Copper futures decreased approaching to three-week low amid growing concerns over the mass downgrade of credit rating in the Euro Zone coupled with stronger greenback. On the Comex division of the New York Mercantile Exchange, copper futures for delivery in March traded at USD3.311 a pound at the early European trade, edging down 0.6% since opening.
China's economy slows down posing essential concerns over the base metals markets as China is the largest consumer of metals. China's industrial metals consumption is likely to decrease in 2012 weighting down on prices, said Wang Huajun from the CNMIA. Currently, copper inventories reached the one-month high at the Shanghai Futures Exchange. LME copper traded below $7500/tonne being 25% lower than a year-high of $10,000/tonne.
The current account of the Euro Zone moved to larger than expected deficit in October, according to official data. The current account of the region hit the deficit of EUR7.5 billion in October as compared to surplus of EUR2.2 billion in the preceding month, reported the ECB. Analysts expected the figure to achieve a deficit of EUR1.9 billion in October. The current account deficit approached
Growing production of crude oil and natural gas may result in the US exports of the energy commodities may soon exceed its imports being the first time in the last 60 years. The crude oil imports in the US declined by 10% since 2006. However, the US remains the one of the biggest crude oil importers and oil prices being nearly $100/barrel may impact
Coffee futures fell for the fourth consecutive day approaching the lowest price since December last year as coffee inventories increased for the seventh-week in line and world commodity supplies are ample. On the ICE Futures Exchange, Arabica coffee for delivery in March traded at USD2.1378 a pound at the European afternoon trade, losing 0.67% since opening.
Workers of the Freeport McMoRan's Grasberg copper mine have postponed the restart of production citing technical problems. The management and workers have had a three-month dispute over the wages that resulted in growing concerns over the copper supply. The production standoff supported metal's prices amid weak investor's confidence. However, the mine is likely to restart operations by the end of this week thus weighting down on
Crude oil futures declined during the Asian trading hours on the growing concerns over the spreading crisis in the Euro Zone. The crude oil prices were supported by the tensions between Western economies and Iran over the Iranian nuclear programme. However, on the New York Mercantile Exchange, light, sweet crude futures for February delivery traded at USD93.44 a barrel during the morning, losing 0.34%.
German DAX index saw an increase on Monday mainly driven by auto producers. Volkswagen AG advanced 3% after company announced it plans to sell 1.3 million of luxuries Audi AG in 2011. BMW AG and Daimler AG added 2.84% and 1.42% respectively. Financials also provided positive contribution to the index as Commerzbank ascended 2.51% and Deutsche bank climbed 2.39%. At the moment of writing, German
After closing down last week, UK's FTSE 100 traded flat on Monday. UK stocks fluctuated on the first trading day as European FM's held a meeting discussing bailout funding through IMF. On the upside were Imperial Tobacco adding 1.68% and British American Tobacco PLC gaining 0.42% as investors supported companies less linked to economic development. Downside pressure came from resource stocks with BP PLC giving
Gold futures for February delivery lost $122 or 7.1% while NYSE Arca Gold Bugs Index declined by 9.1% over the last week being 20% lower from the September's record. However, excessive selling of gold did not uncover big Eastern demand for yellow metal with 35% higher commodity turnover on the Shanghai Gold Exchange. Experts claim the panic on the gold markets was provoked by
Qantas Airways announced it has ended the dispute with its engineers union, one of three disputes with the company's employees. The company accepted 3% increase in salary for the next three years. Qantas has had disputes with three labour unions that represent pilots, engineers and baggage handlers. The two other conflicts are still not settled.
On Monday Japan's Nikkei Stock Average fell 1.26% or 105.60 points and closed at 8,296.12 on announcement about Kim Jong-il, North Korean leader's death. Among main decliners were Japanese broker stocks with Nomura Holdings Inc. trading down 4.3% and Daiwa Securities Group Inc. declining 3.2%. Olympus Corp stocks lost 7.4% after local media inclined cash troubles while export-dependent Sony Corp. lost 3%.
China's economy is likely to face challenges such as exchange rate and trade disagreements coupled with protection of China's foreign investment interests, reported experts. At the first half of 2012, recession in many developed economies will continue thus increasing friction between the US, Europe and China. Moreover, protection of the Chinese overseas investment will pose additional challenges to Chinese diplomatic relations, added Ding Yifan, deputy director of the
Technicolor plans to cut about 600 jobs with charges amounting €100 million. The measure signals on the weak demand for Digital Delivery services that is expected to report about €39 million loss before taxes, interest, depreciation and amortization. The company announced it accelerated its cost-reduction strategy due to bleak macroeconomic outlook in Europe.
The US currency is likely to stay at the dominating position through 2020, said an adviser to Chinese central bank. The yuan is likely to contribute about 3%-5% of the world reserves by 2020, according to Xia Bin, adviser to the People's Bank of China.
The government of India approved the bill that will provide cheap food for poor people who constitute over a half of the Indian population. The Food Security Bill is aimed at supporting 75% of residents in the rural areas and more than a half of urban population. The measure is worth $19bn and will be implemented by phases.
Mario Draghi warned the Euro Zone members who are considering leaving the single currency bloc that they would still experience financial difficulties. Countries leaving the Euro Zone and devaluing country's currency will face high inflation and still have to implement structural reforms but they will be in weaker position than the Euro Zone members. He also stressed the leading role in struggling the debt crisis
The PBOC reported the China's yuan funds for forex declined for the second consecutive month in November. The total yuan funds outstanding for forex totaled 25.46 trillion yuan in November declining by 27.9 billion yuan since October, according to PBOC data.
Tightening measures aimed at easing situation on the property market showed results in the 70% of the 70 largest cities surveyed. Nearly 49 out of 70 cities reported essential fall in the price level for new residential property in November. The price declined by 0.4% in Beijing and Shanghai while Nanjing saw 0.7% drop. The government continues to decrease demand and stimulate supply to combat
The dollar increased against its major rivals on the investors' uncertainty over the reports that Kim Jong-il, leader of North Korea, died during the weekend, according to state media. The USD index traded at 80.83 increasing from 80.216 or by 0.18% during the morning trading.
Spanish banks announced on Monday their fraction of bad loans has increased to highest reading in 17 years as country is harmed by property crash and deepening European debt crisis. According to Bank of Spain, the proportion of bad debt against total lending jumped to 7.42%, the highest since 1994 compared with 7.16% in September.
Hong Kong's Hang Seng Index lost 1.18% or 215.18 points reaching 18,070.21 on Monday after receiving news about Kim Jong-il, the North Korean leader's death. Losses were fuelled by growing concerns about European debt crisis. Among main decliners were HSBC Holdings PLC and Li & Fung giving up 2% and 3.1% respectively. Clothes producer Esprit Holdings Ltd. tumbled by 6.5%.
Dow Jones Industrial Average gave up 0.02% or 2.42 points and closed at 11,866.39 on Friday. Index gained 99 points in morning trade after Italian government approved austerity measures. Gain was offset later by Fitch Ratings report saying the agency may downgrade debt of Spain, Italy and 4 other countries. Main gainers were Home Depot Inc. and Microsoft Corp. adding 2.54% and 1.72% respectively. On the
Spanish 2-year bonds surged for the seventh consecutive day amid speculation banks purchased debt to exploit it as a collateral. French sovereign notes declined first time in 5 days after Fitch has cut nation's outlook. Yield on Spanish 2-year bills lost 12 b.p. to 3.34%, while their French counterparts jumped 9 b.p. to 1.0%. France's 10-year borrowing costs added 13 b.p. reaching 3.19%.