Precious metals fell on Friday amid broadly stronger US Dollar after negative news from the Euro Zone. Moreover, Ben Bernanke's announcement that the second round of quantitative easing in the US is not imminent continued to pressure precious metals' price. However, commodity group was supported by increased buying of the large exchange-traded funds. Gold holdings of the world's largest ETF
British service sector declined in February though the index above 50 showed the economy is expanding. The service Purchasing Managers' Index (PMI) dropped from 56.0 in the first month of the year to 53.8 in February. Nevertheless the service company confidence reached one-year record high amid growing employment across the sector.
Euro Zone manufacturing activity index dropped from 50.4 in January to 49.3 last month, lower than preliminary figure of 49.7. German PMI fell to 53.2, reaching two-month low while Italian and Spanish PMI indices slipped to 44.7 and 42.9 respectively, also attaining two-month record lows in February.
Asian equity markets finished lower on Monday as China lowered its GDP growth forecast for year 2012 from 8% to 7.5%. Hong Kong's Hang Seng Index fell 1.4%, Japan's Nikkei Stock Average slipped 0.8% while China's Shanghai Composite dropped 0.6%. South Korea's Kospi declined 0.9% and Australia's S&P/ASX 200 index faded 0.2%.
Japan's Nikkei Stock Average lost ground on Monday as China lowered its economic growth goal and left target inflation rate unchanged at 4%. Nikkei 225 index lost 0.8% or 78.44 points and finished at 9,698.59 with energy and technology stocks tumbling most. Sony Corp fell 3.3% and Panasonic Corp slipped 2.2%. Olympus plunged 3.2% on rumours about new executive arrests.
Dow Jones Industrial Average index traded close to flat on Friday as investors remained cautious about developments in Iran and awaited February employment report. Blue chip index edged down 0.02% or 2.73 points at 12,977.57 with 15 of 30 shares posting loss. American Express and IBM provided main downside contribution slipping 1% and 0.8% respectively. On the positive territory AT&T
S&P 500 index closed lower on Friday pushed down by energy shares. US benchmark index lost 0.33% or 4.46 points and closed at 1,369.63. Big Lots tumbled 4% after retailer lowered its earnings forecasts. Peabody Energy slumped 6.5% after Iranian media said an explosion took place at Saudi Arabia pipeline. Saudi Arabia rejected the news. Alpha Natural Resources fell 5.7%
Crude oil futures gained a spree during the Asian trade on Monday following the Enbridge's report on the fire at its pipeline in Illinois. Moreover, Barack Obama announced that the country may use military force to defend the interests of US in dealing with Iran. Light, sweet crude oil futures for April delivery traded at 107.17 US Dollars per barrel
Moody's has downgraded Greek credit rating again from "Ca" to the lowest level of "C". The rating agency cited high risk of country's default even despite deal with its bondholders on almost 70% debt write-off. The deal will allow Greece not to return about 107 billion Euros to the private investors. Moody's stressed that planned reforms to avoid default are
China's Investment Corp. has got 30 billion US Dollars from the State aimed at purchasing undervalued assets from indebted Euro Zone, reported Wang Jianxi from CIC. The company received the same amount in 2011, fully invested it and was negotiating provision of the additional financial resources by the State. The company plans to invest in industrial and infrastructure projects that
Chambers of Commerce expects the UK to escape recession but the growth is likely to be slower than initially predicted this year. UK's Chambers of Commerce projected the UK economy to expand by 0.6% in Q1 of 2012 while previously it predicted the UK's GDP to grow by 0.8%. It also outlined that unemployment will hit 2.9 million as compared
American International Group (AIG), which obtained USD 182.3 billion rescue package after the breakdown of Lehman Brothers, is preparing to sell USD 6 billion of AIA group stocks to repay debt to US government. Insurer is offering around 1.7 billion AIA equities at HKD 27.15 to HKD 27.50 per share. After the sale AIG will keep about 19% stake of AIA.
Gold futures were supported by the weaker US Dollar as traders sold greenbacks to purchase other assets like commodities, particularly precious metals. COMEX gold April contract traded at 1,716.45 US Dollars per troy ounce on the New York Mercantile Exchange, gaining 0.39%.
China's CPI is expected to ease in February to 3.6% after the Lunar New Year that tends to lift prices amid the firmer demand, reported Ma Jiantang, Chief of Statistics Bureau. The CPI showed a 4.5% increase in January as compared to a 4.1% jump in December and being above a 4.1% rise projected by 15 experts surveyed by Dow
US stock markets traded lower on Friday on investor concerns about tensions in Iran amid February jobs data. S&P 500 index fell 0.33% or 4.46 points and closed at 1,369.63, Dow Jones Industrial Average index traded close to flat, 0.02% or 2.73 points down at 12,977.57 while Nasdaq Composite index slipped 0.43% or 12.78 points and finished 2,976.19. The key
European stock markets traded mixed on Friday, most of them pushed lower in the middle of session after Spanish government increased its budget deficit goal for 2012. Stoxx Europe 600 finished 0.06% up, FTSE 100 index fell 0.34% while French CAC 40 index added 0.04%. German DAX index edged 0.29% but Athens General index climbed 0.2%.
Iran discovered one of the largest oil fields in southern province, reported Mehr. According to preliminary estimations, the oil field has the largest reserves of the high quality crude oil. Officials from the Oil Ministry has not yet provided any comments about discovery. Currently, light, sweet crude oil futures for April delivery traded at 107.17 US Dollars per barrel on
Canadian currency appreciated against US Dollar reaching the highest value since January as investors expected the improving global growth will stimulated Canada's exports and cause the increase in key interest rate. Loonie gained 1% versus its US peer to CAD 0.9893. Currently USD/CAD is trading at CAD 0.9901.
Consumer prices increased slightly in February on the considerably lower costs due to holidays. The TD Securities-Melbourne Institute gauge of inflation increased by 0.1% last month after growing by 0.2% in January. Taken yearly changes, the gauge of inflation increased by 2.0% in February, being in compliance with the RBA target of inflation rate being between 2% and 3%.
17-nation currency weakened versus Japanese Yen for a fourth straight day as analysts predicted retail sales in Europe may have declined for a third consecutive month. Euro slipped 0.6% versus Japanese currency to JPY 107.29 and traded almost flat against its US peer at USD 1.3195. Currently EUR/JPY is trading at JPY 107.32 while EUR/USD is trading at USD 1.3202.
The successful outcome of Greek debt deal now depends on the number of private creditors who will agree on write off before deadline due March 8. Investors are expected to write down 53.5% of their principal amount and exchange the remaining securities for new Greece's sovereign bonds and bills from EFSF. Euro Zone FMs will participate in teleconference on March 9
Canada's GDP raised more than expected last month, according to Statistics Canada. The GDP expanded by 0.4% on a seasonally adjusted basis, after falling by 0.1% in January. Experts predicted the GDP to grow by 0.3% in February. Consumer spending and exports were the most significant contributors to the GDP growth.
Australian Dollar weakened, falling from 9-month high versus Japanese Yen as Asian equity markets moved down on Monday, lowering demand for higher yielding assets. Aussie plunged 0.9% against Japanese currency to JPY 87.05 and gave up 0.3% against US Dollar to USD 1.0704. Meanwhile Kiwi slipped 0.8% versus Yen to JPY 67.30 and lost 0.2% versus its US peer to
China lowered its GDP target for 2012 from 8% to 7.5% citing slowing exports as the main reason that hampers economic expansion. Lawmakers left inflation rate target unchanged from 2011 at about 4%. PM Wen Jiabao claimed the country will stick to precautious monetary and proactive fiscal policy. Asian shares traded lower on the announcement.