The Bank of Korea decided to keep its benchmark borrowing interest rate untouched for the seventh consecutive month stressing increasing exposure to European debt turmoil. Although weakening South Korean Won threatens to boost inflation, central bank kept its key interest rate at 3.25%. The decision match economists' expectations.
Chinese foreign exchange reserves fell in the fourth quarter for the first time since 1998, said People's Bank of China in its statement. The world's largest foreign exchange holdings dropped from $3.2 trillion on September to $3.18 trillion by the end of December last year. The decline may spur China's reluctance to appreciation of Yuan.
US trade deficit may have expanded in November mainly due to surge in crude oil imports, predict economists before official announcement due today. The trade gap is expected to widen from $43.5 bn in October to $45 bn in November, told economists surveyed by Bloomberg. The value of oil import dropped to 8-month record low in October and may have
US share markets traded higher on Thursday as investors expressed cautious optimism towards Europe's ability to tame its debt crisis. Dow Jones Industrial Average Index added 0.2% or 21.57 points and closed at 12,471.02 while Nasdaq Composite gained 0.5% or 13.94 points and finished at 2,724.70. S&P 500 was up 0.2% or 3.02 points at 1,295.50.
China's November's gold purchases from Hong Kong soared to record high on the strengthening demand ahead of the Chinese New Year and on investor's desire to hedge risks amid weak equity markets. China bought 102,779 kilograms in November as compared to 86,299 kilograms in the preceding month. Moreover, China has to raise its gold reserves to promote internationalization of the
US retail sales advanced less than initially projected in December, growing at the slowest pace in the last seven months. The sales increased by 0.1% seasonally adjusted in December as compared to 0.3% expected, reported the U.S. Census Bureau. Core retail sales fell by 0.2% in December after jumping by 7% in November.
Growth of the Chinese producer prices decelerated in December to the slowest increase pace in the last two years. China's PPI, gauge of inflation in the wholesale sector, increased by 1.7% on a yearly basis, reported the NBS. The total PPI for 2011 edged up 6%. Experts predict short-term stimulus for prices ahead of the Chinese holidays while the long-term
Crude oil advanced on the increasing worries over the Nigerian and Sudan oil supply disruption and weaker US Dollar. Light, sweet crude oil February contract traded at USD102.59 a barrel at the US morning session, on the New York Mercantile Exchange, jumping 1.7%.
The number of people applying for unemployment benefits in the US increased last week, reaching the six-week high. The number of jobless claims added 24,000 to seasonally adjusted 399,000 while experts predicted the figure to stay unchanged at 375,000 over last week. However, the number remained below 400,000 indicating the recovery of the US labour market.
China's natural gas production is likely to rise by 11% this year, attaining 113 billion cubic meters, reported the China Petroleum and Chemical Industry Federation. Country also is likely to increase the output of diesel and gasoline by 5% to 280 million tons. China's apparent crude oil consumption is expected to achieve 480 million tons in 2012, expanding 5.3% from
China's CPI increased to 4.1% in December on a yearly basis, reflecting 0.1% fall from November's reading, reported the National Bureau of Statistics. Total CPI for 2011 achieved 5.4% as compared to government's target of 4%. The inflation rate saw essential decrease last month from hitting a record high 6.5% in July mainly due to prudent government's policies, the NBS
Industrial output in the Euro Zone decreased for the third month in line. The region's industrial output fell by 0.1% seasonally adjusted in November as compared to 0.2% expected decrease. On a yearly basis, the production dropped by 0.3% in November confronting the forecasts of 0.2% decrease.
Gold futures jumped to four-week high after Mario Draghi claimed that there are signs of economic recovery of the Euro Zone. The announcement lifter the euro against the US dollar thus stimulating the growth in gold's price. Gold's interdependence with the pair EUR/USD is the strongest in the last two years implying that the gold is expected to follow the
The ECB left the key interest rate unchanged at 1.0% for the second consecutive month in compliance with expectations, reported the ECB. After the data release, the Euro faced slight gains against the US Dollar and the pair is trading at 1.2771, edging up 0.5%.
UK's manufacturing activity declined in November reflecting fall for the second month in line. The UK Office for National Statistics reported the country's manufacturing production declined by 0.2% in November while investors expected 0.1% drop. On a yearly basis, factory production dropped by 0.6% as compared to 0.3% initially expected.
Natural gas futures sank hitting 28-months low as fresh worries over the record level of US natural gas inventories persist even despite modest supply decrease over last week reported by EIA. Natural gas futures for February delivery declined to USD2.695 per million British thermal units during the US session, on the New York Mercantile Exchange, losing 2.87%.
Italian industrial production rebounded after declining for two months in line. Country' industrial output advanced by seasonally adjusted 0.3% in November while analysts expected 0.1% decrease, reported Istat. Considering yearly changes, industrial output fell by 4.1% in November confronting forecasts of 2.9% decline.
Royal Bank of Scotland Group Plc prepares to cut about 3500 jobs in the upcoming three years as it quits unprofitable mergers advisory and cash equities operations. RBS also is planning to close or sell units linked to capital market and corporate broking operations. Bank is turning focus to customer service and more conservative funding, said its CEO Stephen Hester.
Canadian Dollar depreciated on Wednesday breaking three day gains as investors boosted their demand for US Dollar amid worries European debt turmoil is worsening. Canadian currency lost 0.4% reaching C$1.0196 per US Dollar in Toronto evening trade amid bets French sovereign ratings still might be cut. Currently USD/CAD is trading at C$1.0184.
New Zealand Dollar sharply appreciated on Thursday after China said its price inflation cooled in December spurring hopes for additional monetary stimulus. New Zealand's domestic currency climbed to $0.7981, a record high since November 9 while its Australian counterpart slightly declined from $1.0310 to $1.0294. Currently NZD/USD is trading at $0.7949 and AUD/USD is trading at $1.0297.
Mervyn King, the governor of the Bank of England, said the bank may cease adding extra financial stimulus to the economy as UK manufacturing and service gauges increased unexpectedly previous month indicating country's economy may be gaining positive momentum. Still officials are caution regarding possible impact of European debt crisis.
Most of Asian stock markets fell on Thursday after Chinese officials reported country's consumer prices rose at 4.1%, slightly lower than in November. Australia's S&P/ASX 200 dropped 0.2%, Shanghai Composite Index edged down 0.1% and Hong Kong's Hang Seng Index traded almost flat. Japan's Nikkei Stock Average gave up 0.7% but on the upside was South Korea's Kospi which edged
Spain and Italy prepare to sell bonds worth around 17 bn Euros today as Italian PM Monti calls investors to prize nation's austerity measures. Monti and Spanish PM Rajoy both are attempting to persuade investors the countries have put much effort to reduce debt. Spain's Parliament approved 15 bn Euro austerity package yesterday.
CIT Group Inc. the largest US factoring provider decided to stop giving loans to the suppliers of Sears Holdings Corp. CIT Group Inc. provide short-term funding for producers to manufacture goods. Chris Brathwaite, a representative of Sears told the decision is irrational as company has adequate liquidity and sufficient resources at its disposal.