Crude oil futures fell for the second consecutive day after the report on the declined industrial production in the US. On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD93.47 a barrel at late U.S. trading hours on Thursday, losing 1.61% during the session.
Blackberry announced delay in the launch of new Blackberry 10, reported Research in Motion. The company is concerned on the fall in sales volume from 14.8 million in pre-Christmas time last year to 11 million expected in the same period this year. Blackberry also saw a decline in profit to $265m from $911m a year before. The share price of the company tumbled by
China will try to increase the level of domestic demand and will work out policies aimed at boosting consumption growth, reported Xinhua News Agency. Global economy will experience difficulties next year and the country has to fine-tune its macroeconomic policies to make them more focused, flexible and visionary, said Li Keqiang, Vice Premier. China will increase its governmental spending into infrastructure projects, he added.
Fitch downgraded six global banks on the growing tensions in the financial markets. The downgraded banks are the Bank of America, Goldman Sachs, Barclays, BNP Paribas, Deutsche Bank and Credit Suisse. The so called �default ratings of the issuer', which imply the ability of the entity to comply with its financial obligations timely, were cut. The banks hold large amount of euro-zone's debt and the concerns
Gold futures increased slightly after sharp losses earlier this week caused by the surge in selling of precious metal by investors and turning to the USD as safer investment option. Gold for delivery in February added $10.90 an ounce to $1,588.00 in electronic trade, edging up 0.7% since opening, reported FactSet.
The Reserve Bank of India announced it would maintain the key interest rates at the same level and would devote its strategies towards sustainable growth. The lending rate stayed at 8.50% while borrowing rate at 7.50%. The bank cited worsening economic outlook and outlined that it now put all its efforts in boosting economy rather than combating exorbitant inflation.
Italian PM Mario Monti today will face a confidence vote to hurry a budget proposal of 30 bn euro ($39 bn) emergency plan to stimulate growth and regain investor confidence that Italy can reduce its debt. Monti's government is urging lawmakers to vote in favour otherwise the government may fall. Monti's proposed measures include reforms in pension and tax system.
17-nation currency shifted for the sharpest weekly fall versus the US dollar in 3months as European countries prepare for bond auctions on forthcoming week amid worries EU leaders can't tame the region's crisis. This week euro managed to breach a psychological level of $1.30. Currently EUR/USD is trading at $1.3027.
The New Zealand and Australian dollars appreciated for the second consecutive day after Asian shares surged, boosting demand for riskier assets. Australian dollar added 0.6% to $0.9985 in Sydney, while its New Zealand's peer climbed 1% reaching $0.7609. Both currencies appreciated against Japanese yen. AUD/USD currently is trading at $0.9980 and NZD/USD is trading at $0.7593.
The US dollar retreated on Thursday and lessened some of its latest gains against the euro, indicating investor positive reception of US employment and manufacturing data amid reserved recovery in Asian markets and Wall Street. US dollar index dropped from 80.292 in North America trade to 80.16 in Asian trading session. Among its main counterparts, euro appreciated from $1.3022 to $1.3036.
China expected to set its target export growth at 10% for 2012, said Century Business Herald. China exports grew 13.8%, at slower pace than in October. Reduced export growth goalfor 2012 comes amid weak economic outlook as debt crisis in Europe deepens and US growth prospects remain fragile. According to report, China is going to focus on enlarging domestic demand.
Asian markets slightly increased on Friday on improved overseas sentiment however investors remained prudent before the weekend. Hong Kong's Hang Seng Index added 0.6%, South Korea's Kospi increased 0.8%, while Japan's Nikkei Stock Average rose 0.4%. China's Shanghai Composite traded flat and Australia's S&P/ASX 200 index was up 0.4%.
Natural gas futures increased after the weekly report on the commodity inventories that indicated higher than expected decrease in the inventory level. The inventory level fell by 102 billion cubic feet last week while analysts predicted a decline by about 98 billion cubic feet. Natural gas futures for delivery in January gained 1.1% to $3.17 per million British thermal units.
US stocks rose following the inspiring labour market data release. The number of the jobless claimants unexpectedly decreased by 19,000. The Dow Jones Industrial Average added 112 points to 1223 while Nasdaq Composite increased by 22 points to 2261. The Standard & Poor's 500-stock index also followed an upward trend gaining 12 points to 1223.
The yields on the German's 30-year debt achieved all-time low approaching to 2.36%, reported TD Securities. German debt is considered to be the safest in Europe. The German yields are likely to fall further on the woes of the rest Euro Zone's members even despite concerns that Germany's credit rating may be downgraded, said Richard Gilhooly, U.S. director of interest-rate strategy at TD Securities.
Gold futures fluctuate between moderate gains and losses after sharp decline by USD130 for the last three days. The precious metal crossed the level of $1,600 first time since September. At the moment gold futures for February delivery traded at $1,586.70 an ounce on the New York Mercantile Exchange.
The number of jobless claimants decreased essentially last week approaching to the lowest level since 2008 signalling on recovery of the US economy. The amount of the jobless claims tumbled by 19,000 to 366,000 on a seasonally adjusted basis. Experts predicted the claims would rise on a seasonally adjusted basis to 390,000.
US industrial production decreased in November being led by fell in automotive sector, according to Federal Reserve. The production contracted by 0.2% in November on the rapid drop of 3.4% in production of the automobile industry. Analysts expected the indicator remain flat after 0.7% increase in the preceding month.
China plans to levy duties on the some vehicles produced in the US amid the recent disputes between two countries. Chinese commerce ministry announced the US cars are dumped on the China's market impacting the domestic industry. The increase in tax followed the WTO approval of the rise in import duties on China's tyres in the US.
Despite aggressive price promotions the amount of UK's retail sales decreased by 0.4% in the last month as compared to October. Excluding sales of fuel, retail sales lost 0.7% on a monthly basis, reported Office for National Statistics. The decline adds pressure on retailers as consumers tend to cut spending while stallholders anticipate jump in sales volume in pre-Christmas time.
Brazil is demanding $10.6bn from Chevron, US oil producer as a compensation for oil spills near the Rio de Janeiro coast that resulted in environmental damage. The officials also demand the court to suspend the operations of Chevron and its contractor Transocean in Brazil. Chevron has already been fined $28m for the spill. Chevron representatives claim they were not notified about the new suit.
German PMI increased slightly in December. The Markit Flash Germany Manufacturing PMI edged up to 48.1 in December as compared to 47.9 in previous month. The Markit's Germany Composite Output Index, gauge of private sector activity also advanced to 51.3 from 49.4 in November. The increase is inspiring but it cannot rescue the economy severally impacted in Q4, said Tim Moore, senior economist at Markit.
SNB, the Swiss bank will defend its minimum Swiss franc-euro exchange rate at 1.20. The speculation over the possible increase of the exchange rate floor had appeared before the official announcement and increased the number of short positions in currency. Following the official report on no change in the exchange rate floor, the Swiss franc increased as investors tried to cover their short positions in
China's analysts urge government officials to implement a gradual monetary easing policy to escape faster than projected slowdown of the economy in 2012. The calls appeared after the government released statement saying that the prudent monetary policy would mostly stay unchanged next year. The country has to ease its monetary policy to decelerate the fell in economic growth, said Qu Hongbin, chief economist at