Iran wants to stop crude oil exports protesting against the sanctions of Western economies imposed due to Iranian nuclear project, said Mohammad Karim Shahrzad, Iran's MP. The shortage of oil supplies will hamper recovery of world economy. In case of attack on the country, Iran will close the Strait of Hormuz, narrow seaway that is used to transport 40% of world's oil, and will
The Central Bank of China may lower further the reserve-requirement ratios and the interest rates to stimulate the economy; however, the probability of such measures is low, said Jing Ulrich from JPMorgan Chase & Co. Experts agree that yuan-loans will increase to 8 trillion yuan next year while the biggest concern remains a sharp slowdown in the property market that pushes steel and other industries
European equity markets opened down on Tuesday on rebounding worries about debt crisis, as finance ministers failed to provide comprehensive details about taming turmoil. Stoxx Europe 600 index lost 0.4% at 232.85 while FTSE 100 index dropped 0.5% attaining 5,335.92. French CAC 40 index and German DAX each gave up 0.4%.
Reserve Bank of Australia claimed resource investment to be a leading force aiding economy to outweigh effects from European crisis. RBA suggested that strong growth among its trading partners is bolstering the economic expansion in Australia and the bank does not see a need to further interest rate cuts. Australian Dollar appreciated after the RBA's announcement.
Stocks of Bank of America Corp. ended below $5 on Monday breaching record low since 2009. The shares closed at $4.99 down 4%. Company has experienced a sharp decline during recent months, as investors express concern whether the bank holds sufficient amount of capital to accept mortgage-linked losses. Moreover, shareholders are uncertain whether the bank will be able to fulfil international capital requirements.
Europe strengthened its measures for tackling debt crisis, transferring 150 bn euros ($195 bn) to the IMF. Four non-euro countries also supported IMF firepower, while UK refused to participate. Britain will state its contribution at the beginning of 2012, said European FMs. However, Peter Kurer, the former UBS AG's Chairman claimed the aid to be only a small scale solution.
The Australian Dollar appreciated as Asian markets recovered and RBA meeting minutes showed predictions for further growth despite European debt crisis effects on world-wide development. New Zealand Dollar rose ahead of report that is expected to show accelerated growth in 3rd quarter. Aussie climbed 0.4% to $ 0.9934 on Tuesday session in Sydney while Kiwi advanced 0.5% reaching $0.7596. Currently AUD/USD is trading at $0.9946 while NZD/USD
Canadian Dollar experienced upward and downward fluctuations against US Dollar as stocks and crude oil erased earlier gains, worsening the Loonie's outlook. On Monday Canadian currency fluctuated after dropping 2.1% last week. Loonie was almost flat at C$1.0389 in Toronto evening trade. Currently USD/CAD is trading at C$1.0369.
The US Dollar index traded almost flat on Tuesday Asian session giving up 0.09% or declining from 80.374 to 80.350. Dollar index which estimates the US Dollar against a bundle of 6 main counterparts strengthened on Monday as investors refocused their attention on European debt woe. Euro climbed against US Dollar from $1.2997 to $1.3002.
US stocks ended lower on Monday as ECB and European FMs did not manage to provide plausible details how to curb debt crisis. Moreover Draghi, ECB president, denied bank's possible intervention in bond purchases. S&P 500 index tumbled 1.2% or 14.31 points to 1,205.35, Dow Jones Industrial Average finished 0.8% or 100.13 points down at 11,766.26, while Nasdaq Composite Index declined 1.3% or 32.19 points reaching
Asian markets recovered on Tuesday from North Korean news and partly erased previous session's losses. South Korea's Kospi added 0.7% while Hong Kong's Hang Seng Index climbed 0.6%. Japan's Nikkei Stock Average traded up 0.7%, China's Shanghai Composite advanced 0.1% and Australia's S&P/ASX 200 index jumped 0.2%. The recent drop was more sentiment driven, suggest analysts.
Crude oil futures extended losses on Monday after tumbling by over 7% in the last three trading sessions. The commodity was affected by the death of Kim Jong-il and the ECB president's announcement on the ECB played down the role in solving debt crisis. On the New York Mercantile Exchange, light, sweet crude oil futures for delivery in January lost 32 cents to $93.21
Gold futures declined failing to recover after 7% drop last week. Analysts claim the reason is stronger US dollar as it makes the dollar-priced metal more expensive for other currency holder and decreases the safe-haven appeal of the commodity. Gold futures for delivery in February lost $4.90 to $1,593.20 an ounce.
Canada's wholesale sales increased more than initially expected in October, according to official data. The sales added 0.9% in October as compared to 0.6% increase expected. The wholesale sales increased by 8.3% on annualized rate in October and totaled CAD49.2 billion for the month. Following the news, Canadian currency edged up against the USD and the pair USD/CAD lost 0.35% to 1.0345.
India's aluminium producers face growing operational costs mainly caused by a rise in price of energy and raw materials . The producers will try to minimize energy consumption introducing new production methods and modernizing equipment. The government also contributes to support of the aluminium industry by reducing transmission costs and reviewing rates on raw materials import duties.
The trade deficit of Italy decreased less than predicted in October, according to official data. The indicator narrowed to EUR1.08 billion from EUR1.88 billion deficit in September, according to Istat. Experts predicted the trade deficit to achieve EUR0.97 billion in October. After the data release, the euro suffered losses against the USD and the pair EUR/USD is currently traded at 1.3023, down 0.2%.
The sell-off of the yellow metal might drive the price even lower than initially predicted. The ETP gold outflows reached 14 tonnes being the highest since August. The gold price already has fallen below supportive 200 DMA indicating the increased probability of deeper fall. When the gold falls below its support of $1530/oz, the precious metal may easily tumble to $1400/oz, according to Barclays Capital
Investors see the Brent crude market bearish and the number of short positions started to increase in recent weeks. Traders increased the number of short positions by 1,700 contracts and decreased long positions by 1,446 contracts. Brent oil futures edged down by 20 cents during the last week as European summit failed to stimulate investors' confidence. However, the decline in long positions will not last long
The pound slightly recovered against the USD as markets anticipated the outcome of the teleconference among the EU finance ministers. The pair GBP/USD achieved 1.5529 at the early US trade after trading at 1.5466, the lowest level since December 15.
Copper futures decreased approaching to three-week low amid growing concerns over the mass downgrade of credit rating in the Euro Zone coupled with stronger greenback. On the Comex division of the New York Mercantile Exchange, copper futures for delivery in March traded at USD3.311 a pound at the early European trade, edging down 0.6% since opening.
China's economy slows down posing essential concerns over the base metals markets as China is the largest consumer of metals. China's industrial metals consumption is likely to decrease in 2012 weighting down on prices, said Wang Huajun from the CNMIA. Currently, copper inventories reached the one-month high at the Shanghai Futures Exchange. LME copper traded below $7500/tonne being 25% lower than a year-high of $10,000/tonne.
The current account of the Euro Zone moved to larger than expected deficit in October, according to official data. The current account of the region hit the deficit of EUR7.5 billion in October as compared to surplus of EUR2.2 billion in the preceding month, reported the ECB. Analysts expected the figure to achieve a deficit of EUR1.9 billion in October. The current account deficit approached
Growing production of crude oil and natural gas may result in the US exports of the energy commodities may soon exceed its imports being the first time in the last 60 years. The crude oil imports in the US declined by 10% since 2006. However, the US remains the one of the biggest crude oil importers and oil prices being nearly $100/barrel may impact
Coffee futures fell for the fourth consecutive day approaching the lowest price since December last year as coffee inventories increased for the seventh-week in line and world commodity supplies are ample. On the ICE Futures Exchange, Arabica coffee for delivery in March traded at USD2.1378 a pound at the European afternoon trade, losing 0.67% since opening.