Gold prices climbed on Thursday after the ECB's interest rates cut. Spot gold increased by 0.2% to USD1,618 an ounce . However COMEX gold futures for delivery in August went down by 0.2% to USD1,618.70 per ounce. At the same time, silver rose 0.5% to trade at USD28.26 per ounce, platinum was up 0.61% to USD1,481.75 and palladium faced a 0.56% increase, trading at
On Thursday, the stocks on European markets were almost unchanged ahead of the ECB and the Bank of England meetings as well as Spain and Ireland's auctions. Traders awaited freash easing measures from the ECB and BoE. The Stoxx Europe 600 index stood at 257.41, with financials, oil, food and drug sectors facing strong pressure.
Treasuries grew, boosting benchmark yields to 15 basis points ahead of the key job reports due later in the week. The Federal Reserve expresses its intentions to purchase about USD5.5 billion of US government securities in a period between August 2020 and May 2022. Benchmark 10-year yields lost 4 basis points to 1.59% in London, reported Bloomberg Bond Trader data.
The central bank of China reduced its interest rate twice during two-month period.The decision followed the ECB announcement about the interest rates cut. China's benchmark interest rate was lowered to 6%, whereas deposit rates were sent down to 3%. Proposed lending rates will be applied since Friday 5th of July. Moreover, China has reduced the RRR three times since November 2011, injecting additional 1.2
On the 4th of June, in the ECB cut its rates of interest to record-low level. The ECB reduced the key interest rate from 1% to 0.75%. Marginal lending rate also was decreased from 1.75% to 1.5%, whereas overnight deposits rate was cut to zero.The bank attributed the move to weakening economic situation in the area. The reduction followed easing measures by
The number of individuals who applied for jobless benefits in the US declined more than initially expected, according to US Department of Labor Statistics. The number of jobless claims fell by 14,000 to 374,000 on a seasonally adjusted basis. Experts predicted the unemployment claims to decrease by 3,000 to 385,000 last week. After the data release, the US Dollar posted
Brent and crude oil futures soared in European afternoon session on Thursday amid escalated worries over tightening supplies from Norway. From the demand side, energy commodities gained momentum as China reduced its core interest rate to 6.00%. Light, sweet crude oil futures for August delivery traded at USD88.74 per barrel on the New York Mercantile Exchange, soaring by 1.1%.
Agricultural commodities posted strong weekly gains in thin Thursday's trade as US markets were closed for holiday. Persistent worries over harvest conditions in the US and Brazil continued to support the commodity pack.Wheat climbed as dry and hot weather in the US escalated global supply concerns. Moreover, recent dryness in Black Sea regions weighted on the crop yields in the
Energy commodities soared over the week on easing hopes all over the world and global supply concerns. On Wednesday, US markets were closed for holiday.Crude oil gained 9.3% over the week as oil workers' strikes in Norway and rising Iranian tensions created supply risk premium for the commodity. Brent oil was bearish in the last five sessions on likelihood of
Industry metals moved lower in short Wednesday's session as Spain is set to start a new austerity measure of EUR30 billion after its borrowing costs rose again.Aluminum tumbled on lingering worries over the Eurozone's economy. However, strong vehicle demand is likely to support the metal.Copper dropped, following common trend of the base metals pack. At the same time the red
Precious metals retreated on Wednesday as markets have already priced in expectations for easing measures by the ECB and Bank of England. Broadly stronger US Dollar added pressure on the commodity group. Gold depreciated in choppy holiday trade on broadly stronger US Dollar and fading impact of the forthcoming ECB meeting.Silver declined as traders await US non-farm payrolls data due
On Thursday, 4th of July, Monetary Policy Committee of the Bank of England approved issuance of GBP50 billion from its reserves to finance asset-purchasing programme. The total amount of money issued for the year 2012 will amount GBP375 billion. The programme is expected to end in four months. Moreover, the committee decided to leave Bank Rate for commercial banks at 0.5% .
India plans to pay for Iranian oil in Euros through a Turkish bank as it is difficult to convert the Rupee to other currencies across the sea. The payments are proceeding regardless of US and EU recently imposed sanctions on Iranian oil exports. This case affected the Rupee negatively: it fell 0.9% against the US Dollar with INR/USD trading at
On Thursday, Barry Callebaut AG, the manufacturer of Swiss chocolate, claimed that the prices on cocoa are expected to stay flat in the nearest term. The company is one of the biggest cocoa consumers, which clients in turn are Nestle SA and Kraft Foods Inc. The company's CEO , Juergen Steinemann, told that during the previous weeks cocoa prices were
The Ireland National Treasury is set to sell EUR500 million of five-month bonds as a consequence of the favorable outcome of the EU Summit on June 28-29. Previously, Ireland sold EUR 400 million of bills, maturing in 4 1/2 month and 6 1/2 months with average yield of 1.907 and 2.23%. The result is a positive indication of Ireland re-entering the
On Thursday, the government of Spain sold EUR3 billion of 3,5 and 10- year debt with increasing interest rates.During the auction sale of 10-year bonds, Spain paid an average interest rate of 6.43%, while in the beginning of June it was 6.04%.
Moody's has cut Barclay`s Bank PLC standalone financial strength rating on the C-/baa2 from stable to negative. The downgrade came after the UK government reduced Barclay`s A2 senior debt and deposit rating. Moody's says that shareholders' pressure may lead not only to resignation of the bank`s administration but also to changing the business model from investment banking.
Japan's competition administration announced the plans of the Tokyo Stock Exchange and Osaka Securities Exchange to merge on January 1 next year. This move will form the third biggest in the world and Asia`s biggest stock exchange. Such a step is caused by overall decline in share sales on the back of the global economy downturn.
Kenya has stopped crude oil import from Persian Gulf after US and EU sanctions came into effect amid concerns about Iran`s nuclear program. The contract signed previous month stated an agreement to import at around 4 million tonnes of crude oil from the Iranian National Oil Company. However, according to Patrick Nyoik, permanent secretary of the energy ministry, international pressure
US apartment market has become the best performing sector of commercial freehold since 2011. Vacancy rate decreased by 0.2% during the last quarter and reached ten-year low of 4.7% . Rent prices jumped by 1.3% compared to prior quarter. Average effective rent (excluding concessions) now is USD 1,041 per month. New York is considered to be the most expensive place to live, monthly tab of
Orders for German factories unexpectedly rose in May. Demand mainly came from Europe and an increase was equal to 0.6% compared to April indicators. Investment goods sales rose by 0.2%, whereas orders from EU jumped by 11%. Experts attributed an increase to active exporting and record low unemployment rate in Germany. Meanwhile the ECB may cut interests rates on Thursday 04.07.2012 to stimulate lending and
As Credit Suisse cited, the Central Bank in South Korea plans to lower the interest rates during their administration session on July 12. The consumer inflation slowed to annualized 2.2% last month after averaging at 5.3% in 2011. The speculation about rate cuts appeared after previous meeting of the central bank that resulted in no changes in the interest rates.
Brent crude oil decreased to USD99.49 pert barrel amid slowdown in the three biggest economies, USA, Europe and China. Traders await the outcome from the meetings of the ECB and the Bank of England in regards cutting down the interest rate. Lower interest rates are likely to increase energy demand.
Volkswagen agreed on buying Porsche's rest 50.1% stake for which it will pay $5.6bn. The deal was closed already in 2009 and the intention was to merge in 2011; however, there were obstructive legal obstacles. The agreement is intended to diminish VW's costs as well as lift its profits so that to become the biggest car producer in the world.