The Fed's Chairman Ben Bernanke might reduce interest rate on bank reserves to decrease short-term borrowing costs and stimulate the U.S. expansion. Bernanke said that cutting the interest rate from 0.25% is one of the easing steps of the Fed to lower the unemployment, which has been above 8% for more than 3 years.
German Finance Minister Wolfgang Schaeuble and U.S. Treasury Secretary Timothy Geithner have called for a closer cooperation to stabilize the world and European economy. The top officials supported sale of bonds in Ireland, welcomed success of Portugal in meeting the programme requirements. Moreover, they discussed efforts made by Italy and Spain to carry out structural and fiscal reforms.
According to the Chrysler Group LLC quarterly report, the automaker ended second quarter with $436 million in net income, compared to $370 million loss a year earlier. Sales jumped 23 per cent to $16.8 billion, while sales of passenger cars in the U.S. soared 42 per cent. Net industrial debt declined to $432 million, compared to $1.3 billion at the end of the
The European Central Bank to reveal some bold actions on Thursday, including the interest rate decision, resume of bond-buying program and even the announcement of quantitative easing is possible. Last Thursday Mario Draghi pledged to support the shared currency, with the ECB to resume bond-buying program as the yields on Spanish and Italian bonds reached Eurozone's record levels.
On Monday, July 30, copper ended a three-day rally as investors awaited the ECB and the Fed meetings on Thursday and Tuesday, respectively. Copper futures for September settlement erased 0.2 per cent to $3.419 per pound after adding 2.2 per cent in longest rally since the middle of June. Meanwhile, other metals like aluminum, tin, nickel, zinc and lead advanced during today's London's trading session.
Inflation rate in the country with the world's second biggest economy is expected to ease in July, as food prices were lower this month. China's consumer price Index may fall to 1.7 per cent, the 30-month low. In order to boost the economy, the monetary policy may cut the benchmark interest rate and reserve requirement ratio during the third quarter.
Oil futures for September settlement erased 0.2 per cent to $89.92 per barrel during today's New York trading session in anticipation of Fed's meeting on Tuesday. As to other oil related products, gasoline for August delivery advanced 0.8 per cent, to $2.91 per gallon; heating oil for August settlement declined by 0.24 per cent to $2.88 per gallon, while September natural gas soared 5 per
The Euro lost some ground versus the U.S. dollar as investors are getting more pessimistic about ECB's policy actions later this week. The shared currency dropped by 0.4 per cent to $1.2251, from Friday's $1.2320. On the contrary, the ICE dollar Index added 0.42 per cent to 82.895, and the WSJ dollar Index increased by 0.28 per cent. On Thursday, the European Central Bank's monthly
European stocks advanced on Monday, as region's leaders claimed about their readiness to curb the Eurozone's debt crisis. The Stoxx Europe 600 Index jumped 0.9 per cent to 262.23, while France's CAC 40 Index advanced 0.4 per cent to 3,292.95. At the same time, shares of Air France-KLM soared 14 per cent as the company ended second quarter with a 895 million euros loss, but
German equities surged on Monday, being boosted by the ECB pledge to preserve the Euro by any means. Recent slowdown in the US GDP growth also supported German stock index as investors hope for monetary easing by the Fed. At the same time, possible increase in Eurozone's jobless rate to 11.2% in June restricted rally of German shares. German DAX
UK stocks moved higher after Italian debt auction on Monday. Italy's 10-year bond yields declined below 6%, indicating better risk-sentiment in the market. UK's equities also continued to draw strength from global easing speculation. FTSE 100 Index climbed 0.5% to trade at 5,658.00 at the time of writing. Oil and gas and financial sectors posted the largest gains. BG and
On Monday, Spanish and Italian bond yields hit their two-week lows on promising pledges from ECB President, Germany's Chancellor and Italy's Prime Minister about preserving the Euro. Spanish 10-year bond yields dropped to 6.59%, the lowest level since July 12. Italian 10-year bond yields tumbled to 5.87%.
Hong Kong shares started the week on the positive note amid global easing hopes. The ECB is likely to provide monetary stimulus to save the Euro while the Fed may loosen its policy to facilitate sluggish economic recovery. At the same time, profit warnings released on Friday continued to weight on investors' sentiment. Hang Seng Index outperformed its Asian counterparts,
Japanese equities extended previous gains on Monday, with Nikkei 225 rising 0.80% to 8,635.44. Speculation that the ECB and the Fed will ease their monetary policies in view of deteriorating economic situation boosted Japan's stocks. However, an unexpected decline in June's industrial production and continuous appreciation of the Yen capped the upswing. Consumer goods producers, Takara Holdings and Kirin Holdings,
US blue chips surged on Friday, with all companies included in Dow Jones Industry Average posting gains. Positive US consumer confidence data and optimism over Eurozone lifted stock prices. Moreover, easing speculation after disappointing US GDP data for Q2 pushed equities higher. Dow Jones Industry Average skyrocketed 1.46%, being supported by health care and base materials sectors. Merck & Co
S&P 500 continued its rally on Friday, ending the day with a 1.91% gain. US equities caught momentum after Angela Merkel pledged to put any efforts necessary to save the single currency. Meanwhile, slower than expected US GDP growth pace in Q2 failed to halt stocks' rally. Traders perceived GDP data as a prerequisite for additional stimulus from the Fed.
Farm commodities, except for coffee, rallied on Friday as drought in the US continued. Meanwhile, dry weather in Russia has already curbed output. From the demand side, easing speculation lifted the commodity group.
Energy commodities apart from natural gas posted slight gains on Friday as decelerating US GDP growth spurred speculation that the Fed may provide additional monetary stimulus. Optimism over Eurozone also boosted the commodity group.
Industry metals closed on the positive note on Friday as risk-sentiment improved after EU policymakers pledged to do everything necessary to preserve the single currency. Meanwhile, market players were cautious ahead of key PMI data due this week.
Precious metals rose on Friday on Fed easing speculation after US economy posted slower than expected expansion in Q2. Moreover, hopes that the ECB will ease its monetary policy further spurred precious metals.
Swedish GDP unexpectedly advanced in the second quarter, rising at the fastest speed since the end of 2010 amid increased spending and exports' volumes. GDP increased 1.4% through June, the estimated expansion was 0.2% in the quarter and 0.6% in the year.
China's power-station coal fell in price for a 12th week to the lowest since 2009 as demand for electricity shrank and hydropower production rose. On Sunday, coal tumbled to a range of 620 Yuan ($97) to 635 yuan per metric ton. The midpoint was 0.8%, the lowest value since October 2009. Thermal coal inventories dropped 1.2% in July, staying beyond
George Osborne, Chancellor of the Exchequer, was called for the U.K.'s austerity strategy reconsideration by businesses and political opponenents, as economists predict possible "triple-dip" recession, stating that deepening Euro bloc's debt crisis and probable Greek exit from Eurozone might push the U.K. into recession again next year.
The first official numbers show that Spain's recession is worsening amid growing concerns over the Euro debt-crisis. GDP level decreased 0.4% from the first quarter of the year. Consumer prices advanced 2.2% year-on-year. Spain stepped in the second crisis since 2009 and is awaited to continue to weaken until 2013.