Business confidence in China decreased in Q4 on the growing fears over the slowdown of the second-largest world economy. The business confidence index lost 6% to 41.7% in Q3, reported the People's Bank of China. Reading below 50% indicates the pessimism on the market.
Canadian currency appreciated reaching 2-week record high as US economic data indicated that Canada's most significant trading partner is making progress. Consumer confidence and jobless claims showed better than expected figures. Loonie gained 0.6% to C$1.0203 per US Dollar Toronto evening trade. Currently USD/CAD is trading at 1.0200.
After struggling for several months Congress is ready to approve payroll tax reduction. Lawmakers agreed to extend payroll tax of 4.2% for two months. Obama praised the decision, emphasizing tax cut extension is crucial for US economy. Obama predicts every employed American to save around $1000 a year due to tax cut.
Moody's Investors Service cut Slovenia's sovereign credit rating as government had to intervene to support banking system amid region's debt turmoil. Moody's lowered Slovenia's rating by one level to A1. The country was downgraded by Moody's for the second time in last quarter. Standard & Poor's ranks Slovenia one level up at AA-.
European markets opened higher on Friday led by financials and resource companies as investor optimism was lifted by better-than-expected US economic data. Stoxx Europe 600 index added 0.9% at 241.77 while FTSE 100 index advanced 0.7% to 5,492.56. French CAC 40 index gained 1% at 3,104.37 and German DAX 30 index climbed 0.9% to 5,897.49.
Russia unexpectedly lowered country's refinancing rate while increasing its overnight deposit rate after inflation decelerated, reaching the smallest year-end reading since the collapse of Soviet Union. Bank Rossii cut nation's refinancing rate from 8.25% to 8.0%. Decision was made to circumvent inflation risks and threats to economic growth.
Mortgage rates for US 30-year loans fell to the lowest since 1971 amid signals property market is improving. The average borrowing cost on a 30-year mortgage decreased from 3.94% to 3.71% this week. Declining home prices and relatively low interest rates are propelling affordability, claimed Ellen Zentner, Nomura Securities International's senior US economist.
Christchurch, the second biggest city in New Zealand, was hit by sequence of earthquakes, damaging several buildings, flooding roads and pushing rescuers to evacuate shopping centres. No victims, serious injuries or damages were reported. Christchurch still is retrieving from series of quakes which began in September 2010.
The Australian Dollar climbed on Friday extending gains for current week ahead of US reports that are likely to show progress in consumer spending and housing sales, bolstering demand for riskier currencies. Aussie added 0.4% to $1.0166 in Sydney, ending at weekly gain of 1.8%. Kiwi lost 0.3% after the earthquake. Currently AUD/USD is trading at $1.0160 while NZD/USD is trading at $0.7746.
The measure of consumer sentiment reached 69.9 in December compared to 64.1 in November. Economists surveyed by Marketwatch earlier predicted the gauge to be at 67.7. Yelena Shulyatyeva, BNP Paribas economist, suggests that despite European debt crisis, positive news about national economy amid holiday cheer made consumers more optimistic in December. Nevertheless, Richard Curtin, sentiment survey's chief economist warns that Congress's inability to extend labour tax
US stocks rose on Thursday after data showed jobless claims declined while consumer confidence surged more than expected. Dow Jones Industrial Average gained 0.5% or 61.91 points closing at 12,169.65 while S&P 500 Index added 0.8% or 10.28 points, reaching 1,254.00. Nasdaq Composite also ascended 0.8% or 21.48 points attaining 2,599.45.
Asian markets moved higher on Friday fuelled by positive news from the US where the number of jobless claims dropped to the lowest level since April 2008 and consumer confidence was higher than expected. Shanghai Composite advanced 1.2% and South Korea's Kospi climbed 1.3%. Hang Seng Index traded up 1.1% while Australia's S&P/ASX 200 index rose 1.2%. Japanese markets were closed.
Taiwan's government announced it would inject more resources in the credit guarantee fund that supports small and medium enterprises as bleak economic outlook started to impact the export-led economy of the country. The government plans to pump NT$8 billion into the organization rising its coverage for NT$112 billion in loans. Taiwan's GDP increased by 4.51% in 2011 as compared to 4.56% initially expected.
The current account of the UK in Q3 unexpectedly widened, reaching the record-high since 1955. The deficit widened to GBP15.2 billion in Q3 on a seasonally adjusted basis as compared to GBP7.4 billion in Q2, reported U.K.'s National Statistics Office. Analysts predicted the figure to narrow to GBP5.5 billion in Q3.
The US economy expanded slower than initially reported in Q3, raising fears over the speed of the US recovery. The GDP of the US in Q3 grew by 1.8 on an annual basis as compared to previous estimation of 2.0%. Expects predicted no changes in the GDP growth after the second estimation. The USD was not affected by the data release and continued to
Copper saw a large deficit of 429,000 tonnes during the first nine months of 2011 while apparent deficit was only 170,000 tonnes, reported International Copper Study Group. The metal's output in Chile, the US and Peru dropped by 3.5% in the period. Experts explain the fall citing strikes on the copper mines in Peru and Chile. LME copper price stayed weak being 20% lower
The central bank of Brazil left the forecast for inflation rate unchanged at 4.7% in 2012 even despite decrease in the SELIC overnight rate by 100 basis points since previous inflation forecast. The Copom reported that its models predict the inflation to increase only by 0.1% to 4.8% in case SELIC rate is decreased by 150 basis points to 9.5%. The inflation rate is close
Gold futures rose, surging above USD1,600 an ounce amid weaker USD that usually weights up on the yellow metal's price as gold becomes cheaper for other currency holders. Gold futures for delivery in February traded at USD1,616.45 a troy ounce at the morning European trade, on Comex division of the New York Mercantile Exchange, adding 0.18% since opening.
GDP of New Zealand grew more than initially expected in Q3 being supported by high spending of manufacturing and retail industries. The indicator advanced by 0.8% on a seasonally adjusted basis in Q3, outperforming expectations of a 0.6% increase, reported Statistics New Zealand.
Natural gas seeks support on the decreasing number of drilling rings. The number of rings in the US declined to 818 in the previous week as compared to 934 in the preceding week; the number of rings is lowered with the aim to control ample supply in the commodity market. Investors also anticipate the US Natural Gas inventory report due on Thursday. Traders expect
Sugar futures rose on the weaker USD but saw moderate increase as the concerns on the commodity oversupply continued to limit gains. On the ICE Futures U.S. Exchange, sugar futures for delivery in March traded at USD0.2341 per pound at the European afternoon trade, advancing 0.85% since opening.
Japan's economic expansion is expected to contract by 0.1% in the first part of this year as compared to 0.5% growth previously projected, according to the government's forecast. The growth pace for the next year is likely to fall to 2.2% from 2.9% initially expected. The downgrades were made on the high value of Yen and negative economic outlook worldwide, said the government of the
Copper futures saw gains for the third consecutive day approaching one-week high on the stronger China's demand and weaker USD. Copper futures for delivery in March traded at USD3.420 per pound at the early European trade, on the Comex division of the New York Mercantile Exchange, gaining 0.75% since opening.
Yahoo shares advanced 6% after the report that the company is planning to sell its stakes in Alibaba Group and in Yahoo Japan. The New York Times announced that Yahoo wants to decrease the stake in Alibaba from 43% to 15%. Analysts expect the deal to amount $17bn while Yahoo purchased Alibaba stake for $1bn six years ago.