Australian Stock Market Expected to Slip With Euro Concerns

The local market has experienced its lowest point in seven weeks as the European markets continue to affect the global economy.

The Australian dollar closed to lower rates against the Euro and the greenback at $US1.026, after Friday’s $US1.043 rate.

Investors say that Spain’s activities overnight has affected the market, prompting others to speculate that several regions from that side of the world will follow. Valencia in Spain has asked for financial aid and is seeking a sovereign bailout.

Spain’s bonds also slumped during yesterday’s trading, pushing the Euro down further, despite Germany’s bonds doing slightly better than many of its European neighbors.

The United States, meanwhile, had stocks falling at the start of the session last Monday, amidst growing concerns with Spain, as well as concerns over the failure of Greece to meet its bailout targets.

According to analysts, the future of US stocks is also affected by Moody’s recent negative outlook on Luxembourg, Holland and Germany.

One analyst even said that European stocks overall aren’t attracting investors and it is basically unclear what will happen with Greece or Spain.

Back in the East, Chinese traders are expecting a private reading of the current economic standings. The report is said to be released by noontime today, and traders are already expecting that focus will be on energy stocks, considering that prices of oil dropped overnight.