Canadian Dollar depreciated as nation's stocks fell after ECB's balance sheet rallied to a record high bolstering fears fiscal crisis can hurt economic growth. Canadian domestic currency fell 0.6% to C$1.0244 per US Dollar in Toronto evening trade. Before ECB announcement Loonie had strengthened to three-week record high. Currently USD/CAD is trading at C$1.0243.
Italy auctioned government notes worth 7 bn Euros and nation's borrowing costs declined. Treasury in Rome managed to sell 2.5bn Euros of offered 3 bn Euros in 2-year bonds at yield of 5.62% compared to that of 7.89% in November auction. Borrowing costs for 10-year Italian bonds reached 6.98% compared to 7.56% month before.
S&P 500 experienced a sharp decline on Wednesday as investors were concerned about Thursday's Italian long-term debt auction. US benchmark index slipped 1.25% or 15.79 points to 1,249.64 and drove into negative area for 2011 reaching minus 0.64% year to date change. All 10 industry groups faced a drop led by energy and natural resource stocks. Cliffs Natural Resources Inc. fell 4.62% while Tesoro Petroleum
Iberia announced it cancelled 118 flights scheduled today due to pilot strike. Pilots are protesting to launch of new low cost unit as setting up such unit contradicts to Iberia collective agreement. The company rejects the claim while pilots say they will continue strike until the consensus is reached with Iberia management.
Sugar futures eased down in the year-end trade amid the firmed USD and ample supplies due to Russia's report on the sugar output approaching a record high of 5.1 million metric tons. Sugar futures for delivery in March traded at USD0.2311 a pound during the European afternoon session, on the ICE Futures US Exchange, edging down 0.38%.
Hungary sold 15bn forints on the debt auction as compared to government's target of 18bn forints. The country already negotiates refinancing package with the IMF and EC. However, the talks were prolonged due to fears over lack of independence of Hungary's central bank. The interest rate on the country's 10-year bonds surged from 8.78% to 9.7%.
Soybean futures eased down but traded close to seven-week high as market eyed unfavorable weather forecast for South America. Soybeans futures for delivery in March traded at USD12.0375 a bushel at the early European trade, on the Chicago Mercantile Exchange, edging down 0.3%.
Italian PM announced the Euro Zone members should act jointly to resolve the region's debt crisis. Despite two successful bond auctions, Italy is still far away from getting out of recession, he added. Italy raised about 7bn euros of debt at the today's auction. Italian 10-year bonds' interest rate stands at 6.98%, the level considered to be hardly sustainable.
The exports of Hong Kong tumbled last month on the lower demand from Europe which is expected to slide further on the negative region's economic outlook. November's exports added 2% on a yearly basis as compared to 11.5% increase in October. Imports increased by 8.8% in November on an annualized rate while October's figure saw 10.9% increase.
In US the number of people applied for unemployment benefits jumped more than expected last week. The number of residents, filing the application for jobless benefits reached 381,000, adding 15,000 on a seasonally adjusted basis. Experts predicted the figure to approach 370,000. Despite increase in claims, the figure is still below 400,000, indicating improving situation in the labour market.
Copper futures suffered losses, nearing one-week low as market remained cautious ahead of Italy' s bond auction. Moreover, many investors already have closed their positions and are on the holiday leady, thus decreasing volumes and surging volatility. Copper futures for delivery in March traded at USD3.361 a pound at the early European trade, on the New York Mercantile Exchange, losing 0.13%.
Spot silver approached three-month low, decreasing by 1.2% and adding to 5% loss in the previous trading session. Currently, the white metal is trading at USD26.88 an ounce, depicting 18% monthly loss and tumbling for the third quarter in line.
Gold tumbled to three-month low on stronger USD and as market sentiment was affected by the Italian auction due later today. Spot gold lost 0.7% to USD1,543.79 an ounce, indicating 11% monthly decline in December, the biggest monthly decrease in the last three years. US gold eased down by 1.2% to USD1,545. The yellow metal may fall to USD1,542 an ounce during today's trading, reported
China's government wants to channel foreign investments to new areas such as healthcare and financial-leasing. The government aims to redirect investment flow from automobile and petrochemical industries as they are already well-established. New investment guidelines, featuring investment areas that are favoured, have been already released.The new guidelines are expected to come into force at the end of January 2012.
The M3 money supply of the Euro Zone expanded less than expected last month. The ECB reported M3 money supply in the Euro Zone increased by 2% on an annual basis, being lower than 2.5% expected. Private sector loans expanded by 1.7% on an annualized rate while analysts predicted a 2.8% increase last month. Following the news, the Euro suffered losses against the Dollar with
New Zealand and Australian dollars reached one-week low against Japanese Yen amid investor worries European debt crisis might worsen. Both Pacific currencies declined yesterday after ECB said its balance sheet has soared to 2.73 trillion Euros. Aussie depreciated 0.3% against Yen attaining ВҐ78.46 and dropping to $1.0090 against its US peer. Kiwi lost 0.2% against Yen reaching ВҐ59.78 in yesterday trade. AUD/JPY currently is trading at
Today Italy prepares to sell 8.5 bn euros ($11 bn) in government notes expiring in 2022, 2021, 2018 and 2014. The borrowing costs on Italy's 10-year benchmark note added three basis points reaching 7.02% in Rome morning trade. Italian 1.9 trillion Euro debt is larger than that of Greece, Spain, Ireland and Portugal combined.
17-nation currency depreciated against Japanese Yen reaching 10-year record low amid worries region's debt crisis will hamper economic growth. Euro lost 0.5% against Yen attaining ВҐ100.53 in Asian session. Euro weakened against most of its major trading peers yesterday after ECB issued its balance sheet which has surged to 2.73 trillion Euros. Currently EUR/JPY is trading at ВҐ100.44.
After several years of silence the car market in US has started to recover, announced research company TrueCar.com. Auto sales including cars, sport utility vehicles (SUVs) and trucks in 2011 surged to 12.8 million compared to 11.6 million previous year. Jesse Toprak, the Vice President of TrueCar.com predicts further car business recovery in 2012.
European equity markets closed down on Wednesday led by German and French stocks as ECB reported its balance sheet soared by 239 bn Euros. Stoxx Europe 600 index lost 0.7% reaching 240.74; German DAX slipped by 2.0% to 5,771.27; CAC 40 tumbled 1.03% at 3,071.08 and UK's FTSE 100 fell 0.1% to 5,507.40.
China's economy is likely to be impacted by the bleak economic outlook, industrial overcapacity and dismal real estate market, reported Bank of China Ltd. Economic expansion is expected to contract to 8.8% next year as compared to 9.3% in 2011, the bank added. The pace of China's growth will be severely affected by slowdown in developed countries as global economy is projected to grow by
China's company Soho Ltd. will buy Shanghai's commercial site for $632 million from two companies Greentown China Holdings Ltd. and Shanghai Zendai Property Ltd. The takeover is a part of Soho's strategy aimed at acquiring commercial property at important locations near the main transportation networks between Beijing and Shanghai.
China added about 12 million jobs in the urban areas and the rate of unemployment in cities decreased below 4.6%, said Yin Weimin, minister of human resources and social security referring to preliminary statistics.
Crude oil futures appreciated as investors mostly sold their oil holdings to get profits and reinvest them in the USD purchases amid fresh concerns over the Euro Zone's debt crisis. Light, sweet crude oil futures for February delivery traded at USD99.39 a barrel during the morning Asian trade, on the New York Mercantile Exchange, adding 0.03%.