Base metals tumbled on Thursday as investors tended to sell off metals to book profits before US employment report due on Friday. At the same time, the world top metals' producers reported a decline in copper and zinc production over 2011. Aluminium was the top loser, falling by 3.09%. The metal may found support on the increase in cancelled warrants
Precious metals rallied on Thursday amid positive data from the US. Gold added 0.92%, hitting more than two-month high of USD 1759.55 per ounce. The yellow metal drew support from the fall in the US jobless claims and Fed's decision to keep low interest rates. Silver, the top gainer, was mostly tracking the gold's jump. At the same time, platinum
German DAX 30 index climbed on Friday, as investors anticipated positive PMI statistics across Europe and awaited US jobs data. Utilities and consumer services posted the biggest gains within the index. Muenchener RUE, the world's biggest reinsurer contributed most to the index, adding 2%. On the downside Thyssenkrupp AG and Deutsche Bank fell 0.7% and 0.6% respectively. German index rallied
US employment surged more than predicted in January while the unemployment level dropped to the lowest reading in last three years, confirming the US labour market is recovering and raising doubts about Fed's pledge to maintain interest rates down by the end of 2014. The number of payrolls increased by 243 000 and the jobless rate decreased to 8.3% in
FTSE 100 Index improved on Friday after PMI data confirmed European region economy is gaining momentum. UK benchmark added 0.4% with eight out of ten sectors posting gains. BT Group Plc, the biggest British Internet service provider climbed more than 3% after it raised its annual operating profit forecast and reported it has attracted more subscribers. FTSE 100 accelerated sharply
Canada's jobless rate increased to 9-month record high in January amid slower hiring. The unemployment rate grew to 7.6% compared to 7.5% in December, said Statistics Canada. Economists questioned by Bloomberg earlier predicted that jobless level will remain unchanged at 7.5%. Hiring rose by 2300 last month. Consumers account for about 50% of Canada's economy.
Chinese PM Jiabao said the government is considering providing financing to EFSF and ESM in order to stabilize Euro monetary union after a meeting with Angel Merkel in capital Beijing. China is evaluating possible ways how to finance bailout funds through the IMF, said PM Jiabao. China is the largest holder of foreign exchange reserves.
The Euro Zone's business activity was stable in January, indicating a slight expansion after falling for four consecutive months. The final Markit Euro Zone's PMI edged up to 50.4 last month as compared to 48.8 in the preceding month. Higher growth was observed in France and Germany while Italy, Spain and Ireland weighted down on the business activities' expansion.
Asian share markets performed differently on Friday amid earnings reports and investors cautiousness towards upcoming US hiring data. Japan's Nikkei Stock Average dropped 0.5%, Australia's S&P/ASX 200 index slipped 0.4% and South Korea's Kospi fell 0.6%. Chinese markets faced better session with Shanghai Composite surging 0.8% and Hong Kong's Hang Seng Index adding 0.1%.
The retail sales in the Euro Zone faced 0.4% in December despite holiday shopping period, reported the Eurostat. Experts expected the sales to advance by 0.2% in December. Considering yearly changes, the retail sales dropped by 1.6% in December, confronting the expected 1.3% annual fall.
The service sector of the UK started the year on the positive note with business and activity expanding at faster pace. Business Activity Index hit the 10-month high of 56.0 last month as compared to 54.0 in December's reading. The sentiment also improved as business expectations soared to more than 15-year high.
Japan's Nikkei Stock Average index retreated from previous gains and declined on Friday as investors anticipated disappointing earnings reports. Nikkei 225 index lost 0.42% or 37.22 points and settled at 8,831.93. Yamaha tumbled 7% on weak earnings and Sumitomo Metal Industries Ltd. gave up 2.2% after predicting fiscal year loss. On the upside Sony Corp. recovered from earlier reporting quarterly
After opening lower, Hong Kong's Hang Seng index managed to offset losses and finished higher on Friday, gaining 0.09% or 17.53 points and closed at 20,756.98, led by property and mining shares. Telecommunications company Hutchison Whampoa Ltd. climbed 3.3% after announcing its unit in Europe will buy Orange Austria. Agile Property Holdings Ltd. added 1.8%, while China Resources Land Ltd.
Dow Jones Industrial Average Index slightly declined on Thursday as investors awaited for hiring data on the next trading session. Blue chip index slipped 0.09% or 11.05 points and closed at 12,705.41, weighted down by technology and health care shares. Pfizer declined 0.8% after recalling birth control pills. Walt Disney gave up 1% while Hewlett Packard and IBM dropped 0.9%
S&P 500 index modestly climbed on Thursday as the number for jobless claims fell to a record low since June 2008. US benchmark index gained 0.11% or 1.45 points and finished at 1,325.54. Retailer Gap advanced 10.7% after reporting a 6% increase in revenue at its Banana Republic stores. Abercrombie & Fitch Co. plunged 13.8% after the company said that
Portuguese government approved selling 40% of its share in REN Redes Energeticas SA (RENE) to State Grid International of China and Oman Oil Co. to fulfil the requirements of bailout agreement. State Grid will purchase a 25% stake while Oman Oil prepares to buy a 15% stake. The deal is valued at EUR 592 million.
Consumer electronics manufacturer Panasonic Corp. posted its all time record high losses due to the floods in Thailand amid appreciating Yen and global economy slowdown. Panasonic Corp. reported a loss valued at JPY 780 billion or USD 10 billion. In October the company predicted loss of JPY 420 billion.
US stocks experienced rather choppy session as investors awaited upcoming session's employment statistics and health care sector posted disappointing 4th reports. S&P 500 index gained 0.11% or 1.45 points and finished at 1,325.54, Dow Jones Industrial Average index slipped 0.09% or 11.05 points and closed at 12,705.41. Nasdaq Composite added 0.4% or 11.41 points and finished at 2,859.68.
European shares surged on Thursday, supported by US macroeconomic statistics and merger talks between Glencore International and Xstrata Plc. Stoxx 600 index finished 0.2% higher, FTSE 100 climbed 0.1% and French CAC 40 index gained 0.3%. German DAX jumped 0.6% but Greek Athens general index fell 0.5% to 792.44.
Japanese FM Jun Azumi distributed a warning that additional monetary intervention is likely to be necessary as Fed's decision about freezing its low interest rates stimulated speculative Japanese Yen purchasing followed by sharp appreciation in domestic currency. US Dollar is fluctuating close to post World War II record low of JPY 75.31. Stronger Yen harms Japan's exporters.
Russia is expected to stick to its current benchmark interest rate after unexpected cut in December which, stimulated consumer demand and created conditions for accelerating inflation. Economists surveyed by Bloomberg predict the Russian central bank will keep its refinancing rate at 8% while overnight repurchase rate may stay at 5.25% and overnight deposit rate is likely to be untouched at
Swiss National Bank's (SNB) interim executive Thomas Jordan has to deal with appreciating Swiss national currency which is perceived as safe asset amid Greek debt uncertainty. The Franc has been climbing against Euro as Greek debt swap talks endured. It touched CHF 1.2032 against Euro on February 1, the highest reading since September 19. Currently EUR/CHF is trading at CHF 1.2055.
New Zealand and Australian Dollar depreciated on Friday as Greek debt concerns renewed, curbing demand for riskier assets. Australian currency lost 0.2% to USD 1.0691 and declined to JPY 81.47. Meanwhile New Zealand Dollar also weakened 0.2% against greenback, reaching USD 0.8315 and gave up 0.3% against Japanese currency to JPY 63.36. Currently AUD/USD is trading at USD 1.0696 while NZD/USD
The services activities soared in January after three month fall, reported the Australian Industry Group. Australian PSI advanced by 0.29 points to 51.6 in January on a seasonally adjusted basis. The strongest growth was registered in cafes and restaurants, finance and insurance, accommodation and recreational services.