S&P 500 index rallied on Tuesday lifted by more optimistic global growth forecasts from IMF and Spain bond auction results. US index gained 1.55% or 21.21 points and closed at 1,390.78. First Solar rocketed 10.3% on news its will eliminate 2000 jobs through 2012 and cut production output. Apple recovered and surged 5.1% ahead of its quarterly results due next
Energy commodities attempted to equilibrate waning supply risk premium and improving demand prospects.Crude oil was the top gainer as reversal of the Seaway pipeline in the US, which is aimed at easing supply glut in the country, is planned to be completed ahead schedule.Brent oil fluctuated between gains and losses as talks between Iran and six major economies will be
Industry metals balanced between flat US industrial output last month and the IMF report on better global economic perspectives.Aluminum found support on the expectation for production cuts whereas falling trading volume limited the gains.Copper jumped above 8,000 US Dollars per ton along with tightening supply as Rio Tinto announced an unexpected drop in red metal's output. However, weak China's demand
Precious metals were supported by mixed real estate data from the US that added speculation about the next Fed meeting's outcome. Successful Spain's bond auction that eased concerns across the Euro Zone's debt crisis also bolstered the commodity group.Gold was the only loser as the yellow metal lost its safe-haven appeal after the IMF upgraded global growth forecast for 2012
Bank of Spain reported that the banks of the country need additional provision of funds of about 53.4 billion Euros. The central bank of Spain has recently approved recapitalization operations, in which five out of 11 largest banks will take part. The recapitalization plans include mainly mergers and acquisitions and may bring positive results.
China's economic expansion is likely to decelerate this year to 8.2% but it is expected to rebound next year, reported the IMF. The main drive for the country's economy will be domestic consumption, the fund added. The IMF report boosted hopes that China will escape hard landing despite drastic measures to slow down overheated economy.
US industrial production was almost unchanged in March, remaining unchanged for the second month in a row, according to the US Federal Reserve. Experts predicted the US industrial production to advance by 0.3% last month after steady figure in February. However, the capacity utilization rate declined to 78.7% in line with forecast from 78.7% in February.
The auto sales in Italy tumbled by 26.7% last month on an annualized rate, indicating the largest fall among the EU countries. The overall car sales in the EU dropped by 7.0% in March, declining to the 14-year low, reported an Association of European Automakers. The second largest slump was in France where car sales decreased by 23.2% in March
The Bank of Canada kept its core interest rate at 1.00% in April, unchanging the rate for the 13th month in line. The decision was broadly expected. The central bank of Canada also warned that in view of stabilizing economic outlook and accelerating inflation more prudent measures may be considered.
The IMF expects the overall economic growth to accelerate this year as the Euro Zone started to show signs of recovery after severe debt crisis. Moreover, US economic performance also improved. The IMF predicted the global economy to grow by 3.5% in 2012 as compared to the previous expectation for a 3.3% expansion. However, the fund stressed that another wave
Gold futures declined during Asian session on Wednesday, erasing previous gains made due to upgrade of the global economic outlook by the IMF. Moreover, successful Spanish debt auction and a rise in the German sentiment index also supported the yellow metal in Tuesday's sessions. However, stronger US Dollar in Asian trading hours sent COMEX gold for delivery in June by
The Bank of Japan reported that it is ready for more accommodative policy to boost economic activity and avoid deflation. It is necessary to readjust monetary policy to speed up sluggish recovery and increase further growth potential for curbing deflation, said Kiyohiko Nishimura from the BoJ. The Bank of Japan has to make efforts to achieve its target inflation rate
Crude oil futures eased up during Asian session on Wednesday, approaching two-week high after inspiring German sentiment data as well as successful Spain's auction spurred hopes for better demand prospects. Light, sweet crude oil futures for June delivery traded at 104.74 US Dollars per barrel on the New York Mercantile Exchange, rising from the previous session's low of 104.61 US
Spanish climbing proportion of bad loans are casting doubt about successful bank clean-up without damaging public finances. The proportion of non-performing loans versus total lending rallied to 7.91% January, the highest figure since 1994, Bank of Spain reported on Wednesday. Additionally credits is diminishing while defaults are climbing amid unemployment rate of 24%.
US building permits rose unexpectedly last month, topping three and a half-year high, reported the US Census Bureau. The number of US-issued building permits gained 4.5% in March on a seasonally adjusted basis, hitting 0.747 million while analysts predicted the figure to advance by 0.7%, attaining 0.710. However, the situation in the US real estate market remained mixed as new
Canadian Dollar appreciated sovereign bonds declined after the Bank of Canada indicated it may raise borrowing costs since inflation and the economic growth is likely to be faster than predicted. Canadian currency gained 0.9% versus it US peer to CAD 0.9902. Currently USD/CAD is trading at CAD 0.9890.
Aussie traded higher against most of its peers on Wednesday as Asian shares jumped after IMF improved its economic expansion prediction. Australian Dollar added 0.1% versus greenback to USD 1.0404 and jumped 0.8% against Yen to JPY 84.68. Meanwhile the Kiwi climbed to USD 0.8221 and soared 0.8% versus Japanese currency to JPY 66.92. Currently AUD/USD is trading at USD
Solar manufacturer First Solar Inc announced on Tuesday it will eliminate 2000 jobs through 2012, making the largest staff cut across solar industry since the bankrupt Solyndra fired 1100 workers on August 31. First Solar reported it also will cut production output. Solar producers are suffering from subsidy reductions in Europe and falling natural gas prices which make solar energy
US stocks soared on Tuesday as investors sentiment improved after Spanish debt auction. S&P 500 index gained 1.55% or 21.21 points and closed at 1,390.78. Dow Jones Industrial Average jumped 1.50% or 194.13 points to 13,115.54 while Nasdaq Composite surged 1.82% or 54.42 points to 3,042.82.
President Barack Obama proposed to raise criminal and civil penalties for firms and individuals who involve in market manipulation through buying large amounts of oil thus making a perception of crude deficit. Obama called for increase financing for the agency that monitors commodity markets. Republicans, however, claim President's energy policies are the main cause of the surge in oil prices.
Indonesia sold long term 10-year and 30-year government bills at USD 2.5 billion as the Southeast Asia's biggest economy is collecting benefits from relatively low yields which are closed to 8-month record. Indonesian government issued USD 2 billion of notes at 3.85% maturing in April 2022 and USD 500 million of debt at cost of 5.25% expiring at April 2042.
European stock markets rallied on Tuesday after Spain successfully sold its debt and data showing US building permits climbed more than predicted in March. Stoxx Europe 600 gained 2%, Italian FTSE 100 MIB index rallied 3.7% and IBEX 35 index jumped 2.3%. French CAC 40 index and German DAX index each added 2.7% while FTSE 100 index climbed 1.8%.
German DAX index jumped on Tuesday as data showed country's investor confidence unexpectedly surged in April, reaching a 2-year high and Euro Zone inflation remained stable at 2.7%. Additionally US building permits soared while new housing starts declined. Financials provided main upside contribution to the index on successful Spanish debt sale. Commerzbank advanced 3.2% and Deutsche Bank gained 2.5%. At
FTSE 100 index rallied on Tuesday as Spanish successfully auctioned bonds and US posted higher than expected number of building permits. Moreover data showed UK inflation unexpectedly surged in March sending pound higher versus greenback. Banks led the gains as Spanish yields declined. Barclays added 3.9% and Lloyds Banking gained 2.9%. On the downside store chains Burberry and Marks &