As Greece exit from the single currency area seems to be more realistic scenario than ever, investors fear that it will have a contagious effect on other fiscally problematic nations. Amid these sentiments, Spanish government borrowing costs soared to 4.375% for January 2015 bond, up from 2.890% on April 4, when the previous auction took place. July 2015 average bond yield came in at
On Tuesday at least 4 out of 33 underwriters of No. 1 social network, namely TD Ameritrade, Fidelity's brokerage arm, E*Trade Financial and Morgan Stanley & Co, stopped taking new orders of Facebook. Wells Fargo Advisors did the same on Wednesday. Since the demand for the shares is huge, Morgan Stanley informed its advisers that each client will be able to receive at most 500 shares.
The PPI in New Zealand increased more than expected in Q1 of 2012, according to official data. The PPI of the country gained 0.3% in Q1 on a seasonally adjusted basis as compared to an increase of 0.5% in Q4 of 2011, reported Statistics New Zealand. Experts predicted the PPI to stay unchanged in Q1. Following the data release, the
For the first time President of the European Central Bank Mario Draghi acknowledged the possibility of Greece exiting the euro area, making it clear that balance sheet's integrity is the top priority for ECB despite their strong commitment to keep the currency area together. Following this announcement, ECB will temporary stop issuing loans to some Greek banks until they finalise recapitalisation. As soon as it
Asian stocks were mostly higher on Thursday after positive GDP data from Japan. Moreover, recent sell-off created dip buying opportunities for investors. Hong Kong's Hang Seng Index added 0.5% whereas Shanghai Composite Index climbed by 0.7%. Meanwhile, Korean Kospi and Japan's Nikkei Stock Average gained 0.4% and 0.1%, respectively.
Gold prices advanced in Asian trade on Thursday after Fed hinted on more accommodative policies as US economy needs additional monetary stimulus to boost growth. COMEX gold June Contract traded at 1,546.75 US Dollars per troy ounce on the New York Mercantile Exchange, gaining 0.66% since opening.
The borrowing costs of Spain may rise during bond auction on Thursday as Greece's political uncertainty added to risk of further downturn in the region. The interest rate on four-year debt may surge to 5% as compared to 4% at the last auction. The PM of Spain said that borrowing costs may even grow to 'astronomical' level amid turmoil in
Mario Draghi, the ECB President, insisted on Greece to stay in the Euro bloc during his public speech on Wednesday regarding the possibility of Greece withdrawal from the Eurozone. Nevertheless, according to him, the ECB will stick to its anti-inflation mandate. The ECB President's comments came after Irish and Belgian central banks reported that Greek exit would not be disastrous
Japanese machinery orders both in manufacturing and non-manufacturing declined in March, decreasing 2.8 % from February. Despite the drop in March, the orders in the Q1 still increased 0.9 % from the preceding quarter and are expected to gain 2.5 % during April-June period. The governments believe that machinery orders are on a steadily growing trend.
The Commerce Department reported on Wednesday that the US home construction grew 2.6 % from March, making annual rate of 717 000, which is still below the historic average. Elizabeth Duke, the Fed governor, emphasized some positive aspects of the housing market, including home price stabilization and decrease in delinquent borrowers. Whereas another report reveals that the industrial production rose
According to the minutes of the most recent Fed's meeting released on Wednesday, the officials were concerned about the US economic upturn in April, when they agreed to take more stimulus to spur the economic growth. The central bank's policy makers were particularly worried about the US budget policy and the Eurozone debt crisis.
European central bank stopped operations with Greek banks which were not recapitalized and now are under emergency liquidity assistance of Greek central bank. ECB sources stated that support to Greek banks will be renewed once recapitalization of the banks will take place and their solvency will be according to the requirements. On April 27 Greece's minister cabinet agreed a national
Annual inflation in April in the Euro zone and in the European union decreased and was 2.6% and 2.7% accordingly. Lowest annual inflation in the corresponding period was registered in Sweden (1%), Greece (1.5%) and Ireland with Romania (1.9% both). Highest annual inflation was observed in Hungary (5.6%), Estonia (4.3%) and Czech Republic with Poland (4% both). In comparison to March, inflation increased in
Bank of England decreased growth expectations for UK economy for upcoming two years and expects 0.8% and 2% expansion for 2012 and 2013 respectfully. Inflation rate is expected to be 2.5% for this year 2% target should be achieved only in the middle of 2013. Such adjustments were made due to 0.2% retraction of UK economy in the first three months of
Production of utilities, mines and factory's in the U.S. surpassed expected growth and increased by 1.1% in April. Manufacturing, which accounts for three quarters of the total U.S. production, rose by 0.6%. Utility output increased by 4.5%, which is the most in in last two years. Mining capacities increased by 1.6% after 1.7% decline in March. Motor vehicle production step-up by 3.9% following 1.2% increase
Rural commodities rallied on Tuesday despite broadly stronger US Dollar. Deteriorating weather conditions in the US provided fresh stimulus for the commodity pack.Wheat continued to appreciate as dry weather in Kansas may harm crops. However, US spring crops are harvested ahead schedule thus limiting the upward move of the commodity.Corn was the top-performer despite expected record crops in the US
Energy commodities were solid on Tuesday amid positive economic data form Germany. Energy markets are likely to be volatile in the next sessions ahead of FOMC.Crude oil was the only loser on Tuesday after the American Petroleum Institute reported 6.6 million barrel increase in US crude oil stockpiles.Brent oil was marginally higher despite increased production from Saudi Arabia, Libya and
Industry metals were mixed on Tuesday as Greece's uncertainty continued to dent risk-sentiment among investors.Aluminum was unchanged, balancing between output cuts of Tajikistan Aluminum and persistent Euro Zone's concerns. Copper dived to four-month low amid worries about economic slowdown in China. Adding to the negative mood of the red metal, US retail sales increased at slower pace, expanding by 0.1%
Precious metals fell on Tuesday ahead of key meeting of the Fed due on Wednesday as hopes for the new round of QE in the US are weak. Furthermore, political turmoil in Greece continued to impact commodity markets.Gold was pressured by strong US Dollar that gained momentum on the Euro Zone's economic and political woes. Silver fell on weak global
Builders beat the expectations of building startups by 32k and started 717k houses in April, 2.6% more than in March. Specialists state that such outcome is a combination of employment gains, low mortgage rates and house prices. Building of single-family houses increased by 2.3% from March and reached the highest level in 3 months. Startups of multifamily houses (townhouses, apartment
Stoxx Europe 600 index have dropped for third consecutive day and reached the lowest level since the start of this year as specialists speculate that elections in Greece could take place as early as 10 of June. The index lost 0.5% of its value by noon in London and around 10% from its peak this year in mid March. Banks lost 8-9% of their
The number of unemployed people for January-March decreased to 2.63 million, 45,000 down on the quarter, the Office for National Statistics reported. Thus, the unemployment rate was 8.2 percent of economically active population, by 0.2 percent less than in the previous quarter. This information, however, should be viewed with caution, since there are 1.4 million of part-time workers who did not manage to land a
The S&P's GSCI Spot Index of commodities dropped by 1.5 percent and reached 626.57 points, the lowest indicator since Dec. 20, as Greek negotiations to form a new government failed after elections on May 6, bolstering speculation about Grexit. Crude oil tumbled to a 6-month low of USD 91.81, copper slid down to USD 7,625, January low, gold futures are
Angela Merkel and Francois Hollande met in Berlin on the French President's inauguration day to discuss the European debt crisis. The chiefs of the EU's two leading economies got past their pre-elections disagreements after the Greeks failed to form a new government, and expressed their willingness to consider measures to bolster economic development in Greece to help it remain in