The ECB awarded €489 bn ($645 bn) in three-year loans, compared to previous expected estimate of €293 bn. In total 523 Euro Zone banks called for cash which will be provided at a cost equal current benchmark 1%. European debt turmoil has amplified risk of bank and government defaults, therefore financials became more reluctant to lend driving up borrowing costs. By providing cheap cash, ECB
Italy's economy declined in the 3rd quarter indicating the nation may face a new recession. GDP lost 0.2% compared to 2nd quarter when it gained 0.3%. Consumer spending and investment dropped 0.2% and 0.6% respectively. Exports added 1.6% whereas imports edged down 1.1%. Threat to economic growth is fuelled by planned austerity measures which will face final vote tomorrow.
Standard and Poor's 500 Index jumped 2.98% or 35.95 points on Tuesday and closed at 1,241.30 led by banks, network companies and constructing companies. Recovery in US markets was fuelled by higher-than-expected housing starts, improved German business confidence and successful Spanish bond auction.US benchmark had the best day since November 30 and narrowed its annual loss to 1.3% as all 10 industries within the index
Joe Biden, US Vice-President, urged leaders of Iraq to solve the political dispute caused by arrest of Tariq al-Hashemi accused of terrorism. The arrest increased concerns over fragile political stability in Iraq after the US solders left the Iraqi territory. Meanwhile, Tariq al-Hashemi denies any wrongdoing and his political bloc continues to boycott the parliament.
US court may call off the tariffs imposed on the Chinese goods to protect domestic production. However, the changes in legislation can last for years, admitted George Thompson, a lawyer at Neville Peterson LLP. At the moment China's exports to the US are subject to over 100 anti-dumping duties as China's goods are perceived to be undervalued and their presence on the US market may
Crude oil futures increased on the concerns over possible supply disruptions and strong economic data in the world. Labour disputes in Kazakhstan and fresh sanctions to be imposed on Tehran both contributed to supply worries. Light, sweet crude oil futures for February delivery traded at USD97.58 a barrel at the morning trade on the New York Mercantile, gaining 3.75%.
Wen Jiabao, China's Premier, called for country to stay confident in the economy despite tough outlook of further development. The country faces fall in export growth to EU and challenges from slower economic growth and inflation, though China overcame similar difficulties in 2008 and now the country is able to struggle with challenges, he added.
Members of Mercosur that includes Brazil, Argentina, Paraguay and Uruguay have agreed to impose blockade of their ports to the Falkland's vessels. The decision is based on the solidarity with Argentina that has claimed its sovereignty over Falkland. Currently, the islands belong to the UK that considers the future of the territory not negotiable and insists on further explanations from Mercosur.
China's state-owned enterprises and holdings' profits increased to 2.04 trillion yuan, reported Ministry of Finance. Revenue of companies amounted 33.48 trillion yuan being 23.2% higher than revenue in 2010. At the same time the costs of companies rose by 23.9% on a yearly basis. The top performers are chemical, coal and construction materials sectors.
Nike reported the increase in profit in Q2 supported by high demand for its products. The earnings of the company surged from $457m to $469m in Q2 with 18% increase in revenue to $5.7bn. However, higher production costs impacted profit margins that declined by 2.6% to 42.7%.
Gold futures advanced during the electronic trade following the common upward commodity trend supported by lower value of the USD. On the Comex Division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,626.00 per ounce, gaining 0.5% since opening.
Federal Reserve plans to introduce new rules for big US banks aimed at strengthening financial sector against collapse. The new rules stipulate that banks having over $50bn in assets will be obliged to raise minimum amount of cash hold. The biggest banks as Bank of America and Goldman Sachs will have even stricter requirements. The banks oppose the measure citing the possible drop in lending.
China's tough monetary policies aimed at cooling real estate market undermined the property mania in the country. The volume of transactions on the real estate market tumbled sharply in October by 27.56% coupled with weaker sales price that fell by 1.65%. Experts believe the market approaches turning point after recent exorbitant growth.
The Central Bank of Hungary raised the interest rate from 6.5% to 7% on Tuesday. The increase came in for government's criticism as it may impact economic growth. Currently, the country is in talks for 15-10bn euros worth aid package provided by the IMF and the EU. Moreover, Hungary is trying to adopt new law that would decrease the central bank's independence while the EU
Despite recent political turmoil that affected Russia's stock markets with its benchmark RTS index falling from 2,100 to 1,300, investments in Russia are likely to pay off in the long-run. Russia is rich in natural resources, has qualified labour and low level of indebtedness. The country may become the most promising emerging market over the next years. Even now, when world's strongest economies dive in financial
Japan's exports decreased in November on the weak demand from Western economies. Foreign shipments declined by 4.5% last month on a yearly basis, according to the Ministry of Finance. Experts claim the strong Yen and European crisis are the underlining causes for decrease in exports. Meanwhile, the Bank of Japan left the interest rate unchanged between zero and 0.5%.
Shanghai's population of overseas and foreign Chinese is the second biggest in the country. About 27.3% of foreign Chinese arrived to the city seeking better job opportunities, reported the municipal statistics bureau. The trend of the overseas Chinese coming to large cities for long-term employment is likely to expand further given expected growth of the local economy, said Sun Haode director of the labor and
On Wednesday European markets opened up ahead of ECB report about three year loan results on speculation fresh cash will be flooded into tumbling Euro Zone. Stoxx Europe 600 index gained 0.8% at 240.41, whereas French CAC 40 index jumped 1% reaching 5,463.22. FTSE 100 index climbed 0.8% attaining 5,462.90 and German DAX 30 index added 1% at 5,907.63.
ECB is set to provide Euro Zone banks with cheap financing. Today ECB will offer its three year loans. European banks are going to ask for around €293 bn ($384 bn), predict economists surveyed by Bloomberg. The cash will be offered at average ECB benchmark rate of 1%. ECB is attempting to provide banks with low-priced money for medium term, so that financials can continue
New Zealand and Australian Dollars surged on Wednesday reaching one-week record high as Asian markets rallied ahead of ECB report about the results of unlimited three-year bonds. Investors are speculating the ECB will prompt debt purchases. Aussie gained 0.8% reaching $1.0157,while Kiwi climbed 0.7% attaining $0.7731. Currently AUD/USD is trading at $1.0174 while NZD/USD is trading at $0.7742.
17-nation currency appreciated for a second straight day ahead of ECB report about unlimited 3-year bonds. Investors expect ECB to boost purchases of Euro Zone's debt. Euro gained 0.2% against US Dollar reaching $1.3114 in Tokyo trade. European common currency also climbed 0.2% against Japanese Yen attaining ВҐ102.05. Currently EUR/USD is trading at $1.3109 while EUR/JPY is trading at ВҐ101.91.
US markets surge close to 3% on Tuesday after Federal Reserve issued capital proposals which were less burdensome than expected. Dow Jones Industrial Average added 2.87% or 335.73 points finishing at 12,103.58, while S&P 500 Index gained 2.98% or 35.95 points closing at 1,241.30. Nasdaq Composite Index edged up 3.19% or 80.59 points at 2,603.73.
Accelerating prices and slowing growth will be the main challenges the government will face next year, said Wen Jiabao, Chinese Premier. The government is going to focus on stable export policies while support tax cuts by increased fiscal spending, Jiabao added. PM characterized current economic situation as healthy, nevertheless he admitted than country is facing many new problems.
Japanese exports dropped for a second month in a row and Bank of Japan again cut its economy outlook as fading demand in Asia and Europe hampers global growth. Shipments fell 4.5%, or 0.2 percentage points more than predicted by economists. Japanese producers are lowering revenue forecasts as Yen has appreciated close to post-war record high against the Greenback.