The Reserve Bank of Australia left its key interest rate unchanged at 3.5% after two consecutive reductions in June and May.The central bank cited stronger local employment and advancing Aussie as conditions helping to curb excessive inflation.
Australian home construction permits surged in May indicating that demand for housing my climb as RBA reduced the interest rates. The number of approvals to renovate or build apartments and houses jumped 27.3% compared to a 7.6% drop in April. Economists questioned by Bloomberg predicted a 5% advance.
Production in US unexpectedly fell last month, the first drop in nearly three years, warning that slowdown in US economy may linger. The ISM manufacturing gauge tumbled from 53.5 in May to 49.7 in June, surpassing even the most pessimistic predictions. Economists questioned by Bloomberg predicted an average drop to 52. US economists suggest Europe is adding negative pressure on US manufacturing.
DAX 30 edged higher on Monday supported by technologies and financials. The index was not strongly affected by deteriorating Eurozone manufacturing activity nor record high regions unemployment level of 11.1%. The main gainer was Commerzbank that surged 2.5%. On the downside Linde AG tumbled 2.5% after German gases and engineering enterprise said late Sunday that it has offered to buy
British FTSE 100 traded higher on Monday as Barclays rebounded from Friday's slump and data showed UK manufacturing PMI climbed to 48.6 instead of predicted 46.6. Barclays rallied 3.4% as its chairman Marcus Agius resigned after the lender was charged USD 455 million for manipulating interest rates. Other financials also appreciated with SBC Holdings adding 0.9% and Standard Chartered soaring
Today Mexican Peso reached seven-week record high versus US Dollar of 13.3568 per USD. Such rapid appreciation occurred when Enrique Pena Nieto announced his victory in presidential elections. Expectation of accelerating economic growth and bigger private investment took place. Moreover Peso was one of the best performers during the first half of 2012 with a total rise equal to 4.3%
By the end of June Indonesian Rupiah managed to overcome its worst quarter for the last three years with a decline of 2.9%. The Rupiah climbed by 0.3% today in Jakarta and currently is trading at 9,400 per USD. However inflation advanced on surging food prices and reached 4.15% in May. Indonesia's export fell to 8.6% in May whereas
Despite enduring slowdown in economy US showed some positive trends in May. Household income increased 0.2% in May whereas falling gasoline prices allowed consumers to save more and brought savings rate from 3.7% to 3.9%. Meanwhile spending on durable goods fell by 0.4%, while non-durable goods met 0.8% decline, however spending on services increased by 0.3%.
Farm commodities rose on Friday amid broadly lower greenback and hopes for stronger demand after EU leaders agreed to ease debt conditions for Italy and Spain.Wheat moved higher as weaker US Dollar and dry weather in the US stimulated price increase.Corn eased up as US inventories attained 16-year low while unfavorable weather conditions continued to erode prospects for this year's
Energy commodities soared as positive outcome of the EU summit is likely to increase energy consumption. From the supply side, the commodity group also was bolstered by start of a full Iranian oil embargo.Crude oil rallied on news that the EU officials took concrete steps to combat crisis in the area. Moreover a 133,000 barrel fall in the US supplies
Industry metals skyrocketed on Friday as EU leaders decided to ease pressure on the indebted countries and put emphasis on growth-boosting strategies. Aluminum rose despite reports that China's aluminum output remained at record high levels. Moreover, the government increased subsidies for smelters thus supplies are likely to stay ample.Copper gained a spree on the Eurozone's optimism. However, buildup in copper
Precious metals rallied on Friday amid broadly weaker US Dollar and optimism over the situation in the Eurozone after the EU leaders agreed on measures to combat crisis in the region.Gold gained 2.88% on weaker US Dollar after the EU policymakers agreed to ease lending conditions for Spain and Italy.Silver was the top-gainer amid solid global equities and depreciating US
Unemployment rate in Eurozone increased by 0.1% or 88,000 people in May . Jobless rate attained 11.1%, the highest level since 1995. European companies are forced to reduce staff. Europe's largest transport operator, Air France-KLM Group, announced it is going to eliminate 5,000 positions. Meanwhile,the highest jobless rate of 24.5% remained in Spain.
The Russian Ruble depreciated by 0.4% against the US Dollar on 02.06.2012 in Moscow. Total Ruble loss for this year is 1.3% and it is currently trading at 32.5650 RUB per USD. Such fall may be attributed to a decrease in oil price, which currently is 83.88 USD per barrel in New York, and slowdown of Russian manufacturing growth. However,
Manufacturing PMI of Eurozone remained unchanged at 45.1 in June compared with previous month. Manufacturing activity in region has been fluctuating below 50 almost for a year indicating persisting slowdown in the economy.
EU leaders required an aid from ECB officials to strengthen attempts in mitigating markets and forcing the currency bloc`s unification. ECB based in Frankfurt is likely to respond on July 5, implementing series of necessary actions including purchasing bailout program bonds. Economists predict the Central Bank to decrease its benchmark interest rate by 25 basis points.
The PMI in the Euro zone has been fluctuating below 50 since 2009. A recent survey showed that in Germany and France, factories were worse off influenced by the recession in the south of Europe. The hiring index decreased to 46.7 in June 2012 from 47.1 in May this year, indicating a notable rate of job losses. Although the factory
Citi and Credit Suisse anticipate that during ECB's meeting on July 5, the interest rate will drop from 1% to 0.75%, and by December 2012 it will reach 0.5%. It is predicted that the Bank of England will continue expanding their assets by introducing an acquirement arrangement of 75 billion Pounds. During 2012, the Pound has added 0.9% versus the
Apple finished a legal two-year battle with Proview International Holdings Ltd. concerning the rights to the iPad name in the Chinese market. The agreement was reached in The Higher People`s Court of Guangdong Province, where Apple was asked to pay $60m. This case harmed Apple`s sales as far as Proview blocked iPad consignments in and out of the country forcing
The EU has requested WTO to negotiate and consider the matter of limitations on China's rare earths minerals' exports as 97 % of all rare earth reserves of are produced there. The request was initiated because China is breaching the WTO's commitment. Country's surging exports and lowered export quotas disturbs the other markets by supporting local companies. This issue will be discussed
Japan's Nikkei 225 stock average breached a 3 day gains and finished into red area as appreciating Yen sent exporters lower. Nikkei 225 index slipped 0.04% or 3.3 points closing at 9,003.48. Nippon Yusen surged 2.4% on news it plans to double earnings from the shipping line's logistics operations. Nissan Motors and Honda Motors gave up 0.7% as Yen strengthened
Dow Jones Industrial Average sharply appreciated on Friday as shares rallied on European leaders proposed plan for bank rescue and relived rules for indebted governments. Blue chip index jumped 2.20% or 277.83 points and closed at 12,880.09 posting the best monthly advance since October. 29 stocks out of 30 posted gains for the Dow. The main winning company was Bank
The house prices in China, Australia and Singapore advanced in June, as demand for real estate was boosted by low interest rates. In China, the home values added 0.1% to $ 1,369 per square meter last month. In Australia, the average price of a residence rose to $ 471,000 in June 2012 and in Singapore the medium size of units offered decreased
Crude prices jumped and duress on Iran to stop its nuclear-enrichment program intensified following EU sanctions on Iran came into effect yesterday, July 1. International Energy Agency reported that the remedies undertaken by European Union may lead to the biggest loss for one of the OPEC members since the defiance in Libya the year before. As a consequence, Brent crude