U.K. markets edged higher during a choppy session this Tuesday on the growth of miners. The FTSE 100 index rose 0.5 per cent to 5,461.78, while Barclays retreated 1.7 per cent and Lloyds Banking Group PLC slumped 1 per cent.
European stocks jumped this Tuesday, as markets stabilized after a choppy session on the previous day, due to Spain aid request from the EU for the country's banking sector. The Stoxx Europe 600 index gained 0.3 per cent to 242.53. The Spain IBEX 35 index climbed 0.6 per cent to 6,557.40 and The French CAC 40 index rose 0.4 per cent to 3,053.59.
The greenback lost ground on Tuesday after a 1 per cent decrease of May import prices. The ICE dollar's index, which shows currency's relation to its six major counterparts, slipped from 82.507 to 82.463. The single European currency inched higher to $1.2501, compared to $1.2491 in the previous session.
According to the State Secretariat for Economic Affairs located in Bern, Switzerland's government increased their estimates for the country's GDP from 0.8% to 1.4% for 2012. It appears that the Swiss economy is bouncing back with the KOF indicator boosting for 4 consecutive months in May, the consumer index reaching its one-year peak in April and the BCHN possibly surpassing order growth of 10%
Futures for crude oil bounced off the record low since October 2011, as the oil minister of Saudi Arabia promised not to raise output ahead of OPEC meeting on Thursday. On the NYMEX, July delivery futures for light sweet crude were traded at USD83.19 per barrel, which was a 0.6% growth during the U.S. morning trading session.
German DAX index traded higher on Tuesday, as investors sentiment was lifted by hopes the Federal Reserve may propose measures to stimulate economy. The gains however, were limited as Spanish borrowing costs continued to climb and reached 6.73%, a record high since November 28. For almost every stock that gained, two posted a drop within the index. Semiconductor provider Infineon
UK FTSE 100 index edged higher on a choppy trade on Tuesday led by GlaxoSmithKline and miners. Moreover data showed UK's annual industrial output contracted for a 14th straight month in April. Rio Tinto and BHP Billiton partly rebounded from yesterday's drop, adding 1.2% and 1.5% respectively. Pharmaceutical giant GlaxoSmithKline gained 0.6% on news its subsidiary Stiefel will acquire prescription
Hong Kong's main stock index followed US and Asian market trend on Tuesday weighed down by concerns over Spain's ability to halt its debt. Hang Seng index deteriorated 0.43% or 81.07 points and ended at 18,872.56. Technology sector performed worst, giving up 2.4%. Financial shares and resource stocks sent the index lower. Tencent Holdings dropped 2.4% and China Resource Power
Spain bonds dropped one more day after Fitch Ratings agency announced that government led by Prime Minister Mariano Rajoy will fail to reach budget deficit targets. The yield of a 10 year government debt increased by 17 basis points reaching 6.68%. The spread against German bunds increased by 9 basis points and reached 5.29% by 2 a.m. GMT. European commission forecasts 6.4% and 6.3% Spanish budget
On Tuesday, the Euro was growing versus the Japanese Yen, but gains seemed to be capped by Spanish worries and uncertainty over Greek elections. EUR/JPY peaked at 99.79, and later consolidated at 99.40, which was a 0.23% growth since the beginning of the European afternoon trading session. The pair's support is likely to be found at 98.52, whereas resistance may be at 100.61.
Oil futures edged lower during electronic training on Tuesday, due to increased concerns regarding upcoming Greek elections. Petroleum for July delivery retreated 61 cents, a 0.7 per cent decline, to $82.09 a barrel.
On Tuesday, the Euro was growing against the U.S. dollar, but gains seemed to be capped by cautiousness over mechanics of Spanish bank bailout, and the outcome of the weekend's elections in Greece. EUR/USD peaked at 1.2529, and later consolidated at 1.2506, which was a 0.20% gain during European afternoon trading session. The pair's initial support was prone to be at 1.2409, while an interim resistance
On Tuesday, the British Pound erased losses versus the U.S. dollar, recovering from a 2-day low, as market sentiment was determined by Spanish bailout hopes. However cautiousness over Greek elections this weekend capped gains. GBP/USD retreated from 1.5455, which was a 2-day low, and consolidated at 1.5538, gaining 0.34% in the European afternoon trade.
China's recent loans surpassed forecasts in the month of May and as additional funding was invested into the long-term lending, hopes have been raised that China may avoid a further slowdown. According to the People's Bank of China, the lending totaled at CNY 793.2 billion (USD 125 billion), which exceeds some analysts' projections by CNY 93.2 billion. Wen Jiabao attempts to revive China's economy, which
Futures for copper came under pressure in the European Monday morning trade, as Spanish euphoria fizzled, and worries over Greek elections came into focus. Moreover, investors are afraid that the debt crisis could spill over to the neighboring Italy. On the NYMEX, July delivery futures were traded at USD3.330 per pound, losing 0.4% since the beginning of the European morning trading session.
On Monday, industry data showed that the British house price balance by RICS increased in May more than it was forecasted. Royal Institution of Chartered Surveyors reported that the index rose to -16%, from a seasonally adjusted -19% in April. Analysts had predicted that the index would witness a modest increase, reaching -18%.
On Monday, official data showed that the index of Japanese tertiary activity dropped unexpectedly in April. Ministry of Economy, Trade and Industry reported that the index decreased to -0.3%, from March's seasonally adjusted -0.6%. However, the economists had expected that the index would rise to 0.4%.
The U.K. manufacturing production gauge dropped significantly more than it was expected. The U.K. Office for National Statistics reported that the index tumbled 0.7% in April, whereas analysts had expected a slight decline of 0.2%. In March manufacturing production index grew by 0.9%, however, this figure is unrevised yet.
Japan's Nikkei Stock Average erased part of yesterday's gains as initial optimism about Spain's bailout request turned into anxiety over deal details. Nikkei 225 dropped 1.02% or 88.18 points and closed at 8,536.72. A slump in oil prices weighed on Japanese oil companies. JX Holdings slipped 3.1% and Inpex Corp ended 0.7% down. Europe concerns pushed the Yen above 100
Dow Jones Industrial Average declined on Monday as scepticism over the outcome of upcoming Greek elections returned. Blue chip index shed 1.14% or 142.97 points and closed at 12,411.23. 26 out of 30 companies finished red, driven mainly by financials and growth linked heavy manufacturers. Hewlett Packard and Bank of America led the fall, giving up 4% and 3.7% respectively.
S&P 500 index fell sharply on Monday after optimism over Spain's bailout was offset by anxiety whether the country will be able to tackle its debt woe. The leading US index lost 1.26% or 16.73 points settling at 1,308.93. Alpha Natural Resources made the biggest losses for the index giving up 9.2%. Apple shares diminished 1.6%. after renewing its MacBook
Having taken the needed bailout for Spain's recovery, Mariano Rajoy's political credibility could be at jeopardy. Two weeks after affirming that Spain does not require a bailout, on 9 June Rajoy asked for a EUR 100 billion in order to revive the country's banking system. As a result, the Prime Minister's actions could potentially raise uncertainty whether he can realize his deficit cutting goals. However,
European stocks erased gains on Monday after Italian and Spanish borrowing costs surged. Investors expressed doubts if Spank debt aid will be sufficient to tackle the nation's debt trouble. Moreover upcoming Greek elections created additional uncertainty. Stoxx Europe 600 traded flat, Spanish IBEX 35 declined 0.5% and Italian FTSE MIB index fell 2.8%. UK FTSE 100 ended marginally lower while
US stock indices posted a sharp losses as concerns over the outcome of upcoming Greek elections returned. Moreover Spanish bailout request added to worries the European debt turmoil actually keeps broadening. S&P 500 index fell 1.26% or 16.73 points to 1,308.93. Dow Jones Industrial Average shed 1.14% or 142.97 points and closed at 12,411.23. Nasdaq Composite gave up 1.70% or