Great Britain's pound weakened against 13 out of 16 major pairs today. It depreciated against euro for the first time in five trading days after Greece's pro-bailout parties received grater support in polls. By 8:30 GMT today, cable lost 0.5% of its value and dropped to 80.32 pence per Euro, but gained 0.2% against USD and was USD 1.5699 per pound after
Spain's intentions to recapitalize Bankia using sovereign debt triggered investors doubts and drove demand for Spanish bonds down. For the first time after May 15 the Spain-German 10 year maturity bond yield spread exceeded 500 basis points. At 8:00 GMT yield for Spanish securities reached 6.4% in comparison to 1.38% of German.
After Bankia's request for rescue funding last week, government announced it might recapitalize the bank using government bonds. Rescue funding required is around EUR 19b. Bankia could use government debt papers as collateral getting money from European central Bank forcing ECB to get involved in restructurisation of Span's banking sector. This would be the biggest bank rescue in Spain's history.
UK housing prices surged for a third consecutive month in May, fuelled by value increase in London, Hometrack reported on Monday. Home value for the UK soared 0.2% compared to previous month while prices in London climbed 0.6%. Nevertheless, Hometrack predicts the price increase in nation's property market for the year will be limited due to persisting Euro Zone debt crisis.
European stock markets rebounded on Friday lifted by drug manufacturers and improved consumer confidence in Germany. Stoxx Europe 600 gained 0.2%, British FTSE 100 index traded almost flat and German DAX added 0.4%. French CAC advanced 0.3% but Spanish IBEX 35 posted only a small gain of 0.1% as worries over country's debt trouble lingered. Meanwhile Athens General index extended
Dow Jones Industrial Average index fell on Friday amid rising worries about Spain as the next troubled country after Greece. Blue chip index fell 0.6% or 74.92 points and closed at 12,454.83 with only 7 stocks ending on positive note. Standard & Poor's rating agency lowered on Friday its credit-worthiness assessment on 5 Spain's banks and warned about the nation's
S&P 500 index edged down on Friday, reflecting growing concerns over Spain. US benchmark dropped 0.22% or 2.86 points and closed at 1,317.82. Spanish borrowing costs surged to almost 6.3% after Spain's autonomous region Catalonia asked for a government financial aid. Nevertheless index managed to recover on weekly basis and reported a 1.7% gain, the first weekly advance since April.
China manufacturing companies' profits fell 2.2% to USD 64.2 billion in April, National Statistics reported on Sunday. In March companies net earnings advanced by 4.5%. The drop in profit fuels concerns the Chinese economy is slowing to larger extent than expected. Annual manufacturing profit growth for 2012 might be somewhere between 10%-20%, Lu Zhengwei, analyst at Industrial Bank predicted.
China has granted private investors the same rights as state firms possess while investing in China's banks. The move is aimed at boosting economic growth via attracting more overseas investors who were put off by inefficient banking sector in the country. Recently, China also opened its telecommunications and energy sectors for foreign investors.
US Dollar was broadly lower in Asian session on Monday as recent polls indicated that parties favoring bailout measures are becoming more popular in Greece. Hence, the country is likely to stay in the single currency union. EUR/USD added 0.53%, approaching 1.2583 while GBP/USD gained 0.18% to trade at 1.5954. At the same time, the greenback moved down versus the
Gold futures went up in Asian session on Monday, being bolstered by indications that more pro-bailout parties are likely to gain power while dip buying opportunities also supported the price increase. COMEX gold June contract traded at 1,575.85 US Dollars per troy ounce on the New York Mercantile Exchange, easing up by 0.30%. Meanwhile, COMEX silver for delivery in July
Crude oil prices increased in Asian session on Monday amid stronger than initially expected US consumer confidence data and failure of Iranian talks to reach a consensus on nuclear program. Moreover, indications that pro-austerity parties are gaining popularity in Greece also lifted the price. Light, sweet crude oil futures for July delivery traded at 91.47 US Dollars per barrel on
Industry metals rallied on Thursday despite weak manufacturing data from the Euro Zone, China and the US.Aluminum closed slightly higher due to tumbling supplies as major producers started to cut down the output levels in view of low prices. Henan, largest aluminum producing province in China, reduced capacity by 700,000 tons in the recent months.Copper also faced production cuts as
Precious metals went down on Thursday as weak PMI releases from the Euro Zone pushed the single currency down against the greenback.Gold was only marginally lower as the yellow metal gained support from increasing buying of Philippines, Ukraine and Mexico's banks that wish to diversify away from the US Dollar the Euro.Silver was the only gainer due to rebound of
The value of European market has grown this Friday, due to the recent data that was released in Germany, which displayed the European Union's consumer confidence, which is successfully stabilizing. The Stoxx Europe 600 ratio went up by 1.1 per cent to 6,385.44, the increase was supported by the rise of Total SA Index by 1.1 per cent, as well
Raw oil futures decreased in European trade on Friday. Futures for July reached USD90.94, falling by 0.30%. Otherwhere on the Intercontinental Exchange Brent Crude for July rose by 0.45%, being traded at USD107.03 for a barrel. USDX fell by 0.10%, reaching USD82.35.
UK experiences 0.3% economic downturn in the beginning of this year instead of predicted 0.2%. Cameron's opponents insist that it is due to false economic policies: too high austerity, and false decisions to invest in private sector. IMF report showed that government budget deficit was 8% instead of planned lower than 6%. UK's 10-year gilt yield yesterday was 1.738 percent
Energy markets followed bullish trend on Thursday after news that Iran and six major economies failed to reach a consensus on Iran's nuclear program. Crude oil managed to add almost 1% as potential supply disruptions spurred the commodity price. However, weak manufacturing data releases across the world restricted crude oil's gains.Brent oil was the top-performer as supply risk-premium returned after
Agricultural commodities balanced between global demand concerns and potential supply cuts. Broadly stronger US Dollar also weighed on the commodity pack.Wheat extended previous losses despite speculation that droughts in the US, Russia and Australia are likely to impact the crops.Corn was sharply lower as cooling China's economy and turmoil in the Euro Zone added to worries about fall of the
World trade organization received China's complaint regarding tariffs the US put on some of the import from China. Complaint is regarding countervailing duties related to 22 goods with the annual import to the US value of USD 7.3b. Other two trade disputes should be ruled out by WTO soon as well. First - concerns China's export of electrical steel. In the second
Italy's trading deficit with non-EU countries decreased by EUR 1.6b in April in comparison to the same period last year and was EUR 904m. Export to non-EU countries increased by 2.3% in comparison to April 2012 and reached EUR 13.9b. Imports from non-EU countries to Italy decreased by slightly more than 8% from the same period last year and was
Trading in the shares of Bankia has been suspended in Madrid. Market regulator announced that this was done due to circumstances which might influence normal trading. Bankia is said to be forced to ask EUR 15b government bailout. Fourth largest Spanish bank was formed in 2010 after uniting seven troubled regional banks and currently holds EUR 32b worth of troubled assets.
Asian stocks closed lower on Friday trade as risk-aversion among investors remained high in the light of economic instability in the EU and China. China's Shanghai Composite Index fell by 0.7% while Hong Kong's Hang Seng Index lost 0.3%. Meanwhile Japan's Nikkei 225 and South Korea's Kospi both managed to climb by 0.2 and 0.5%, respectively.
Moody's cut long-term ratings of three Sweden's banks, citing g overreliance on wholesale funding, risk to asset quality and relatively low profit margins. The ratings agency lowered Nordea Bank AB and Svenska Handelsbanken AB by one notch to Aa3. The firm also cut rating of Landshypotek AB by two notches to Baa2. At the same time, Moody's reaffirmed its ratings