Liu Mingkang said in an interview that it is of paramount importance for China to lower its dependence on exports as the foreign demand is weakening with the European crisis. To ensure that the world's 2nd largest economic organism does not experience severe repercussions, it would have to increase its GDP by 7% during the upcoming 5 years as well as by 6%, at
Jose Manuel Gonzalez-Paramo, Executive Board member at the ECB, on his last day at the bank announced that there is a possibility for Spain to recapitalize its banks by utilizing funds from the Fund for Orderly Bank Restructuring. He correspondingly added that during the upcoming month further data regarding the assessment of the banking-sector requirements will be developed. Gonzalez-Paramo also highlighted that whilst seeing eye-to-eye
U.S. Labor Department announced an increase in the number of first-time unemployment claims to 383,000 in the recent week. Following the news, Treasuries prices advanced and the dollar weakened. Thus, yields on 10-year notes dropped 2 bp to 1.61%. The dollar index, which weighs the U.S. dollar against a basket of its six major rivals, lost 0.17 percent, falling from 83.053 to 82.89. Consequently, the
China's growing hunger for oil as well as additional energy sources is expanding to America both North as well as South. In order to satisfy its appetite China has been spending vast billions of dollars in energy assets acquisitions. In contrast to the weakening demand for oil in the U.S., China's basic need for oil is growing at a rapid pace and is projected
ADP National Employment Report for May 2012 states that the number of people working in the U.S. nonfarm private business sector rose by 133,000 comparing to the previous month. Analysts, however, predicted an increase of 145,000. The estimated improvement in this indicator from March to April was cut from 119,000 to 113,000. In May private service-providing employment added 132,000 jobs, goods-producing employment – 1,000 jobs. Employment
DAX 30 index surged at the beginning of Thursday's session on better than expected retail sales data. However, German benchmark index gave up all the morning trade gains after US data showed US unemployment claims jumped to 383,000 last week instead of expected drop. Moreover another report showed US economy grew less at in the first quarter reaching only a
UK FTSE 100 index climbed rapidly during morning trade supported by oil shares and miners as oil futures broke USD 88 a barrel resistance. However, British benchmark retreated after disappointing US jobless claims data and downward revised quarterly GDP data erasing most of its 1% gain. Admiral Group fell 4% on the Office of Fair Trading's decision to refer the
Goldman Group anticipates that Shanghai Stock Exchange Composite Index will grow by 15% by the end of 2012 to approximately 2,750. The main rationale behind the forecasts is the slowing inflation, which in turn provides the Chinese government with the possibility to ease the monetary policy and with the opportunity for businesses to receive more loans from the banks. Wang Hanfend at Gao Hua stated
According to the EU's statistics bureau located in Luxembourg the inflation rate dropped by 0.2% to 2.4% reaching its lowest point since February in 2011. As the price of crude oil tumbled by approximately 16% during the period of 2 months, it allowed the inflation tension to cool off as well as provide an opportunity to the ECB to concentrate on reviving the economic state.
The seasonally adjusted number of unemployed people in Germany stayed at its April level of 2.87 million. Unemployment rate was falling for 27 consecutive months till October and reached the lowest level since reunification, 5.5 percent. Despite the severe crisis in the Eurozone, unemployment may continue falling, Eckart Tuchtfeld of Commerzbank AG said.
A referendum will be held on Thursday by the Irish in order to determine whether they accept the new fiscal regulations. According to recent polls, it is likely, yet still not certain due to a large number of last-minute voters, that the Irish people will vote with a "yes", consequently, ensuring additional funding apart from the EUR 85 billion bailout plan. However, even if the
Hong Kong's stocks traded lower on Thursday on worries European debt turmoil will curb the demand from China's main export region. Hang Seng index declined 0.32% or 60.70 points and closed at 18,629.52, posting a 11.7% drop for May. Property companies extended losses with China Overseas Land & Investment dropping 4.3% and Agile Property Holdings slipped 1.1%. Oil provider Cnooc
Japan's Nikkei Stock Average extended loss on Thursday on persisting Europe fears. Stronger Yen depressed export shares. Benchmark Nikkei 225 finished 1.05% or 90.46 points down at 8,542.73. On monthly basis the index has depreciated 10.3%, the biggest drop since May 2010. Kansai Electric one of Japan's leading electricity provider, added 3.2% on news that government may support the restart
Europe's equities fell on Wednesday reflecting drop in investor sentiment after Spain's downgrade in Tuesday evening. Stoxx Europe 600 declined 1.5%, Spanish IBEX 35 plunged 2.6% and Italian FTSE MIB dropped 1.8%. Athens General index lost 3.2% and British FTSE 100 shed 1.7%. German DAX index edged 1.8% lower.
The Asian market faced uncertainty and dropped on Thursday as growing concerns surrounded Europe. Investors turned their backs on high risk assets and leaned towards a safer option – the U.S. debt stocks. In morning trade Nikkei 225 Index declined by 1.6% while Kospi Composite Index and Hang Seng Index each slumped by 1.3%.
Swiss economy unexpectedly expanded in the first three months this year, supported by stronger consumer demand. GDP soared 0.7% compared to a fourth quarter of 2011, posting a biggest gain since 2010. Analysts predicted the economy would stagnate. Swiss Franc traded against US Dollar at CHF 0.9693.
China's growth indicators are dropping below the anticipated estimates, thus requiring the government to reconsider its policies to ensure future stability. Nonetheless, some analysts believe that even such a downturn can be rationalized with the lowering demand outside the domestic market as well as fading effect of accommodative policies taken after 2008. On top of that, the current government is more concerned with ensuring stability rather
Dow Jones Industrial Average index lost ground on Wednesday as investor sentiment was ruined by developments in European troubled countries. Blue chip index slipped 1.28% or 160.83 points and finished at 12,419.86. 29 of 30 index's stocks posted loss. Economy linked shares fell most. Aluminium giant Alcoa dropped 3.5% and oil provider Chevron gave up 2.6%. Financial shares of Bank
In April retail sales in Germany soared more than predicted by economists. The surge was supported by record low unemployment rate and higher wages. Retail sales added 0.6% in April compared to a previous month, Federal Statistics Office reported on Thursday. The median estimate of analysts surveyed by Bloomberg was a gain of 0.2%.
S&P 500 index erased earlier gains on Wednesday as borrowing costs in Italy and Spain surged while Greece renewed worries it may leave Eurozone. US benchmark index tumbled 1.43% or 19.10 points and closed at 1,313.32. Monsanto jumped 2.2% after firm's CEO said earnings for 2012 will likely soar 25%. Apple remained on the positive side with a 1.2% gain
Gold futures kept declining in electronic trade on Thursday as global slump in stock and currency markets amid stronger US Dollar damped the demand for precious metals. Gold to be delivered in August slipped 0.1% or USD 1.90 to USD 1,561.50 per ounce. On monthly basis gold has depreciated around 6.2%. Silver for July delivery dropped USD 0.19 or 0.7%
Crude oil kept following a bearish trend on Wednesday and moved towards the largest monthly fall in 3 years on worries the deepening European debt turmoil and slowing growth in US will curb demand for fuel. Oil futures today are 20% down from the highest value this year, implying a bearish path. July oil lost USD 0.17 to USD 87.65
Due to European debt woe, India's economic growth for the first three months this year expanded at slower pace than was predicted by analysts. India's GDP for the first quarter added 5.3% compared to an expected gain between 6.5% and 6.7%. Rupee weakened after the release of the data.
US shares erased previous session's gains on Wednesday as borrowing costs in Italy and Spain climbed while Greece renewed threats it may leave Eurozone. S&P 500 index fell 1.43% or 19.10 points and closed at 1,313.32. Dow Jones Industrial Average shed 1.28% or 160.83 points and finished at 12,419.86. Nasdaq Composite dropped 1.17% or 33.63 points settling at 2,837.36.