The EU is planning to introduce carbon emission scheme that will cost about 800 million yuan for China's airlines next year, according to China Air Transport Association. China's airlines are projected to spend about 17.6 billion yuan on the emission scheme by 2020. The US and Russia strongly opposed the carbon scheme citing infringement of sovereignty of the world's carriers; however, the European Court of Justice
The Indian rupee decreased to 53.42 against the USD, losing over 10% since the beginning of 2011. Investors' sentiment was impacted by the decrease in factory output by 5.1% on a yearly basis as compared to 0.5% expected. The government also cut the growth forecast to 7.25% from 9% projected previously. The rupee is Asian worst-performing currency, said Thomas Harr, a currency strategist at Standard Chartered Bank.
Gold prices edged down on stronger dollar and concerns over the euro-zone. The warnings of Moody's rating agency, that the EU did not make a large progress in solving the debt crisis stimulated sell-off of bonds, stocks and commodities. On the Comex division of the New York Mercantile Exchange, gold futures for delivery in February were traded at USD1,667.45 a troy ounce at the Asian
Chinese share of world exports may decrease after rising for 16 years in line. The country's share of world's exports may shrink due to weaker global demand and stronger yuan. Bleak economic outlook in the EU and US might increase protectionism against China's products, said Zhang Qizi, from the Institute of Economics at the Chinese Academy of Social Sciences. Country's trade surplus is likely to
China is expected to face slower growth in construction and home sales next year, said Fitch Ratings. Moreover, analysts from UBS AG predict stagnant exports for the second-biggest economy in 2012. Slowdown may create extra pressure on fiscal and monetary easing, added UBS. Nevertheless, Fitch expects Chinese government to stick to tight control of developers in order to alleviate property prices.
Disagreements the Finnish parliament may hinder other euro region governments to relieve the affirmation process for financing bailouts of trouble nations. Finland already hampered second rescue package for Greek earlier this year after it demanded collateral on Greece bailouts. Leading parties in AAA rated Finland have been discussing collateral from indebted nations since spring to limit Finland's liabilities.
Canadian dollar depreciated as Moody's Investors Service reported it will revisit the debt ratings of EU countries, after disappointing results of last week's meeting. The loonie lost 1% to C$1.0271 per US dollar in Toronto trade, reaching record low since November 30. The Canadian national currency gained 0.5% against euro reaching C$1.3545. USD/CAD currently is trading at C$ 1.0257, while EUR/CAD is trading at C$1.3536.
Australia's government is going to work on better conditions for individual investors in order to encourage them to trade sovereign bonds. Such decision would develop country's corporate bond market, said Treasurer Wayne Swan. Promoting trading of government bonds would deliver good pricing benchmark for corporate deals and initiate more interest in bond markets, added Swan.
Australian sovereign bonds surged on Tuesday, pushing the 10-year bill yield down to record lows on investor concern European governments may face credit rating reductions as last week's summit did not provide enough short-term measures. The borrowing costs for 10-year Australian bonds declined 9 b.p. or 0.09 p.p. reaching 3.79%, while yields on 3-year notes tumbled 7 b.p. to 3.05%.
US stocks declined sharply on Monday as disbelief about latest European agreement amid depressed Intel Corp. outlook boosted a drop in markets. Dow Jones Industrial Average lost 1.3% or 162.87 points finishing at 12,021.39, S&P 500 Index sank 1.5% or 18.72 points to 1,236.47, whereas Nasdaq Composite fell 1.3% or 34.59 points closing at 2,612.26.
On Monday Moody's Investors Service placed 8 Spain's banks and 2 holding companies on assessment for potential downgrades. The action was provoked by Moody's revaluation of all Spanish financials which denoted a forecast drop in earnings creation capacity caused by lowered economic outlook for Spain. Possible downgrades are also bolstered by the fact that many Spanish financials are exposed to commercial real estate losses.
Asian markets dropped on Tuesday as Fitch and Moody's rating agencies sceptically evaluated the outcome of last week's EU summit. China's Shanghai Composite dropped 1.3%, while South Korea's Kospi and Australia's S&P/ASX 200 index each lost 1.4%. Japan's Nikkei Stock Average tumbled 1% and Hong Kong's Hang Seng Index edged down 0.9%.
The trade of the Saab's shares was halted by the Netherlands' Financial Market Authority without giving any reason. The Swedish car producer experienced problems and it applied for bankruptcy protection three months ago. The share price declined by 19% before the trade was suspended.
US stocks declined after Fitch Ratings reported the euro-zone crisis will continue next year as solution is still elusive despite EU leaders' attempts. The Dow Jones Industrial Average lost 225 points to 11,959. S&P 500 Index edged down 26 points to 1,229. The Nasdaq Composite decreased by 50 points to 2,597.
Natural gas futures declined to 13-month low on the mild weather forecasts in the US and larger level of the commodity supplies that exceeds the heating needs of the country. On the New York Mercantile Exchange, natural gas futures for January delivery were traded at USD3.247 per million British thermal units at the early U.S. trade, losing 2.13% since opening.
Brazil's stocks fell on the worries that Brazil plans to reduce its growth forecast for 2011 and 2012. The stock prices were also impacted by the concerns over spreading euro-zone's debt crisis. Brazil's Ibovespa lost 2.1% to 57,006 while Petrobras declined by 3.3% and Vale edged down 2.2%.
Cotton futures experienced losses falling to two-week low on the worries about the worldwide demand for the commodity. World Agricultural Supply and Demand Estimates announced on Friday it lowered the global demand for cotton forecast by 2.6%. On the ICE Futures U.S. Exchange, cotton futures for delivery in March were traded at USD0.8970 a pound at the European afternoon trading hours, losing 0.8% since opening.
The EU being fragmented by private interests will not impose sanctions on Iranian oil. Some of the EU members proposed banning Iranian oil imports but met opposition of those members depended on the oil supplies from Iran. Iranian policy is to provide sustainable supply of crude oil to Europe. In case of sanctions on Iran, the top oil producer in the OPEC, the global
Airline stocks decreased essentially on Monday following the fall of the benchmark Standard & Poor's 500 Index by 1.2% amid growing uncertainty in the euro-zone. The NYSE Arca Airline Index declined by 1.5% to 34 points. Stocks of US Airways lost 3% to $5.46, shares of JetBlue Airways tumbled by 2% to $4.94 and stocks of United Continental Holdings decreased by 1.2% to $20.37.
Japan is experiencing essential growth in demand for aluminum mostly due to increase in renewable energy production and automobile industry seeking for ways to reduce weight of vehicle. Currently the country consumes 10% of the total commodity production and it is likely to increase its demand from 4 mn tonnes yearly to 6.5mn tonnes.
Gold futures rapidly fell to six-week low declining below psychologically-significant level of USD 1,700 an ounce. The commodity price was mainly impacted by stronger greenback and concerns over the euro-zone's debt crisis. On the Comex division of the New York Mercantile Exchange, gold futures for delivery in February were traded at USD 1,663.75 a troy ounce at the morning US trade, losing 3% since opening.
Intel Corp. cut its growth perspective citing the shortage of the hard disks supply that impacted the whole PC industry. Intel announced it projects sales to amount $13.7 billion as compared to $14.7 billion previously expected. The share price of the company lost over 4% in the morning trades.
The level of employment in Switzerland increased more than expected in Q3, according to official data. The number of the people employed people increased to 4.05 million on a seasonally adjusted basis in Q3 as compared to 4.02 employed in previous quarter. Experts predicted the employment to achieve 4.04 million in Q3.
The gold and silver are likely to gain more appeal in 2012 despite strengthening of the US dollar, reported Deutsche Bank. The market conditions for gold with bullish outlook in last decade are likely to continue in 2012 amid high equity premium in the US, negative property rates and gold purchasing of the central banks, the bank added. The gold will achieve $1,750 an