Service sector activity in May was growing at the same pace as in April. Markit reported that the seasonally adjusted SPI remained at the level of 53.3. Economists, however, expected that the index would decrease by 0.6, reaching 52.7. David Noble, CEO at the CIPS, argued that this growth became possible on account of decreased input price inflation.
During an auction of Spanish long-term government debt on Thursday, Spain's Treasury managed to sell bonds for EUR638 million, which mature in October 2014. An average yield for the government debt was 4.335%, compared to 3.463% in the previous month. Demand was strong, and the bids exceeded supply 4.26 times, which is more than 3.28 bid-to-cover ratio last month.
Farm commodities apart from coffee moved higher on Wednesday on the improved demand prospects after the US and China hinted that more accommodative monetary policy may be introduced.Wheat surged after Russia reported that about 15% of its crops in southern regions were curbed by dry weather in May.Corn soared by more than 6% as persistent dry weather in the US
Energy markets rocketed on Wednesday as concerns over Spain's financial system's instability decreased. Additionally, easing hints from the Fed boosted demand prospects of the commodity pack.Crude oil rose as expectations for monetary easing in the top-consumers, the US and China, increased demand potential for energy.Brent oil advanced, returning above 100 US Dollars per barrel after Iran announced it will be
Industry metals were mixed on Wednesday, being buoyed by mounting optimism regarding more growth-stimulating monetary measures from the Fed. Aluminum climbed despite indications of poor demand. Rio Tinto Alcan does not plan to increase output after cutting its production at Alma smelter by two-thirds over the last six months.Copper faced strengthening demand in North America due to tight supplies. Moreover,
Precious metals rallied on Wednesday after Fed officials announced that impact of the Eurozone's debt crisis on the US economy mounts and there is a room for additional monetary stimulus. However, inaction of the ECB pared gains of the commodity group.Gold lost momentum after the ECB announced it will stick to the current monetary policy despite deteriorating situation in the
In order to combat economic downturn in China as well back up the credit growth, the government has taken the decision to delay the implementation of stringent bank capital regulations to 2013. The China Banking Regulatory Commission has compiled preliminary rules that would allow the banks to achieve their capital objectives whilst at the same time ensuring sufficient loan growth. Chen Xingyu, Phillip Securities' analysts,
Japan's Nikkei Stock Average maintained sharp upward trend on Thursday on expectations for global monetary easing. Japanese Yen kept weakening versus Euro and greenback, improving competitiveness for Japanese exporters. Nikkei 225 index rose 1.24% or 106.19 points and finished at 8,639.72. Almost 11 shares soared for each that declined on the index. Car makers and financials rallied. Mazda Motors and
Dow Jones Industrial Average climbed rapidly on Wednesday as investors looked forward Fed Chairman Bernanke's signals for additional monetary stimulus in summer. Blue chip gauge surged 2.37% or 286.84 points to 12,414.79 with all 30 stocks ending session in the positive territory. Bank of America rallied 7.6% on speculation for monetary accommodation. Home Depot gained 3.4% after increasing its share
With investors' growing hopes that Europe and the U.S. may loosen monetary policies to combat with the progressing economic concerns, the Asian market benefitted with a boost during Thursday trade. The Asian shares that advanced were Japan's Nikkei Stock Average with a 1 per cent jump, Kospi – 2.7 per cent, Hong Kong's Hang Seng Index – 1.4 per cent, and the Shanghai Composite
S&P 500 index rallied on Wednesday, posting the biggest daily gain for the year, lifted by investor hopes for fresh stimulus to economic growth. US benchmark rocketed 2.30% or 29.63 points and closed at 1,315.13. Iron Mountain jumped 13.8% after document-storage firm raised quarterly dividend by 8% and announced it will transform to a real-estate investment trust. The leading hydraulic-fracturing
According to Moody's, if the financial anxiety reaches the U.S., the entailed repercussions could be significantly more severe for Asia, which currently has to cope with the negative influence of crisis in Europe. Repercussions of the turmoil in Europe could result in Asian production declining by 5% within a one year period. In contrast, if the U.S. is pulled into the financial distress,
European stocks rallied on Wednesday ahead of ECB interest rate decision. Gains were slightly limited after ECB President Draghi said no interest cut will be implemented. Nevertheless markets performed significantly better compared to last week. Stoxx Europe 600 jumped 2.3%, German DAX added 2.1% and French CAC gained 2.4%. British FTSE 100 also surged 2.4% after two holidays.
US stocks appreciated sharply on Wednesday amid positive news from housing sector and on speculation Federal Reserve may indicate further stimulus for this summer. S&P 500 rocketed 2.30% or 29.63 points and closed at 1,315.13. Dow Jones Industrial Average surged 2.37% or 286.84 points to 12,414.79. Nasdaq Composite advanced 2.4% or 66.61 points and finished at 2,844.72.
On Wednesday the Canadian currency strengthened for a third straight day against its US peer on hopes for monetary stimulus. Commodities and stocks also reflected optimism on Fed's decision. Canadian Dollar jumped 1% to CAD 1.0276. Currently USD/CAD is trading at CAD 1.0273.
The Greenback traded close to one-week record low versus 17-nation currency ahead of Fed Chairman Ben Bernake's speech today. Investors expect indication of additional stimulus to the world's largest economy. Euro advanced against Dollar to USD 1.2563 in Asian trade. Currently EUR/USD is trading at USD 1.2568.
Timothy F. Geithner, US Treasury Secretary and Ben Bernake, Fed Chairman are worried about the current situation in Eurozone banking industry, said Jyrki Katainen, Finnish PM. Leaders met on Wednesday to discuss how to tackle problems in Spanish financial sector and in other European nations to avoid another banking sector collapse.
Mario Draghi, the President of ECB highlighted interest rate reductions, liquidity injections and bond purchasing as only remaining tools ECB can use. He rejected ECB ability to cap borrowing costs or apply quantitative easing. Draghi reminded that the main task of ECB is to provide stable prices. Draghi did not support further interest rate cuts and added that monetary policy is
The hiring in Australia posted a surprise advance in May, reducing need for further interest rate cuts. The number of workers added surged by 38,900 last month, Sydney statistics bureau reported on Thursday. Analysts questioned by Bloomberg predicted flat employment. The unemployment rate slightly climbed from 5% in April to 5.1% in May.
Activity in the UK construction sector slowed for a second month in a row, as a number of new orders declined and confidence in the economy plunged due to the recession-hit UK economy and worsening Eurozone crisis. The construction industry's PMI decreased to 54.4 in May from 55.8 in April. The data came after the PMI for the manufacturing sector
While European countries responding to the Eurozone's debt crisis are tightening belts, French President F. Hollande has provided more generous retirement benefits and moved lower the retirement age from 62 to 60 years old for some workers. The pension decree might increase tension between Germany and France, which are arguing how to effectively address the crisis.
According to a Bank of Italy official, a quarter of Italian economy evades taxes, due to illegal criminal economic activities, causing increasing borrowing costs and poor investment in the most affected by the crisis regions. Last month the European Commission pushed Italy under pressure to undertake measures to combat tax evasion problem in the country.
The overseas investment of China rocketed in Q1 to 21.4 billion US Dollars as China's state-owned firms increased buying of resource-related assets all over the world. Considering yearly moves, China's investments rose more than two times, according to the report of A Capital. The report also outlined rising China's interest in Europe as ongoing Eurozone debt crisis provided opportunities for
Crude oil futures edged up in Asian trading on Thursday amid falling US inventories and hopes that the Fed will provide additional monetary stimulus to boost economy. Light, sweet crude oil futures for July delivery traded at 85.45 US Dollars per barrel on the New York Mercantile Exchange, rising by 0.51% from the last session's low of 85.38 US Dollars