The Centre for Economics and Business Research reported that World Economic League Table indicates Asian countries moving up while European countries moving down. It expects European economy to shrink 0.6% in case the crisis is solved and by 2% in case it is not. Russia is likely to become the ninth largest economy next year and approach the forth place by 2020. India is predicted
European shares opened higher after Christmas holidays, though trading volumes are predicted to be relatively low. Stoxx 600 gained 0.2% at 242.41, whereas France's CAC 40 added 0.5% to 3,116.11. German benchmark DAX index surged 0.4% attaining 5,902.32. London markets stayed closed in prolonged holiday break.
European shares advanced last week as better-that-expected US economy data signalled recovery of the world's leading economy. Stoxx 600 gained 3.5% reaching 241.86 this week, while French CAC 40 added 4.4% to 3,102.09. German DAX surged 3.1% to 5,878.93 and UK's FTSE 100 jumped 2.3% finishing at 5,512.70
China reported it would lower export quotas for silver, tin and indium in 2012. The Ministry of Commerce announced the silver exports will remain under 3,232 metric tons, tin exports will be set at 10,800 tons and indium products' exports will be at 139,000 tons for the next year.
China, pursuing further diversification of its foreign-exchange portfolio, plans to take advantage of lower gold prices and increase its gold holdings, said Zhang Jianhua from the People's Bank of China. Bleak economic outlook, growing inflation and extensive monetary easing undermined investors' confidence. Gold is considered to be a �safe haven' as it is a sort of hard currency capable to limit risks inherent to the
Crude oil futures were slightly higher during the East Asian trade on Tuesday. Crude oil futures for delivery in February advanced to $99.78 a barrel at the electronic trade on the New York Mercantile Exchange, easing up 0.1%. The increase followed Syria's reports about 30%-35% decline in oil exports due to international sanctions against crackdown of the political protesters in the country.
Chinese industrial production growth may see further slowdown reaching around 11% next year, according to Miao Wei, Minister of Industry and Information Technology. The industrial value-added production expansion is likely to approach 14%, down from 15.7% growth last year. The country will stimulate the development of industrial sector by credit and fiscal policies to escape plunge in the industry growth, he added.
Credit Suisse Group sees stable development of the Swiss banking industry, said Brady Dougan, the CEO of Credit Suisse Group. The country is likely to hold its leading position in financial industry and even despite probable job cuts, Credit Suisse has high potential in long-run, he added. He also believes that the euro will exist in the next five years.
Analysts expect further easing of China's bank reserve requirement ratio amid lower inflationary pressure and economic slowdown. Earlier the People's Bank of China decreased reserve requirements by 0.5%, making the first decrease in the last three years. Credit control is also becoming a serious issue as loan-expansion rate coupled with money supplies are high to the nominal GDP growth.
China's oil companies pursue sustainable growth and seek more active overseas expansion. Daqing Oilfield Co Ltd set 20 billion yuan revenue target generated from foreign operations by 2015 which is four times higher compared to this year figure. The company has its operations in 28 countries and sees expansion opportunities to Indonesia and Middle East, reported Wang Yongchun, the General Manager of DOCL.
Gold futures decreased, falling again below $1,600 an ounce at the Asian trading. Gold futures for delivery in February approached $1,595.00 an ounce during the Comex electronic trade as compared to last week's closing price of $1,609 an ounce. The gold continued its downward trend despite lower dollar index that fell from 79.990 to 79.874.
On Friday Canadian national currency strengthened against its major counterparts as US data indicated economic recovery. On weekly basis loonie added 1.7% to C$1.0206 per one US Dollar, the largest weekly gain since the week ended December 2. C.J. Gavsie, foreign-exchange unit managing director at Bank of Montreal in Toronto expects Canadian Dollar to reach C$1.06 during the first 6 months of 2012. Currently USD/CAD
China's economic growth is expected to decrease by approximately 8.5% in 2012 but only in case the Euro Zone crisis does not evolve into world's recession, according to senior economist. China's emerging market is closely connected to developed economies and dismal situation on the Western markets impacts nation's economy. Chinese export growth is expected to shrink to 10% next year as compared to 20% in
The index of South Korea consumer confidence declined to a 3-month low as North Korea political outlook worsened after death of Kim Jong Il. The confidence index tumbled from 103 to 99 in November. A figure below 100 signals pessimism outweighs optimism. The leader of North Korea died on December 19. His son is expected to replace him.
The dollar index maintained last week's losses as analysts predict US consumer confidence surged most in 5 months and manufacturing measures advanced. The dollar index which measures the US dollar against basket of 6 other currencies, edged down 0.1% to 79.853. Last week dollar index slipped 0.2% as demand for less risky assets declined.
Strategists name Japanese Yen as the most successful currency of 2011 and predict even further appreciation despite officials promise to intervene again. The improvement of Yen including 4.1% advance against US Dollar depicts worries in world markets as Europe struggles with debt crisis for a second year. Foreign ownership of Japanese debt reaches record high since 2008.
US stock markets attempted to extend a rally ahead of Christmas holidays with all major indexes closing higher. On Friday Dow Jones Industrial Average gained 1% or 124.35 points and finished at 12,294. S&P 500 Index climbed 0.9% or 11.33 points reaching 1,265.33 while Nasdaq Composite Index advanced 0.7% or 19.19 points to 2,618.64.
Asian stock markets experienced a decline on Tuesday, as South Korean shares fluctuated and Chinese stocks dropped amid worries about country's economic outlook. South Korea's Kospi erased early gains and closed 0.6% or 11.1 points down at 1,845.11. China's Shanghai Composite lost 0.45% or 10.5 points down at 2,179.02, while Nikkei Stock Average gave up 0.41% or 34.2 points at 8,445.05. Markets in Hong Kong and in
Consumer spending grew less than expected in November as salaries decreased first time in last three months, indicating US recovery might not be as fast as previously estimated. Economists surveyed by Bloomberg forecast spending increase between 0.2% and 0.6%. Personal income added 0.1% in November. Drop in wages harmed growth in spending, said Yelena Shulyatyeva, BNP Pariba's economist in New York.
UK services output dropped to 6-month low in October. Services that account for about 75% of the nation's economy tumbled 0.7% compared to September. Transport, communications and storage were down 2.5% whereas distribution, restaurants and hotels edged down 0.2%. Finance and business services lost 0.7%.
France's economy expanded by 0.3% in Q3 as compared to 0.4% previously estimated. The disposable income also decelerated, reported France's Insee statistics. Moreover, the country's credit rating was placed on a pessimistic outlook by Fitch agency signaling probable downgrade in the next 12-18 months.
Indonesia plans to impose export tax on coal and industrial metals next year and completely ban the commodity exports by 2014. The measure aims to stimulate minerals processing to higher value products before export thus adding to national treasury. The country is the largest exporter of coal and some of the base metals. Therefore, the ban may essentially impact the market.
The factory output in Singapore decreased in November on the decline in electronics production amid weakening global demand. Factory production lost 9.6% from the previous year with fell in electronics output by 30.1%. Experts predict the industrial activity to remain low for some time, according to CIMB Research.
Indian crude oil production decreased for the second month in line, reported India's oil ministry. Crude oil output tumbled 5.7% or 3.1 million tonnes on a yearly basis last month. ONGC, largest oil company in India, saw the decline in output by 4.2% to 1.9 million tonnes.