US shares retreated from previous sessions' rally and traded lower on Tuesday as news from China put negative pressure on stocks. S&P 500 index fell 0.3% or 4.23 points to 1,405.52, Dow Jones Industrial Average edged down 0.52% or 68.94 points and settled at 13,170.19 while Nasdaq Composite tumbled 0.14% or 4.17 points and finished at 3,074.15.
Chinese leading lenders are expected to report record-high net income for a fifth straight year. Nevertheless 2011 results are likely to be overshadowed by a surge in bad loans. Industrial & Commercial Bank of China and its four largest Chinese competitors are predicted to post a 15% surge in fourth quarter net profit. However, analysts warn that non-performing loans in local banks
UK inflation level eased at slower pace than expected in February, indicating uncertainty that price load will not decline as fast as the government and the BoE hope. British CPI slowed from 3.6% in January to 3.4% in February compared to expected 3.3%. Dropping inflation is perceived as crucial factor to help struggling economy to gain momentum via increase in spending.
European stock markets posted losses on Tuesday as investors digested news China's demand for resources is likely to slow and auto makers fell after China decided to raise gasoline and diesel prices. Stoxx Europe 600 fell 1.1%, German DAX tumbled 1.4% and French CAC 40 index slipped 1.3%. British benchmark FTSE 100 index lost 1.2%.
Housing start ups settled close to 3-year record high in February indicating that sector is stabilizing, Commercial Department said on Tuesday. The number of new home start ups was at annual 698 000 matching analyst expectations. Meanwhile building permits unexpectedly surged to annual 717 000, the highest reading since October 2008. Economists earlier predicted an increase to annual 686 000.
Rural commodities were mixed with advancing sugar and coffee and falling grains amid broadly lower US Dollar. Wheat and corn futures came under pressure as US planting conditions improved after rains and as Russia announced it would not impose any restriction on the grain exports this year. However, adverse crop conditions in the EU and drought in Brazil may create
Energy commodities were mixed on Monday amid depreciating US Dollar and lingering supply disruption concerns. Brent and crude oil continued to be exposed to the key macroeconomic data from the US and China. Fed announcement that the US economy still faces challenges on its way to recovery created downward pressure on the commodity group. At the same time, escalated geopolitical
Base metals advanced on Monday amid broadly weaker US Dollar and growing energy prices. The industry metals pack continued to balance between the positive headlines from the US and signs of stagnation in China's economy. However, improving situation in the Euro Zone after the Euro Zone leaders agreed on the second Greek bailout package continued to push the growth-sensitive commodities
Precious metals eased up on Monday on the weaker US Dollar and mixed equities. Moreover, the commodity group gained a spree as Fed is still undecided on whether to embark on the next round of quantitative easing. However, the easing measures are not highly likely taken the steady recovery of the US economy. Gold was the driver for the group
Rural commodities were mixed with advancing sugar and coffee and falling grains amid broadly lower US Dollar. Wheat and corn futures came under pressure as US planting conditions improved after rains and as Russia announced it would not impose any restriction on the grain exports this year. However, adverse crop conditions in the EU and drought in Brazil may create
German DAX index fell on Tuesday pushed down by heavyweight car makers as China increased diesel prices 7% and gasoline prices 6.4%, raising worries about vehicle demand. BMW AG posted the biggest loss for DAX and tumbled 4.8%. Daimler AG dropped 4.4% and Volkswagen AG declined 4.2%. Financials added additional negative pressure with Deutsche Bank and Commerzbank giving up 1.5%
Energy commodities were mixed on Monday amid depreciating US Dollar and lingering supply disruption concerns. Brent and crude oil continued to be exposed to the key macroeconomic data from the US and China. Fed announcement that the US economy still faces challenges on its way to recovery created downward pressure on the commodity group. At the same time, escalated geopolitical
Base metals advanced on Monday amid broadly weaker US Dollar and growing energy prices. The industry metals pack continued to balance between the positive headlines from the US and signs of stagnation in China's economy. However, improving situation in the Euro Zone after the Euro Zone leaders agreed on the second Greek bailout package continued to push the growth-sensitive commodities
Precious metals eased up on Monday on the weaker US Dollar and mixed equities. Moreover, the commodity group gained a spree as Fed is still undecided on whether to embark on the next round of quantitative easing. However, the easing measures are not highly likely taken the steady recovery of the US economy. Gold was the driver for the group
Australian S&P/ASX 200 Index tumbled on Tuesday as BHP Billiton's announcement about slowing China's demand for resources weighed down on South Pacific index. S&P/ASX 200 Index fell 0.37% or 15.80 points and finished at 4,275.00 driven down by resource stocks. BHP Billiton lost 0.6%, Rio Tinto edged down 0.4% and Fortescue Metals Group slipped 1%. On the upside the index
Hong Kong's Hang Seng index fell on Tuesday after mining company BHP Billiton claimed Chinese demand was declining indicating economic slowdown. Hang Seng index tumbled 1.08% or 227.05 points and settled at 20,888.24. Resource stocks posted the biggest losses in Hong Kong: Jiangxi Copper slipped 2.4% and China Petroleum & Chemical lost 3.9%. Sun Hung Kai Properties shed 2.4% on
British FTSE 100 index extended losses on Tuesday after BHP Billiton announced the demand for iron ore from China was falling. Resource stocks weighed heavily on the index with BHP Billiton tumbling 3.4% and Fresnillo slipping 4.4%. Rio Tinto and Kazakhmys lost 3.7% and 2.8% respectively. Banking shares declined after data showed UK inflation climbed 3.4% and remained above BoE
Dow Jones Industrial Average index traded close to flat on Monday as trading volumes were low and investors paused after recent rally. Blue chip index added 0.05% or 6.51 points and closed at 13,239.13 with energy and financial stocks marking the most notable gains. 17 of 30 Dow stocks ended up in green area. On the upside American Express surged
S&P 500 index strengthened to an almost four record high on news Apple Inc prepares to pay dividends and buy back its stock. US benchmark advanced 0.4% or 5.58 points and finished at 1,409.75. Apple surged 2.7% and UPS jumped 3.4% on announcement the company increased its bid for TNT Express NV by 5.6%. Morgan Stanley added 2.7% after lender
Canadian Dollar appreciated close to the strongest value since September as US shares lifted S&P 500 index to four-year record high. Canadian currency, which is highly dependent on global economic expansion and demand for resources, gained 0.5% versus greenback to CAD 0.9869 on Monday. Currently USD/CAD is trading at CAD 0.9878.
Royal Bank of Scotland has decided instead of selling shut some of its divisions in Singapore, South Korea and Indonesia. RBS, the biggest British State-owned bank will start reforms today with closing equity capital markets, corporate finance units and cash equities in South Korea. RBS has eliminated in total 30 000 working places since its rescue.
US shares advanced on Monday lifted by Apple Inc's decision to issue dividends amid improved home builder sentiment. S&P 500 index gained 0.4% or 5.58 points and finished at 1,409.75, Dow Jones Industrial Average index added 0.05% or 6.51 points and closed at 13,239.13 while Nasdaq Composite surged 0.76% or 23.06 and settled at 3,078.32.
The China's government is moving towards allowing to trade country's currency more freely, said Wen Jiabao, China's PM. He also stressed that the Yuan free trade will be allowed ‘at the right time'. The additional reforms and financial regulations are necessary for internationalization of the Yuan, he added.
China and the Inter-American Development Bank (IDB) have reported that they plan to set up a fund worth 1 billion US Dollars aimed at developing markets of Latin America. The fund will provide financial backup for private and public sector projects as well as it will invest in equity markets. The Export-Import Bank of China and IDB will provide 150