Article by ForexTime
Markets in Asia slipped on Wednesday as geopolitical concerns make investors nervous after news of the downing of a Russian military plane by Turkey. It was reported that the incident occurred on Tuesday near the Syrian border.
Hong Kong’s Hang Seng was down 0.5 per cent in late Asian session trading on Wednesday, Australia’s S&P/ASX 200 was down 0.1 per cent and Japan’s Nikkei 225 was down 0.3 per cent. In mainland China, the Shanghai Composite was up 0.2 per cent and the Shenzhen Composite was up 1 per cent.
A wave of risk aversion swept through markets, and the cautious mood pushed investors to safe haven assets. Gold benefitted and was 0.4 per cent higher today at $1,079.90 an ounce. Gold is traditionally perceived as a haven in times of turmoil.
The yen, which is another safe haven, also gained and strengthened against the dollar. USD/JPY extended lower today to reach 122.25.
The euro was 0.2 per cent higher today at $1.0662, but still remains near a seven-month low as investors bet on further monetary stimulus from the European Central Bank at its December 3 policy meeting.
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Focus in the upcoming European session will be on UK chancellor George Osborne who will present the Autumn Statement and spending review. This could cause some volatility for sterling. GBP/USd was steady in Asia trading around the key 1.5100 level.
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