The EU announced it has reached a preliminary agreement on total ban of Iranian oil exports, the measure supported by the US and aimed at reducing Iran's oil revenues. The agreement has not been debated yet and the time of the ban coming in force has not been set. Iran claims its economy is vulnerable to the ban as the largest part of oil
The Euro dropped to 16-month low against the US Dollar after French bond auction. French faced higher interest rates of 3.29% on 10-year bonds as investors are concerned about possible French credit rating downgrade. Moreover, the banks may see 550 billion euros of bad loans, said Luis de Guindos, Spain's economy minister. The Euro tumbled to $1.2831 against the USD and to 11-year low against
Gold futures rally for the fourth consecutive day, attaining two-week high. The yellow metal retained its safe-haven appeal as investors are impacted by the worries about the spreading Euro Zone's crisis and political tensions between Western economies and Iran. COMEX Gold February contract traded at USD1,621.65 a troy ounce, on the New York Mercantile Exchange, surging 0.55% since opening.
UK's services sector grew more than expected in December. The services PMI increased to 54.0 last month from 52.1 in the preceding month, hitting five-month high. Analysts expected the figure to rise to 51.6. Services sector increased by 0.3% approaching 0.4% in Q4, lower than 0.7% in Q3. The increase is inspiring, taken the recession in the Euro Zone, said Chris Williamson, chief economist at
The number of US claims for unemployment benefits declined last week signalling positive outlook for country's labour market at the beginning of the year. Jobless claims dropped by 15 000 to 372 000 previous week, said US Labor Department today. Economists questioned by Bloomberg earlier predicted that claims might fell to 375 000.
US companies added more jobs in December than was previously expected by analysts, indicating US labour market is recovering. In total, US firms added 325 000 jobs in December compared to 178 000 earlier predicted by economists. Increase in hiring is likely to boost consumer spending that creates around 70% of US total expenditure.
UK's national currency strengthened against the Euro on Thursday, reaching the 15-month record high against the 17-country currency after yields on French bonds increased at the nation's first bond auction in 2012. British Pound gained 0.2% and was trading at £0.8271 in London midday. Currently EUR/GBP is trading at £0.8267.
UK FTSE 100 index gave up 0.7% and was trading at 5,628 on Thursday as several European banks posted losses. Moreover, Financial times reported Spanish lenders might be forced to set aside $65 bn to cover additional provisions on bad mortgages. Next Plc. lost 2.15%, Tesco dropped 2.19% and Vodafone Group declined 2.08%. The index partly recovered in the afternoon
German DAX index continued to fall for a second straight session on Thursday on rebounded concerns about the stability of European banks. After slipping 0.9% on Wednesday, German benchmark index extended its drop giving up 0.6% as local banks reported losses and retail industry showed a decline on November. Deutsche Bank AG lost 5.1% and Commerzbank AG dropped 4.2%. Among
Analysts predict US service industry expanded last month, probably reaching the quickest pace in previous quarter. Economists questioned by Bloomberg expect the Institute for Supply Management's index climbed to 53 in December compared to 52 in November. Analysts also forecast the number of unemployment claims dropped last week.
Greece may need extra fiscal measures to comply with 2011 budget requirements, said the government spokesman. Moreover, the interim government developed 'very specific' measures to pursue the goal of staying in the Euro Zone, the official added.
Experts predict Chinese foreign trade to expand by 20% to 3.6 trillion U.S. dollars. However, the trade surplus is likely to narrow further to about 160 billion U.S. dollars last year, according to Chen Deming, Commerce Minister. The National Statistics Bureau will release all data for 2011 next week.
Germany's retail sales in November decreased by 0.9% while analysts expected the figure to increase by 0.1%. However, retail turnover in 2011 is likely to increase by between 1.1% and 1.3% from the previous year, reported Federal Statistical Office. After the release of data, the Euro saw losses against the USD and the pair EUR/USD is currently trading at 1.2921, edging down 0.15%.
Hungary saw surge in the borrowing costs as investors claim the country may be let to default by international authorities. Trader's sentiment was impacted by the fall of the Forint's value to all-times low against the Euro, by drastic constitutional reforms that may put the IMF and the EU off providing new bailout package and by essentially discounted rights issue by UniCredit. Moreover, the country
Eastman Kodak shares tumble 28% amid the speculation that company is going to apply for bankruptcy protection. The company did not comment the rumours. However, the Wall Street Journal claims the company has begun looking for options to prevent its bankruptcy and filed for bankruptcy protection of Chapter 11 in the US. Moreover, Kodak started negotiations with banks to raise about $1bn to continue operations
China's Ministry of Commerce announced it expects the outbound direct investment to reach the amount of FDI over the next five years. The amount of ODI is likely to approach US$560 billion in the period. The growth of the ODI remained resilient to the global economic slowdown and will expand by around 17% annually, according to the 12th Five Year Plan.
The central bank of Suisse refuted the accusation of the Philipp Hildebrand's wife that she has used the confidential information of the SNB intervening into the market. Kashya Hildebrand purchased $504,000 three weeks before central bank decided to reduce value of Swiss currency. Later she sold the USD and bought property. The bank claimed the family did not break the rules. Philipp Hildebrand will
China's inflation is expected to rise to 4% last month on a yearly basis, driven by increased food prices during the forthcoming festival season. Inflation rate is expected to hit 4.1% in December on an annual basis, said Chu Jianfang, chief economist with CITIC Securities. China's CPI for the full 2011 is projected to jump to 5.4%, being above the target of 4%.
Australian trade balance increased less than initially expected in December, according to official data. The country's trade balance increased to AUD 1.38B on a seasonally adjusted basis as compared to AUD1.60B in November. Experts predicted the figure to hit AUD1.66B last month.
Canadian domestic currency depreciated against its US peer on Wednesday amid investor fears European debt turmoil is worsening. Loonie fell from 1-month high where it settled on better-than-expected US PMI data. It lost 0.2% against US Dollar, attaining C$1.0127 in Toronto trade. Currently USD/CAD is also trading at C$1.0127.
Greek Prime Minister Lucas Papademos announced that further cuts of spending are the only possibility to stay in Euro Zone and to obtain financing from abroad. Papademos emphasized Greece has to give something up in order not to lose a lot. Later in January Papademos will continue talks with IMF and ECB about economic plan for 2012-2015.
Australia's and New Zealand Dollars weakened against most of their counterparts on Thursday after Italian biggest bank UniCredit SpA announced large discount on its shares prompting fears European banks may face difficulties to raise funds. Aussie lost 0.3% against Greenback reaching $1.0339 in Sydney wile Kiwi tumbled 0.2% against its US peer to $0.7862. Currently AUD/USD is trading at $1.0326 and
17-nation currency moved towards 11-year record low against Japanese Yen on Thursday before French bond auction due today as investors express anxiety if Euro Zone banks and governments will manage to attract enough funds. The Euro lost 0.2% against Japanese Yen reaching ВҐ 99.13 in London trade. Common currency also slipped 0.2% against US Dollar hitting $1.2916. Currently EUR/JPY is trading at ВҐ 99.16.
One of biggest Italian lender UniCredit SpA faced biggest decline in stock price since 1988 after the bank announced it is preparing to sell €7.5 bn ($9.7bn) of shares at 43% discount of from yesterday's last price. Shareholders will be able to buy two new-issued stocks for €1.943 each for every old share they already hold. UniCredit is attempting to raise funds