European governments urged Spain to implement larger budged deficit cuts to prevent debt crisis from returning to the region. 10 days ago Spanish PM Rajoy unilaterally increased Spain's deficit target to 5.8% of GDP for year 2012 and claimed the country will aim to attain region's common target of maximum 3% in 2013. The announcement was not praised by region's
French inflation rate unexpectedly declined for a second consecutive month in February on slowing economic growth which offset the climbing oil prices. Consumer prices advanced annual 2.5% in February compared to a 2.6% gain in January. Economists questioned by Bloomberg predicted the inflation level to stay steady at 2.6%.
The Euro Zone has backed up the second Greece's bailout worth 130 billion Euros but the member states still await the decision of the IMF due 15 March regarding 28 billion Euros contribution. The 17 financial ministers from the strongest states of the Euro Zone have met in Brussels with the aim to approve the bailout. The bailout agreement followed
Canadian Dollar declined versus its US peer on worries global growth will slow as China posted the record high trade shortfall in February. Oil, the main Canadian export good tumbled 1.9% on China news. Canada's currency slipped 0.2% against the Greenback to CAD 0.9924. Currently USD/CAD is trading at CAD 0.9900.
US federal budget deficit widened more than expected in February, reported Department of the Treasury. The US federal budget balance declined to minus 231.7 billion US Dollars on a seasonally adjusted basis in February as compared to minus 27.4 billion US Dollars in January. Experts predicted the deficit to attain 229.3 billion US Dollars.
China has agreed to sell 10 billion US Dollars of sovereign debt to Japan in an attempt to internationalize its currency. China is willing to make the Yuan an alternative reserve currency to its US counterpart. Allowing overseas investments in China's debt, the country makes its currency more accepted in foreign markets, said Zhang Yongjun from China Centre for International
Gold futures inched up during Asian session on Tuesday, after breaking core support level of 1,700 US Dollars per ounce during the US trade. The yellow metal found support on lower greenback as investors are cautious before Fed meeting. COMEX gold for delivery in April traded at 1,701.65 US Dollars per troy ounce on the New York Mercantile Exchange, advancing
Crude oil prices increased during Asian trading hours on Tuesday, after declining for several sessions amid China's demand concerns and low probability of further easing by Feb. Light, sweet crude oil futures for April delivery traded at 106.68 US Dollars per barrel on the New York Mercantile Exchange, gaining 0.32%.
UK house sales improved slightly last month, reported Rics citing its latest survey. More people started to buy property ahead of adoption of a 1% stamp duty for houses priced less than 250,000 British Pounds. The duty comes in force 24 March. In effect, average sales per agency branch increased to 16 from 15.7 in February. Moreover, people do not
New Zealand and Australian Dolllars climbed on Tuesday as rally across Asian equity markets stimulated demand for higher yielding assets. Aussie surged 0.2% against its US peer to USD 1.0541 while Kiwi gained 0.5% and traded at USD 0.8218. Currently AUD/USD is trading at 1.0552 and NZD/USD is trading at 0.8225.
Italian GDP contracted in compliance with initial estimates in the last quarter of 2011, the figure remained unchanged from preliminary reading. Italy's GDP contacted by 0.7% on a seasonally adjusted basis in Q4 as compared to a 0.2% fall in the preceding quarter, according to ISTAT. On a yearly basis, the GDP plunged by 0.4% while preliminary estimate was a
US shares maintained gains on Monday lifted by upcoming monetary policy decision from Fed and several economic releases. Investors expect forthcoming statistics should lower the incentives for Federal Reserve to stick to record low interest rates. S&P 500 index traded almost flat, adding only 0.02% or 0.22 points and finishing at 1,371.09, Dow Jones Industrial Average index climbed 0.29% or 37.69
European markets traded mixed on Monday as investors anticipated news the China's trade shortfall increased to a 12-year record high in February. Stoxx Europe 600 index fell 0.22% at 264.84 and French CAC 40 index modestly climbed 0.07% to 3,490.06. FTSE 100 index added 0.09% to 5,892.75 and German DAX index surged 0.31% and closed at 6,901.35. Athens General Index
The Bank of Japan decided to expand its programme for US Dollar loans, adding JPY 1 trillion (USD 12 billion). BoJ also announced it will keep its key interest rate unchanged between zero and 0.1%. Central bank's stimulus follows a call from leading Democratic Party to implement more tough steps to tackle deflation. Japanese Yen climbed on today's decision.
The number of Australia's home loan approvals declined in January, first time since March 2011 while the business confidence index fell to a 5-month record low indicating the labour market recovery may slow down. Australian home loan permissions dropped 1.2% in January or twice as much as was predicted by economists. The business confidence lost ground and attained the lowest reading
German DAX index bucked the downward trend of other European stock indices and climbed on Monday as Greece finalized its debt swap agreement. Volkswagen AG lost 1% on news its operating profit for 2012 is likely to be flat while revenue will be erased by costs of new technology. Electric utilities company E.ON AG declined 0.8% as Deutsche Bank lowered
British FTSE 100 index traded slightly lower on Monday as news about Chinese record high trade gap weighed on miners and oil shares. Vedanta Resources fell 3%, Randgold Resources lost 0.4% while Rio Tinto PLC tumbled 1%. Essar Energy dropped 1.2% and Cairn Energy gave up 0.5%. Man Group fell 1.6% after HSBC downgraded the stock from overweight to neutral.
Rural commodities were mixed on Friday with advancing grain commodities and falling sugar and coffee futures. The commodity pack was pressured by the broadly stronger US Dollar and improved weather conditions in the US. Grains gained fresh stimulus after USDA lowered estimation of the global grain stockpiles. Wheat was also bolstered by bargain buying as commodity moved to the oversold
Energy markets closed higher on Friday on the inspiring data from the US labour market and anxiety over tensions between Iran and Western economies. Moreover, positive outcome of the Greek debt swap talks created fresh stimulus for the base metals pack. However, from the demand side, slowdown of Chin's economy continued to weight down on the group. Weaker world's equities
Industry metals ended last week on a positive note as progress over the Greece receiving the second bailout package and improved situation in the US labour market both contributed to the rally. However, weaker global stocks and dismal China's data capped the upswing. Copper and nickel faced falling inventories and better spot demand that pushed the price for these metals
Precious metals posted gains on Friday after Greece announced it has secured the second bailout. However, stronger than expected US labour market data lifted the greenback thus creating an additional pressure on the commodity pack. Further, weaker global equities also weighted down on the commodity group. Meanwhile, large gold and silver backed funds continued to show interest in precious metals
Although Greece has completed its debt swap agreement and yields for Spanish and Italian debt have declined, Portuguese borrowing costs for benchmark notes still fluctuate above 13%. The yield on 10-year notes currently is at 13.71%. Portugal's debt is evaluated as junk by Moody's, Fitch and Standard & Poor's agencies.
Nicolas Sarkozy, France's President, said that the country may consider withdrawing for Schengen zone unless more efforts are put in stopping illegal immigration. Sarkozy speaking at President's election rally stressed that the progress has to be made during next 12 months otherwise France will exit Schengen zone. Illegal immigration is expected to be the core issue during elections in France.
Asian markets faced a choppy session on Monday with stock indices mostly posting losses as China reported the biggest trade deficit in more than ten years. Japan's Nikkei Stock Average lost 0.4%, China's Shanghai Composite slipped 0.2% while South Korea's Kospi fell 0.8%. Australia's S&P/ASX 200 index gave up 0.4% and Hong Kong's Hang Seng Index added 0.2%.