The Commerce Department reported on Wednesday that the US home construction grew 2.6 % from March, making annual rate of 717 000, which is still below the historic average. Elizabeth Duke, the Fed governor, emphasized some positive aspects of the housing market, including home price stabilization and decrease in delinquent borrowers. Whereas another report reveals that the industrial production rose
According to the minutes of the most recent Fed's meeting released on Wednesday, the officials were concerned about the US economic upturn in April, when they agreed to take more stimulus to spur the economic growth. The central bank's policy makers were particularly worried about the US budget policy and the Eurozone debt crisis.
European central bank stopped operations with Greek banks which were not recapitalized and now are under emergency liquidity assistance of Greek central bank. ECB sources stated that support to Greek banks will be renewed once recapitalization of the banks will take place and their solvency will be according to the requirements. On April 27 Greece's minister cabinet agreed a national
Annual inflation in April in the Euro zone and in the European union decreased and was 2.6% and 2.7% accordingly. Lowest annual inflation in the corresponding period was registered in Sweden (1%), Greece (1.5%) and Ireland with Romania (1.9% both). Highest annual inflation was observed in Hungary (5.6%), Estonia (4.3%) and Czech Republic with Poland (4% both). In comparison to March, inflation increased in
Bank of England decreased growth expectations for UK economy for upcoming two years and expects 0.8% and 2% expansion for 2012 and 2013 respectfully. Inflation rate is expected to be 2.5% for this year 2% target should be achieved only in the middle of 2013. Such adjustments were made due to 0.2% retraction of UK economy in the first three months of
Production of utilities, mines and factory's in the U.S. surpassed expected growth and increased by 1.1% in April. Manufacturing, which accounts for three quarters of the total U.S. production, rose by 0.6%. Utility output increased by 4.5%, which is the most in in last two years. Mining capacities increased by 1.6% after 1.7% decline in March. Motor vehicle production step-up by 3.9% following 1.2% increase
Rural commodities rallied on Tuesday despite broadly stronger US Dollar. Deteriorating weather conditions in the US provided fresh stimulus for the commodity pack.Wheat continued to appreciate as dry weather in Kansas may harm crops. However, US spring crops are harvested ahead schedule thus limiting the upward move of the commodity.Corn was the top-performer despite expected record crops in the US
Energy commodities were solid on Tuesday amid positive economic data form Germany. Energy markets are likely to be volatile in the next sessions ahead of FOMC.Crude oil was the only loser on Tuesday after the American Petroleum Institute reported 6.6 million barrel increase in US crude oil stockpiles.Brent oil was marginally higher despite increased production from Saudi Arabia, Libya and
Industry metals were mixed on Tuesday as Greece's uncertainty continued to dent risk-sentiment among investors.Aluminum was unchanged, balancing between output cuts of Tajikistan Aluminum and persistent Euro Zone's concerns. Copper dived to four-month low amid worries about economic slowdown in China. Adding to the negative mood of the red metal, US retail sales increased at slower pace, expanding by 0.1%
Precious metals fell on Tuesday ahead of key meeting of the Fed due on Wednesday as hopes for the new round of QE in the US are weak. Furthermore, political turmoil in Greece continued to impact commodity markets.Gold was pressured by strong US Dollar that gained momentum on the Euro Zone's economic and political woes. Silver fell on weak global
Builders beat the expectations of building startups by 32k and started 717k houses in April, 2.6% more than in March. Specialists state that such outcome is a combination of employment gains, low mortgage rates and house prices. Building of single-family houses increased by 2.3% from March and reached the highest level in 3 months. Startups of multifamily houses (townhouses, apartment
Stoxx Europe 600 index have dropped for third consecutive day and reached the lowest level since the start of this year as specialists speculate that elections in Greece could take place as early as 10 of June. The index lost 0.5% of its value by noon in London and around 10% from its peak this year in mid March. Banks lost 8-9% of their
The number of unemployed people for January-March decreased to 2.63 million, 45,000 down on the quarter, the Office for National Statistics reported. Thus, the unemployment rate was 8.2 percent of economically active population, by 0.2 percent less than in the previous quarter. This information, however, should be viewed with caution, since there are 1.4 million of part-time workers who did not manage to land a
The S&P's GSCI Spot Index of commodities dropped by 1.5 percent and reached 626.57 points, the lowest indicator since Dec. 20, as Greek negotiations to form a new government failed after elections on May 6, bolstering speculation about Grexit. Crude oil tumbled to a 6-month low of USD 91.81, copper slid down to USD 7,625, January low, gold futures are
Angela Merkel and Francois Hollande met in Berlin on the French President's inauguration day to discuss the European debt crisis. The chiefs of the EU's two leading economies got past their pre-elections disagreements after the Greeks failed to form a new government, and expressed their willingness to consider measures to bolster economic development in Greece to help it remain in
EUR/USD fell to USD 1.2688, as Greeks are reported to head back to polls again next month. Additionally, Greek depositors took out as much as €700 million from their banks on Monday, intensifying risk of a full-scaled bank run and making their financial institutions even more vulnerable to funding stress. Among other currencies, the dollar strengthened versus the Japanese Yen
Facebook increases the share offering by 25% to 421.2M sharesto collect near $16B. At the offering's price of $34-$38 per share Facebook is rushing towards the largest technology IPO in the history.
Stocks of the biggest banks in Japan rose after this year profit forecast was upgraded. Mizuho Financial Group shares gained 0.9% while Sumitomo Mitsui Financial Group advanced by 1%. Meanwhile, shares of Mitsubishi UFJ inched up by 0.6%. The banks stressed an increase in borrowing and larger market share abroad as major factors contributing to expectation for higher profits this
Crude oil prices extended previous losses during Asian trade on Wednesday as political deadlock in Greece continued to dampen investors' sentiment. Moreover, speculation that US stockpiles are likely to have grown last week weighted on the commodity price. Light, sweet crude oil futures for June delivery traded at 93.44 US Dollars per barrel on the New York Mercantile Exchange, falling
US retail sales growth slowed in April while consumer prices stayed unchanged. The retail sales expanded by 0.1% in April on a monthly basis, reported the Commerce Department. At the same time, consumer spending rose by modest 0.2% in April. The weakest sectors comprised gardening equipment and building materials that posted a 1.8% decline.
Gold futures declined during Asian trading hours on Wednesday amid escalating worries over political situation in Greece. Concerns that Greece will be forced to leave the Euro Zone continued to lend support for the gold's traditional hedge, US Dollar. COMEX gold futures for delivery in June traded at 1,540.95 US Dollars per troy ounce on the New York Mercantile Exchange,
Japan's core machine orders contracted by 2.8% in March, beating the expectations for a 3.5% fall. Considering yearly changes, core machine orders dropped by 1.1% in March as compared to a 4.4% increase projected. Meanwhile, core machinery orders are likely to gain 2.5% in Q2 of 2012 as compared to the preceding quarter.
The EU agreed on more rigorous bank rules in an attempt to reduce the risk of financial distress and a need for more bailouts. All EU nations agreed that banks should have more top-quality capital in view of growing uncertainty over the economic state of the region. The rules are expected to become effective in June.
On Monday depositors withdrew € 700 million from the Greek banks, making them heavily dependent on the European Central Bank as the banks seek to meet their funding needs. Total borrowed sum from the European Central Bank accounts for around a half of Greece's GDP. For the past two years deposit withdrawals have made up from € 2 to € 3 billion