Japan currently is not planning to take part in international boycott of Iranian oil imports, reported Dow Jones Newswires on Wednesday. Tokyo considers the fuel shortage may have a negative impact on country's recovery from March earthquake and tsunami. Announcement appears shortly before Tim Geithner's visit to Tokyo to discuss the embargo.
Asian markets mostly expanded on Wednesday led by commodity linked companies as investors continued to foresee China's further monetary easing. Australia's S&P/ASX 200 index added 0.9%, Hong Kong's Hang Seng Index was up 0.1% while Japan's Nikkei Stock Average climbed 0.2%. On the downside were China's Shanghai Composite and South Korea's Kospi, each giving up 0.7% and 0.4% respectively.
The New Zealand and Australian Dollars weakened on Wednesday erasing two day gains as Italy and Spain prepare to sell domestic bonds tomorrow amid concerns their sovereign ratings may be downgraded. Aussie depreciated 0.3% to $1.0279 against the greenback while Kiwi lost 0.1% to $0.7935. Currently AUD/USD is trading at $1.0302 while NZD/USD is trading at $0.7951.
Mitt Romney paved his position as the main Republican presidential candidate yesterday after he won in the New Hampshire. Romney surpassed his closed rival by 16 percentage votes in New Hampshire. Ron Paul of Texas was second with 23% of the vote followed by Jon Huntsman with 17%. Romney told his supporters his preparing new confrontation against Obama.
The 17-nation currency slipped against the US Dollar first time in last three days before Italian, Spain and German bill auctions. Germany will sell 4 bn Euros of 5-year notes today, while Italy and Spain plan to auction around 17 bn Euros of debt tomorrow. Investors also are awaiting for industrial production output data for Euro region due tomorrow. The Euro depreciated 0.3% to $1.2741
Timothy F. Geithner, the US Treasury Secretary will call Asian two largest economies to reduce oil imports from Iran in his meetings with Chinese and Japanese PMs Wen Jiabao and Yoshihiko Noda. Geithner also will require China to review Yuan's exchange rate, as US insists that Chinese domestic currency is undervalued, thus creating unfair competition.
European stocks climbed on Tuesday after investors anticipated sales from Alcoa Inc. which reported higher than expected results. French shares including those for luxury goods rallied after Fitch said it is not planning to downgrade France this year. Stoxx Europe 600 index rose 1.8% to 250.82, French CAC 40 index rocketed 2.7% while UK's FTSE 100 index and German DAX gained 1.5% and 2.4% closing at 5,696.70
US stocks surged on Tuesday lifted by the appreciation in the Euro, as weaker greenback pushed higher oil price and other dollar-denominated resources and commodities. Dow Jones Industrial Average gained 0.6 or 69.78 points and closed at 12,462.4, S&P 500 climbed 0.9% or 11.38 points and finished at 1,292.08, while Nasdaq Composite Index jumped 1% or 25.94 points at 2,702.50.
New housing starts in New Zealand have followed an upward trend for the last eight months ending in November, reported Statistics New Zealand. However, the figures are volatile and stay close to historically low level. Approvals for new houses, including apartment achieved 1,384 units, indicating 5.9% decrease from November 2010.
Marks and Spencer announced modest increase in the UK sales during the Christmas time. Sales in the last 13 weeks of 2011 rose 0.5% on a yearly basis while food sales gained 3%. The company said it performed well despite global economic uncertainty. Overall UK's retail sales increased by 2.2% during the busy week before Christmas.
Crude oil futures advanced after prior losses caused by weak industrial activity in Germany. Investors continue to eye the developments in Iran that warns it may close Strait of Hormuz in case of new sanctions from Western economies. Light, sweet crude oil futures for February delivery traded at USD101.55 a barrel, on the New York Mercantile Exchange, gaining 0.24%.
Nine writers from China took legal action against Apple Inc. claiming the company has violated copyrights. The claim is writers' attempt to protect rights online as many readers switched to e-books. The writers said the company allows clients to download pirated books via App Store. Beijing No 2 Intermediate People's Court accepted lawsuit and currently is examining all materials.
Gold rebounded after losses as appreciation of the US Dollar slowed down. The Dollar index was flat on Tuesday at 81.131. COMEX gold for delivery in February traded at USD1,613.85 a troy ounce, on the New York Mercantile Exchange, edging up 0.36% since opening.
Asian stock markets extended gains on Tuesday on investor hopes Beijing will intervene to support economic growth. Shanghai Composite Index rallied 2.61%, Hong Kong's Hang Seng Index added 0.9% and Japan's Nikkei Stock Average climbed 0.4%. Australia's S&P/ASX 200 index gained 1.1% and South Korea's Kospi increased 0.4%.
US shares closed higher on Monday as worries about European debt crisis were outweighed by data indicating the recovery of US economy. Dow Jones Industrial Average added 0.27% or 32.77 points and finished at 12,392.69, S&P 500 index rose 0.2% or 2.89 points at 1,280.70 while Nasdaq Composite gained 0.1% or 2.34 points, closing at 2,676.56.
European equity markets closed lower on Monday led by UniCredi SpA after Merkel-Sarkozy meeting. Although Merkel emphasized the progress reached in talks she also admitted Greece must implement its debt reduction soon otherwise it will not receive the second bailout package. Stoxx Europe 600 index lost 0.5% or 1.11 points and settled at 246.42, while French CAC 40 index dropped 0.3% or 9.67 points to 3,127.69.
Olympus Corp. announced it will request to cover losses valued at $1.7bn, created by firm's president, Shuichi Takayama and 18 other past and present executives which are accused for involving in a scheme to shroud investment losses. Olympus gained 21% in Tokyo morning trade lifted by investor hopes that company will remain publicly traded in stock exchange.
Alcoa Inc. the leading US aluminum manufacturer reported first trimestral loss since 2009 as prices for the metal tumbled. The net loss of fourth quarter of 2011 $191 million or $0.18 per share, compared to net revenue of $258 m year before. Alcoa shares fell 44% last year making company the second worst performer within Dow Jones Industrial Average Index.
Consumer borrowing in US rose in November reaching a 10-year record-high indicating households feel safe to borrow and financials are ready to lend. Consumer Credit surged by $20.4 bn, the biggest increase since November 2001, to $2.48 trillion, said Federal Reserve. Analysts questioned by Bloomberg predicted an expansion of only $7 bn.
China's import declined hitting two-year record low in December, stressing a slowdown in world's second biggest economy. Imports added annual 11.8% in December less than was predicted by analysts earlier. Exports surged 13.4% widening the trade surplus to $16.5 bn. Timothy F. Geithner, Treasury Secretary, is expected to reintroduce pressure for a stronger Chinese Yuan.
The agreement with Greece's bondholders had to be concluded soon as Greece needs to receive the second bailout package, said Angela Merkel. In case Greece does not get 130bn Euros coupled with 50% write offs of the country's bond value, the country may default and will have no choice rather than leaving the Euro Zone, she added.
China will continue its tight monetary policies but is ready to fine-tune them in case of necessity, announced the PBOC, closing the work conference. The PBOC plans to adjust the supply of credits and maintain social financing at a reasonable growth. The country will focus on stimulating agricultural sector, optimizing credit structure, developing small and medium enterprises and supporting affordable home projects.
Gold prices added to Friday's losses as uncertainty over the Euro zone and firmer UD dollar continued to weight down on the yellow metal's price. COMEX gold for delivery in February traded at USD1,610.45 a troy ounce, on the New York Mercantile Exchange, declining by 0.39%.
Natural gas futures increased on Friday after falling to 28-month low as markets were inspired by colder weather forecasts that are likely to increase the heating fuel demand. Natural gas futures closed at USD3.074 per million British thermal units on Friday, on the New York Mercantile Exchange, gaining 3.5% during the week.