Gold fell sharply on Tuesday after Spain's credit rating downgrade. Egan Jones decision strengthened the greenback and affected negatively the dollar denominated precious metal. Gold to be delivered in August plunged 1.3% or USD 20.20 to USD 1,551 an ounce. June Gold contract lost similar amount and traded at USD 1,548.70 an ounce.
The crude prices declined for the second consecutive day on Wednesday ahead of US supplies report which is expected to show that stockpiles increased to the record high since 1990. Oil to be delivered in July fell by USD 0.61 to USD 90.15 per barrel. July Brent oil shed 0.4% or USD 0.44 to USD 106.24 per barrel.
The yields for Spanish 10-year bonds rose sharply on Wednesday after Egan Jones cut the credit rating of nation's sovereign debt to B. Egan Jones decision sends Spanish notes to junk status. The borrowing costs for Spanish 10-year benchmark bills soared to 6.5b.p. to 6.475% in Wednesday morning.
The crisis management strategy in Iceland is making the next property bubble, National Registry warned on Wednesday. The value of new homes has jumped to a record high last quarter. The prices have accelerated 40.1% compared to the last quarter of 2010. The average housing prices have gained 11.3% compared to a deepest downturn period in 2009. Analysts warn the current price development may result in
US equities experienced a successful session on Tuesday despite a drop in consumer confidence. US investors returned from holiday and anticipated new from Greek polls and China's intention to implement monetary stimulus. S&P 500 index added 1.11% or 14.60 points and finished at 1,332.42, Dow Jones Industrial Average climbed 1.01% or 125.86 points and closed at 12,580.69. Nasdaq Composite gained
European equities ended a rather choppy session mostly in green area as hopes for Chinese monetary stimulus lifted investor sentiment. Stoxx Europe 600 climbed 0.8% and French CAC 40 index rallied 1.4%. Spanish benchmark IBEX 35 kept falling and dropped 2.3% yesterday pushed down by national banks. UK FTSE 100 gained 0.7% and German DAX jumped 1.2% supported by car
The governor of the Bank of Spain Ordonez decided to resign one month earlier in June 10, the central bank of Spain reported on Wednesday. Ordonez's successor will overtake his task of persuading investors Spain's banking industry won't need an overseas bailout. Spain's PM supported governor's decision.
Aussie weakened against all its major counterparts after data showed country's retail sales unexpectedly contracted in April, stimulation pressure on RBA to cut interest rate in order to promote growth. Australian currency declined 0.5% versus US Dollar to USD 0.9796. New Zealand Dollar dropped 0.3% against greenback to USD 0.7604. Currently AUD/USD is trading at USD 0.9798 and NZD/USD is trading
The retail sales in Australia unexpectedly fell in April, posting a drop for the first time since March 2011, sending country's stocks, borrowing costs and currency lower. Retail sales declined 0.2% to USD 20.7 billion in previous month from March. The sales data increase pressure on the Reserve Bank of Australia to lower further its benchmark rate. A cut from
The 17-nation currency plunged nearly to two-year record low versus greenback after Egan-Jones Ratings cut Spanish sovereign rating from BB-to B. The Euro depreciated to USD 1.2468 in Asian trade and hit JPY 99.05 versus Japanese currency. Euro has dropped 6.3% versus Yen in May. Currently EUR/USD is trading at USD 1.2469 and EUR/JPY is trading at JPY 99.09.
Egan-Jones Ratings downgraded Spain's national credit rating from BB- to B on Tuesday citing country's weakening economic outlook. Ratings agency based its decision on record high unemployment of 24% and large scale bank losses of more than EUR 260 billion. The difference in borrowing costs between German and Spanish bills climbed to the highest level since the introduction of common currency. Euro
According to Destatis, German annual inflation fell to its lowest level since December 2010, falling from 2.1 % in April to 1.9 percent in May, with decline in oil prices being the reason for decreasing CPI. The figures published on Tuesday may increase pressure on the ECB to consider new measures to stimulate Eurozne's economy, amid Greece political standoff and
According a top official, the US Fed is ready to face any consequences from the Eurozone's deepening debt crisis. Charles Plosser, Philadelphia Fed President, said that in the short term worries over Eurozone might be beneficial for the US economy, due to lower US interest rates and energy prices. Additionally, troubles in Greece might result in more global funds being
The US officials are demanding policy makers in Spain, Greece, France and Germany to contain the EU contagion amid the undermined Spanish financial system and political standoff in Greece, as it threatens to cause new worries for the US economy. The officials encourage prompt actions on several fronts, with using €700 billion rescue fund to recapitalize European banks.
Traders readjusted their positions before June contracts expiration in U.S. morning trading session on Monday. On the NYMEX June futures for natural gas were USD2.532 per MMBtu, 1% decline. It earlier was traded at USD2.480, which was a 2.65% decrease.
USD traded higher versus most other currencies on Tuesday. Despite the negative report about U.S., investors were focusing on Spanish borrowing costs problem more. In afternoon trade EUR/USD hit 1.2483, GBP/USD lowest was 1.5628,USD/CHF hit 0.9626.
Hedge funds are expecting that the launch of unitary eurobonds is prone to lead to an increase in costs for Germany's and France's borrowing. Therefore, they short-sell liquid bonds of core Eurozone countries, expecting prices to fall. The market, according to anonymous fund manager, is getting noticeably shorter.
Despite fears about Spain's financial stability, futures for crude oil gained on Tuesday because of China's possible monetary easing and expected disruption to Middle East oil supplies. On the NYMEX July crude futures were traded at USD91.50 per barrel, peaking earlier at USD91.86.
Even though there is no direct damage that can be caused to the U.S. by Greece; however, it is the overall tension in the EU that might be detrimental to the States. Firstly, it is important to highlight that the banking system in the U.S. might be in jeopardy due to sovereign debt. Even though the debt for Greece USD 5.8 billion is minor
Consumer confidence in the US in May broke all the expectations and fell to the 64.9 from 68.7 in April. Although increase to 69.7 was anticipated, the index decreased to the lowest level in four moths. Specialists state that disturbance in the labor market caused such negative outcome. Payroll gains increased at the slowest pace in last six months. Only 15.8% of Americans
Rural commodities dropped over last week as weather conditions in the top-growing regions are likely to improve.Wheat lost almost 4% over the last week on speculation that long-awaited rains in Russia and Australia will boost crop prospects.Corn was the top-loser as China plants to increase supplies while worries about the Euro Zone's demand pushed the commodity lower.Sugar extended previous losses
Energy markets were solid on Monday due to renewed supply worries after world powers failed to agree with Iran on its nuclear program.Crude oil was the top-performer as supply risk-premium returned amid escalated tensions in the Middle East and expectations for tropical storm Beryl. Brent oil moved up as indications that Iran actively continues its nuclear program outweighed deepening debt
Industry metals were mixed in choppy Monday session, balancing between Euro Zone woes and supply uncertainties.Aluminum swung to gains on Monday despite weak China's demand caused by high smelting costs of the light metal.Copper managed to add 0.60% despite easing supply worries as Chile's Collahuasi is resuming its operations after accidental death of its worker last week. However, softening Japan's
Precious metals were mostly higher in thin Monday trading amid easing concerns about possible Greek exit from the Euro Zone after four largest Greece's banks received financial aid amounting 18 billion Euros.Gold was almost unchanged as spiking Spain's costs of borrowing pushed the US Dollar higher against its European counterpart.Silver was the only loser, being weighted down by weakness of