Industry metals except for copper tumbled on Wednesday on the firmer Dollar and weak equities. China's PMI data that indicated contraction weighted down on the metals and is likely to stay the main correction factor for the base metals price. Weaker than expected US housing market data also added to the negative mood of the commodity pack. At the same
German DAX index tumbled on Thursday as weaker than expected manufacturing activity in March both in China and Euro Area boosted worries, the global economy may fall back into recession. All nine sectors within the index posted losses led by car makers and financials. Deutsche Bank AG lost 2% and Commerzbank AG fell 2.7%. Volkswagen AG declined 1% and BMW
British FTSE 100 fell on Thursday pushed down by Randgold Resources on news suspected military stunt in the African country of Mali, the third biggest gold provider. Randgold plunged 12% on the announcement. Other miners also tumbled on weaker Chinese PMI data. Fresnillo lost 5.8%, Kazakhmys slipped 2% and Vedanta Resources declined 4%. UK banks fell on disappointing Euro Area
Euro Area region faced a faster contraction in private sector activity in March, highlighting worries the area may fall back into downturn. Composite PMI dropped from 49.3 in previous month to 48.7 in March reaching three month record low. Economists questioned by Marketwatch predicted the composite PMI to climb to 49.6. Service PMI fell from 48.8 to 48.7 and manufacturing
UK retail sales declined more than analysts predicted in previous month as households curbed spending. Retail sales including gasoline decreased 0.8% compared to expected 0.5% drop. Meanwhile the sales advance in January was reviewed up from 0.3% to 0.9%. Previous months were pretty strong in terms of sales growth, therefore current fall is acceptable, said Samuel Tombs, Capital Economic economist.
Japan's Nikkei Stock Average retreated from yesterday's loss and climbed on Thursday lifted by data which showed unexpected trade surplus in February. Nikkei 225 index gained 0.4% or 40.59 points and finished at 10,127.08. Nevertheless gains were limited as better trade surplus strengthened Yen, harming exporter shares. The main gainers were Oki Electric and Softbank which added 3.9% and 3.4%
Hong Kong's Hang Seng index traded lower during most of Thursday's session but retreated shortly before close and managed to finish in positive area. The index added 0.22% or 44.93 points and settled at 20,901.56. Although PBOC announced Agricultural Bank of China will cut reserve ratio requirement to boost lending in rural areas, stock gains were limited by HSBC PMI
Dow Jones Industrial Average index prolonged its downward movement on Wednesday after Fed's Chairman Ben Bernake warned the crisis has not finished yet in Europe and the region has to put much effort to completely resolve it. Blue chip index fell 0.35% or 45.57 points and closed at 13,124.62. Hewlett-Packard pushed the Dow into red, tumbling 2.2% after company said
S&P 500 index extended loss on Wednesday as data showed existing home sales tumbled 0.9% in February. US index slipped 0.19% or 2.63% points and closed at 1,402.89. Baker Hughes lost 5.8% on news its North American division 1st-quarter profit margin will drop due to higher costs, lower prices and supply shortages as US operators change rig locations. Firms are
Although European financial stresses have eased, the region has to put more effort to completely resolve its crisis, claimed Federal Reserve Chairman Ben Bernake on Wednesday. He assessed current economic situation across Europe as difficult. Bernake suggests Europe must create a stronger banking system and take steps to boost growth. Moreover indebted countries should work more to reduce their external imbalances.
The GDP of New Zealand grew by 0.3% on a quarterly basis in the last quarter of 2011. The expansion of agricultural and financial sectors managed to offset the contraction of manufacturing activity. However, the figure was below the expectations of the economists surveyed by Reuters who predicted New Zealand's economy to grow by 0.6% in December quarter.
The central bank of Australia and the People's bank of China have agreed on the currency swap deal. The move serves as new example of China's steps to internationalize its currency. The swap deal worth 30 billion Australian Dollars is expected to stimulate trade and investments between two countries, according to the Reserve Bank of Australia.
Gold futures were lower during volatile Asian session on Thursday as traders switched to the riskier assets as US Dollar even despite pessimistic existing house sales data. COMEX gold futures for delivery in April traded at 1,649.65 US Dollars per troy ounce on the New York Mercantile Exchange, easing down by 0.04%.
Crude oil futures edged down during the Asian session on Thursday amid reports coming from France that indicated possible oil reserves release in industrialized countries to curb inflation. Light, sweet crude oil futures for May delivery traded at 107.00 US Dollars per barrel on the New York Mercantile Exchange, falling by 0.26%.
US stocks closed mixed on Wednesday trade as home sales dropped and Ben Bernake warned the crisis has not finished yet in Europe. Dow Jones Industrial Average lost 0.35% or 45.57 points to 13,124.62, S&P 500 index slipped 0.19% or 2.63% points and closed at 1,402.89 while Nasdaq Composite index edged slightly higher, adding 0.04% or 1.17 points to 3,075.32.
Existing house sales in the US decreased more than initially expected last month, reported the National Association of Realtors. The sales of existing homes slid by 0.9%, attaining 4.59 million units on a seasonally adjusted basis in February. Experts predicted the figure to fall to 4.61 million units. However, considering annual changes, the home sales advanced by 8.8% in February.
European equity markets experienced one more choppy session on Wednesday led by banks after Fed Chairman Bernake claimed Europe's crisis is not over yet. Moreover US home sales unexpectedly declined. Stoxx Europe 600 index slipped 0.1%, FTSE 100 index traded flat while German DAX added 0.2%. French CAC lost 0.1% and Italian FTSE MIB index lost 1.3%.
China's retail sales are likely to surge by 15% in 2012, said one government official. Consumption is expected to outplace investment, being the main engine for economic expansion in 2012, according to Chinese Academy of International Trade. Retail sales grew by 14.7% year-to-year over two month before March, decelerating from 18.1% increase in December, reported the National Bureau of Statistics.
Loonie advanced against its commodity-linked counterparts on hopes it will gain from US growth and surging oil prices. Canadian currency slipped versus US Dollar which climbed versus most its peers after home sales data. Loonie added 0.1% versus Aussie and Kiwi to CAD 1.0377 and CAD 0.8094 respectively. It slipped 0.1% against greenback to CAD 0.9922. Currently USD/CAD is trading
China fuelled rural credit by lowering reserve ratios for divisions of Agricultural Bank of China, the country's third largest lender. 565 branches will face a ratio cut by two percentage points and that will free up CHY 23 billion (USD 3.6 billion), People's Bank of China said on Wednesday. The main aim is to support small companies and boost lending in
Japan reported an unexpected trade surplus last month, after facing record deficit in January. The surplus approached 32.9 billion Yens as compared to a deficit of 1.5 trillion Yens in the preceding month, according to Ministry of Finance. The major contributor to the surplus was recovering US economy that spurred the demand for Japan's goods. The exports declined by 2.7%
The preliminary PMI reading from HSBC Holdings Plc and Markit Economics dropped from 49.6 in February to 48.1 in March reaching the lowest value since November and adding pressure on PM Wen Jiabao to implement measures to stimulate growth. A reading below 50 shows contraction.
German DAX index traded in tight range on Wednesday. Car makers and telecommunication companies advanced after upgrades but retreated during the session completely offsetting all morning gains. Metro AG tumbled 4.3% after HSBC lowered stock's rating from neutral to underweight. Adidas AG lost 1.8% after Morgan Stanley cut the share from equal-weight to underweight. At the moment of writing DAX
Crude oil is expected to surge by 30% in case the supply from Iran is halted, claimed Christine Lagarde. Brent crude oil may soar above 120 US Dollars per barrel after total Iranian oil embargo. Christine Lagarde also stressed that growing energy prices will create serious challenges for large oil importing countries as well as are likely to slow down