China's production measure improved in December, indicating that a strike in the country's economy might be stabilizing despite European debt woe which weakens the exports outlook. Purchasing Managers' Index rose to 50.3 in December compared to 49 previous month, said Chinese logistics federation yesterday. In contrast, PMI estimated by HSBC showed an increase from 47.7 to 48.7.
European shares experienced slight gains on the last trading day for 2011, but closed with significant yearly losses as European debt crisis hampered the region's economies. Stoxx Europe 600 index added 0.9% to 244.57 on Friday but was down 11.3% for 2011. Germany's DAX 30 index finished the day 0.8% up at 5,898.35 but tumbled 14.7% on yearly basis. UK's FTSE 100 stock index closed 0.1%
Indonesian inflation slowed for the fourth consecutive month in December, reaching the lowest reading since 2010, said Jakarta based Central Bureau of Statistics. Consumer prices added 3.79% on a yearly basis compared to 3.86% predicted by economists. In November inflation reached 4.15%. Bank Indonesia's officials left interest rates unchanged in December after cutting them in November and October.
US stocks closed lower on the last trading day for the year. S&P 500 Index fell 0.43% or 5.42 points to 1,257.60, Dow Jones Industrial Average declined 0.57% or 69.48 points finishing at 12,217.56 and Nasdaq Composite Index dropped 0.33% or 8.59 points to 2,605.15. On yearly basis S&P 500 ended flat, Dow Jones gained 5.5% and Nasdaq gave up 1.8%.
South Korean domestic currency Won depreciated as investors remained worried about European debt turmoil impact on Asia's growth. The Won lost 0.2% against greenback reaching 1,154.45 Won per one US Dollar. On yearly basis South Korean currency has dropped 2.2%. Experts predict further depreciation for the Won. Domestic inflation reached 4.2% in December while yields on sovereign bonds due 2016 climbed two basis points.
Most of Asian shares fell during the first trading session of 2012 on worries European debt turmoil will hinder global growth. South Korean Kospi was flat while Taiwan's Taiex Index dropped 1.7% after HSBC survey indicated contraction in manufacturing. MSCI Asia Pacific (excluding Japan) lost 0.4%, Indonesia's Jakarta Composite index sank 0.3% and BSE India Sensitive Index dipped 0.3%. Markets in Japan, Hong Kong and US were closed
According to HSBC survey manufacturing outlook in Taiwan and South Korea contracted in December. HSBC's production Purchasing Managers' Index (PMI) for Taiwan firms was 47.1, remaining below 50 for a seventh consecutive month. PMI for South Korean companies was 46.40 which is the weakest reading in three years. Both economies suffer from large decline in new orders, said HSBC analysts.
Dow Jones Industrial Average Index gained 1.12% or 135.63 points and finished at 12,287.04 on positive news about US long term employment tendencies. All 30 of blue chips constituents surged sending index 6.1% up on a yearly basis with one trading session left. Financials and technology stocks bolstered the index with Bank Of America Corp. surging 3.21% and Hewlett-Packard Company adding 1.67%. General Electric Company gained
S&P 500 Index gained 1.07% or 13.38 points and closed 1,263.02 partly offsetting previous days' losses as the number of long-term unemployment claims indicated positive trend for US job market. All 10 industries rose within the index, led by financials. J P Morgan Chase & Co gained 2.36% while Morgan Stanley added 2.28%. On the upside also were Masco Corp. and Pultegroup advancing 8.41% and 6.05%
Fitch ratings agency downgraded Egypt's long term currency debt amid drop in central bank foreign reserves and doubt about IMF support. Fitch cut the rating from BB to BB- with a pessimistic outlook. The reserves of Egyptian central bank lost 44% in 2011 after the national bank attempted to maintain the domestic currency stable amid falling tourism and investment.
Japan's Nikkei Stock Average gained 0.67% or 56.46 points on Friday closing at 8,455.35. Japan's leading exporters partly recovered from previous days' losses as Sony Corp. ascended 2%, Sharp Corp. climbed 1.1% while Panasonic Corp. jumped 1.6%. Appreciation in the Nikkei 225 also was fuelled by retailers as Fast Retailing Co. soared 1.2% and J. Front Retailing Co surged 1.9%. Nikkei 225 is down 17.3%
Hong Kong's Hang Seng Index mildly recovered from previous days' losses and finished 0.2% or 36.47 points higher at 18,434.39. Volumes were low as investors stayed cautious amid global uncertainty. Companies that are seriously exposed to Europe demand experienced appreciation as HSBC Holdings PLC gained 1% and Prada SpA advanced 1.6%. Chinese property firms listed in Hong Kong traded mixed on Friday. China Resources Land
17-nation currency depreciated 0.2% against US Dollar reaching $1.2937on London morning trade, escalating current year's drop to 3.3%. The euro is moving towards its first continuous fall since 2001 amid growing concerns about Europe's ability to tame debt crisis. The Euro Zone probably is in a slight recession already, suggests Michael Turner, a currency strategist at Royal Bank of Canada. EUR/USD currently trades at $1.2917.
European equity markets opened higher on last trading session in 2011 led by metal and energy stocks. Stoxx Europe 600 index and German DAX 30 index both gained 0.3% at 243.26 and 5,864.06 respectively. French CAC 40 index added 0.4% reaching 3,140.69. British FTSE 100 index traded flat at 5,571.20.
Canadian Dollar appreciated against European common currency reaching 11-month record-high on investor speculation ECB will have to enlarge cash infusions after Italy did not manage to auction the planned amount of bonds. Canadian Dollar added 0.3% against the Euro, reaching C$1.3221 in Toronto session. Currently USD/CAD is trading at C$1.0209.
Greece faced a decline in the retail sales in October, according to official data. The retail sales decreased by 10.8% in October on an annual basis after declining by 6.5% in the preceding month, according to ELSTAT. The revenue generated by sales decreased by 8.1% in October as compared to 3.7% slump in September.
Russia's currency and gold reserves rose 4.92% to $503.0 billion from $479 billion last year, reported Russian Central Bank. The reserves jumped by $ 1.7 billion during the last week. India, one more member of BRIC, also saw a jump of the foreign exchange reserves by $2.48 billion. Analysts explain the increase by the rising value of gold holdings and foreign currency during the
India's parliament has delayed the vote on the anti-corruption Lockpal bill on the strong opposition. The debates lasted till midnight of the local time with the opposition claiming the PM has to resign as the government does not comply with regulation. The government said it respects constitution and blamed the opposition in failure to pass the law. The bill will be revised and discussed
Currently the commodity market provides an advantage to traders as price for precious metal declines but the metals are likely to appreciate in the nearest future, said James West, advisor of the Midas Letter Opportunity Fund. He expects the silver price to become about one-sixteenth of the gold one. The silver is likely to outperform the gold in the following year, according to Eric Sprott.
Crude oil futures edged down during the early European trade on Friday despite supply concerns due to Iranian issue. On the New York Mercantile Exchange, crude oil futures for February delivery lost 29 cents to $99.39 a barrel. Brent oil eased down 34 cents to $107.69 a barrel, on the ICE Futures Exchange.
Despite the fall in steel price, Indian steel producers are optimistic about the base metal's price prospects. During this year the demand for the metal declined by 3%; however, it is still higher than in 2010, according to Business Standard. The production is likely to jump in the next months but the demand is likely to take longer to follow an upward trend, said
Hungary plans to accept changes to constitution that limits the independence of the Hungary's central bank. The changes are expected to be approved during the last session of the parliament in 2011. The country has applied for aid package of 20bn Euros from the IMF and the EU. Currently, the organizations ceased the negotiations as the new law undermines the independence of the country's
Japan's leading party, the DPJ, agreed to put on hold an increase of the sales tax as the opposition expressed strong protest to the move. The party agreed to postpone 8% tax increase due April 2013 until April 2014. The measure pursues the improvement of country's finances amid increasing debt level. Japan has the highest portion of debt to the GDP among the developed countries.
China's tightening policy aimed at cooling exorbitantly growing property market has led to slowdown of the real estate sector's expansion. Experts predict the next year will be even tougher to the industry. Expected amount of sales contracts to be signed by the end of 2011 equals 9.5 million sq m for new houses that is 23% lower than a year before and is the smallest