A National Australian Bank's survey showed the operating conditions considerably improved in October, even though the business confidence deteriorated during the same period. The level of the business confidence now stands at 4 against previously reported 5; the lowest level since September of 2013.
Russia's central bank expects there to be no growth next year, on the condition that sanctions are not lifted and the average price of oil stands at $95 per barrel. Also, according to the updated monetary policy blueprint for 2015-2017, the regulator now estimates the inflation will reach 4% in 2017 instead of 2016. So far the Ruble has depreciated
The Euro is currently rising against the US Dollar, recovering from last week's losses, as the announcement of the ECB President to reinforce stimulus for the Euro zone is positively affecting the demand for the common currency. The Euro appreciated 0.17% against the US Dollar today, reaching the level of $1.2473.
Experts expect China's authorities will adopt extra measures to boost growth, as the Consumer Price Index still stays around the weakest value since January 2010 - 1.6%, showing the China's economy is cooling. As a result, it is believed that the risk of deflation is rising, as economists expect the slowdown in business activity to persist.
Even though the global unemployment rate is rising, the US employers hired new workers last months, showing signs of the economy's recovery. Economists expect the unemployment rate to stay at a six year low of 5.9%. Meanwhile, after 248,000 new jobs created in September, employers are believed to have added approximately 231,000 new ones last month.
Mario Draghi announced readiness to reinforce stimulus for the Euro zone, as he now has more support from the policy makers, who often disagree on the measures to prompt up growth in the region. The ECB president is working to expand the balance sheet of the bank, as cutting the interest rates, which are already at the record low level,
Germany's growth may be slower in the second half of the year than the economists predict, as the factory orders rose less than the forecast of a 2.2% gain - there was only a 0.8% increase in September. Meanwhile, the European Commission has recently cut the growth forecasts for the Euro zone, and German economic challenges only intensify because of
The Euro strengthened versus 13 major currencies, as the European Central Bank is believed to wait for the impact of the previous stimulus before turning to a new one. The Euro is currently reflecting the ECB's intention to stay put. The common currency appreciated 0.1% against the US Dollar, reaching the level of $1.2497.
The number of payrolls rose more than forecast in Australia last month, growing by 24,100 against 20,000 expected. The nation's unemployment rate was reported to stay unchanged at 6.2% versus revised 6.2%. The release also showed the number of full time jobs increasing by 33,400, while the amount of part time jobs slid 9,400.
The Canadian Dollar pared some of its today's losses against the US Dollar, as traders sold off the Greenback immediately after the US labour data was released. Even though the release was better than expected, the USD/CAD bounced off its highest level since July 2009 and continued to head south after the data was published, reaching 1.1419. The number of
The UK services companies' growth is falling, with the purchasing managers index dropping to 56.2 in October against 58.7 in September. The slowing tertiary sector expansion rate reduces the potential for an interest rate hike, even though the manufacturing sector is improving. The Pound was down 0.7% against the US Dollar, reaching $1.5894.
Haruhiko Kuroda announced in a speech today in Tokyo that he is willing to increase the provisions for additional easing without any restriction, as the world's third biggest economy strives to achieve its 2% inflation target. The Bank of Japan has already displayed its commitment, enhancing the asset purchase programme last week.
The European commission scaled down the growth outlook for the Euro zone, as the area's major economies are still struggling to shake off the negative effects of the recent shock. The Euro area is facing the second stagnation in six years and inflation stays below the ECB target.
The crude oil's price continues to weaken. It reached 80$ in New York at the moment of writing. As a result, the US Dollar depreciates for the first time in five days. The oil slid to the lowest value since May 2012 due to the resistance from the OPEC countries to cut their output, while the U.S. stockpiles expand.
Next year Shinzo Abe will have an opportunity to replace or reappoint members of the BOJ, as their service term is nearing the end. Since the last vote on expansion of the asset purchases was only 5-4 in favour, the Prime Minister may be inclined to change some of the members who oppose ultra easy monetary policy. However, the concerns
After the release of weak China's manufacturing data the Australian Dollar slumped. The Aussie fell to $0.8757 against the US Dollar at the start of session this morning. The low Chinese PMI negatively affects the demand for Australia's exports, which are already facing a tough period. However, the currency pair can still change the direction, as the RBA is to
The European manufacturing sector growth in October stayed close to zero, as the reading came out at 50.6, even though up from 50.3 in September. The survey of managers showed positive signs of expansion in Ireland, the Netherlands, Spain and Germany, while the output in France and Italy contracted.
So far in the fourth quarter the China's economy demonstrates weakness due to softening in the export demand and decreasing activity in the real-estate market. The downturn is also evidenced by the latest reading of services PMI, which stood at 53.8 in October, down from 54.0 a month earlier. However, many economists expected more resilience from the world's second largest
The Euro zone consumer price index respected the forecast, tranquillising the nervousness in the market. After a 0.4% increase in prices was published, the Euro traded at $1.2579 against the US Dollar, thus slightly trimming the previous losses. Furthermore, the unemployment rate also did not deviate from the consensus level of 11,5% in September.
The confidence amid small Australian business continues to be uncertain, while private sector survey shows the bigger stock market companies are displaying positive signs. The SME survey reveals that small companies confidence shrank one index point against four points during the third quarter, as the property and constructions firms provided support.
Haruhiko Kuroda, the Bank of Japan Governor, has persuaded the unsteady board to enhance already large monetary stimulus programme. Some analysts predicted such a step, as the Japan economy failed to achieve BOJ's 2% inflation target and the possibility of an additional increase in sale tax persisted. Still, to many market participants it was a surprise action that sent Nikkei
In the Eurozone the Economic sentiment grew against economists forecast. It could be a sign the Euro area is raising from the downturn, with Index of executive and consumer confidence increasing to 100.7 versus 99.9 in September. The ECB is sustaining the Region adding stimulus, as the robust confidence may help the area's flagging weak economy.
The German jobless rate reached 6.7%, the lowest point in six months, a sign the companies have more confidence in the Europe's largest economy. Even as the business sentiment has been in decline recently, the employment is increasing, with job openings climbing to a three-year peak. According to the statistics, the number of unemployed people slumped 18,000 in the Western
The sturdy pace of business spending in the third quarter is a demonstration that the U.S. economic growth is increasing and the businesses start to trust sustainability of the recovery. The progress is broadly supported, namely by trade, government spending, housing and consumers. According to a survey of economists, the GDP should expand by 3.0% in annual terms.