China invested about 620.7 billion yuan in power generation projects during this year that is 9.5% higher than in 2011, according to China Electricity Council. Despite expanding its power capacity by 66.27 million kilowatts, the power consumption of China still exceeds the supply, surging 11.85% in 2011 on a yearly basis.
The Tokyo Stock Exchange plans to discuss new measures aimed at improving the corporate governance to increase the confidence of investors after scandal with Olympus Corp. The TSE placed the shares of Olympus under the strict control as it examines company's financial malpractice resulted in hiding above $1.5 loss.
Natural gas prices decreased essentially and the forecast does not indicate any improvements. Currently the natural gas futures traded more than 60% less as compared to 2008 highs. The US still has a high natural gas inventory level despite small decline and the abnormally high temperatures in December are likely to continue to weight down on the natural gas price.
Experts have pessimistic forecasts on the development of China's economy next year. The economic growth is expected to fall to 7.9% in 2012, reported Nomura International Ltd. The most negative outlook predicts the China's economy might fall into recession as last time the growth was lower than 8% was before Asia-Pacific crisis in 1998. The government has to do its best to stimulate domestic demand
Swiss trade surplus increased more than expected last month, according to official data. The trade balance widened to CHF3.00 billion last month as compared to CHF2.16 billion in October. Analysts expected the figure to be CHF2.47 billion. After the data release, the Swiss Franc appreciated against the USD and the pair USD/CHF is currently traded at 0.9371, edging down 0.02%.
Yanzhou, China's mining company, started negotiations with Gloucester Coal Ltd. on the merger aimed at creating a mining company worth 8 billion Australian Dollars. Experts do not expect criticism from the Australian government despite the fact that previous large investment projects made by China's state supported companies came in for criticism from politicians.
China is likely to stay the biggest manufacturer in Asia during the next three-five years, reported Deloitte Touche Tohmatsu Ltd. China's manufacturing has a high growth potential but the businesses have to invest essentially in innovation and new market development. However, many entrepreneurs consider the high tax burden to be the major obstacle to further business expansion.
The Pound edged higher against the USD during the Asian morning trade as investors started to sell Dollars to benefit from short-lasting Greenback's increase after Kim Jong death. GBP/USD traded at 1.5522, gaining 0.15%, after falling to 1.5497 during the last session.
China saw capital outflows for the second month in line in November that may force officials to ease the monetary policy. Country's positions for foreign-exchange purchases decreased by 27.9 billion Yuan indicating capital outflow thus forcing China's Central Cank to reduce the reserve-requirement ratio further, said Zhang Zhiwei, an economist from Nomura International Ltd.
Banks stay positive on the gold perspectives next year and make a forecast of 13%-28% increase of the yellow metal's price from the current level. The gold is likely to find support in negative real interest rates and growing inflationary concerns. UBS and Barclays Capital expect the gold price to climb to more than $2,000/oz next year.
German consumer climate index remained steady this month, according to industry data. The indicator remained unchanged at 5.6 not meeting the expectations of a decline to 5.5. However, despite better financial expectations, willingness to purchase decreased. After the data release, the Euro gained in value relative to the USD and the pair EUR/USD is currently traded at 1.3010, gaining 0.08%.
Iran wants to stop crude oil exports protesting against the sanctions of Western economies imposed due to Iranian nuclear project, said Mohammad Karim Shahrzad, Iran's MP. The shortage of oil supplies will hamper recovery of world economy. In case of attack on the country, Iran will close the Strait of Hormuz, narrow seaway that is used to transport 40% of world's oil, and will
The Central Bank of China may lower further the reserve-requirement ratios and the interest rates to stimulate the economy; however, the probability of such measures is low, said Jing Ulrich from JPMorgan Chase & Co. Experts agree that yuan-loans will increase to 8 trillion yuan next year while the biggest concern remains a sharp slowdown in the property market that pushes steel and other industries
European equity markets opened down on Tuesday on rebounding worries about debt crisis, as finance ministers failed to provide comprehensive details about taming turmoil. Stoxx Europe 600 index lost 0.4% at 232.85 while FTSE 100 index dropped 0.5% attaining 5,335.92. French CAC 40 index and German DAX each gave up 0.4%.
Reserve Bank of Australia claimed resource investment to be a leading force aiding economy to outweigh effects from European crisis. RBA suggested that strong growth among its trading partners is bolstering the economic expansion in Australia and the bank does not see a need to further interest rate cuts. Australian Dollar appreciated after the RBA's announcement.
Stocks of Bank of America Corp. ended below $5 on Monday breaching record low since 2009. The shares closed at $4.99 down 4%. Company has experienced a sharp decline during recent months, as investors express concern whether the bank holds sufficient amount of capital to accept mortgage-linked losses. Moreover, shareholders are uncertain whether the bank will be able to fulfil international capital requirements.
Europe strengthened its measures for tackling debt crisis, transferring 150 bn euros ($195 bn) to the IMF. Four non-euro countries also supported IMF firepower, while UK refused to participate. Britain will state its contribution at the beginning of 2012, said European FMs. However, Peter Kurer, the former UBS AG's Chairman claimed the aid to be only a small scale solution.
The Australian Dollar appreciated as Asian markets recovered and RBA meeting minutes showed predictions for further growth despite European debt crisis effects on world-wide development. New Zealand Dollar rose ahead of report that is expected to show accelerated growth in 3rd quarter. Aussie climbed 0.4% to $ 0.9934 on Tuesday session in Sydney while Kiwi advanced 0.5% reaching $0.7596. Currently AUD/USD is trading at $0.9946 while NZD/USD
Canadian Dollar experienced upward and downward fluctuations against US Dollar as stocks and crude oil erased earlier gains, worsening the Loonie's outlook. On Monday Canadian currency fluctuated after dropping 2.1% last week. Loonie was almost flat at C$1.0389 in Toronto evening trade. Currently USD/CAD is trading at C$1.0369.
The US Dollar index traded almost flat on Tuesday Asian session giving up 0.09% or declining from 80.374 to 80.350. Dollar index which estimates the US Dollar against a bundle of 6 main counterparts strengthened on Monday as investors refocused their attention on European debt woe. Euro climbed against US Dollar from $1.2997 to $1.3002.
US stocks ended lower on Monday as ECB and European FMs did not manage to provide plausible details how to curb debt crisis. Moreover Draghi, ECB president, denied bank's possible intervention in bond purchases. S&P 500 index tumbled 1.2% or 14.31 points to 1,205.35, Dow Jones Industrial Average finished 0.8% or 100.13 points down at 11,766.26, while Nasdaq Composite Index declined 1.3% or 32.19 points reaching
Asian markets recovered on Tuesday from North Korean news and partly erased previous session's losses. South Korea's Kospi added 0.7% while Hong Kong's Hang Seng Index climbed 0.6%. Japan's Nikkei Stock Average traded up 0.7%, China's Shanghai Composite advanced 0.1% and Australia's S&P/ASX 200 index jumped 0.2%. The recent drop was more sentiment driven, suggest analysts.
Crude oil futures extended losses on Monday after tumbling by over 7% in the last three trading sessions. The commodity was affected by the death of Kim Jong-il and the ECB president's announcement on the ECB played down the role in solving debt crisis. On the New York Mercantile Exchange, light, sweet crude oil futures for delivery in January lost 32 cents to $93.21
Gold futures declined failing to recover after 7% drop last week. Analysts claim the reason is stronger US dollar as it makes the dollar-priced metal more expensive for other currency holder and decreases the safe-haven appeal of the commodity. Gold futures for delivery in February lost $4.90 to $1,593.20 an ounce.