Hedge funds are expecting that the launch of unitary eurobonds is prone to lead to an increase in costs for Germany's and France's borrowing. Therefore, they short-sell liquid bonds of core Eurozone countries, expecting prices to fall. The market, according to anonymous fund manager, is getting noticeably shorter.
Despite fears about Spain's financial stability, futures for crude oil gained on Tuesday because of China's possible monetary easing and expected disruption to Middle East oil supplies. On the NYMEX July crude futures were traded at USD91.50 per barrel, peaking earlier at USD91.86.
Even though there is no direct damage that can be caused to the U.S. by Greece; however, it is the overall tension in the EU that might be detrimental to the States. Firstly, it is important to highlight that the banking system in the U.S. might be in jeopardy due to sovereign debt. Even though the debt for Greece USD 5.8 billion is minor
Consumer confidence in the US in May broke all the expectations and fell to the 64.9 from 68.7 in April. Although increase to 69.7 was anticipated, the index decreased to the lowest level in four moths. Specialists state that disturbance in the labor market caused such negative outcome. Payroll gains increased at the slowest pace in last six months. Only 15.8% of Americans
Rural commodities dropped over last week as weather conditions in the top-growing regions are likely to improve.Wheat lost almost 4% over the last week on speculation that long-awaited rains in Russia and Australia will boost crop prospects.Corn was the top-loser as China plants to increase supplies while worries about the Euro Zone's demand pushed the commodity lower.Sugar extended previous losses
Energy markets were solid on Monday due to renewed supply worries after world powers failed to agree with Iran on its nuclear program.Crude oil was the top-performer as supply risk-premium returned amid escalated tensions in the Middle East and expectations for tropical storm Beryl. Brent oil moved up as indications that Iran actively continues its nuclear program outweighed deepening debt
Industry metals were mixed in choppy Monday session, balancing between Euro Zone woes and supply uncertainties.Aluminum swung to gains on Monday despite weak China's demand caused by high smelting costs of the light metal.Copper managed to add 0.60% despite easing supply worries as Chile's Collahuasi is resuming its operations after accidental death of its worker last week. However, softening Japan's
Precious metals were mostly higher in thin Monday trading amid easing concerns about possible Greek exit from the Euro Zone after four largest Greece's banks received financial aid amounting 18 billion Euros.Gold was almost unchanged as spiking Spain's costs of borrowing pushed the US Dollar higher against its European counterpart.Silver was the only loser, being weighted down by weakness of
German shares advanced on Tuesday supported by hopes US consumer confidence is improving amid stabilizing property market. Gains were limited on news China are not preparing a large scale monetary accommodation. Car makers led the gains for German benchmark index. Volkswagen surged 3.3% and Daimler added 2.4%. BMW climbed 2.3%. On the downside Deutsche Telekom dropped 1.2%. At the moment
UK FTSE 100 index fluctuated between gains and losses on Tuesday. Financial turmoil in Spain kept weighing on investor sentiment. Traders were also cautious before US consumer confidence data. Positive effect came from speculation China will add monetary stimulus to its economy. Energy companies Tullow Oil and Glencore International surged 2% and 1.9% respectively as oil price climbed. On the
On Tuesday Hellenic Financial Stability Fund announced the way in which temporary aid of EUR18 billion has been allocated among Greece's four major lenders. National Bank of Greece SA got EUR7.43 billion, EFG Eurobank Ergasias SA EUR3.97 billion, Piraeus Bank SA EUR4.7 billion and Alpha Bank AS EUR1.9 billion. These four banks together make up approximately 80% of banking system assets of Greece. The money was
Based on the data provided by Credit Suisse, it is believed that the despite a potential drop of S&P 500 to 1200 in case of Greece's exit from the euro area, the withdrawal may at the same time introduce the needed plan of action that would boost the market by at least 20%. Analysts indicate that in the event if the euro-zone breaks up,
Despite the fact that the recent slump in oil prices has not yet been a drastic concern to the major OPEC countries, it is anticipated that the tension will in fact heat up eventually. According to certain analysts, due to the increase in government expenditures, a number of counties will not be able to manage their spending if the costs of oil drop below
Hong Kong's shares rallied on Tuesday, supported by investor hopes China will implement substantial monetary stimulus. Credit Suisse Group expects Chinese government to inject around 2 trillion Yuan (USD 157.6 billion) in the economy. Hang Seng index jumped 1.35% or 254.47 points to 19,055.46. Property companies was among the main gainers within the index. BOC Hong Kong Holdings added 2.7%
According to Moody's, at least 25% of 254 unrated European LBOs with overall debts of EUR 133 billion risk defaulting on refinancing their debts. Evidence shows that 36 companies have aggregated more than half the total debt with time to maturity through 2015. Each of these companies has liabilities of over EUR 1 billion. Investors expect that many larger companies will try to
Australia's S&P/ASX 200 index rallied on Tuesday as China prepared to add more stimulus to the slowing economy. Australian benchmark jumped 1.14% or 46.40 points and closed at 4,114.40 fuelled by miners and energy shares. Fortescue Metals Group rocketed 7.5% and Rio Tinto surged 2.2%. Oil providers Woodside Petroleum and Linc Energy soared 2.7% and 14.9% respectively. The index gained
Spain calendar-adjusted retail sales plunged 9.8 percent in April on annual basis. This is the sharpest decline since March 2011. Spain is in recession since the housing bubble burst. Borrowing rates have surged record high, and banks are especially under pressure, due to their exposure to housing markets and bad loans.
Eased concerns over Greece's exit from the single currency area seemed to stimulate demand for gold and palladium, as well as other precious metals. Gold futures for June delivery added 0.4 percent to USD 1,574.80 per ounce on NYME. The actively-traded contract for August delivery climbed 0.4% to USD 1,577.40 per ounce of gold. These gains follow a loss of 1.4 percent last week. July
Japan's Nikkei Stock Average pared losses on Tuesday session as Chinese government approved measures to boost consumer spending. Nikkei 225 index climbed 0.74% or 63.93 points and closed at 8,657.08. Construction machinery producer Komatsu gained 2.8%. Japanese biggest shipping line Nippon Yusen rallied 4.4% after Credit Suisse upgraded its stocks to outperform. On the downside electricity related companies declined. Kansai
The New Zealand and Australian Dollars weakened against their US peer on Tuesday on worries that European financial uncertainty is curbing region's growth. Aussie and Kiwi declined 0.3% against greenback to USD 0.9827 and USD 0.7598 respectively. Currently AUD/USD is trading at USD 0.9863 and NZD/USD is trading at USD 0.7618.
17-nation currency stayed weak on Monday and was heading for a largest monthly loss since September ahead of upcoming Italian bond auction due tomorrow. The common currency traded almost flat against US Dollar at USD 1.2537 in Asian trade. The Euro has depreciated 5.3% in May. Currently EUR/USD is trading at USD 1.2534.
European equity markets traded higher in the early session on Monday but retreated and erased most of their gains later in the afternoon. The investor sentiment was depressed by concerns over Spanish banks. Therefore major banks across Europe also weighted on stock indices. Stoxx Europe 600 index traded flat, Spanish IBEX 35 plunged 2.2% and German DAX slipped 0.3%. French
Japan's retail sales accelerated 5.8% in April compared with a previous year. It is a smaller improvement than a gain of 6.3% expected by analysts. On monthly basis sales dropped 0.3%. However, retail sales kept advancing relatively rapidly compared with a previous year when they fell sharply in the result of March earthquake.
Japan's jobless level accelerated 4.6% in April compared to a 4.5% in March. Economists predicted the unemployment rate to remain flat at 4.5%. However, the jobs availability in Japan also improved. The amount of new employment offers surged 3.6% from March and rallied 14.2% on yearly basis. Hiring was boosted by increasing demand for workers in construction jobs in region