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Asian stocks regained some stability on Wednesday following days of big losses, but the feeling remained fragile as not so good Chinese inflation data and sadness in the euro zone economy added to signs of an uncertain global economic recovery.

The dollar steadied after disappointing data out of Germany. “For now the market has calmed and there's some short relief. It's a natural rebound," said Takashi Hiroki, chief strategist at Monex in Tokyo.

Concerns over faltering global growth triggered a bruising selloff in global equity markets in the past week as a run of weak data showed no signs of lessening.

 

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The price of crude oil fell to a new three-year low Monday as a split between the world’s most important producers on how to share the pain of lower prices becomes increasingly apparent.

Saudi Arabia is ready to accept a price of $80, according to a weekend report.

Saudi Arabia is the largest producer in the Organization of Petroleum Exporting Countries, the cartel which produces a third of the world’s oil supply and essentially keeps the balance of supply and demand in the market. As Saudi Arabia can undercut almost every other country if it wants to, it has a huge influence on regulating OPEC’s overall supply.

The price of the world’s most important commodity is under pressure from both directions: demand is weakening as the European and Chinese economies slow down, while global supply is increasing as Iraqi and Libyan exports rebound from war-related disruptions. In addition the US pumps ever more oil from shale deposits while the long-term demand outlook is also looking rockier, because of new technologies such as electric cars.

 

Trading Tip: If the situation ni Europe and Asia won't get better soon, we might see the oil's price keep declining.

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The yen rose to a one-month high against the dollar and traded near 11-month peaks against the euro on Monday, as investors turned cautious on concerns about the health of the global economy.

With market holidays in Tokyo and New York also boosting instability, the dollar dropped after Federal Reserve officials warned at the weekend that if the global recovery stumbled, it could delay an increase in US interest rates.

The euro rose 0.3% against the dollar but was slightly lower against the yen.

European Central Bank council member Ewald Nowotny said the euro was very likely to keep weakening against major currencies.

 

Trading Tip: If the dollar will keep declining against other currencies, the gold might rise as a result.

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NAB Business Confidence (AUD) - 13/10

iPhone 6 Helps China's Export

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China’s slowing economy received a boost from faster export growth in September, with external demand spilling over to increase imports of goods such as the iPhone 6.

Exports increased 15.3% from a year earlier, the biggest increase since February 2013. Imports rose 7%, against projections for a 2% decline, leaving a profit of about $31 billion, data from the Beijing-based customs administration today showed.

Export demand is helping China weather a property drop. Global view is becoming more clouded, with Federal Reserve officials highlighting rising concerns about the improving US economy’s ability to withstand foreign weakness.

 

 

Trading Tip: Chinese stocks might be at a rise due to the increase in export.

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