The Central Bank of Brazil predicts the country's economy too grow by 2.05% in 2012 compared to 2.18% initially projected. The reasons for growth forecast cut are high labor expenses and weaker global demand, which impacted investments in the country's economy. In view of softer economic expansion, experts expect the central bank to lower interest rates to all-time low of
Mining and drug stocks rallied, sending European stocks into positive area on Tuesday, whilst the departure of Bob Diamond, Barlays PLC Chief Executive Officer, put banks in focus. The Stoxx Europe 600 index increased by 0.5% with support of 1.7% Novo Nordisk AS benefit and 1.5% Rio Tinto PLC boost. Barclays' shares fluctuated but later finally gained 0.6%. The FTSE
According to Reis Inc., US office property market, which started to regain strength 1.5 year ago, decelerated its speed of recovery in the last three months. Increased unemployment and uncertain economic outlook both weighted down on the office market . As a result, there was no change in vacancy rate and slight lift in prices. Businesses seem to be skeptical
Four most rapidly developing markets are enriching the world's economy more than ever before, creating the biggest valuation opportunities for investors in the last seven years. In the meantime, the stock-market value of BRICs' has declined by 16% according to Bloomberg. O'Neill, who helps oversee USD824 billion, said the stock markets of BRIC are likely to double by 2020 creating
Microsoft declared that its biggest acquisition in the Internet sector was totally ineffective and "did not accelerate growth to the degree anticipated, contributing to the write-down". The company purchased aQuantive for USD6.3 billion in cash attempting to surpass Google in search-related advertising. Despite the announcement, shares of Microsoft in after-hours trading slightly changed dropping to USD30.28 after standing at USD30.56
The Euro fell against the US Dollar on Monday, after a decrease in the Treasury yields and sharp drop of the ISM manufacturing index below 50%. EUR/USD declined to USD1.2583 from USD1.2658. The US Dollar index increased to USD81.888 from USD81.658 on June 29. Weak manufacturing data and record high jobless rate in the single currency union both contributed to
In May, unemployment in Eurozone jumped to the record high level of 11.1 %. The total number of unemployed approached 17.56 million. Taken that the Manufacturing Purchasing Managers' Index currently is below 50 at 45.1, indicating rapid fall in manufacturing activity. Companies are cutting labor expenses due to the ongoing debt crisis, provoking a 14-month long increase in unemployment.
US treasury prices increased on July 2, sending the interest rates lower. Yields of 10-year bonds dropped to 1.58%. Meanwhile interest rates of 30- and 5-year bonds both declined to 2.69% and 0.67% after the Institute for Supply Management reported that their index fell below 50%. The decrease in the yields influenced the US stocks; Dow Jones Industry Average plunged
Hong Kong shares rose on Tuesday as investors returned from three-day weekend and anticipated news about official Chinese manufacturing data. Moreover another report showed country's non-manufacturing PMI expanded at faster pace than forecast in June as the real estate market and new orders advanced. Hang Seng index added 1.55% or 300.49 points and finished at 19,738.89 helped by financial and
Dow Jones Industrial Average opened higher on Monday but retreated and ended slightly lower as strongly lower than expected ISM manufacturing data weighed on production companies. Blue chip index shed 0.07% or 8.70 points and settled at 12,871.39. Manufacturers slipped on worries about the first contraction in three years. General Electric declined 1.7% while Boeing Co and Caterpillar each dropped
S&P 500 managed to breach morning losses from weaker ISM manufacturing index on Monday and finished 0.25% or 3.35 points higher at 1,365.51 after several takeovers were announced. Micron Technology Inc. gained 3.8% after reporting it will acquire an Apple Inc. supplier Elpida Memory Inc. Best Buy jumped rallied 5.9%, on news its founder is considering buying the company and
The Sterling appreciated versus the 17-nation currency on Monday as traders perceived UK national currency as a safe haven asset amid Eurozone inner conflicts regarding ESM bond purchases. The Pound gained 0.5% versus Euro to GBP 0.8023 and slipped 0.2% against the Greenback to USD 1.5682. Currently EUR/GBP is trading at GBP 0.8025.
China non-manufacturing PMI grew at faster pace than predicted last month as the real estate market and new orders advanced. The service PMI climbed from 55.2 in May to 56.7 in June, reaching a three-month record high. Nation's official production PMI was 50.2 in June compared to 48.2 estimated by HSBC Holdings.
Japanese Yen weakened against most of its counterparts on Tuesday as Asian shares rallied for a fifth consecutive week on hopes the central bank will intervene more to promote growth. Yen slid 0.6% versus Euro to JPY 100.56 and gave up 0.3% against the US Dollar to JPY 79.78.
The Reserve Bank of Australia left its key interest rate unchanged at 3.5% after two consecutive reductions in June and May.The central bank cited stronger local employment and advancing Aussie as conditions helping to curb excessive inflation.
Australian home construction permits surged in May indicating that demand for housing my climb as RBA reduced the interest rates. The number of approvals to renovate or build apartments and houses jumped 27.3% compared to a 7.6% drop in April. Economists questioned by Bloomberg predicted a 5% advance.
Production in US unexpectedly fell last month, the first drop in nearly three years, warning that slowdown in US economy may linger. The ISM manufacturing gauge tumbled from 53.5 in May to 49.7 in June, surpassing even the most pessimistic predictions. Economists questioned by Bloomberg predicted an average drop to 52. US economists suggest Europe is adding negative pressure on US manufacturing.
DAX 30 edged higher on Monday supported by technologies and financials. The index was not strongly affected by deteriorating Eurozone manufacturing activity nor record high regions unemployment level of 11.1%. The main gainer was Commerzbank that surged 2.5%. On the downside Linde AG tumbled 2.5% after German gases and engineering enterprise said late Sunday that it has offered to buy
British FTSE 100 traded higher on Monday as Barclays rebounded from Friday's slump and data showed UK manufacturing PMI climbed to 48.6 instead of predicted 46.6. Barclays rallied 3.4% as its chairman Marcus Agius resigned after the lender was charged USD 455 million for manipulating interest rates. Other financials also appreciated with SBC Holdings adding 0.9% and Standard Chartered soaring
Today Mexican Peso reached seven-week record high versus US Dollar of 13.3568 per USD. Such rapid appreciation occurred when Enrique Pena Nieto announced his victory in presidential elections. Expectation of accelerating economic growth and bigger private investment took place. Moreover Peso was one of the best performers during the first half of 2012 with a total rise equal to 4.3%
By the end of June Indonesian Rupiah managed to overcome its worst quarter for the last three years with a decline of 2.9%. The Rupiah climbed by 0.3% today in Jakarta and currently is trading at 9,400 per USD. However inflation advanced on surging food prices and reached 4.15% in May. Indonesia's export fell to 8.6% in May whereas
Despite enduring slowdown in economy US showed some positive trends in May. Household income increased 0.2% in May whereas falling gasoline prices allowed consumers to save more and brought savings rate from 3.7% to 3.9%. Meanwhile spending on durable goods fell by 0.4%, while non-durable goods met 0.8% decline, however spending on services increased by 0.3%.
Farm commodities rose on Friday amid broadly lower greenback and hopes for stronger demand after EU leaders agreed to ease debt conditions for Italy and Spain.Wheat moved higher as weaker US Dollar and dry weather in the US stimulated price increase.Corn eased up as US inventories attained 16-year low while unfavorable weather conditions continued to erode prospects for this year's
Energy commodities soared as positive outcome of the EU summit is likely to increase energy consumption. From the supply side, the commodity group also was bolstered by start of a full Iranian oil embargo.Crude oil rallied on news that the EU officials took concrete steps to combat crisis in the area. Moreover a 133,000 barrel fall in the US supplies