The Euro zone unemployment in March and April was in line with the forecasts and reached 11%. This is the highest level since 1995 when the time series started. In Spain, where government is struggling with banking crisis, unemployment increased by 0.2% since March and reached 24.3% - the highest level amongst all Euro zone countries. In France and Portugal unemployment
Hong Kong's stocks prolonged losses on Friday on weaker than expected official Chinese PMI report. HSBC separate research indicated contraction in manufacturing activity with PMI reading dropping to 48.4 Hang Seng index declined 0.38% or 71.18 points and finished at 18,558.34. Shippers extended drop with Cosco Pacific edging down 2.5% and Citic Pacific deteriorating 2.7%. On the upside remained Hong
SouFun Holding Ltd. has stated that China's housing prices have plunged to their lowest level in sixteen months, dropping by 0.3% in May to 8.684 CNY/m2 (1.364 USD/m2). The decline has been impacted by the government's decision to maintain the property curbs, which have in turn weakened the demand. In addition, the regressing economic state has also negatively influenced home values. SouFun has emphasized that
Japan's Nikkei Stock Average tumbled on Friday after China reported it's official manufacturing activity index fell to 50.4 instead of expected smaller drop to 52.1. Moreover Yen kept appreciating against Euro, damping export stocks. Nikkei 225 lost 1.20% or 102.48 points and finished at 8,440.25. Sony Corp, which is heavily dependent on market situation in China and US, fell 3.5%.
Dow Jones Industrial Average index declined on Thursday weighed down by disappointing data from US labour market and economic activity. Blue chip index fell 0.21% or 26.41 points and finished at 12,393.45 with 16 of 30 stocks posting loss. Dow index has lost 6.2% on monthly basis. Exxon Mobil shed 1.5% . Surging US stockpiles and crawling economic expansion boost
S&P 500 index extended loss on Thursday after data showed US labour market added more jobless claims and GDP for the first quarter was revised down. US benchmark slipped 0.23% or 2.99 points and closed at 1,310.33. S&P 500 has given up 6.3% for the month. Kohl Corp fell 6.2% after retailer reported its same store sales declined by 4.2%
As China's Purchasing Manager Index tumbled to its lowest point in May to 50.4 since last December, it is more likely that that the government will increase its stimulus package. To ensure that the world's 2nd largest economy does not deteriorate to a greater degree, it could force Wen Jiabao to undertake more stringent actions. According to Credit Suisse, the county's stimulus plan could total
Asian shares dropped experiencing its sharpest slump since the year 2008. On top of that, oil also plummeted to its bottom point during the period from October as Chinese weakening growth will most likely cut the demand of oil whilst the supplies increase. In contrast, the Dollar Index reached its peak since the year 2010.
German Chancellor Merkel faced critics from European leaders for allowing crisis to broaden. Italy's PM Monti and ECB President Draghi called Germany to stop opposing direct aid for indebted banks. Currently Germany rejects the issuance of euro bonds and direct capital injection into banks. Monti claims that Merkel's tools chosen for tackling the crisis are not prompt and sufficient.
European stock indices ended May with the largest loss since August last year. Thursday's session was mostly negative for shares as weaker US data drove down investor sentiment. Stoxx Europe 600 index lost 0.4% and gave up 7% for the May. Spanish IBEX 35 traded almost flat but ended previous month 13.1% lower. French CAC 40 managed to end session
US shares closed Thursday on negative note weighed by several disappointing macroeconomic news. Data showed US labour market added more jobless claims and GDP for the first quarter was revised down. S&P 500 index dropped 0.23% or 2.99 points and closed at 1,310.33. S&P 500 is 6.3% down for the month. Dow Jones Industrial Average fell 0.21% or 26.41 points and finished at
British Sterling declined versus greenback on Thursday on speculation the widening European debt turmoil is curbing UK economic outlook. The Pound fell 0.5% versus its US peer to USD 1.5408 and dropped 1.4% against Yen to JPY 120.66. Currently GBP/USD is trading at USD 1.5384.
The New Zealand and Australia Dollar declined after data showed Chinese manufacturing is decelerating more than analysts had predicted. Aussie fell 0.5% versus US Dollar to USD 0.9685 while Kiwi dropped 0.3% against greenback to USD 0.7517. Currently AUD/USD is trading at USD 0.9698 and NZD/USD is trading at USD 0.7523.
The US currency advanced against its main 16 counterparts as it was prized as safe haven asset. Worries that Chinese economy is slowing added to Dollar's strength. The greenback climbed 0.1% versus common currency to USD 1.2350 and gained 0.2% against Japanese Yen to JPY 78.46. Currently EUR/USD is trading at USD 1.2356 and USD/JPY is trading at JPY 78.46.
Factory output in Japan missed forecast in April, expanding by 0.2% as compared to an expected increase of 0.5%, reported the Trade and Industry Ministry. The ministry expects the output to decline further in May; however, the production is likely to rebound in June. The factory output was weakened by soft demand for electronic goods coupled with strong Yen.
Australian manufacturing activity decreased to the lowest level in the last nine months in May. The Performance of Manufacturing Index edged down by 1.5 points to 42.4 on a seasonally adjusted basis in May. The dismal state of non-mining industries in the country may create incentive for further cuts of the interest rate by the Reserve Bank of Australia.
The number of new houses sold in Beijing is likely to approach the pre- tightening level in May. More than 8,500 apartments were purchased in the first 26 days of May, indicating a 25% increase from the April's figure. Zhang Dawei, chief Centaline analyst, attributed strong performance of the real estate market to price reductions, growing supply and strengthening demand.
Crude oil futures moved down in Asian trading on Friday as traders were cautious ahead of US job market data due later in the day. Moreover, broadly stronger US Dollar added pressure on crude oil. Light, sweet crude oil for July delivery traded at 86.39 US Dollars per barrel on the New York Mercantile Exchange, declining by 14 cents since
Gold fell during Asian trading on Friday ahead of US data on the state of the labour market. COMEX gold August contract traded at 1,555.70 US Dollars per troy ounce on the New York Mercantile Exchange, falling by 8.50 US Dollars. Experts say that negative payroll data is likely to bolster the yellow metal price as likelihood of monetary easing
The commodity price index measured by ANZ dropped by 4.2 %, attaining 21-month low last month. The ANZ Commodity Price Index approached 260.8, indicating decline for the last 12 months. The major contributors to the decline were falling prices of diary and wool products while slight increase in kiwifruit and apple prices limited the downswing.
China's manufacturing activity slowed down in May, after growing for five months in a row. The PMI lost 2.9 points, approaching 50.4 in May as compared to April's figure of 53.3, according to China's Bureau of Statistics. Reading above 50 indicates expansion. Meanwhile, HSBC reported that its PMI estimate shank to 48.4 in May, being weaker than initial reading of
The British Chambers of Commerce cut UK growth forecast for 2012 to 0.1% from 0.6% while next year's expansion forecast was upgraded to 1.9% from 1.8%. The decision came after indications that the UK fell into recession again. The country has to create business bank to increase accessibility of capital for small firms as well as increase infrastructure spending to
Spain's policy makers say that they have time until October to raise the necessary funds needed to rescue Bankia. Currently the government's bailout fund makes up €12 billion; nevertheless, it requires to raise €7 billion more to rescue the ailing bank. It is planned to give Bankia €7 billion in July with remaining €12 billion provided in October.
Mario Draghi, ECB President, impels Europe's policy makers to develop a long term vision for Eurozone and form a "banking union" in order to avoid struggling banks putting under pressure the financial system. Additionally, ECB Chief suggested a deposit insurance guarantee system and centralised banking sector monitoring. Along with that, Draghi also admitted that the ESM might be used to