China announced that its rare earth resources in top-mining areas are falling with accelerating pace while the most of the original reserves are almost depleted. China's officials attributed the fall to illegal mining and excessive exploitation. Meanwhile, China attempts to protect rare earths exports by imposing quotas but increasing demand for electrical goods production creates a threat for China's resources.
Italian new industrial orders fell in April, after posting an increase in March, according to STAT. New industrial orders dropped by 1.9% in April on a seasonally adjusted basis as compared to a 3.5% gain in the preceding month. Experts predicted the industrial orders to drop by 3.5%. After the data release, the Euro depreciated against the greenback by 0.08%,
Australia's real estate sector shank by 25% in Q1 on an annual basis, reported Australian Bureau of Statistics. The sector posted contraction for fourth quarter in a row. Instable global economy and poor domestic demand both contributed to a weakness of the property sector. Experts claim that housing sector is the weakest sector in the country's economy.
Crude oil declined in European morning session on Wednesday as market participants await outcome of FOMC meeting due later in the day. Moreover, traders anticipate EIA report on US stockpiles also due later in the day. Light, sweet crude oil futures for July delivery traded at 83.59 US Dollars per barrel on the New York Mercantile Exchange, dropping by 0.45%.
Gold prices were slightly lower in European session on Wednesday ahead of key decision from the Fed due later in the day. Traders also eye developments across Greece‘s and Spain's economic situations. COMEX gold August contract traded at 1,618.25 US Dollars per troy ounce on the New York mercantile Exchange, inching down by 0.3%.
Italian and Spanish bond yields have declined after G-20 summit participants hinted that Eurozone members have to lower borrowing costs in the single currency union. However, G-20 leaders provided no further details on the issue. The yields on Spanish and Italian 10-year sovereign bonds dropped to 6.96% and 5.85%, respectively.
Japan's Nikkei Stock Average followed US market trend and posted a strong gains on Wednesday on hopes for stimulus for the world's largest economy. Nikkei 225 index surged 1.11% or 96.44 points 8,752.31. Financial firms rallied most in the Asia. Daiwa Securities Group jumped 4.5% and Nomura Holdings added 4%. Sumitomo Mitsui Trust Holdings ascended 4.3% on news its plans
Shares in Hong Kong advanced on Wednesday following speculations about possible extension of "Operation Twist" program provided by the Federal Reserve. Hang Seng index gained 0.62% or 119.98 points and finished at 19,530.56. Resource shares had a strong session as commodity prices accelerated. Aluminum Corp. of China surged 2.7% and Jiangxi Copper added 1.7%.
Dow Jones Industrial Average retreated from yesterday's loss and traded higher on Tuesday supported by financials and other growth dependent companies which hoped for extra stimulus from Fed. The decision is due to be announced today. Blue chip index gained 0.75% or 95.51 points and ended at 12,837.33. Bank of America surged 4.5% after Federal Housing Finance Agency announced it
S&P 500 index experienced a relatively successful session on Tuesday and hit a one-month record high as investors awaited the Federal Reserve will confirm additional measures to support struggling economic growth. US benchmark added 0.98% or 13.20 points and finished at 1,357.98. Energy shares supported index on the upside. US Steel extended rally and added 9.5% on better home construction
On Wednesday, the British Pound held steady versus the U.S. Dollar, as traders eyed upcoming comments from the Bank of England. GBP/USD hit the bottom at 1.5774, and consolidated at 1.5729, gaining 0.02% in the European early trading hours. The pair's support was likely to be found at 1.5614, while near-term resistance could be at 1.5756.
Futures for crude edged lower in European morning hours on Wednesday, as market sentiment was determined by Fed's comments and U.S. crude oil inventory data, which will be announced later today. On the NYMEX, July delivery futures of light sweet crude oil were traded at USD83.59 per barrel, losing 0.45% in European morning trade. August delivery contracts lost 0.5% and reached USD83.94.
Futures for gold were slightly lower in range bound trade on Wednesday in European early hours, as market sentiment was determined by Fed's two-day policy meeting. On the Comex, contracts for August delivery of gold were traded at USD1,618.25 per troy once, slipping 0.30% in early European trade. Support could be found at USD1,559.35, and resistance was likely to be at USD1,642.15.
Futures for crude dropped in Asian trading hours on Wednesday, after China and U.N. Security Council nations agreed to continue talks with oil-rich Iran. On the NYMEX, Augusts delivery futures for light, sweet crude were traded at USD84.09 per barrel, easing 0.30% in the Asian trade. Earlier, contracts reached a session high at USD84.53.
Sumitomo Mitsui Trust Holdings which is the fourth largest Japanese lender by market value is considering to increase the size of foreign loans by 32% through 2012. The target would expand bank's abroad lending by JPY 900 billion to JPY 2.8 billion. Japanese banks are gaining market share in Europe as region's lenders are struggling with European debt crisis.
European equities closed mostly up on Tuesday lifted by resource shares as Spain managed to successfully sell bonds. Stoxx Europe 600 soared 1.6%, British FTSE 100 added 0.4% and German DAX jumped 1.8%. French CAC 40 index rallied 1.7% while Spanish IBEX gained 2.7%. Athens General Index rocketed 3.8%.
US main share indices rallied on Tuesday spurred by news the Federal Reserve in its meeting is discussing measures to stimulated economy. S&P 500 index added 0.98% or 13.20 points and finished at 1,357.98. Dow Jones Industrial Average gained 0.75% or 95.51 points and ended at 12,837.33. Nasdaq Composite surged 1.19% or 34.43 points and settled at 2,929.76.
The Bank of England announced the risks of excess inflation has eased in last few months and economy may be ready for another monetary stimulus as European debt turmoil harms UK. Data released yesterday showed inflation fell from 3.0% in April to 2.8% in May, a lowest CPI reading since December 2009.
The New Zealand and Australian Dollar depreciated versus greenback as surging Spanish yields fuelled investor worries about Europe outlook. Spain is holding bond auction tomorrow. Aussie shed 0.1% versus US Dollar to USD 1.0182 and Kiwi sank 0.4% to USD 0.7952. Currently AUD/USD is trading at 1.0187 and NZD/USD is trading 0.7953.
The 17-nation currency weakened on Wednesday ahead of Spanish bill auction tomorrow as European officials keep struggling to tackle region's debt turmoil. Demand for Dollar was lower as investors awaited the results of Fed two day meeting which concludes today. Euro slipped 0.1% versus greenback to USD 1.2672. Currently EUR/USD is trading at 1.2675.
European officials are adding pressure on Cyprus to accept a full rescue package worth around EUR 10 billlion (USD 12.7 billion). In contrast Cyprus currently is interested in restricting any external help to its financial system. Cyprus also is in talks with Russia about possible loan. Cyprus does not want to accept bailout money since it will be required to fulfil the
Greece's political leaders today are entering the third day of talks about forming a coalition that would fulfil EU obligations and secure rescue funds for the indebted nation. The leader of Socialist Pasok party Venizelos expects the new government might be created today. Antonis Samaras is aiming to create a strong coalition with 179 seats of 300 merging three parties: New Democracy
The Japanese trade gap widened in May due to Spain's and Greece's debt crisis which harmed European region's demand for exports. The total shortfall amounted to JPY 907.3 billion (USD 11.5 billion) data showed today in Tokyo. Although exports have climbed 10% on yearly basis the imports also have exceeded estimates. Shipments to European Union declined 0.9% while added 38%
The Euro held steady on Tuesday versus the Japanese Yen, as investors were focused on Greek attempts to form a coalition government and on upcoming Federal Reserve meeting. EUR/JPY peaked at 99.67 in European afternoon trading hours, and later consolidated at 99.56, gaining 0.05%. The support is likely to be found at 98.69, while resistance may be at 100.34.