Standard & Poor's 500 Index lost 0.8% and slid to 1322.39 by 12:30 GMT today. Index has lost 5.4% of its value since the start of the month. S&P 500 intraday futures lost 0.74% giving away 9.9 points and decreasing to 1323.5. NASDAQ futures lost 21 points (0.82%) and decreased to 2538.5. Dow Jones futures lost 0.64% and decreased to
It could be observed that the price of crude oil dropped nearly by 14-15% during the month of May from USD 105 per barrel to the current USD 90. However, Richard Surrmeier, the Chief Market Strategist working at ValuEngine.com, anticipates that an even further slump to USD 79 will be experienced by the end of June. Suttmeier also highlights that hurricanes as well as tropical
The pressure continues to grow upon the EUR/USD currency pair, as the dollar has reached its peak in almost 2 years with the EUR dropping below USD 1.25. The trigger has mainly been the troubling situation in Spain and, according to Kathleen Brooks, Forex.com research director, Spain is in need of an unrealistic EUR 380 billion bailout. Accordingly, the U.S. Dollar Index measured against six key currencies
UK FTSE 100 index tumbled on Wednesday as investors anticipated news about the Spain's credit rating cut to grade B by Egan Jones. Most of index's constituents dropped during session. Resource stocks and financials provided the most significant downside contribution. Fresnillo lost 2.5% and Rio Tinto fell 3.3%. British banks also sharply declined with Royal Bank of Scotland giving up
German DAX index sharply fell on Wednesday after Spain's downgrade. Surging Italian and Spanish borrowing costs weighted on investor sentiment. Italy sold its bills at higher yields than in previous auction. Moreover ECB rejected Spain's government plan to recapitalize Bankia SA through government debt. German car maker shares retreated from yesterdays gains and traded lower. BMW AG fell 2.3% while
Precious metals were mostly lower on Tuesday after Spain's credit rating was cut by rating agency Egan Jones. Negative news from the Eurozone pushed the EUR/USD below 1.25 creating strong pressure on the commodity pack.Gold, being highly risk-sensitive at the moment, slid amid growing uncertainty in the Eurozone. However, dismal consumer confidence data from the US restricted the downswing. Silver was
Industry metals moved higher on Tuesday on speculation that China will ease its monetary policy to stimulate cooling economic expansion.Aluminum was among gainers as China's demand perspectives are positive due to rural automobile subsidy.Copper managed to climb as China's may revive financial incentives that in turn is likely to boost industrial demand for the red metal. However, persistent turmoil in
Energy commodities tumbled on Tuesday as global demand concerns lingered after unexpected Span's credit rating downgrade.Crude oil balanced between gains and losses as demand concerns from the Eurozone and supply worries from Iran increased volatility of the commodity group.Brent oil depreciated despite lack of resolution of Iranian nuclear issue. Traders are cautious ahead of the EIA inventory report release. Natural
Farm commodities dropped on Tuesday as crop conditions in the top-growing regions continued to improve. At the same time, economic instability in the Eurozone continued to dampen investors' risk-appetite.Wheat posted the largest fall in the last four weeks on speculation that rains are likely to revive crops in Russia and Ukraine. Adding to global supplies, US started harvesting wheat crops.Corn
Economic confidence in the Euro zone decreased more than anticipated in May. The gauge decreased by 2.3 from April and slid to 90.6, the lowest level in more than two years. Economic sentiment amongst European manufacturers decreased further and was -11.3, the lowest in almost one and a half year. Confidence in the service sector decreased to -4.9 while consumer confidence
Asian shares fell on Wednesday as China's policy makers announced the government won't implement a large scale monetary stimulus. Japan's Nikkei Stock Average lost 0.3%, Shanghai Composite index declined 0.2% and South Korea's Kospi gave up 0.3%. Hong Kong's Hang Seng index plunged 1.9% and Australia's S&P/ASX 200 deteriorated 0.5%.
The European Central Bank expressed their strong disapproval with Spain's strategy to bailout Bankia by utilizing EUR 19 billion in sovereign debt, which may jeopardize the bank to break the law prohibiting financing governments by the central bank. Moreover, Bankia has been severely criticized when its parent company announced its promise to provide a pension package totaling at EUR 14 million to its former O.C.
Investors are switching their confidence to the dollar as price of crude-oil dropped below USD 90 on Tuesday 29 May. The key reason for the decline was the uncertain situation in Spain as its credit rating was downgraded to B. In addition, Greece's current state adds to the pressure and anxiety grows over the potential drop in the demand for oil.
Bank lending to private sector in Europe increased by EUR 10b in April after a EUR 8b drop in march. It is seen as a direct impact of cheap loans provided by ECB to commercial banks. Bank lending to national governments, on the other hand, decreased by EUR 6b after a EUR 34b increase in April. Specialists state that this
Economic confidence in the Eurozone faded more than analysts expected in May as Greek election results boosted concerns about the collapse of Euro. An index measuring consumer and executive sentiment deteriorated from 92.9 in April to 90.6 in May, European Commission reported on Wednesday. Analysts predicted a smaller drop to 91.9.
Hong Kong's stocks plunged on Wednesday after Chinese government rejected plans for large-scale monetary accommodation strategy. Policy makers claimed there is no intention to repeat massive intervention as it was done in 2008. Hang Seng index tumbled 1.92% or 365.24 points and settled at 18,690.22. Financials drove the index down. Bank of Communications fell 1.4% and China Life Insurance dropped
Japan's Nikkei Stock Average fell on Tuesday as hopes for large scale Chinese stimulus faded. Moreover Spanish debt downgrade and surging borrowing costs weighed on investor sentiment. Nikkei 225 index dropped 0.28% or 23.89 points to 8,633.19 with financials tumbling most. On the upside Olympus jumped 4% on rumours the company is considering a capital alliance with Panasonic. Aozora Bank
Dow Jones Industrial Average index appreciated sharply on Tuesday as data indicated the American housing market is likely to stabilize. Lower than predicted US consumer confidence did not manage to offset gains for the index. Blue Chip index surged 1.01% or 125.86 points and closed at 12,580.69 with 28 of 30 stocks posting gains. Bank of America rallied 4% as
S&P 500 index rallied on Tuesday despite unexpected drop in US consumer confidence. Investors returned from a Memorial Holiday and anticipated news about possible China monetary easing and optimistic Greek polls results. US benchmark jumped 1.11% or 14.60 points and finished at 1,332.42. The biggest US coal manufacturer Peabody Energy added 5.6% after Goldman recommended buying its stocks. Western Digital
China has announced that its current stimulus plan will not be of the same scale as its CNY 4 trillion (USD 630 billion) package in 2008. Ben Kwong, COO of KGI Asia, highlighted that this time the funding will be more sector-specific with some of the key industries being the automotive and rail sector, appliances as well as the government is concerned with taking into consideration
Despite the obvious concerns regarding Spain's means to fund the recapitalization on its 3rd largest bank Bankia, there are other areas building even stronger anxiety. Some of these include approximately 2 million unoccupied homes, growing unemployment rate of 25%, which has already reached its peak in Europe, continuously slumping economy as well as declining by 17% municipal budgets. Moreover, Desmond Lachman believes that Spain being the
Gold fell sharply on Tuesday after Spain's credit rating downgrade. Egan Jones decision strengthened the greenback and affected negatively the dollar denominated precious metal. Gold to be delivered in August plunged 1.3% or USD 20.20 to USD 1,551 an ounce. June Gold contract lost similar amount and traded at USD 1,548.70 an ounce.
The crude prices declined for the second consecutive day on Wednesday ahead of US supplies report which is expected to show that stockpiles increased to the record high since 1990. Oil to be delivered in July fell by USD 0.61 to USD 90.15 per barrel. July Brent oil shed 0.4% or USD 0.44 to USD 106.24 per barrel.
The yields for Spanish 10-year bonds rose sharply on Wednesday after Egan Jones cut the credit rating of nation's sovereign debt to B. Egan Jones decision sends Spanish notes to junk status. The borrowing costs for Spanish 10-year benchmark bills soared to 6.5b.p. to 6.475% in Wednesday morning.