S&P 500 index retreated from previous day's gains and fell on Wednesday as data showed 0.2% contraction in US retail sales in May. Investor sentiment worsened even more when Spain was downgraded by Moody's and Cyprus warned of need for bailout. S&P 500 lost 0.7% or 9.3 points and closed at 1,314.88. Progressive lost 4.4% after the fourth-biggest US auto
The amount of U.S. citizens who filed new jobless claims surged unexpectedly last week, government data showed on Thursday. New state unemployment benefit claims added 6,000, and reached 386,000 on a seasonally adjusted basis. The data for previous week was revised up from the initially reported 377,000 to 380,000.
Agricultural commodities moved lower on Wednesday as faltering US economy is likely to impact demand while improving weather conditions in the US may boost supply prospects.Wheat was unchanged amid speculation that falling production in Australia and the EU may stimulate demand for US grains.Corn dropped for the third time as long-awaited rains in the top-growing regions of the US are
Energy commodities slid on Wednesday ahead of key OPEC meeting on output target that is expected to result in no changes in the current production level.Crude oil followed bearish trend as global production is likely to remain ample as OPEC is not likely to change current output target during meeting due on Thursday.Brent oil was flat despite being pressured by
Industry metals apart from zinc tumbled on Wednesday on weak industrial output data in the Eurozone and larger than expected plunge in the US retail sales and producer price index.Aluminum declined on weak manufacturing activity across the globe. However, the downside may be limited as Rio-Tinto Alcan World predicted a deficit in the aluminum market as supply side started to
Precious metals were mixed on Wednesday amid hopes for new round of QE in the US and bleak outlook on the Eurozone's economy.Gold rallied for forth session, being bolstered by speculation that May's retail sales slump of 0.2% will force the Fed to consider monetary easing. Silver dropped by 0.51% as the US Dollar managed to pare losses against the
Italy matched its target ant sold EUR 4.5b of debt. The Italy's treasury sold EUR 3b of 3 year bond with 5.3% yield which increased by 1.4% from the last auction in mid May. EUR 675m was sold as 7 year 4.25% bonds at 6.1% yield and EUR 873m were collected selling 2020 maturing bonds at 6.13% yield. 10y bond
Timothy F. Geithner, the U.S. Treasury Secretary, said that the European officials understand that they have to invest more effort in order to control the debt crisis in Europe. Geithner said that the Spanish bailout is a solid indication that Europe is engaged in developing a larger banking union. The Treasury Secretary also added that such a system is vital due to the growing tension,
Stoxx Europe 600 Index (SXXP) had declined almost 1% by 9:00 a.m. GMT. Credit Suisse plummeted by 7.2% after Swiss central bank stated the bank needed capital increase. British Sky Broadcasting Group lost 6% and BT Group lost 4% after winning bidding to show English premiere league in 2013-14 season. Nokia retired almost 6% of its value after decreasing its predictions
The MSCI Asia Pacific Index (MXAP) lost 0.5 % and declined to 112.9 by 8:30 a.m. GMT. The index has fallen 12% this year after reaching its peek in the end of February. Hutchison Whampoa, carrying port operations in Spain and Germany, fell 1.4%. Esprit Holdings sank 12% after both the CEO and the Chairman of the board quit withing 24
China may lower interest rates by about 100 bps in the second half of 2012 to boost growth in view of deteriorating global economic outlook, said official familiar with the matter. The reserve requirements are also likely to be cut three times till the end of 2012 as domestic and foreign economic data were weaker than expected, added Cao Wenlian,
Crude oil futures moved higher in European morning trading as investors await OPEC meeting due later in the day. However, lingering concerns over the Eurozone economy after Spain's 10-year bond yields approached 6.854% capped the upswing. Currently, light, sweet crude oil futures for July delivery trading at 82.92 US Dollars per barrel on the New York Mercantile Exchange, climbing by
Gold prices were almost unchanged in European morning session ahead of Italian bond auction due later in the day. Escalated worries about financial instability in Spain and looming Greek elections continued to influence investors' sentiment. COMEX gold August contract traded at 1,622.05 US Dollars per troy ounce on the New York Mercantile Exchange, rising by 0.15%.
Nokia cut 10,000 jobs as losses in Q2 from its mobile operations are likely to be larger than initially estimated. The company also will implement structural changes worth about 1 billion Euros. The decision was difficult but it is the only way to ensure competitiveness in long-run, said Stephen Elop, the CEO of the company. Meanwhile, Nokia shares lost about
Indian wholesale inflation increased by 7.55% on an annual basis last month as compared to 7.23% in the preceding month. Experts surveyed by Dow Jones Newswires projected inflation rate to accelerate to 7.59% in May. Easing inflationary pressure and slowing growth raised hopes that RBA will lower the interest rates next week.
Japanese industrial output unexpectedly dropped in May, according to the Ministry of Economy, Trade and Industry. The industrial output of the country fell by 0.2% on a seasonally adjusted basis in May as compared to a 0.2% gain in April. Experts predicted the figure to add 0.2% in May. Meanwhile, Japan's Nikkei 225closed on the negative note, losing 0.2%.
Spanish borrowing costs soared after Moody's lowered the sovereign credit rating by three notches, putting the country one notch above junk status. The credit rating agency reported that rising debt burden of the country increased fears that Spain may be unable to meet its financial obligations. The yield on bonds with 10-year maturity attained 6.854%, the level considered to be
The Swiss National Bank left its core interest rate unchanged this month and continued to maintain the Swiss Franc exchange rate floor of 1.20 Swiss Franc per Euro. The bank stated that it is ready to purchase foreign currency in an unlimited amount and may take further actions if necessary. The interest rate was left at 0.0%, being in compliance
The U.S. living costs experienced its first drop in two years in the month of May due to the decline in oil prices; reinforcing Fed's anticipations that lower-priced commodities may facilitate lower inflation. According to Bloomberg News survey, the consumer price index declined 0.2% in May. The reduced prices in energy could ease the situation in the U.S. in terms of its labor market and
The demand and therefore also the prices for so far the most popular passenger plane Boeing 747-400 are dropping as airlines are in hurry to replace fuel inefficient planes with new economic models. Currently 10 years old 747-400 costs around USD 36 million or 10% less than similar aged air plane a year ago. Leading airlines are replacing their Boeing 747-400s with Airbus, 777-300ERs etc.
Today Italy participates in the first debt auction since Spain's bailout. Italian Treasury prepares to sell three-year, seven-year and eight-year bonds of total value at EUR 4.5 billion. Italy's central bank aims to persuade traders that the nation won't follow Spain's footsteps and require a rescue.
European stock indices ended mostly into red on Wednesday on disappointing US retail sales data. Stoxx Europe 600 fell 0.4%, German DAX slipped 0.1% and French CAC 40 index gave up 0.6%. Spanish IBEX 35 breached the negative trend and surged 1.4% after heavyweight retail company Inditex posted better than predicted earnings. UK FTSE 100 index managed to gain 0.2%.
US main stock indices after previous rally traded lower on Wednesday as investors awaited for the outcome of Greek elections while Moody's and Egan-Jones downgraded Spanish sovereign debt. S&P 500 lost 0.7% or 9.3 points and closed at 1,314.88. Dow Jones Industrial Average fell 0.62% or 77.42 points and finished at 12,496.38. Nasdaq Composite ended 0.86% or 24.46 points down
The central bank of New Zealand today kept its benchmark interest rate at 2.5% and reduced its economic outlook for upcoming three years, basing its decision on weaker commodity prices. The Reserve Bank of New Zealand suggested it may maintain the low rates also in 2013 as slower economic growth weighs on inflation.