The US trade deficit in December widened sharply to its highest level since 2012, due to strong Dollar which spurred import, and may lower fourth quarter economic growth forecasts. The trade deficit soared 17.1% to $46.6 billion, posting the largest gain since November 2012. Meanwhile, during the previous year, the trade gap expanded 6 % to $505 billion, while the
Asian shares gained value on Friday as well as oil prices, which started to rebound after a harsh drop, while investors are waiting for the US nonfarm payrolls for January. Asia-Pacific shares rose around 0.1%, Japan's Nikkei stock average, in turn, added 0.7 %. Meanwhile, economists forecasting US payrolls decrease to 234,000 people in January, compared to 252,000 in December.
Spain will not reach its deficit target, and will show the biggest monetary gap in the Euro area, according to the European Commission. The 4.5% shortage of GDP in 2015, is higher than the Spanish government's expectations of 4.2%. Meanwhile, the Spain's Prime Minister Mariano Rajoy, has assured to decrease taxes, to be re-elected on a prospect of economic recovery.
German factory orders recovered and increased at a faster-than-expected pace in December, posting signs that Europe's biggest economy is recovering. Factory orders grew 4.2 % in December, much faster than economists' expectations for a 1.5 % increase. Meanwhile, in November, orders declined 2.4%, posting the same rate of losses as in October.
The European Central Bank renounced its agreement of Greek bonds instead for funding, implying that Athens' Central Bank is obliged to support its lenders unless it approves a new reform. The decision was taken after a meeting of Greece's new Finance Minister Yanis Varoufakis with ECB President Mario Draghi, which will be implemented starting from February 11.
Japanese stocks declined since investors are analyzing corporate earnings while the European Central Bank concentrated on Greece's bailout. Therefore, the Topix index lost 0.2% to traded at 1,413.60 while the Nikkei 225 Stock Average declined 0.7% to 17,548.40. Meanwhile, the US shares fell as well, after the ECB curbed Greek banks loans, deepening fears over Euro zone's instability.
US Treasury Securities are still considered an attractive investment, as they bring more than the debt of other developed nations. The current yield on the US 10-year bond is 78 basis points higher than the average among the G7 countries. Yields on comparable Japanese and German debt are 0.355 and 0.37%, respectively.
Weatherford International Ltd, the Swiss oil and natural gas services company, is going to slash its workforce by 5,000 positions in the next three months. The decision was taken due do a harsh drop in crude oil prices, following the footsteps of its largest competitor Schlumberger Ltd. The cuts will cover the US and a part of Western Europe, and are
Gold rallied during the last two sessions, as the safe-haven asset is supported by uncertainty in Greece and China's efforts to spur its slowing economy. The precious metal added 0.4% to $1,274.18 an ounce, advancing 7.3% this year on fears that Greece may leave the Euro area and the Fed may delay an interest rate hike.
President Barack Obama announced a new tax plan for the US corporations with overseas profit. After the new legislation companies will be obliged to pay a 14% tax on the $2 trillion of foreign earnings they have accumulated. Meanwhile, this tax could encourage local companies to revoke their US residency as well as find a foreign purchaser.
Companies in the Euro zone increased hiring, as services and manufacturing sectors in the bloc grew faster than expected. A gauge of employment rose in both industries during the January and a Purchasing Managers' Index climbed from 51.4 to 52.6 in December.
UK services companies' growth exceeded economists' forecasts, since raw material costs declined and businesses hired more employees. Markit Economics announced on Wednesday that its Purchasing Manager's Index climbed from 55.8 to 57.2 in December, excelling the average 56.3 estimation of economists.
Six banks in Europe, including HSBC Holdings Plc and Credit Suisse Group AG, went through a rating cut by the S&P ratings agency amid the prospect governments are not likely to provide support during a crisis. The EU introduced the bank-resolution law in 2014 in an attempt to prevent bailouts using taxpayers' funds that prevailed during the financial crisis.
Asian stocks climbed along with the regional benchmark index, posting their highest advance in a month, since energy and material companies rallied. BHP Billiton Ltd. added 4.4%, Mitsubishi UFJ Financial Group Inc. climbed 5.2% and Hang Seng Bank Ltd. advanced 5.2%, while the MSCI Asia Pacific Index rose 1.6% to 142.07.
UK stocks declined, retreating from September high, since a decrease in earnings weighed on Hargreaves Lansdown PLC and Vodafone Group Plc. The FTSE 100 Index fell 0.2%, or 12.35 points, to 6,859.45 as of 8:51 a.m. London time, while Vodafone sank 1.1% and Hargreaves Lansdown lost 4.2%.
En enero el sector terciario de la economía del Reino Unido experimentó un puntaje de 57,2 unidades, superando así tanto al registro de diciembre de 55,8 como a la previsión de los analistas, quienes pronosticaban que el sector servicios mejorara hasta los 56,3 puntos. Cabe mencionar que este indicador ha estado cayendo paulatinamente desde el cinco de noviembre del 2013.
The US manufacturing index decreased to a new yearly minimum of 53.5 from the 55.1 level posted in December. Consumer spending also dropped in the same month after posting strong gains during the previous months. Despite that export and production slowed in January, the comments from producers concerning the demand remain positive amid the 50% plunge in oil prices.
Spain's labour market starts to exhibit recovery, as the growth in the number of unemployed is decelerating. The amount of claims for jobless benefits rose by 77,980 in January, compared to a mean of 144,000 calculated over the last seven years. However, there are still around 4.5 million people out of work, and the jobless rate is at 24%. Higher
European shares experienced a relief, as the new Greek government refused to push with the debt haircut further. This is expected to introduce more stability into the Euro zone. Another positive factor for the equity is be appreciation of oil, the price of which has gained 15% over the past four days.
Bullion fell, after its biggest monthly gain in three years, on prospects for higher interest rate in the US. The yellow metal for immediate delivery decreased 0.7% to $1,275.04 an ounce as of 9:43 a.m. London time, and gold for April settlement dropped 0.3% to $1,275.50 in New York during the Comex.
The Euro appreciated on assurances from the new government in Greece that it will carry out financial obligations, alleviating concerns that the country may push the currency block back into turmoil. The Euro advanced 0.3% to $1.1322 as of 7:19 a.m. in New York. It also gained 0.5% to 133.17 versus the Yen.
US stocks-index futures added, signalizing that equities will climb, after S&P 500 Index headed to its biggest monthly drop in a year. The Standard & Poor's 500 dropped 2.8% previous week, while Dow Jones Industrial Average futures gained 0.4% to 17,161, together with Exxon Mobil Corp, that rose 1.8% and Advances Micro Devices Inc. that added 3.1%.
China's manufacturing growth supposedly pushed from a two year's minimum in January, while the rebound is not seen permanent due to unstable export and weak investments. According to the forecasts, PMI could reach 50.2 points compared to a 50.1 points in December, the actual figure is to be announced on February 1. Regardless of the overall weakness, the factory output
Gold extended the decline, since investors are waiting for higher US interest rates after the Fed announced positive economic outlook, simultaneously considering global risks. Precious metal dropped 0.5% to $1,278.27 per ounce, while April's delivery Gold declined 0.3% to $1,283.20 an ounce. Silver plunged 0.9% to 17.84 dollars per ounce.