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.
World's coffee exports are expected to total $23.5 billion or 102.4 million bags this year as compared to $16.7 billion or 96.8 million bags in 2011, indicating a 41% increase, reported International Coffee Organisation. Coffee is the second most traded commodity after oil in the world. Coffee futures for delivery in March traded at USD2,192 a pound on the Inter Continental Exchange, easing down by
Corn futures remained steady, being close to four-week high, leveling off after four-day gains as investors eye weather forecasts in Brazil and Argentina, the largest world producers of corn. Corn futures for delivery in March traded at USD6.1488 a bushel at the early European trade, on the Chicago Mercantile Exchange, edging down 0.12%.
Russia is likely to see 6% inflation rate this year, being the lowest since the collapse of the Soviet Union, according to Dmitry Medvedev. The country's economy is expected to expand by 4% in 2011 outperforming the economic growth of leading economies, he added.
Global crude steel capacity utilization ratio decreased to 73.4% in November, down by 2.8%, reported World Steel Association. At the same time, the global commodity output achieved 116 million metric tons last month, indicating 1.1% increase on a yearly basis.
Toyota announced its plans to boost production by 20% in 2012 pursuing faster recovery after the earthquake in Japan in March and Thailand's floods. Toyota expects to manufacture 8.48 million vehicles and boost sales by 25% to 8.65 million next year. Earlier this year the company lost its leading position in the car market to GM and halved its profit expectation for 2011.
Commodities have a high investment potential next year, reported BNY Mellon Asset Management. Commodities, having low correlation with volatile bonds and stocks, may provide investors with diversification that will allow them to stay afloat amid US presidential elections, high budget deficit and high inflation expected next year, according to forecasts of the Mellon Capital Management Corporation.
Crude oil futures advanced on Thursday as market sentiment improved on the sharp fall in US oil inventories that signal faster US recovery. US crude oil inventories declined by 10.6 million barrels, being the largest fall since 2001. Light, sweet crude oil futures for February delivery traded at USD99.40 a barrel during the morning session, on the New York Mercantile Exchange, gaining 0.73% since opening.
Jobless claims unexpectedly declined previous week reaching the lowest level since April 2008 indicating that US labour market is recovering. Unemployment claims dropped by 4000 to 364 000 last week, reported Labor Department. Economists questioned by Bloomberg predicted an increase to about 380 000.
Japan's Nikkei Stock Average traded 0.77% or 64.82 points down reaching 8,395.16 as market reflected investor scepticism towards impact the ECB cheap loans might have on curtailing region's debt crisis. Toyota Motor Corp. was down 0.6% after reporting its sales are likely to fall by 6% this year. On the upside Yahoo Japan Corp. jumped 2.1% after company said it may reduce most of its
On Asian Thursday trade Hong Kong's Hang Seng Index lost 0.21% or 38.22 points and closed at 18,378.23 on investor sentiment that cheap loans from ECB will not curb debt crisis. Major decliners were toys and clothes producer Li & Fung Ltd, trading down 2.9% and resource firm China Coal Ltd dropping 1.53%. On the upside Alibaba.com Ltd. gained 0.5% following announcements that Yahoo Inc.
India is considering borrowing around $9.5 bn putting shares and land as collateral to cut its budget deficit, said governmental officials familiar with the matter. By January 15 India's government will nominate a fund authority that will be responsible for pledging state's stocks held in non-state firms including Axis Bank Ltd. and ITC Ltd.
US stock index futures climbed on Thursday, indicating market may open higher, as investors are waiting for US data on jobless claims and consumer confidence. Futures on S&P 500 index gained 0.4% or 4.6 points reaching 1,240.80. Futures on the Dow Jones Industrial Average index added 0.3% or 37 points to 12,063 while those on Nasdaq 100 advanced 0.4% or 9.25 points to 2,248.25.
The loonie strengthened for a second straight day against US Dollar as crude oil surged and data showed growth in sales twice as much as predicted by economists. Loonie appreciated to C$1.0209 during day but erased part of gains as optimism on ECB cheap loans faded. The Canadian currency gained 0.3% against its US peer to C$1.0266 in Toronto evening session. Currently USD/CAD is trading
UK shares accelerated on Thursday, recovering from a massive drop earlier this week as investors are looking forward data on US consumer confidence and nation's employment. Rally in shares was led by Royal Bank of Scotland jumping 2.3% and International Consolidated Airlines Group gaining 1.2% after it agreed to buy BMI, Lufthansa AG's unit. UK benchmark index FTSE 100 added 1.2% or 63.7 points in
UK economy in third quarter expanded more than was previously predicted by economists. GDP advanced 0.6% compared to earlier forecast 0.5%. Nevertheless Bank of England warns that further rapid growth is unlikely given developments across Europe as debt burden harms demand. BOE predicts UK economy may stop expanding in current quarter and in the beginning of 2012.
British Airways parent company IAG agreed to acquire Lufthansa's BMI unit for ВЈ172.5 million ($270.5 million) beating Virgin Atlantic Airways counterbid. IAG needs BMI division in UK to provide mainline operations at Heathrow, the European most active airport. Lufthansa has been thinking of sale after BMI wrecked $291 million in operating losses after takeover in 2009.
European stocks traded higher on Thursday morning partly erasing yesterday's losses, led by financials. Stoxx Europe 600 index added 0.8% at 239.18 while German DAX 30 index climbed 1.2% reaching 5,861.63. FTSE 100 index jumped 0.7% at 5,425.38 and French CAC 40 index gained 1.2% at 3,067.96.
Greece's creditors are struggling against IMF pressure to accept greater losses on government bonds, said three persons familiar with matter. Lenders require government to issue new bonds worth €70 bn ($91 bn) with a coupon at around 5%. However, IMF is forcing creditors to take smaller coupon to cut Greek GDP ratio to 120% by 2020. Without write-downs Greece's debt burden will be nearly twice