After experiencing loss on Monday, German DAX index opened flat at 5,808.88 on Tuesday morning. However, German benchmark recovered sharply after ZEW reported that investor confidence index for December was higher than expected. Auto producer Volkswagen AG gained 1.6% after the company presented 15% increase in November sales on yearly basis while BMW AG added 1.9%. Adidas AG and Deutsche Telekom climbed 1.51% and 1.31%,
On Monday Dow Jones Industrial Average lost 1.34% or 162.87 points and closed at 12,021.39. 28 out 30 blue chip index companies experienced losses. On the downside were Bank of America Corp. which plunged 4.7% and Intel Corp. which gave up 4% after the company reduced its profit outlook for the 4th quarter. Caterpillar declined by 2.84% and Alcoa Inc. dropped by 3.01%. Art
S&P 500 Index declined by 1.49% or 18.72 points on Monday and finished at 1,236.47 led by banking and energy stocks. US markets reflected Moody's announcement that majority of measures proposed in EU summit are similar to previous ones. Morgan Stanley lost 6.11%, Citigroup Inc. tumbled 5.39% and Goldman Sachs Group traded down 3.37%. Peabody Energy Corp. declined by 5.09%, Consol Energy Inc. dropped by
Japan's Nikkei Stock Average tumbled 1.17% or 101.01 points to 8,552.81 on Tuesday as Fitch and Moody's sceptically evaluated the outcome of previous week's EU summit. Exporters, including car makers and technology stocks, led the drop in the index. Sony Corp. lost 2.6% and Chiyoda Corp. traded down 4.68%. Honda Motor Co. declined 2.9% and Mitsubishi Motor dropped 2.17%. On the upside was Olympus Corp. which
On Tuesday Hong Kong's Hang Seng Index lost 0.69% or 128.49 points to 18,447.17 as disbelief in latest European agreement stimulated decline in the markets. Among main decliners were export dependent stocks with Lenovo Group Ltd. giving up 0.4% and clothing trader Esprit Holdings Ltd. falling 2.8%. Resource companies listed in Hong Kong fluctuated between gains and losses. Aluminum Corp. of China Ltd. dropped 3%
On Tuesday Spanish central bank sold €4.94 bn ($6.51 bn) of 12 and 18-month notes, more than the Treasury had intended to attract. Central bank sold €3.44 bn 12 month notes at an average yield of 4.05%, compared to 5.02% in November. 18-month bonds created average borrowing cost at 4.2%, or 1 percentage point less than in November.
On Monday Canada became the first nation that claimed it will quit Kyoto protocol. Peter Kent, Environment Minister made an announcement of Canada's abandonment after he returned from summit in Durban. Canada, a leading energy producer has complained extensively that Kyoto protocol does not work as it ignores too many important emitters such as India and China.
US retail sales increased less than expected last month, according to official data. The indicator increased by 0.2% on a seasonally adjusted basis in November as compared to 0.6% previously expected, reported the U.S. Census Bureau. On the yearly basis, retail sales rose 6.7% last month after 7.5% increase in October.
Coffee futures increased after approaching to the lowest price in two months due to the cut in the world's coffee production by the International Coffee Organization. On the ICE Futures Exchange, Arabica coffee for delivery in March traded at USD2.2145 a pound at European afternoon trading hours, 0.47% higher since opening.
Saudi Arabia pumped a record high amount of crude oil of 10 million daily while Iran and Venezuela propose to decrease oil output to keep price above $100/barrel. Saudi Arabia cited the increased demand that led the country to pump about 10.047m bpd of crude oil in November. Saudi Arabia increased its oil production to compensate oil supply disruptions in Libya; however, as Libya restarted
Grasberg copper mine, the world's second largest Indonesian mine, moves closer to the end of strike as workers and management agreed on wages. After the strike the global production is projected to increase, thus the copper prices may fall. Moreover, growing concerns over the euro-zone and lower economic indicators of China both weigh down on the commodity price.
China's import of gold from Hong Kong reached 85.7 tons in October compared to 57 tons in the preceding month, reported Hong Kong Census and Statistics Department. Hong Kong remains the largest source of gold for China's mainland. China's gold demand is expected to stay strong fueled by constantly growing gold prices. The average import of gold is likely to grow by 10%
Wheat futures increased after five0day decrease amid lower commodity export-earnings in Australia. On the Chicago Mercantile Exchange, wheat futures for delivery in March traded at USD5.9912 a bushel at the early European trade, edging up 0.69% since opening.
E.On, Germany's energy company, has taken about 3bn euros citing the impact of the troubled EU economies, especially the impact of Spain and Italy that cut forecasts for energy demand and price. Following the announcement, E.On share price declined by 2.2% in the morning trade in Frankfurt. However, the company claimed that expected profits for 2013 are in line with previous forecast.
Crude oil futures remained steady just slightly above the two-week low as investors anticipated Fed rate decision and OPEC meeting due on Wednesday. On the New York Mercantile Exchange crude futures for January delivery traded at USD97.91 a barrel at the early European trade, gaining 0.14% since opening.
Areva, France's nuclear giant, has announced large cuts of jobs, investments and dividends after it projected a net loss of 1.6bn euros for 2011. The company will cut 1,500 jobs in Germany after Germany said it plans phasing out the nuclear power generation. France's payroll will not be decreased but the salaries will be frozen. The investments for the next 5 years are going to
Copper futures remained steady today after fall to two-week low on the worries of downgrade of the euro-zone members' credit ratings. On the Comex division of the New York Mercantile Exchange, copper futures for delivery in March traded at USD3.467 a pound at the early European trade, edging up 0.1% since opening.
On Tuesday US stock index futures traded higher as ZEW reported better than expected economic sentiment index in Germany and investors were expecting Fed announcement about its monetary policy. Futures on Standard & Poor's 500 index added 7.10 points at 1,236.4, while those on Dow Jones Industrial Average rose 60 points reaching 12,003. Nasdaq 100 futures climbed 12 points attaining 2,302.5.
Germany's investor confidence unexpectedly surged the first time since October 2010, signalling Germany, the largest European economy is surviving regional debt woe. ZEW Center reported that its index, consisting of analyst and investor expectations aiming to predict outlook for 6 months ahead, advanced and reached minus 53.8 compared to a 3-year record low of minus 55.2 in November. Earlier analysts forecast a drop in index
UK's inflation decreased in November in compliance with expectations, falling of the second month in line, according to official data. The rate of consumer price inflation fell to 4.8% last month as compared to 5.0% in preceding month, reported the UK Office for National Statistics. The rate remains above the Bank of England's target of 2%. The CPI eased to 5.2% in November after jumping
Viktor Orban, Hungarian PM said Hungary will have to review its 2012 government budget due to diminishing economic outlook as well as weakness of national currency forint. Hungarian parliament expects next year's growth to reach only 0.5% instead of earlier predicted 1.5% as demand from debt harmed European nations has declined sharply.
On Tuesday Spanish borrowing costs for 10-year notes increased 9 b.p. to 5.88%. Today Spain is going to auction securities with maturities 12 and 18 months. Italian 10-year bonds followed their Spanish peers and added 13 basis points to 6.66%. German bonds also declined as their 10-year yield gained 4 b.p. EFSF plans to auction 3-month bills worth €2bn.
The pound edged up against the US dollar on the improved market confidence before the Fed's rate decision. GBP/USD approached to 1.5626 at the early European trade, being the daily high, gaining 0.11% since opening. Investors also anticipate the report on UK's CPI due later today.
The ECB overnight deposits hit another record on the market tensions and end of the month reserve period of the ECB. Banks deposited 346.357 billion euros overnight on Monday as compared to previous record of 334.905 billion euros deposited on Friday. The increase reflects continuous distrust in lending between banks.