Farm commodities dropped on Tuesday as crop conditions in the top-growing regions continued to improve. At the same time, economic instability in the Eurozone continued to dampen investors' risk-appetite.Wheat posted the largest fall in the last four weeks on speculation that rains are likely to revive crops in Russia and Ukraine. Adding to global supplies, US started harvesting wheat crops.Corn
Economic confidence in the Euro zone decreased more than anticipated in May. The gauge decreased by 2.3 from April and slid to 90.6, the lowest level in more than two years. Economic sentiment amongst European manufacturers decreased further and was -11.3, the lowest in almost one and a half year. Confidence in the service sector decreased to -4.9 while consumer confidence
Asian shares fell on Wednesday as China's policy makers announced the government won't implement a large scale monetary stimulus. Japan's Nikkei Stock Average lost 0.3%, Shanghai Composite index declined 0.2% and South Korea's Kospi gave up 0.3%. Hong Kong's Hang Seng index plunged 1.9% and Australia's S&P/ASX 200 deteriorated 0.5%.
The European Central Bank expressed their strong disapproval with Spain's strategy to bailout Bankia by utilizing EUR 19 billion in sovereign debt, which may jeopardize the bank to break the law prohibiting financing governments by the central bank. Moreover, Bankia has been severely criticized when its parent company announced its promise to provide a pension package totaling at EUR 14 million to its former O.C.
Investors are switching their confidence to the dollar as price of crude-oil dropped below USD 90 on Tuesday 29 May. The key reason for the decline was the uncertain situation in Spain as its credit rating was downgraded to B. In addition, Greece's current state adds to the pressure and anxiety grows over the potential drop in the demand for oil.
Bank lending to private sector in Europe increased by EUR 10b in April after a EUR 8b drop in march. It is seen as a direct impact of cheap loans provided by ECB to commercial banks. Bank lending to national governments, on the other hand, decreased by EUR 6b after a EUR 34b increase in April. Specialists state that this
Economic confidence in the Eurozone faded more than analysts expected in May as Greek election results boosted concerns about the collapse of Euro. An index measuring consumer and executive sentiment deteriorated from 92.9 in April to 90.6 in May, European Commission reported on Wednesday. Analysts predicted a smaller drop to 91.9.
Hong Kong's stocks plunged on Wednesday after Chinese government rejected plans for large-scale monetary accommodation strategy. Policy makers claimed there is no intention to repeat massive intervention as it was done in 2008. Hang Seng index tumbled 1.92% or 365.24 points and settled at 18,690.22. Financials drove the index down. Bank of Communications fell 1.4% and China Life Insurance dropped
Japan's Nikkei Stock Average fell on Tuesday as hopes for large scale Chinese stimulus faded. Moreover Spanish debt downgrade and surging borrowing costs weighed on investor sentiment. Nikkei 225 index dropped 0.28% or 23.89 points to 8,633.19 with financials tumbling most. On the upside Olympus jumped 4% on rumours the company is considering a capital alliance with Panasonic. Aozora Bank
Dow Jones Industrial Average index appreciated sharply on Tuesday as data indicated the American housing market is likely to stabilize. Lower than predicted US consumer confidence did not manage to offset gains for the index. Blue Chip index surged 1.01% or 125.86 points and closed at 12,580.69 with 28 of 30 stocks posting gains. Bank of America rallied 4% as
S&P 500 index rallied on Tuesday despite unexpected drop in US consumer confidence. Investors returned from a Memorial Holiday and anticipated news about possible China monetary easing and optimistic Greek polls results. US benchmark jumped 1.11% or 14.60 points and finished at 1,332.42. The biggest US coal manufacturer Peabody Energy added 5.6% after Goldman recommended buying its stocks. Western Digital
China has announced that its current stimulus plan will not be of the same scale as its CNY 4 trillion (USD 630 billion) package in 2008. Ben Kwong, COO of KGI Asia, highlighted that this time the funding will be more sector-specific with some of the key industries being the automotive and rail sector, appliances as well as the government is concerned with taking into consideration
Despite the obvious concerns regarding Spain's means to fund the recapitalization on its 3rd largest bank Bankia, there are other areas building even stronger anxiety. Some of these include approximately 2 million unoccupied homes, growing unemployment rate of 25%, which has already reached its peak in Europe, continuously slumping economy as well as declining by 17% municipal budgets. Moreover, Desmond Lachman believes that Spain being the
Gold fell sharply on Tuesday after Spain's credit rating downgrade. Egan Jones decision strengthened the greenback and affected negatively the dollar denominated precious metal. Gold to be delivered in August plunged 1.3% or USD 20.20 to USD 1,551 an ounce. June Gold contract lost similar amount and traded at USD 1,548.70 an ounce.
The crude prices declined for the second consecutive day on Wednesday ahead of US supplies report which is expected to show that stockpiles increased to the record high since 1990. Oil to be delivered in July fell by USD 0.61 to USD 90.15 per barrel. July Brent oil shed 0.4% or USD 0.44 to USD 106.24 per barrel.
The yields for Spanish 10-year bonds rose sharply on Wednesday after Egan Jones cut the credit rating of nation's sovereign debt to B. Egan Jones decision sends Spanish notes to junk status. The borrowing costs for Spanish 10-year benchmark bills soared to 6.5b.p. to 6.475% in Wednesday morning.
The crisis management strategy in Iceland is making the next property bubble, National Registry warned on Wednesday. The value of new homes has jumped to a record high last quarter. The prices have accelerated 40.1% compared to the last quarter of 2010. The average housing prices have gained 11.3% compared to a deepest downturn period in 2009. Analysts warn the current price development may result in
US equities experienced a successful session on Tuesday despite a drop in consumer confidence. US investors returned from holiday and anticipated new from Greek polls and China's intention to implement monetary stimulus. S&P 500 index added 1.11% or 14.60 points and finished at 1,332.42, Dow Jones Industrial Average climbed 1.01% or 125.86 points and closed at 12,580.69. Nasdaq Composite gained
European equities ended a rather choppy session mostly in green area as hopes for Chinese monetary stimulus lifted investor sentiment. Stoxx Europe 600 climbed 0.8% and French CAC 40 index rallied 1.4%. Spanish benchmark IBEX 35 kept falling and dropped 2.3% yesterday pushed down by national banks. UK FTSE 100 gained 0.7% and German DAX jumped 1.2% supported by car
The governor of the Bank of Spain Ordonez decided to resign one month earlier in June 10, the central bank of Spain reported on Wednesday. Ordonez's successor will overtake his task of persuading investors Spain's banking industry won't need an overseas bailout. Spain's PM supported governor's decision.
Aussie weakened against all its major counterparts after data showed country's retail sales unexpectedly contracted in April, stimulation pressure on RBA to cut interest rate in order to promote growth. Australian currency declined 0.5% versus US Dollar to USD 0.9796. New Zealand Dollar dropped 0.3% against greenback to USD 0.7604. Currently AUD/USD is trading at USD 0.9798 and NZD/USD is trading
The retail sales in Australia unexpectedly fell in April, posting a drop for the first time since March 2011, sending country's stocks, borrowing costs and currency lower. Retail sales declined 0.2% to USD 20.7 billion in previous month from March. The sales data increase pressure on the Reserve Bank of Australia to lower further its benchmark rate. A cut from
The 17-nation currency plunged nearly to two-year record low versus greenback after Egan-Jones Ratings cut Spanish sovereign rating from BB-to B. The Euro depreciated to USD 1.2468 in Asian trade and hit JPY 99.05 versus Japanese currency. Euro has dropped 6.3% versus Yen in May. Currently EUR/USD is trading at USD 1.2469 and EUR/JPY is trading at JPY 99.09.
Egan-Jones Ratings downgraded Spain's national credit rating from BB- to B on Tuesday citing country's weakening economic outlook. Ratings agency based its decision on record high unemployment of 24% and large scale bank losses of more than EUR 260 billion. The difference in borrowing costs between German and Spanish bills climbed to the highest level since the introduction of common currency. Euro