The Reserve Bank of India will issue government bonds linked to the gold price with ensured interest rate of at least 2%, in order to decrease the annual demand for physical gold coins and bars. The main reason is to lower the national trade deficit, since this precious metal adds up to the second biggest expense in imports after oil.
The positive UK's Retail Sales data raised the Pound through 1.59 against the US Dollar, which is the highest level since November 2014. The shared currency was sold off in the light of the Greece's negotiation issues with the creditors and therefore surpassed the level of 1.40 against the Sterling on Friday. GBP/AUD reached 2.0442, which is close to the
The benchmark Shanghai Composite Index closed Friday's trading session at 4,478.36 points, down 6.42% or 306.99 points from the previous close. A sharp sell-off occurred, as investors were alerted by worries about a possible bubble in China's equity markets. Investors and analysts believe that as a result of steep losses, the odds increase that the Chinese government will add further
UK retail sales grew 0.2% in May, better than the expectations of no change at all, but this is a slowdown following 0.9% in the prior month. April in Britain was unexpectedly warm, and this was a positive factor for clothing demand. On the contrary, in May the temperature was lower than normal, which has the opposite effect. Nevertheless, when
The Swiss National Bank held its interest rate at -0.75%, a record low, and emphasized readiness for further activity to diminish impact of the strong Franc. The Swiss currency rose 15% since the central bank abandoned the cap of 1.20 per euro in January. The economy is on the edge of the first recession in the last six years, and,
The Euro Zone escaped deflation as consumer prices rose in May 0.2% on a monthly basis and 0.3% year-on-year, confirming flash release. More expensive services, tobacco and food helped to offset the force of lower energies' prices. The European Central Bank expects inflation in the euro-sharing countries to increase to 1.5% in 2016 and to 1.8%, coming close to its
UK jobless rate remained steady at 5.5% during the past three months through April, at the lowest level since 2008, as the number of unemployed people fell by 43 thousand to 1.81 mil. In April alone, the rate went up to 5.7% from 5.5% in March. In the meantime, wages grew 2.7% and the improvement in the UK's labour market
German ZEW economic sentiment dropped in June to the lowest level since November, coming in at 31.5, substantially below 41.9 reported in the prior month. The Greek situation increases nervousness of the market, and slack in the global recovery is yet another external factor worsening the outlook for the German economy.
UK consumer prices increased in May by 0.1%, following a 0.1% fall in April. Core figure advanced 0.9%, slightly missing an estimate of 1.0%. Inflation in the UK still remains below the targeted 2%, and the BoE governor Mark Carney expects achievement of the bank's goal in 2016.
Car sales growth in Europe was the slowest in half a year in May, as purchases are postponed amid unemployment and sovereign crisis in Greece. The total amount of the sales rose 1.4% to 1.15 mil automobiles from 1.14 mil a year earlier. The increase was the lowest since November 2014, when the change was +1.2%. The European cars market
This week could be crucial for Greece as its Sunday's meeting with creditors failed after 45 minutes amid a significant gap remaining between international creditor's requirements and what the Greek anti-austerity government is ready to offer. Focus is now coming to June 18 when the meeting of the Euro group is scheduled. It may decide whether the Mediterranean country will
US retail sales climbed 1.2% in May, on a monthly basis, after the soft increase of 0.2% in the prior month, as labour market growth and cheaper gasoline prices supported spending. Automobile sales, clothing and stores for building materials gained the most last month. The retail sales excluding volatile sales of automobiles, which account for 20% of total sales, rose
Chinese fixed asset investment rose 11.4% in the January-May period of the year, in comparison with the same period last year. The significant driver of the China's economy grew at a slowest pace in almost 15 years, while retail sales increased 10.1% and factory output went up by 6.1% last month. Both rates of growth remained relatively steady compared to
Australian unemployment rate fell to 6% in May, from 6.1% in the prior month, as the number of employed people increased by 42,000, almost three times more than the forecast. The labour market seems to be very firm relative to insufficient domestic demand and plans of businesses for lowering investment next year, but slowdown in wage growth also supported employment.
The Reserve Bank of New Zealand reduced its interest rate from 3.50% to 3.25%, the first time in last four years, as inflation remains below the bank's target and economic growth slows. The cut put Auckland housing market in danger of increasing prices further, however forecasts assume more rate cuts by the middle of 2016. The Kiwi dipped facing a
Industrial production in UK increased 0.4% in April, beating expectations of 0.1%, as output of oil and gas jumped 8.7%. On the contrary, manufacturing production fell 0.4%б mainly amid a drop of 6% in pharmaceuticals, which accounts for around 9% of total manufacturing output. The decline in manufacturing underlines Britain dependency on consumption and domestic demand to sustain recovery.
Glenn Stevens, the RBA's governor, stated in his speech willingness for further interest rate lowering, supported by disappointing economic data coming from Australia, and encouraged the government to prevent additional spending cuts. Australian economic growth is not satisfactory as the major trading partner, China's economy, is slowing, and the Australian real estate market remains mild.
The optimism of small businesses in US rose in May to 98.3 from the 96.9 in the previous month and came in at the highest level since December. The positive numbers of confidence survey came after firm and healthy May's reports of automobile sales and employment that pointed out the economy was getting stronger after a soft start to the
Oil advanced as the impact of large global oil supply was countered by seasonally higher demand and Brent futures gained 95 cents, trading at $63.64 per barrel, while WTI futures were up 73 cents to $58.57 a barrel. Oil demand is likely to rise in the summer as people use their cars for holidays, while disappointing data coming from China
China is facing deflation risks, as consumer prices increased softly in May, by 1.2% on an annual basis, compared to the increase of 1.5% in April. The producer prices fell 4.6% and extended the decline of about three years. As the inflation is below a half of the official 3% targeted, the People's Bank of China has still room to
German industrial output rose by 0.9% in April, after a decline of 0.4% in the preceding month, while on the annual basis the output increased 1.4% as German manufacturers benefited from both German economic strength and recovery in the Euro zone. Manufacturing production went up 0.7%, while output of investment goods climbed 1.5%. Energy output in turn gained 1.4% and
Japanese GDP increased by 3.9% in the first quarter and the economy grew more than the expected at 2.7%, as companies raised capital investment. Capex rose 2.7%, compared to the previous quarter, strongly beating an estimate of 0.4%. As capital spending is key for economic recovery, the BoJ's stimulus policies seem to be successful.
Exports in China slumped in May 2.8% year-on-year, while inbound shipments fell 18.1%, leaving trade balance surplus of 366.8 billion yuan($59.1b). The slowdown in China's trade was due to dip in growth of investment, while the fall in imports is likely to signal the need for more stimulus to the economy in order to support Chinese domestic demand.
Unemployment claims in US dropped last week by 8,000 to 276,000, while economists expected an increase of 2,000. The US labour market remains firm, as the number of people without jobs was at the lowest level in about 14 years. However, as other data showed, worker productivity dropped 3.1% in Q1 that makes the labour force more expensive.