UK's public sector net borrowing fell much more than initially projected in January, reported the UK National Statistics Office. The indicator swung to surplus of 10.7 billion British Pounds last month after showing 11.1 billion British Pounds deficit in December. Experts predicted the net borrowing to indicate 1 billion British Pounds surplus in January.
Rural commodities received a lift on after long-awaited Greek bailout deal and expected strong demand for US grains from China. Traders also look forward to the USDA's Outlook conference due February 23 and 24 to get update on the crop forecasts. Soybean March contract traded at 12.7288 US Dollars per bushel at the European morning session, on the New York
Japan and US is looking forward to reach an agreement to cut crude imports from Iran. The deal is expected to be closed by the end of February. Japan's oil dependence has increased since March earthquake in 2011. Therefore oil sanctions threaten economic growth. However, avoiding embargo would harm Japanese foreign financial operations.
Asian stock markets traded mixed on Tuesday as most of Greek agreement optimism was incorporated in to share prices already in previous trading session. Japan's Nikkei Stock Average slipped 0.2% while Australian S&P/ASX 200 index climbed 0.8%. Shanghai Composite index also gained 0.8% and Hong Kong's Hang Seng index added 0.3%. South Korea's Kospi traded almost flat.
Japan's Nikkei Stock Average closed lower on Tuesday as several Japanese exporters retreated after a strong performance on Monday. Nikkei 225 fell 0.2% or 19.15 points and finished at 9,465.94 with financials putting downward pressure on the index. Sony Corp lost 1.4%, Sharp Corp dropped 2% and Citizen Holdings Co tumbled 2.9%. The main looser was Mazda Motors, plunging 10%
Agricultural commodities continued Friday's rally amid expected fall in South American exports. Grain commodities were the top gainers on Monday as investors anticipate stronger demand for US grains from Asian markets. Sugar price was lifted as China may cut sugar imports due to unfavorable weather during the harvesting period. However, the upward move is likely to be limited as sugar
Energy products were mostly higher amid growing price for crude oil and natural gas. However, Brent oil and heating oil faced some losses over the day. Energy prices are mainly supported by the escalated geopolitical tensions in Mideast as Iran threats to halt oil exports to some European countries. Moreover, speculation that Israel plans to attack Iran added to gains.
Base metals faced mixed performance on Monday with advancing zinc and aluminium and falling copper and nickel. Traders are cautious before final resolution of the Greek bailout issue. The commodity group can find further support in the recent cut in RRR in China and fresh economic data released on Tuesday. However, the upswing may be capped on the weak demand
Precious metals, excluding palladium, advanced on Monday amid broadly weaker US Dollar and China's RRR cut. Optimism over the Greek bailout talks also contributed to the gains. Moreover, experts are positive about precious metals outlook. Deutsche Bank released a report, indicating expected increase in the precious metals prices. At the same time, palladium's price faced downward movement amid stronger Euro
Hong Kong's Hang Seng index closed slightly higher on Tuesday as the approval of Greek rescue package was already incorporated into previous price movements. Hang Seng index edged or 53.93 points up and settled at 21,478.72 with telecommunication sector posting the biggest gains. China Telecom Corp jumped 4.1% on report it would begin trading Apple iPhone 4S next month. China
Chinese Shanghai Composite index traded higher on Tuesday, lifted by real estate shares and approved Greek debt swap deal. Shanghai Composite index gained 0.75% or 17.83 points and finished at 2,381.43 with technology and consumer goods sectors reporting the biggest improvement. China Construction Bank Corp and Industrial & Commercial Bank of China advanced 0.61% and 1.36% respectively. Energy sector was
Australian S&P/ASX 200 index climbed higher on Tuesday, supported by the RBA meeting minutes which claimed there is a scope for further monetary easing if needed. Australian government sold inflation linked debt at record low borrowing costs. Australian benchmark added 0.83% or 35.10 points and closed at 4,291.20 with all 10 sectors posting gains. Onesteel Ltd was the main gainer
Swiss trade surplus narrowed in January amid falling exports, reported Switzerland's Federal Statistics Office. The trade balance narrowed to 1.55 billion Swiss Francs in January as compared to 2.01 billion Swiss Francs in the December. Experts predicted the figure to attain 2.50 billion Swiss Francs last month. Exports lost 3.4% while imports added 3.6% in January.
European stock markets closed into positive area on Monday as investors were optimistic about probability the Greece would finally receive its second bailout package. Stoxx Europe 600 index added 0.8%, FTSE 100 index soared 0.7% and German DAX index rallied 1.5%. French CAC 40 index climbed 1% while Athens General Index gained 0.2%.
Natural gas futures closed lower on Monday after gaining 10.5% over the last week. The gains were caused by mass natural gas production cuts in the US amid weak prices. However, the stimulus appeared to be short-living as mild weather forecasts again started to weight down on the commodity price. Natural gas April contract traded at 2.76 US Dollars per
World's aluminium production fell by 49,000 metric tons attaining 2,140,000 tons last month, reported the International Aluminium Institute. The main falls were in North America, Western Europe and Africa, the IAI added. However, on a yearly basis the production increased by 3,000.
The largest oil companies in China are looking for ways to limit the effect of geopolitical tensions in Iran and North Africa. Companies are planning to relocate equipment assembling and set up new logistic hubs in the United Arabic Emirates. At the same time, it seems reasonable to diversify investments in other regions like America as well, added Andrew George
Swedish Krona and Norwegian Krone are the most overpriced in 40 years as investors perceive currencies as safe haven assets amid European debt crisis. According to OECD indicator, measuring relative costs of services and goods, Swedish Krona is 25% overvalued and Norwegian Krone is nearly 40% too expensive. Overvalued currencies are putting negative pressure on countries' growth.
Crude oil futures added to yesterday's gains as traders increased long-positions in the commodity amid Iranian supply threats and long-awaited Greek bailout deal. Speculation that Israel plans to attack Iran also contributed to an increase in the oil price. Light, sweet crude oil April contract traded at 105.16 US Dollars per barrel on the New York Mercantile Exchange, soaring 1.5%.
Barclays Capital reports that its core indicators for industry metals showed sharp increase in demand momentum in the end of Q1 and Q2. Experts attributed the expected demand increase to better PMI in China and in the US. The cyclical slowdown in the emerging markets coupled with global economic turmoil definitely impact the demand for base metals but Barclays believes
China may raise export tax rebates in 2012 in an attempt to stimulate its exports amid global economic instability. The decision will be made when time is appropriate and will be the first tax rebate increase in the last three years, said Zhong Shan, Deputy Minister of Commerce. The country will try to stick to its current foreign policies but
Mazda Motor Corp. announced it will issue new shares worth JPY 100 billion to aid its business. Japanese auto manufacturer predicts large scale net loss valued at JPY 100 billion this year, marking the fourth negative year in a row as strong Yen harms company's vehicle exports. Additionally Mazda is planning increase debt by JPY 70 billion through loans from
China's key money market rate declined on investor speculation the liquidity will advance after government's decision to lower reserve requirement ratios. Seven day repurchase costs, an indicator of capital availability, gave up 49 points to 4.88%. The repurchase rates are likely to diminish further, said Dariusz Kowalczyk, Credit Agricole CIB's strategist in Hong Kong.
The central bank of Australia said it still has some space for monetary relieving if necessary. The Reserve Bank of Australia kept its key interest rate unchanged earlier this month. In case demand conditions worsen dramatically, current inflation outlook provides a scope for additional monetary easing, reported RBA in its latest meeting minutes. Australian Dollar slightly depreciated on the announcement.