US factory orders dropped more than projected in October, decreasing for the second month in line, according to official data. Factory orders decreased by 0.4% on a seasonally adjusted basis in October while analysts expected 0.3% decline. After the data release greenback edged down against the euro. EUR/USD thus gained 0.55% to 1.3467.
COMEX silver trading is increasing, the volume of silver trade jumped by 39.3% last month to 1,327,376 contracts from 952,314 contracts in the previous month. Meanwhile, the open interest declined by 8% coupled with 4% fall in silver prices signalling that investors worry about assets' safety. The issue was also impacted by the CME Group inability to repay investors' money after MF Global collapse.
The GDP growth for Q3 is expected to be around zero while the largest market players such as Banco Itau and Banco Santander Brasil project a slight decrease in the economic growth of the country, according to Nelson Barbosa, the Finance Ministry's executive secretary. Some analysts claim the government is anticipating a slowdown after which it is likely to announce new stimulus for the economy,
Price of US Treasuries decreased, weighting up on yields as investors shifted to riskier assets like bonds and dollar amid hopes for euro-zone's leaders are moving towards resolution of the debt crisis. Yields on 10-year notes gained 4 basis points to 2.08% while two-year yields edged up one basis point to 0.27%.
US prices for corn and soybeans fell on Friday after weekly gains as worries over lower demand for US crops weighted down on prices; however, wheat futures approached two-week high after release of strong US export sales data. On the Chicago Mercantile Exchange, corn futures for March delivery were traded at USD5.9538 per bushel, adding 1.21% over last week.
Commerzbank AG, the second biggest bank in Germany, offered to repurchase hybrid instruments valued at €600 m ($806 m) as it tries to meet capital requirements set by European Banking Authority. Martin Blessing, CEO of Commerzbank, said the bank may need to acquire around €2.94 bn to fulfil requirements. While the buyback of hybrid instruments will secure Tier 1 ratio, further fund raising will be necessary, said analysts familiar with
Deutsche Bank AG faced a claim from Sebastian Holdings Inc., an investment fund that accuses bank in creating losses valued at $2.5 bn via miscarried foreign-exchange transactions. Sebastian Holdings insists that Deutsche Bank permitted a trader to break forex trading limits during period 2006-2008. Losses for Sebastian took place when company had to close positions and assemble margin calls. Deutsche Bank in its statement admitted only unpaid
Premier Mario Monti proposed austerity plan on Sunday requiring Italians to sacrifice €30 bn in order to reduce country's burden. Monti's plan includes linking pension to total employee contributions instead of last salary, revise property taxes and impose taxes on luxury goods. Monti's plan is the third attempt to introduce debt reduction since July and is expected to face resistance both from Parliament and Italian
Germany benchmark index DAX 30 maintains upward trend. Index closed last week 0.7% or 45 points up at 6,080.68, led by financial companies and auto producer stocks. It was the biggest weekly gain for DAX 30 since 2009. BMW AG gained 0.8%, Daimler AG rose 1.7% and Volkswagen AG edged up 1.5%. On Monday trade index kept upward path climbing 0.4% to 6,102.87. Industrial company
On Friday UK's FTSE 100 index closed week at 5,552.29, 63 points or 1.2% up, led by banking stocks. Barclays PLC rose 7% HSBC Holdings PLC added 3% while Standard Chartered PLC gained 3.2%. On Monday trade UK benchmark index extended gains after Mario Monti proposed a plan to reduce Italy's debt burden. FTSE 100 gained 0.5% or 26.25 points to 5,578.54 in London morning trade.
Dow Jones Industrial Average Index closed slightly down on Friday giving up 0.01% or 0.61 points to 12,019.42. Despite Friday's decline the overall weekly gain for the index reached 7%, a record-high since 2009. Similarly to S&P 500 banking shares brought main positive contribution J. P. Morgan Chase added 6.14% and Bank of America gained 1.99%. Main decliners were Hewlett-Packard and Johnson&Johnson dropping 1.91% and
On Friday S&P 500 benchmark index closed at 1,244.28, 0.02% or 0.3 points down. Nevertheless index gained 7.4% on weekly basis as Fed cut dollar borrowing rates for European banks and China announced monetary policy easing. For S&P 500 Index last week was the best since March 2009. Banking stocks were among main gainers. Morgan Stanley advanced 6.96%, J. P. Morgan Chase & Co. added
Japanese benchmark Nikkei 225 closed 0.6% or 52.23 points higher at 8,695.98 on investor hopes for progress in tackling debt crisis. Financial shares were among main advancers in Japan. Sumitomo Mitsui Financial Group added 2.2%, Mizuho Financial Group Inc. gained 2.9% while Nomura Holdings Inc. rose 2.8%. Asian exporters also contributed positively to the index: Elpida Memory Inc. edged up 4.1% and Toyota Motors Corp. surged 2.66%.
Although US stocks opened higher on Friday morning trade, Dow Jones Industrial Average and S&P 500 Index did not manage to maintain gains and closed slightly down. Dow Jones Industrial Average gave up 0.01% or 0.61 points and closed at 12,019.42 while S&P 500 slid 0.02% or 0.30 points and ended week at 1,244.28. Nasdaq Composite was the only of three major indexes that managed to
According to preliminary results of Russian parliament elections, United Russia party has lost majority in State Duma as it gained 49.8% votes compared to 64.1% in previous elections in 2007. Initial results show that 3 other parties that have surpassed 7% boundary are the Communist party that gained 19.2%, Just Russia party with 13.1% and Liberal Democratic Party that got 11.7%. Nevertheless, PM Putin has claimed
On Sunday Italian premier Mario Monti's government anticipated emergency austerity measures valued at €30 bn. According to Italian Cabinet's statement, the package consists of proposals aimed at stimulating growth worth €10bn as well as €20bn of structural measures that should be implemented by the end of 2014. The decision comes ahead of European summit due December 9.
Hong Kong's Hang Seng Index ended 0.7% or 139.30 points up closing at 19,179.69 as investors reflected their optimism that European leaders will be able to provide tangible solution for debt crisis this week. Exporters Hong Kong, Li & Fung Ltd. and Lenovo Group Ltd. supported the index adding 3.3% and 2% respectively. China Southern Airlines Co. weighted down the index as its shares lost
Yahoo Inc. stocks extended gains as various media speculated on potential offers for the search engine which is struggling to maintain its market share against Google Inc. Last week Yahoo closed at $16.23 appreciating more than 7%. According to latest reports Yahoo Inc. could be valued at $20 per share. Nevertheless, potential bidder, Alibaba Group, refused to provide any details of potential deal.
Spanish industrial output declined 4% in October, said Spain's statistics agency on Monday. October's drop is the worst reading during a year compared to 1.4% contraction in September. Output decreased in all industrial areas. Durable goods lost 14%, energy output edged down 7.6% while intermediate goods gave up 5.8%. Falling output may be a signal that Spain's economy will contract in the last quarter.
Swiss Market Index swung between rewards and losses as biggest Swiss banks extended gains on approved Italian austerity measures while Adecco, the world's biggest recruiter of part-time workers, declined. Today Credit Suisse climbed 1.6% reaching 23.24 Swiss francs while UBS AG advanced 1.3% to 11.51 Swiss francs. Adecco lost 2.7% to 39.25 francs.
On Monday US Treasuries declined as Italy's proposed austerity measures to reduce government debt hurt demand for US assets. 10-year borrowing costs climbed 3 basis points reaching 2.07% Roger Bridges, Tyndall Investment Management Ltd manager of fixed income predicts that US yields will increase further as investors regain confidence towards Europe.
Italy's government bonds appreciated after PM Mario Monti declared €30bn growth and austerity measures to decrease nation's debt burden. Borrowing costs of 10-year notes dropped 29 basis points or 0.29% reaching 6.4%, the lowest yield in nearly two months. Analysts claim markets are speculating on positive outcome of the upcoming EU summit on December 9.
Japan's bonds gained as their yields fell from a 4-month record high as uncertainty across Europe boosted demand for sheltering assets. Japanese benchmark 10-year notes dropped 3 basis points reaching 1.045% while 20-year borrowing costs declined 2.5 basis points attaining 1.775%. Takeshi Minami, Norinchukin Research Institute's chief economist expects a further increase in demand for Japan's notes.
According to economists surveyed by Bloomberg Russia's inflation rate in November could turn out to be the lowest in 14 months. Analysts estimate inflation rate to be at around 7% which would be the slowest consumer price increase since 2010. Economists associate the drop in country's inflation with lack of cash in economy and slower appreciation of food prices.