The Wall Street earnings from trading and investment banking at US companies my shrink for a third straight year reaching even a 30% drop compared to first quarter, Richard Ramsden from Goldman Sachs predicted on Monday. Greek crisis has had a negative impact on trading volumes. Moreover Wall Street companies are likely to reduce bonuses and jobs amid European uncertainty.
The USD 126 billion bailout package for Spanish banking system adds an extra pressure on Italian government to avoid market rout. Analysts claim the investors will carefully follow every development in Italy before trading sovereign bonds. Markets may assume that Italy is likely to follow Spain's path, analysts suggest.
European stocks edged lower on Friday after Fed rejected speculations about further monetary stimulus and Fitch Ratings downgraded Spain's debt to two notches from junk. Stoxx Europe 600 index fell 0.3% and German DAX declined 0.2%. British FTSE 100 also shed 0.2%. French CAC 40 sank 0.6%.
With the global economic slowdown and the Dollar strengthening, the US companies find it difficult to sell their products overseas. US exports fell in April, declining $1.5 billion or 0.8% from the previous month to $182.9 billion. Imports also decreased, due to deepening Eurozone's crisis and China's economic downturn, which affect US trade.
Ignazio Visco, Bank of Italy Governor, urges leaders of Group of 20 to pursue policies aimed at stimulating economic growth to avoid a new global downturn, which might weigh on a frail financial system. Mr. Visco prompts to set up a European fund in order to resolve the banking crisis. He supports the unified system of rules and supervision of
Spanish government agreed on Saturday to accept $125 billion in financial aid for Spanish banks. Prime Minister Mariano Rajoy said on Sunday that the EU bailout for the ailing banks will prop up the country's economy. "It will allow the restarting of credit to families, entrepreneurs, small and medium-sized businesses so that they can all carry out their projects," Mr.
US shares mostly advanced on Friday as investors appreciated possible rescue of Spanish banks. S&P 500 index gained 0.81% or 10.67 points and finished at 1,325.66. Dow Jones Industrial Average added 0.75% or 93.24 points and closed at 12,554.20. Nasdaq Composite climbed 0.97% or 27.40 points and settled at 2,858.42.
Crude oil hit the five-month record high on speculation demand for fuel accelerate after Spain received a rescue loan from European governments. Moreover Chinese imports of oil reached a record high. July crude climbed by USD 2.54 to USD 86.64 a barrel. Brent oil to be delivered in July rose USD 1.98 to USD 101.45 a barrel.
Canadian currency strengthened versus greenback and recorded a first weekly gain in almost two months after central bank curbed expectations about benchmark rate reduction. Moreover hiring in Canada accelerated more than projected in May. Loonie appreciated 1.4% last week to CAD 1.0266. Currently USD/CAD is trading at CAD 1.0205.
Spanish PM Mariano Rajoy's capitulation to ask for a bailout from European governments may weaken his authority, experts suggested on Monday. Rajoy's call for rescue diminishes credibility the PM will be able to meet his goals for budget deficit reduction.
The 17-nation currency strengthened versus its US peer on Monday after European officials agreed to give Spain a rescue loan. Euro hit a two-week record high at USD 1.2671 on Friday and later closed 0.9% up at USD 1.2631. Currently EUR/USD is trading at USD 1.2638.
China's exports accelerated in May faster than economists had predicted. Exports added 15.3% when compared to a previous year, customs bureau reported on Saturday. Meanwhile the retail sales and industrial output were slightly weaker than expected, confirming the PBOC decision to reduce interest rate.
On Friday, the Bureau of Economic Analysis reported that the United States' trade balance declined from −52.6 billion last month to −50.1 billion, which is more than expected since analysts had predicted it to be −49.5 billion. The figure for the preceding month was revised from −51.8 billion.
On Friday, Statistics Canada reported that the rate of Canadian unemployment held steady from the last month and was equal to 7.3%. The absence of changes was unexpected, since analysts predicted that the unemployment rate in Canada would fall to as much as 7.0%.
On Friday, Statistics Canada reported that the trade balance of Canada declined from a seasonally adjusted 0.2 billion in the month before to −0.4 billion in May. The fall is steeper than expected, since analysts predicted that the trade balance will be −0.1 billion. The figure for April was revised down by 0.2 billion, from 0.4 billion.
UK FTSE 100 index retreated from yesterday's 1.2% gain weighed down by oil resource shares and banking equities as oil prices approached longest weekly loss in 13 years and Fitch downgraded Spain. BP PLC dropped 1.4%, BG Group PLC lost 1.6% and Royal Dutch Shell PLC fell 1.5%. Royal Bank of Scotland sank 1.7% and Lloyds Banking shed 1.5%. Disappointing
German DAX index retreated from previous gains on Friday after data showed country's exports declined by 1.7% compared to March. Moreover Fitch Ratings cut the sovereign grade for Spain. Export oriented companies posted loss. Volkswagen AG fell 1.8% and BMW AG declined 1.7%. Industrial component producer ThyssenKrupp dropped most in the index, giving up 3.4%. On the upside E.ON that
On Friday, futures for natural gas decreased during European trading session. On the NYMEX July delivery futures were traded at the rate of USD2.235 per MMBtu. The support for natural gas was prone to be found at USD2.232, and resistance was likely to be at USD2.486 per million British thermal units.
On Friday, futures for natural gas grew higher in the U.S. morning trading session, as steep Thursday's decrease was greeted by bottom fishers, which pushed prices upwards. On the NYMEX July delivery futures for natural gas were traded at USD2.229 a MMBtu, gaining 1.08% since the beginning of the trading session.
Hours post Chinese central bank's announcement that it has cut the interest rates, China's five major banks have, in contrast, increased the deposit percentage. ICBC as well as other four key banks have fixed the demand deposit rate at 0.44%, which is the ceiling under the new regulations. By loosening the pricing policies, China is attempting to boost the economy whilst at the same
On Friday, stock markets in Europe closed lower on poor German export, Spanish sovereign downgrade. Fitch rating agency significantly decreased Spanish credit rating, German exports slipped 1.7%, compared to an expected 0.7% decline. European trade closed with EURO STOXX 50 0.03% increase, France's CAC 40 declined by 0.66%, and German DAX 30 fell by 0.22%.
As the European crisis continues to progress, the demand for Italian merchandise tumbles both on the domestic as well as the foreign market. Consequently, the production output fell in April by 1.9% and an overall 9.2% from the previous year. Italy entered a recession in Q4 2011 when Mario Monti attempted to resolve the debt crisis by accepting EUR 20 billion of austerity measures.
Fitch Ratings lowered Spain's credit worthiness from A to BBB, citing crisis in banking sector and deepening recession. Fitch estimates that Spanish banking industry may need around USD 126 bn to stabilize its system. Standard & Poor's currently has BBB+ rating on nation. Euro depreciated versus US Dollar to USD 1.2456 on the news.
Dow Jones Industrial Average pared most of morning gains on Thursday and edged slightly higher after Fed's Chairman Ben Bernanke said US economy need to be reviewed before make any decisions about further easing. Blue chip index added 0.37% or 46.17 points and finished at 12,460.96. Financials weighed on the index with Bank of America dropping 2.9% after previous day's