Wednesday, November 27, 2013

Euro Performs, while China Outpace others

The Euro are gaining on both the yen and U.S. dollar on Wednesday, while Shanghai stocks shake off geopolitical concerns to outdo others in the region.

European stocks were poised for a subdued start with financial spreadbetters expecting flat to small gains for Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI.

The single currency touched a four-year peak against the yen and a one-month high on the dollar as speculators wrestled with major chart resistance at 138.00 yen and $1.3600. A break here would likely open the way to further gains for euro bulls.

While most share markets were subdued after a flat finish on Wall Street, China's CSI300 .CSI300 of leading Shanghai and Shenzhen A-shares stood out with a 0.9 percent gain.

Investors there seemed unperturbed by the step up in tensions over Beijing's demands that airlines inform them when flying over disputed islands in the East China Sea, a move the White House termed "unnecessarily inflammatory."

The United States responded on Tuesday by flying two unarmed B-52 bombers over the region, while ANA and Japan Airlines (9201.T) stopped sending Chinese authorities their flight plans for routes that pass through the zone.

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