FX.co ★ Fundamental Analysis, January 25, 2011

Index rises were recorded this morning in the Asian stock markets, led by stock of the export sector. The Tokyo stock exchange rose by 1.2%, the Seoul stock exchange climbed 0.8%, while the Honk Kong stock exchange strengthened by 0.5%. In Europe, the leading stock exchanges recorded drops throughout most of yesterday's trading day, but ended up locking on a positive note after the positive opening on Wall Street. London's stock exchange locked at a 0.8% rise, Frankfurt rose by 0.1%, while Paris ascended by 0.4%.

The Australian bureau of statistics reported yesterday that Australia's PPI rose by 0.1% through the fourth quarter of 2010. The index was noticeably lower than economists' predictions of a 0.7% climb. The data shows that the flooding that had affected Australia in the last few weeks is beginning to make itself felt economically.

Economists had also estimated that Australia's GDP is expected to record negative growth in the first quarter of 2011 due to damage to agricultural production and coal exports. Furthermore, economists predict that the Australian economy will show 0.1% of negative growth in the first quarter of 2011, as compared to previous predictions of a 1.1% positive growth, due to the costs of repairing the damage caused by the flooding, which is expected to reach 20 billion Australian dollars.

In the New York Commodities exchange, gold futures locked at a 0.26% rise to a level of 1,344 United States dollars for one ounce of gold, while crude oil futures locked at a 1.44% decline, reaching 87.16 United States dollars for one barrel of oil.