Asia Down Sharply Overnight

by Marilou Long on August 31, 2010

in Economic Indicators,Foreign Markets

The due to continued strength in the yen combined with weak semiconductor numbers.  From the WSJ article:

“Regional semiconductor-related shares slid on worries about their demand outlook, and after Intel”s shares fell overnight following news the U.S. chip company said it would pay about $1.4 billion to acquire Infineon Technologies” wireless unit. Intel had slashed its third-quarter revenue and gross-margin targets last week.

“The slowdown in PC demand had been priced in, but it”s a new shock when Intel cuts its outlook,” said Monex market analyst Toshiyuki Kanayama. “Investors are now watching whether this slowing demand is temporary or long term.”

Europe continues to surprise on the upside however.  Germany”s economic recovery has been stronger than expected, and even Great Britain”s growth numbers are getting revised upward.

The U.S. market is still experiencing what Ed Yardeni calls the tug of war between the Bears(double dip on the way) and the Bulls(corporate cash is high).  According to Ed: “The tug of war between the Bears and the Bulls is likely to continue.  Both sides are getting rope burns.”

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