After closing down last week, UK's FTSE 100 traded flat on Monday. UK stocks fluctuated on the first trading day as European FM's held a meeting discussing bailout funding through IMF. On the upside were Imperial Tobacco adding 1.68% and British American Tobacco PLC gaining 0.42% as investors supported companies less linked to economic development. Downside pressure came from resource stocks with BP PLC giving
Gold futures for February delivery lost $122 or 7.1% while NYSE Arca Gold Bugs Index declined by 9.1% over the last week being 20% lower from the September's record. However, excessive selling of gold did not uncover big Eastern demand for yellow metal with 35% higher commodity turnover on the Shanghai Gold Exchange. Experts claim the panic on the gold markets was provoked by
Qantas Airways announced it has ended the dispute with its engineers union, one of three disputes with the company's employees. The company accepted 3% increase in salary for the next three years. Qantas has had disputes with three labour unions that represent pilots, engineers and baggage handlers. The two other conflicts are still not settled.
On Monday Japan's Nikkei Stock Average fell 1.26% or 105.60 points and closed at 8,296.12 on announcement about Kim Jong-il, North Korean leader's death. Among main decliners were Japanese broker stocks with Nomura Holdings Inc. trading down 4.3% and Daiwa Securities Group Inc. declining 3.2%. Olympus Corp stocks lost 7.4% after local media inclined cash troubles while export-dependent Sony Corp. lost 3%.
China's economy is likely to face challenges such as exchange rate and trade disagreements coupled with protection of China's foreign investment interests, reported experts. At the first half of 2012, recession in many developed economies will continue thus increasing friction between the US, Europe and China. Moreover, protection of the Chinese overseas investment will pose additional challenges to Chinese diplomatic relations, added Ding Yifan, deputy director of the
Technicolor plans to cut about 600 jobs with charges amounting €100 million. The measure signals on the weak demand for Digital Delivery services that is expected to report about €39 million loss before taxes, interest, depreciation and amortization. The company announced it accelerated its cost-reduction strategy due to bleak macroeconomic outlook in Europe.
The US currency is likely to stay at the dominating position through 2020, said an adviser to Chinese central bank. The yuan is likely to contribute about 3%-5% of the world reserves by 2020, according to Xia Bin, adviser to the People's Bank of China.
The government of India approved the bill that will provide cheap food for poor people who constitute over a half of the Indian population. The Food Security Bill is aimed at supporting 75% of residents in the rural areas and more than a half of urban population. The measure is worth $19bn and will be implemented by phases.
Mario Draghi warned the Euro Zone members who are considering leaving the single currency bloc that they would still experience financial difficulties. Countries leaving the Euro Zone and devaluing country's currency will face high inflation and still have to implement structural reforms but they will be in weaker position than the Euro Zone members. He also stressed the leading role in struggling the debt crisis
The PBOC reported the China's yuan funds for forex declined for the second consecutive month in November. The total yuan funds outstanding for forex totaled 25.46 trillion yuan in November declining by 27.9 billion yuan since October, according to PBOC data.
Tightening measures aimed at easing situation on the property market showed results in the 70% of the 70 largest cities surveyed. Nearly 49 out of 70 cities reported essential fall in the price level for new residential property in November. The price declined by 0.4% in Beijing and Shanghai while Nanjing saw 0.7% drop. The government continues to decrease demand and stimulate supply to combat
The dollar increased against its major rivals on the investors' uncertainty over the reports that Kim Jong-il, leader of North Korea, died during the weekend, according to state media. The USD index traded at 80.83 increasing from 80.216 or by 0.18% during the morning trading.
Spanish banks announced on Monday their fraction of bad loans has increased to highest reading in 17 years as country is harmed by property crash and deepening European debt crisis. According to Bank of Spain, the proportion of bad debt against total lending jumped to 7.42%, the highest since 1994 compared with 7.16% in September.
Hong Kong's Hang Seng Index lost 1.18% or 215.18 points reaching 18,070.21 on Monday after receiving news about Kim Jong-il, the North Korean leader's death. Losses were fuelled by growing concerns about European debt crisis. Among main decliners were HSBC Holdings PLC and Li & Fung giving up 2% and 3.1% respectively. Clothes producer Esprit Holdings Ltd. tumbled by 6.5%.
Dow Jones Industrial Average gave up 0.02% or 2.42 points and closed at 11,866.39 on Friday. Index gained 99 points in morning trade after Italian government approved austerity measures. Gain was offset later by Fitch Ratings report saying the agency may downgrade debt of Spain, Italy and 4 other countries. Main gainers were Home Depot Inc. and Microsoft Corp. adding 2.54% and 1.72% respectively. On the
Spanish 2-year bonds surged for the seventh consecutive day amid speculation banks purchased debt to exploit it as a collateral. French sovereign notes declined first time in 5 days after Fitch has cut nation's outlook. Yield on Spanish 2-year bills lost 12 b.p. to 3.34%, while their French counterparts jumped 9 b.p. to 1.0%. France's 10-year borrowing costs added 13 b.p. reaching 3.19%.
SAAB automobile, the Swedish car producer submitted filing for bankruptcy after it failed to find investors ready to save company running for 74 years. Saab's staff totals around 3,600 employees. In September SAAB got a protection from lenders and has been searching investors since then. In 1990 SAAB was acquired by General Motors which sold the company to Swedish Automobile in 2010.
During the period 18-23 December both S&P 500 index and gold moved in relatively close harmony at average correlation of 0.72. Nevertheless, on weekly basis relationship was downward sloping and on Friday correlation coefficient reached 0.68. Possible explanation for downward trend could be fluctuations in S&P 500 index amid constantly decreasing price of gold until last workday. On Friday, both
Despite early rally in Friday morning the S&P 500 Index added only 0.32% or 3.91 points and closed modestly higher at 1,219.65. On weekly basis, however, the US benchmark lost 2.8%. Three of the 10 industries including consumer staples, utilities and health care declined while others were up. The biggest gainers were material, industrial and energy companies as several US
On Monday Olympus Corp. Japanese producer of medical equipment and cameras experienced a sharp decline in share price after country media inclined cash troubles. Japan's prosecutors are going to search Olympus headquarters this week. Olympus Corp. stocks lost 7.4% on Monday morning session. Olympus also revealed to lenders that its cash reserves may expire by 2015.
US Treasuries appreciated touching 6-week record high as fading optimist about European officials' ability to solve debt crisis boosted demand for safer assets. Benchmark 10-year borrowing costs hit 2-month low on Friday after Fitch lowered France's credit outlook and placed 6 other nations including Italy and Spain for revisit of downgrade. 10-year yields dropped 10 b.p. or 0.21 p. p. to 1.85%.
Lonnie depreciated on Friday, extending its five consecutive day drop, biggest in 6 weeks on investor speculation that Europe is not doing very well on taming its debt crisis. Canadian dollar lost 0.3% to C$1.0380 on Friday evening trade. Loonie's weekly depreciation reached 2.1%. Currently USD/CAD is trading at C$1.0380.
European security markets traded lower in Monday morning session amid announcement that North Korean leader Kim Jong-il died and Fitch ratings lowered France's credit outlook. Stoxx Europe 600 index lost 0.3% at 233.01, whereas German DAX 30 index dropped 0.2% reaching 5,691.78. French CAC 40 index declined 0.5% at 2,956.82 and FTSE 100 index edged down 0.4% at 5,366.11.
Mario Draghi, ECB president curbed expectations that common central bank will intensify bond purchases to resolve debt turmoil. Mario Draghi continues to repeat that ECB must operate within its legal foundations and ECB's mandate does not accept proposed type of intervention. However, ECB will work on behalf of EFSF, which has been authorized to interfere in debt markets.