On Wednesday, futures for copper were surging in the European morning trading session, as Italy witnessed an increase of the borrowing costs. On the NYMEX, July delivery futures for copper were traded at USD3.364 per pound, which was a gain of 0.85% since the beginning of the European morning trading session.
Farm commodities dropped on Tuesday amid dismal demand prospects in the light of fiscal difficulties in Spain and Italy.Wheat was the top-loser, sliding the most in a week after USDA reported that world's inventories are likely to be larger than forecast.Corn followed bearish trend as demand is weakening while supplies are expected to be ample due to high US crops
Energy commodities were mixed on Tuesday, balancing between bleak demand outlook and falling crude oil inventories in the US.Crude oil rose by 0.75% after API reported that Cushing, key US hub, faced a fall in the crude oil inventories last week.Brent oil was the top-loser ahead of OPEC meeting due on Thursday. Iran, Venezuela and Angola called Saudi Arabia to
Industry metals tumbled on Tuesday on lingering concerns over the Eurozone's economy after Spanish 10-year bond yields moved closer to 7%, level considered to be unsustainable. Aluminum extended losses as China's aluminum production approached record high level even despite capacity reduction in Henan province. Copper lost 0.34% after disappointing manufacturing data from the UK. UK's manufacturing output dropped by 0.7%
Precious metals rallied on Tuesday as safe-haven appeal of the commodity group increased after Spanish costs of borrowing neared 7% and Fitch downgraded 18 Spain's banks.Gold gained 0.81% as hopes for easing measures from the Fed rose. Charles Evans, Fed official, said that he would back up additional easing to support US labour market.Silver was the top-gainer amid stronger global
On Tuesday, official data showed that the federal budget balance of the U.S. dropped less than it was previously expected. Department of the Treasury reported that the budget balance sank to −124.6 billion dollars in May, from a seasonally adjusted 59.1 billion in April. Analysts, however, predicted that it would deteriorate to −125.0 billion.
German 30 year yields increased by 14 basis points and reached 2.21%, the highest level since mid May by 12:00 a.m. GMT today. 10 year yields rose by 9 basis points and reached 1.52%. The 2.5% security, maturing in mid 2044, lost 3.47 Euros from its value and declined to 106.9. Specialist state that such developments are due to the believes that Germany will
Italy faced soaring borrowing costs at today's 12-month auction as worries that the country will need bailout lingered. Italian Treasury sold targeted amount of 12-month sovereign bonds worth 6.5 billion Euros generating the yield of 3.972%, the highest mark since December 2011. Meanwhile, the yield on 10-year government's bonds inched down from 6.22% to 6.10% after the auction.
Wheat futures climbed in European morning session on Wednesday as concerns that Australian production may fall by 6.2% in 2012-13 season supported the price. Weaker greenback also boosted appeal of dollar-denominated commodities. Wheat futures for delivery in July traded at 6.2125 US Dollars per bushel on the New York Mercantile Exchange, adding 0.15%.
The U.S. exempted seven more countries from financial sanctions for importing Iranian oil into their domestic markets. Hillary Clinton stated that South Korea, India, South Africa, Turkey, Taiwan and Sri Lanka will avoid penalties in the upcoming 6 months as they have considerably decreased the volume of imported oil from Iran. As concerns China and Singapore, the two economies have not received an exemption; however, U.S.
Japan's Nikkei Stock Average climbed on Wednesday after nation's machinery orders surpassed estimates. Moreover ECB approved a plan to guarantee deposits. Nikkei 225 added 0.6% or 51.12 points and closed at 8,587.84. Canon weakened 1.1% as Credit Suisse reduced its price target for the equities. Commodity linked shares rose on optimism for possible stimulus. Kobe Steel climbed 2.2% and Toho
Industrial production in the single currency union dropped by 0.8% in April, according to Eurostat. The fall was not as severe as 1% decline expected. However, April's industrial output indicated that the Eurozone may fall into recession despite avoiding it in Q1, said Jonathan Loynes, chief European economist. After the data release, the Euro remained higher against its US counterpart,
The PPI in Switzerland plunged by 0.2% on a seasonally adjusted basis in May as compared to an April's decline of 0.1%, reported the Swiss Federal Statistics Office. The data is in compliance with expectations. Considering yearly moves, the PPI decreased by 2.3% last month while analysts predicted the index to fall by 2.0%. After the data release, the Swiss
Hong Kong's shares faced a relatively choppy morning traded but accelerated prior to the close and sent the main stock index higher. Hang Seng index gained 0.82% or 153.96 and settled at 19,026.52. The Esprit plunged 21%, most in the index after its CEO Ronald Van der Vis resigned. He is the second top manager that resigns in 6 months.
Singapore's economy is expected to grow by annualized 2.8% in Q2, according to survey conducted by the Monetary Authority of Singapore. The forecast is slightly higher than initial estimate of 2.5%. Participants also projected the CPI to increase by 5.2% in Q2 and the jobless rate to attain 2.2% by the end of 2012. Moreover, respondents expect USD/SGD to trade
Dow Jones Industrial Average managed to post strong gains on Tuesday despite surging Spanish bond yields and downgraded banks. Analysts explains the Dow's surge via hopes for additional stimulus as global officials won't have any other option. Blue chip index gained 1.31% or 162.57 points and closed at 12,573.80. The main winner for the index was Boeing Company which soared
Crude oil futures were steady in European morning trading on Wednesday as traders are cautious ahead of OPEC meeting due on Thursday coupled with US stockpiles report due later in the day. Moreover, mounting worries over fiscal uncertainty in Spain and Italy continued to dominate market sentiment. Light, sweet crude oil futures for July delivery traded at 83.39 US Dollars
S&P 500 index showed a surprising rally on Tuesday. The news from Europe were so pessimistic that most analysts predicted US markets to tumble. Contrary to forecast S&P 500 surged 1.17% or 15.25 points and finished at 1,324.18. Shares of First Solar accelerated sharply, after the solar power provider said it signed agreement to construct two utility-scale projects for AGL
Gold prices were flat in European morning trade on Wednesday as traders are cautious amid lingering Spanish concerns and looming Greek elections. Investors also await Italy's debt auction later in the day. COMEX gold August contract traded at 1,614.65 US Dollars per troy ounce on the New York Mercantile Exchange, easing up by 0.05%.
As the new tax on real estate is implemented, Mario Monti, Italian's Prime Minister, is beginning to realize that the tax increase policy has flopped. With the tax rate boost by one percentage point in September 2011, the VAT receipts have dropped significantly to its record low since the year of 2006. The respective decline could potentially reinforce Italy's decision to delay an additional tax
Australian consumer confidence improved in June, despite recent interest rate reduction. The Westpac/Melbourne Institute Consumer Sentiment Index posted an increase of 0.3%, approaching 95.6 points this month. The data is disappointing as the RBA cut the cash rate by 25 bps in June while consumer confidence still remains low, said Bill Evans, Westpack chief economist. People were probably influenced by
German CPI gained 1.9% last month, falling below 2% for the first time in 2012, reported the Federal Statistics Office. The data is in line with preliminary result released on May 29. The highest annualized increase faced food prices that grew by 2.4% while marked price decline was recoded for financial services that posted 16.3% price decrease in May.
China's economic expansion may fall below 7% in Q2 in case economic weakness persists in June, said Zheng Xinli, government's adviser. If the situational starts to improve, the GDP growth is likely to attain the lowest expansion pace in Q2, reported Jia Kang, head of the Finance Ministry. Meanwhile, according to Reuter's survey, China's economy is expected to grow by
European stocks faced a choppy session on Tuesday as Spain's yields hit 15-year record high. However, most of stock indices ended into green area as investors bet on stimulus from Fed and European central banks. FTSE 100 index gained 0.5%, German DAX surged 0.9% and Spanish IBEX 35 added 1%. Stoxx Europe 600 ended 0.4% up.