Japan's Nikkei Stock Average jumped 1.05% or 88.04 points and closed at 8,466.40 on Tuesday, with all 9 of 10 industries posting gains, after China reported an 8.9% increase in GDP compared to 8.7% growth earlier expected by economists. Sumitomo Mitsui Financial Group Inc. gained 1.2%, after the company announced it will buy the RBS aviation unit. Shipping companies also
Precious metals are likely to face upswing move after falling at the end of 2011, reported Commerzbank. Skepticism of money managers was caused by phase of weakness in the precious metals market but metals will resume their upward trend supported by strong demand from central bank and investors. The gold's price is expected to average at $1,725 an ounce over
The next Brazilian coffee crop may not meet strong overseas and local demand even taken record high coffee output forecasts. Experts expect country's coffee output to hit 49 million to 52.3 million bags this year as compared to 43.5 million in 2011, reported Conab. The demand for Brazilian coffee is estimated to amount 54 million bags in 2012.
Shanghai Composite Index rocketed on Tuesday, after Chinese officials reported country's Gross Domestic Product rose more-than-expected in the last quarter of 2011. China's benchmark index rallied 4.18% or 92.18 points to 2,298.38, led by resource stocks. All nine sectors within the index posted gains. China Merchant jumped 10.18, while Zijin Mining-A and Shandong Nansh-A gained 10.10% and 10.08%, respectively. On
Rio Tinto PLC announced, it increased output of core steel-making commodities in the last quarter of 2011, with its iron ore production attaining a record high level of 51.2 million metric tons, indicating yearly increase by 2% in Q4. Full year production of iron ore advanced by 4% to 191.8 million tons, while the output of coking coal surged by
The EIA reported that global consumption of crude oil is expected to jump to 1.3 million barrels per day in 2012 and to 1.5 million barrels per day in 2013. The major drivers for the increase in oil consumption will be the US, China, Brazil and Middle East. In case of absence of oil disruption, the energy market will stay
Gold futures soared above $1,650 an ounce during Asian session finding strong support on the depreciating US Dollar after data news on larger than expected economic growth in China in Q4. COMEX gold for February delivery traded at $1,658.60 an ounce on the New York Mercantile Exchange, gaining 1.7% since opening.
Crude oil futures advanced above $100 a barrel during electronic trade following positive data on China's economic expansion. Light, sweet crude oil February contract traded at $100.27 during Asian trade, on the New York Mercantile Exchange, gaining $1.57 or 1.6% since opening.
London is expected to become the main Yuan trading center in the overseas market as the UK cooperates with Hong Kong in an attempt to develop this business. The HKMA and UK Treasure agreed on Monday to launch new private sector forum aimed at strengthening ties between the UK and Hong Kong in areas like clearing, settlement, development of Yuan-denominated
Burberry Group PLC announced its revenues hit 574 million pounds in Q3 ending on December 31, indicating 21% yearly increase. Retail sales amounted 417 million pounds, reflecting 23% increase on the underlying basis. The company will maintain its core strategy to pursue sustainable growth, said Angela Ahrendts, CEO of Burberry.
Japanese tertiary industry activity index declined more than expected in December, reported METI. The country's tertiary index declined by 0.8% on a seasonally adjusted basis after growing by 0.6% in November. Experts projected the index to lose 0.4% last month.
The head of NBS warned China of ongoing price growth pressures in China and recommended the government to maintain its prudent monetary policy. The base for price stabilization is not firm enough, and there are possibilities for price rebound, he added. Increasing labour, resource and land costs all contribute to further price growth in long-run, he pointed out.
Natural gas futures faced a downward move on Monday, tumbling to 28-month low amid ongoing mild weather forecasts. Natural gas broke a psychologically crucial level of $3.00 per million British thermal units. Natural gas futures for delivery in February traded at USD2.547 per million British thermal units at the last US session, on the New York Mercantile Exchange, losing 4.49%
Silver and gold are likely to rocket in the next years, said John Embry, Chief Investment Strategist of Sprott Asset Management. He claimed silver will achieve all-times high of$100/oz in the next 12 to 24 months. Silver is likely to advance three or four times faster than the yellow metal even despite optimistic forecasts about gold in long run, he
Swiss PPI increased unexpectedly in December, increasing for the first time in the last eight months. The index advanced by 0.3% on a seasonally adjusted basis last month after decreasing by 0.8% in the preceding month, reported the Swiss Federal Statistical Office. Experts projected the PPI to decline by 0.3% last month. Considering yearly changes, the PPI dropped by 2.3%
China's security regulator may ease the control over Hong Kong and foreign listings of China's companies and plans to push for Yuan-nominated shares in the overseas Yuan market. Standards to float H-shares are exorbitantly high and the process of approval is time-consuming, said Yao Gang, Vice-Chairman at CSRC. This year securities regulatory commission will revise listing rules and procedures to
Asian markets rebounded on Tuesday as Chinese statistics reported higher-than-expected GDP growth in the 4th quarter of 2011. China's Shanghai Composite rocketed 4.2% while Hong Kong's Hang Seng Index jumped 2.5%. Australia's S&P/ASX 200 Index rose 1.7%, South Korea's Kospi advanced 1.8% and Japan's Nikkei Stock Average gained 1.1%.
Sumitomo Mitsui announced it has agreed to buy Royal Bank of Scotland's aviation unit. The deal is valued at around $7.3bn. Japanese second biggest lender in terms of market value will control a fleet consisting of 206 aircraft and will be committed to buy additional 87 planes by 2015. Sumitomo Mitsui won the bid of China Development Bank Corp. and Wells
Canadian Dollar appreciated on Monday on investor hopes country's economy will benefit from improving US economic outlook. Loonie extended its eight week advance against Euro, and climbed 0.5% against US Dollar to C$1.0179 in Toronto evening trade. Currently USD/CAD is trading at C$1.0141. Bank of Canada is preparing to set interest rates tomorrow. Analysts expect bank's officials to hold benchmark
New Zealand and Australian Dollar surged on Tuesday against the Greenback, reaching 2-month record high after China reported bigger-than-predicted increase in GDP. Investor sentiment improved on hopes growth will be sufficient to support Australia's and New Zealand's export demand. Aussie and Kiwi appreciated 0.6% against its US peer, reaching $1.0376 and $0.7980, respectively. AUD/USD currently is trading at $1.0394 while NZD/USD is trading at $0.7994.
European equity markets surged and closed higher after France faced a successful bond sale, as its 10-year borrowing costs dropped despite S&P downgrade. Stoxx Europe 600 gained 0.8% and finished at 251.12, while French CAC 40 index jumped 0.9 and finished at 3,225. UK FTSE 100 added 0.4%, closing at 5,657.44 and German DAX rallied 1.3% to 6,220.01.
Mario Draghi, ECB president, questioned the role of rating agencies, suggesting their moves may have too strong impact on markets. Draghi pointed out that investors should learn to anticipate changes, price them and evaluate creditworthiness without relying extensively on rating agencies.
French bonds surged on Monday's debt sale as their yields dropped in the first country's first auction since S&P downgrade. Successful note auction helped to improve market sentiment across Euro Zone, said Orlando Green, Credit Agricole strategist. The borrowing costs on 10-year French bills dropped 4 b.p. or 0.04 p.p. reaching 3.04%. Analysts suggest, S&P move was not a surprise,
Standard and Poor's downgraded the EFSF from AAA to AA+. European Financial Stability Facility was created to bailout indebted countries such as Ireland, Portugal and Greece. EFSF AAA rating was based on ratings of its AAA rated sponsoring nations. Yesterday two of these sponsors, Austria and France lost their triple-A credit rating and thus reduced creditworthiness of whole bailout fund.