Candian Dollar extended weekly gains against 17-nation currency for the eight week in a row, making the longest upward trend since 2007, as trader demand for less risky assets surged. Currency appreciated sharply after S&P ratings agency downgraded France and Italy on January 13. Loonie strengthened 0.5% this week against US Dollar reaching C$1.0232. Currently USD/CAD is trading at C$1.0210.
Crude oil futures increased in electronic trade but stayed lower than $100 a barrel amid S&P credit downgrades and geopolitical tensions that may lead to supply disruptions. Light, sweet crude oil futures for delivery in February traded at $98.85 a barrel during Asian session, on the New York Mercantile Exchange, advancing 0.2%.
US grain futures closed essentially lower on Friday following the US Department of Agriculture unexpectedly reported about higher stockpiles of corn and wheat. Corn futures dropped 8% during two sessions after the report release while wheat futures lost about 6%. High US Dollar also weighted down on the agricultural commodities' prices.
The Euro remained weak against the US Dollar and the Yen amid growing fears over the spreading Euro Zone's crisis after S&P downgraded credit ratings of nine Euro Zone countries and anticipation of French bond auction. The Euro traded at $1.2645 at Asian trade as compared to $1.2677 in late Friday's American trading. The common currency traded at ¥97.13 today
Greek officials and country's creditors return to talks this week to continue impeded discussions on debt reduction as Germany is increasing pressure to close the deal. Both sides disrupted talks on January 13 as they struggled to agree on the maturity and coupon size of the new notes which should determine investor losses. Uncertainty related to the outcome of talks
Australian home loans increased more than expected in December, according to official data. The number of home loans added 1.4% seasonally adjusted in December from 0.7% in November, reported Australian Bureau of Statistics. Experts predicted home loans to gain 1.0% in December.
Gold futures gained during the Asian trading session following the news about Standard & Poor's downgrade of the Euro Zone countries. Gold's February contract traded at $1,640.40 an ounce during the Asian trade as compared to Friday's close of $1,630.80, on the New York Mercantile.
Negotiations between Nigerian trade unions and the government failed to reach an agreement on the end of oil subsidies. The removal of oil subsidies two weeks ago has led to soaring fuel prices, protests and more than a week- long strike. The strike has already cost the country billions of Dollars.
Standard & Poor's cut credit rating of nine members of the Euro Zone citing the insufficiency of the policies taken by the countries' leaders to tackle the debt crisis. Italy, Portugal, Cyprus and Spain were downgraded by two notches while France, Malta, Slovakia and Austria lost one notch each. S&P also put on negative outlook 14 Euro Zone members.
New Zealand and Australian currencies depreciated against greenback before Chinese GDP report due tomorrow as the data are expected to show the world's second biggest economy expanded at the slowest pace in 10 quarters. Australian Dollar lost 0.4% to $1.0286 while its New Zealand peer gave up 0.2%, dropping to $0.7934. Currently AUD/USD is trading at $1.0284 while NZD/USD is trading at
According to economists questioned by Bloomberg, Chinese economy growth is predicted to have slowed down in the last quarter of 2011, reaching 10-quarter record low. Analysts predict China's GDP grew by 8.7% in the fourth quarter of last year. The economy may cool further due to the decline in export demand and prolonged property curbs.
Merkel's Christian Democratic Union puts extra pressure on Greeks to rescue Euro. Officials from German Chancellor's party are urging Greece to fulfil the requirements to get second bailout package, pointing out that Greece's exit from Euro Zone is realistic. Greece keeps struggling to approve a debt-swap agreement with private lenders.
Energy markets continued to tumble on Thursday with the Dow Jones-UBS Energy Index dropping by 1.62 over the day. Crude oil opened higher yesterday on the possible shutdown of the oil exports from Nigeria; however, after European officials announced that embargo of Iran's oil imports is likely to be delayed for six months, crude oil dropped 1.75%. EIA report on
Corn continue to face strengthening tie with wheat as all grain commodities fell sharply after US crop report. At the same time, corn correlation with coffee edged down to 0.41 from 0.75 as coffee price continues to be supported by unfavorable weather forecast in South America. Corn's dependence with Dow Jones Industrial Average (INDU) slightly increased to 0.06 over the
Agricultural commodities, excluding sugar, fell on Thursday after rallying over the previous day. The commodity group started Thursday on a positive note as weaker US Dollar and anticipation of the US crop report lifted agricultural commodities' prices. However, after the release of the US crop report that unexpectedly indicated an increase in global grain supplies, corn and wheat tumbled to
Italy's costs of borrowing decreased at the latest bond auction despite relatively low level of demand. The cost of borrowing on two-year bonds decreased from 5.62% to 4.83% with demand exceeding offer only 1.22 times while on Thursday's Spanish debt auction bids were almost four times higher than the offer.
On of US leading banks J.P. Morgan Chase & Co reported 23% decline in its fourth quarter earnings as income from investment banking tumbled. Bank's investment banking division reported a drop of 52% in profit. In total J.P. Morgan posted a net income of $3.73 bn or $0.9 a share compared to $4.83 bn or $1.12 per share a year
Gold futures declined on Friday as economic uncertainty over the Euro Zone increased US Dollar's safe haven appeal while stronger demand from China ahead of the Chinese New Year limited losses. COMEX gold for delivery in February traded at USD1640.45 a troy ounce during the US trading session, on the New York Mercantile Exchange, easing down 0.44% since opening.
The US trade balance tumbled more than expected in December. Bureau of Economic Analysis reported that country's trade balance declined to minus USD 47.8 billion on a seasonally adjusted basis from minus USD 43.5 billion in November. Experts projected the trade balance to edge down to minus USD 44.6 billion.
Copper's alternation with zinc and nickel remains relatively stable at about 0.72 while interdependence with aluminium dropped sharply on Thursday from 0.69 to 0.57 as aluminium price faced pressure from all-times high aluminium stocks at LME warehouses. Meanwhile, copper's tie with the Dow Jones Industrial Average (INDU) tumbled to the lowest level in the last month of 0.34 as stock
Relations between gold and silver have remained stable for more than one week while gold's correlation with platinum has been falling since the beginning of the week with correlation coefficient declining from 0.91 to 0.77. Gold's tie with palladium tumbled from 0.63 to 0.54 from the beginning of 2012. Meanwhile, gold's correlation with Dow Jones Industrial Average Index decreased to
Precious metals, excluding palladium, advanced on Thursday with the Dow Jones-UBS Precious Metals adding 0.56% over the day. Silver was the top gainer rallying 0.98% amid strong demand as US Mint announced American Eagle silver coin sales hit three-month high. Gold found support on the weaker US Dollar and increased demand in the US as Mont gold coin sales advanced
Base metals, excluding aluminium, continued to rally on hopes of steady China's demand and successful bond auctions in Italy and Spain. Copper, top performer, gained 2.89% over the day amid stronger Euro, expected supply disruptions from Indonesia and falling copper stocks in LME warehouses. Experts claim the LME inventories may decline further creating fresh stimulus for copper price. However, on
The Vietnam State Bank announced the country's gold imports are likely to rise close to 2.1 tons. The bank granted quotas on gold imports to 10 companies. Vietnam seeks the ways to diversify reserves from US Dollar and the Euro to limit the risk inherent to these currencies. Currently, the country's gold reserves amount 200-300 tons.