06 June 2011

Asian stocks slip

Asian stocks slipped on Monday after weak U.S. employment data set a cautious tone to the week, further hobbling the dollar and putting the rising euro on a path to USD 1.50 ahead of a European Central Bank policy meeting.

The weakest U.S. jobs growth in eight months in May reflected a global business cycle shifting to slower growth and confirmed what many investors had been already anticipating by taking a defensive stance in their portfolios.
The two outstanding questions for them are if the synchronised slowdown reflected in industrial indicators around the globe is a warning of something worse on the horizon and whether monetary policy can again come to the rescue of major economies this time.

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