmakers
from both sides of the political aisle to discuss the impending “fiscal
cliff” and, depending on the amount of political chest-thumping that
could result, the confidence may not last long.
The precious complex is mixed this morning. Gold is up .3% and well
supported at the moment as current economic conditions lead many to
believe that the money-printing by the fed won’t end anytime soon.
Platinum is trading up .5% on the back of continued labor
issues in South Africa. Palladium is relatively flat in early trading.
Have a great day!
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