Business
U.S. ‘Fiscal cliff’ talks drag on – markets remain stable
U.S. stocks were poised for gains at the open, with Dow futures up 0.2 percent and the broader S&P 500 futures 0.4 percent higher, even though in theory, the U.S. faces around US$671 billion of tax increases and spending cuts over the coming months, equivalent to the sort of fiscal tightening taking place in highly indebted Europe.
In Asia, the picture was fairly subdued in those markets that were open — among others, markets in Japan and South Korea were closed for the New Year’s holidays.
Hong Kong’s Hang Seng, trading for a half-day, closed marginally lower at 22,656.92, while mainland Chinese stocks rose after a private survey showed the country’s manufacturing growth at its strongest level in 18 months in December. Australia’s S&P/ASX 200 fell 0.5 percent to close at 4,648.90.
There was also a fairly calm atmosphere in other financial markets, with the euro down just 0.2 percent at US$1.3191 and the price of benchmark New York crude down 11 cents at US$90.69 a barrel.
Copyright 2012 The Associated Press
