The U.S. dollar rallied and most of the stocks were down after the Fed's Chairman Ben Bernanke's semi-annual testimony. Soon after Bernanke announced that the Fed is ready to offer extra monetary aid to a slowing down U.S. economy, U.S. markets turned lower. The Dow Jones Index erased 0.61 per cent, to 12,650.17, the S&P 500 Index dropped 0.59 per cent, to 1,345.64 and
During today's New York session oil was trading near its record level in seven weeks on concern over Ben Bernanke's report, worsening tension with Iran and on data about declining U.S. supplies. Oil futures for August settlement jumped 0.6 per cent, or 49 cents, to $88.92 per barrel, while Brent oil for September delivery was up 1.1 per cent to $104.50 a barrel.
On Tuesday, July 17, German markets advanced before the Fed's Chairman Ben S. Bernanke's report. The DAX Index rose 0.5 per cent to 6,595.66, while Daimler AG and Volkswagen AG also increased after German car sales jumped 0.7 per cent in the first half of this year. Volkswagen shares advanced 1.5 per cent to 138.90 euros and Daimler climbed 0.8 per cent to 36.84
According to the Goldman Sachs Group Inc's quarterly report, their profit is down 12 per cent, as investment inflow declined. Bank lost $306 million on investments in Industrial and Commercial Bank of China and other stocks as well. Soon after the report, bank announced the new round of cost-cutting, after what shares dropped 0.4 per cent.
The Canadian central bank decided to keep its benchmark interest rate at a 1 per cent level, while not excluding the possibility of further increase. At the same time the Bank of Canada trimmed its economic forecast by 0.3 per cent to 2.1 per cent in 2012 and 2.3 percent in the next year, while the 2014 projection was even raised to 2.5 per
Despite the fact that factories are facing the challenges from slowing down global economy, high unemployment rate in the U.S and stagnant income growth, U.S. manufacturing output increased in June. Output at factories, utilities and mines jumped 0.4 per cent, after erasing 0.2 per cent in the previous month. Moreover, capacity utilization also rose by 0.2 per cent to 78.9 per cent.
German investor confidence continues to decline for several months in a row. Index of analysts and investors expectations published by Mannheim-based Center for European Economic Research declined from 16.9 below zero in June to -19.6 in July. This reading shows predicted economic development. Austerity measures in Eurozone are slowing global growth significantly. Moreover, on Monday, July 16, the IMF decreased the following year's global growth forecast from
Bill Gross, co-founder of Pacific Investment Management, stated on Monday, July 16, that the USA is just near recession period. Commerce Department presented readings, showing that retail sales declined by 0.5% in June. Moreover, employment increase did not reach its estimated level. Citing Labor Department report, 80 000 people were newly employed in June 2012, though the projected increase was 100 000. Government securities
The Office for National Statistics announced today in London that UK inflation fell in June. In May 2012 consumer prices increased by 2.8%, whereas in June inflation reached two and a half year low of 2.4%. Clothes and Footwear prices declined by 4.2% in June, the biggest loss for this month in UK's modern history. Core inflation, the one that excludes food, tobacco, alcohol and
Last week Mariano Rajoy, Spain's Prime Minister, introduced new austerity measures to deal with country's budget deficit. Analysts predict that in consequence of this Spanish borrowing costs might decline on Tuesday, July 17. On Monday, July 16, one-year bill decreased from 5.074% to 3.5%, though 18-month bill's interest rate fell from 5.107% to 4%. Moreover ,experts fear that tightening fiscal policy could bring Spain into
On Tuesday, July 17, the Bank of Japan reduced 0.1% interest rate for ten-year government bonds that have less than a year until maturity. This rather technical action is intended to stimulate easier purchasing at market operations. Japan decided not to stimulate the economy as its peers do, but rather rely on robust national demand.
European stocks rose following expectations about possible Ben S. Bernanke, Fed Chairman, hints about further encouragement at his semi-annual statement to Congress. CSR Plc plundged 36%; L`Oreal SA increased 1.4%; Alcatel-Lucent SA rose 12%. The Stoxx Europe 600 Index benefited less than 0.1%. The benchmark measure has accessed its seventh gains' week. Asian shares and U.S. index futures also climbed.
The situation in Eurozone worsens and unemployment rises, exceeding 11%. The European Union continuously forces Greece to introduce more austerity measures. The country already cut public spending significantly, trying to deal with budget deficit. However, the economy continues to contract and the country could soon become unsustainable. The output for 2012 is likely to fall by 7-9%, while in the following year contraction might amount
June foreign direct investment in China declined 6.9% compared to May as companies do not feel the need to expand on the back of economic recession. According to the Commerce Ministry representative Shen Danyang, the European Union crisis is the biggest downward pressure. Higher production costs and stricter property policy in China also facilitated the decline.
On Monday afternoon, July 16, Ben S. Bernanke, Fed's Chairman, announced that new monetary easing might be introduced to support the US economy. The instant response was the US Dollar depreciation against its major counterparts. The Greenback declined by 0,1% to USD 1.2283 against the Euro on Tuesday morning, July 17, in London. Moreover it lost 1.1% against the Yen and was trading at JPY 78.87
Canada's ten-year government bond's yield reached record low of 1.598% after Ben S. Bernanke, chairman of the Federal Reserve, presented a report card. Declined demand for Canadian securities also influenced the prices. Only USD 25.7 billion government bonds were purchased in May. On Monday, July 17, afternoon in Toronto the Canadian Dollar lost 0,1% against the US Dollar. It is now trading at USD 0.9852
The German Constitutional Court postponed its decision on resolving European debt crisis until September 2012. The European Stability Mechanism (ESM) of EUR 700 billion was supposed to come into force on the 1st of July 2012, however, member countries still need to ratify this measure. Germany claimed it contradicts with its constitution and currently no decisions can be made until the German top court resolves the
Real estate sellers in London cut prices in July due to increase in supply and typical summer fall in demand. Prices declined by 3.6% or, on average, to GBP 460,304 in comparison to June 2012. In England and Wales fall was a bit smaller, 1,7%. Moreover, Ernst & Young specialists imply house prices might drop by 2% more this year. This means that in
On Monday morning, July 16, the Euro reached three and a half year low against the British Pound. Worries around the ECB and Mario Draghi's (President of ECB) statements make situation around the European currency even more complex. The Euro now is trading at GBP 0.7855 in London, which is a record low since November 2008. Though German government bonds increased in prices. 10-year bonds gained
The main inflation index in India declined from 7.55% in May to 7.25% in June, while food inflation still hits the records reaching 10.81% in comparison with 10.74% the last month. Fuel inflation went down to 10.27% from May's 11.53%. India has the biggest inflation rate among other BRICs countries.
Monday survey demonstrated that U.S. companies are not planning to employ more workers and to rise firms' shares due to the Eurozone debt crisis which reduces sales of the companies. The National Association for Business Economics stated that in the next half-year only 23% of the all interviewed companies are going to hire new employees, whereas its Spring research showed
The slowest growth of China's economy might decelerate PC market expansion. Research conducted by Robert W. Baird & Co, financial advisory firm, showed that the PC industry could stay flat in 2012 i.e face no growth. Though industry researcher, Gartner Inc., expects a slight expansion of 2.7%. Gartner's report shows that globally shipments of PC declined by 0.1% to 87.5 million items in the second quarter
The German two year interest rates remain negative for a week already, having dropped 0.01% to -0.055%, while the five year yields reached a new record low value of 0.283%. The borrowing costs have rapidly increased as investors rather bought German bonds to avoid dealing with states facing the debt crisis.
ZTE, Chinese mobile telecommunications manufacturer, dropped 16% following its expectations of half-year profits to decline at around 80%. It appeared after reports about possible FBI probe in relation to the ZTE sale of forbidden surveillance systems to Iran. ZTE shares dipped on Monday to 10.32 Hong Kong Dollars.