China's inflation rate tumbled to 20-month low on the falling food prices. The rate of price index increase approached 3.2% last month as compared to 4.5% in January, reported the NBS. The country's inflation target for the whole 2012 is 4%. The decline in the inflation rate will enable the government to provide fresh stimulus for reviving sluggish economy.
S&P 500 index extended gains on Thursday as investors became more confident Greece will be able to complete the debt swap deal. US benchmark surged 0.98% or 13.28 points to 1,365.91. Financials supported the index with Morgan Stanley appreciating 1.8% and Citigroup Inc improving by 2.3%. Apple Inc added 2.1% after the firm released a new version of its iPad.
Asian shares kept rallying on Friday as Greece ended its debt restructuring and Japanese Yen depreciated against US Dollar sending export shares higher. Japan's Nikkei Stock Average jumped 1.7%, Hong Kong's Hang Seng Index gained 0.9% and Australia's S&P/ASX 200 index climbed 1%. South Korea's Kospi added 0.9% and China's Shanghai Composite improved 0.8%.
European equity markets rallied on Thursday amid optimism Greece will conclude its debt swap agreement with the necessary amount of write-offs. Stoxx Europe 600 index gained 1.6%, FTSE 100 index advanced 1.2% and German DAX rocketed 2.5%. French CAC 40 index added 2.5% and Athens General index jumped 3.2%.
Goldman Sachs reported that the Norway Krone was top-performer in G10 during several weeks and the bank expects it to continue its rally against the Euro. Goldman Sachs projects the Euro falling to NOK7.3 during Q1 of 2012 after that the Euro is likely to recover to NOK 7.2. The bank previously expected the Euro to hit NOK7.7 and NOK7.6,
The ECB announced on Thursday that it decided to leave the key interest rate at 1%. The ECB has not changed the interest rate since November. The bank also reported that it expects the Euro Zone's GDP to expand by 0.1% this year as compared to 0.3% initially projected. The ECB also attempts boost economic activity by offering large amount
US natural gas inventories declined to 2,433 billion cubic fleets during last week, reported the EIA. The natural gas stockpiles tumbled by 80 billion cubic fleets on a weekly basis. However, natural gas inventories in the US still remained higher than five-year average of 1,641. After the data release, natural gas futures touched 10-year low and the commodity is currently
China's industrial output declined during January and February of 2012. Industrial production expanded by 11.4% as compared to FactSet's forecast of 12.4% increase. Retail sales also missed the forecast jumping by 14.7% while experts predicted them to soar by 17.5% in the period during January and February.
US stock markets traded higher on Thursday as Greece obtained adequate participation in bond exchange from private creditors. S&P 500 index surged 0.98% or 13.28 points to 1,365.91 while Dow Jones Industrial Average index added 0.55% or 70.61 points and finished at 12,907.94. Nasdaq Composite index soared 1.18% or 34.73 points and settled at 2,970.42.
The Bank of Canada kept its core interest rate at 1.00% for the 12th time in March amid eased concerns over global economic outlook. The decision is in compliance with expectations. The bank's outlook on the Canada's economy has improved but it remained uncertain amid internal strength and global weakness.
Greece has announced it has managed to secure the second bailout fund as above 80% of the private bondholders signed up for the debt swap deal. The threshold required by the IMF and the EU is 75%. The deal will allow Greece not to default because of the debts and the country will be able to stay in the Euro
Australian currency experienced a weekly drop versus US Dollar as government data showed country's trade balance moved to a deficit in January. Aussie was little changed on Friday when it traded at USD 1.0642. Nevertheless, on weekly basis Australian Dollar posted a 0.9% decline. Meanwhile New Zealand Kiwi gained 0.2% versus its US peer to USD 0.8258. Currently AUD/USD is
Japanese currency weakened to a nine-month record low versus greenback on speculation Bank of Japan may implement a further quantitative easing. Yen dropped 0.3% against US Dollar to JPY 81.80 after Japan's FM Jun Azumi announced he expects the central bank to take certain steps. Currently USD/JPY is trading at JPY 81.65.
Australia posted a trade shortfall in January, the first since March 2010 on declining exports of coal and iron ore. Imports outperformed exports by AUD 673 million (USD 715 million). Analysts questioned by Bloomberg predicted a surplus of around AUD 1.5 billion. Unexpected drop in exports increases pressure on RBA officials to extend monetary easing instead of holding benchmark rate unchanged.
German production output accelerated more than expected in January as construction activity surged. Manufacturing advanced 1.6% compared to December, said Economy Ministry. Economists questioned by Bloomberg earlier predicted an increase of 1.1%. On yearly basis industrial output added 1.8%. The report indicates Germany may avoid economic slowdown even if European demand for nation's exports declines.
The number of applications for jobless benefits increased to 362 000 in previous week. Jobless claims submitted rose by 8000 last week. Economists questioned by Bloomberg predicted unemployment claims to drop to 352 000. Nevertheless the current level of jobless applications is relatively low, pointed out Jennifer Lee, senior economist at BMO Capital Markets.
The Bloomberg Consumer Comfort index advanced from minus 38.8 in previous period to minus 36.7 last week as Americans became more optimistic about country's economic outlook and increased their spending. The latest confidence reading is the best figure in four years. US consumers are feeling more certain about their personal income, suggested Joe Brusuelas, Bloomberg LP's senior economist.
German DAX index rallied on Thursday as worries over Greek default disappeared. Heavyweight financials supported the index on upside with Deutsche Bank AG climbing 3.4% and Commerzbank AG adding 1.3%. BMW AG improved 1.3% after the auto maker posted a 51% increase in full-year profit and raised dividends. Deutsche Post AG led the gains after issuing an optimistic revenue predictions
FTSE 100 index extended gains on Thursday on news Greece will finally conclude its debt swap agreement. Oil shares and miners provided the biggest upside contribution to the index. Petrofac Ltd rallied 3.7% after J.P. Morgan Cazenove raised stock's rating from neutral to overweight, citing regained confidence in 2013 earnings growth. Other crude providers also advanced on surging oil prices.
Rural commodities fell on Wednesday ahead of USDA report on crop estimates due on Friday. Wheat posted loses as UN lifted its forecast on the global wheat crops to the second highest over the last decades. The estimations of the world's wheat harvest vary from 678 million tons to 682 million tons. Corn futures declined as China's rejected rumours that
Energy markets were mostly higher on Wednesday amid broadly weaker US Dollar and smaller than expected increase in the US oil inventories. However, investors continued to eye events surrounding the Greek debt restructuring that will determine the future of the region. Brent and crude oils also tried to balance supply and demand concerns. Escalated tensions between Iran and Israel are
Base metals except for aluminium moved higher on Wednesday amid depreciating US Dollar and stronger equities. However, fall in the German manufacturing orders capped the upswing. Moreover, investors are focused on the Greek debt swap talks as it will determine whether the country will stay in the common currency union. Aluminium fell by 1.19% but the long-term forecast stayed bullish
Precious metals posted moderate gains on Wednesday on weaker US Dollar and hopes that Greece will manage to agree with private bondholders on the debt swap deal. Moreover, bargain buying also created additional support for the precious metals. However, the fear that Greece may fail to repay its debt timely continued to weight on the commodity pack. Eased inflationary pressure
Japan's Nikkei Stock Average ended a three-day drop and advanced sharply on Thursday lifted by depreciating Yen and economic news from US. Nikkei 225 index soared 1.97% or 188.67 points and closed at 9,764.73. Financials supported the index most with Nomura Holdings Inc surging 4.7% and Mitsubishi UFJ Financial Group advancing 2.7% on news US Fed is planning a new