As the crisis is hitting, the Euro is now around a two-year low versus the greenback, currently at 1.2234, and European shares slide down as well. At the same time the US Dollar gains in value across the board, as against a basket of its key counterparts it is now trading for 83.49, while before overnight trade the index was at a record high
The Central Bank of Brazil decreased the benchmark interest rate by 50 basis points to 8%. Lower rate is supposed to bolster the economy and is a part of the overall looser monetary policy, to which the central bank started to adhere in August last year, when the interest rate was at 12.5%. However, the Brazilian currency has not been
The Bank of Korea decreased its interest rate for the first time since February 2009. Seven-day benchmark interest rate was cut by 0.25% to 3%. Moreover, bond prices jumped, leading to record low yield, therefore, bonds for June 2015 lost 0.23% and now have interest rate of 2.97%. The Won instantly fell against the US Dollar by 0.7% to KRW 1148.85 per USD. Governor Kim Choong
As last week, it was reported that the sales of Peugeot decreased by 13% and overall, the company is experiencing losses, it was decided to close down the most unprofitable plants in France. This means that around 8,000 workers will lose their jobs. However, the company added that they will help and support these workers in finding a new place
The Australian Bureau of Statistics posted new data regarding the labor force on Thursday, July 12. It says that 27 000 job places were cut in July. This action most likely will rise unemployment level from 5.1% to 5.2%. Full-time workers were the main target for eliminating. In June 2012 was the biggest cut of full-time employees since November 2011 amounting to 33 500 position.
Japan's ten-year government bond interest rate has recorded the lowest value since 2003 of 0.77% as the asset-purchase budget increased to 45 trillion Yen by the Bank of Japan. The five-year yields also decreased in value, reaching 0.175% going down by one basis point.
In June, this year, payrolls were decreased, thus increasing the unemployment rate to 5.2% in July. As reported by the Statistics Bureau in Sydney, the numbers by 27,000 jobless people as there is a lack of full time employees. Furthermore, the Australian Dollar weakened against the US Dollar to USD1.0193, with the interest rate of the one-year bonds going down
German DAX Index advanced 0.66% to trade at 6,438 on Wednesday despite mounting Eurozone's debt pressure after Italy's borrowing costs surged above 6%. Metro dropped 1.80% after Tuesday's rally while Deutsche Post retreated 1.12%. Meanwhile, Health care sector moved higher, with Fresenius and Fresenius Medical Care rising by 1.10% and 1.22%. Financials were mixed. Deutsche Bank increased by 0.04% whereas
UK stocks declined on lingering concerns over the Eurozone's economy. The German Constitutional Court delayed its decision regarding planned changes in bailout rules on Tuesday. Financial stocks extended losses, with Lloyds Banking, Barclays and HSBC tumbling by 1.68%, 1.20% and 0.34%, respectively. Commodity producers also declined. Rio Tinto and BHP Billiton retreating 1.25% and 1.14%. Meanwhile, Glencore International soared 1.53%
Hong Kong shares closed slightly higher on Wednesday as strong performance of the China's real estate industry outweighed weakness of financials. Hang Seng Index rose 0.1% to 19,419.9 as stable investments in infrastructure provided additional support for the cement and railway stocks. Financial sector lost 0.10% after reports that Hong Kong's banks were exposed to bed loans. China Construction Bank
Nikkei 225 Index moved lower by 0.08% on Wednesday's session to trade at 8,851 ahead of the FOMS minutes release due later in the day. However, speculation that the Bank of Japan will announce additional easing measures after Thursday's meeting supported Japanese shares. Meanwhile, chip-makers were dragged lower by weakness of the US technology sector. Advantest and Dainippon Screen declined
Spot gold prices went up on Wednesday, July 11, after biggest decline since June. Gain of 0.4% brought price to USD 1574.50 an ounce after 1.4% decline on July 10. However August-delivery gold futures contract fell by 0.3% to USD 1574.80 in the USA. Though gold prices now are highly dependent on Eurozone's finance ministers decision on resolving debt crisis. Analysts expect spot gold to
Rural commodities apart from coffee declined on Monday on speculation that weather conditions in the US top-growing regions are likely to improve in the nearest future. Meanwhile, traders are cautious ahead of the USDA global crop report due on Wednesday. Wheat fell as expectations for cooler weather and rains in the northern part of the US Great Plains will ease
Energy commodities lost supply risk premium on Tuesday and ended the day on the negative note. Stronger US Dollar and continuous turmoil in the single currency union also created notable pressure on the commodity group. Crude oil plunged more than 2% after Norway's government demanded oil workers to stop the strike. Brent oil retreated as China's oil imports dropped in June.
Dow Jones Industry Average followed bearish trend on Tuesday, falling by 0.65% to 12,653.1. Investors tended to switch to safe-haven assets despite anticipation of FOMC meeting. Falling commodity prices and forthcoming corporate earnings reports added pressure on the US blue chips index. The top-loser was aluminum maker, Alcoa, which cut its earnings estimate for 2012 amid weak aluminum prices. However,
Industry metals declined in a choppy session ahead of the FOMC meeting due on Wednesday. Moreover, weak imports data from China and spiking borrowing costs in Spain and Italy weighted on base metals. Aluminum lost 0.68% amid strong greenback and global growth fears. However, Alcoa predicted stronger demand in the next quarters thus bolstering light metal's price. Copper declined as recent 17.5%
Precious metals tumbled on Tuesday on weaker Euro as uncertainties in the Eurozone continued to mount. Moreover, Fed member denied rumours about extension of asset-purchasing programme thus sending the commodity group lower. Gold moved lower after Italian PM said that additional backup may be needed to reduce Italy's borrowing costs. Silver followed gold's suit, falling by 1.96%. Mixed equities and an
S&P 500 declined by 0.81% to 1,341.47 on Tuesday amid lower profits at technology firms and sharp fall in energy prices. Traders are cautious ahead of the upcoming corporate reports. Capital IQ reported that firms in the index are likely to face an average 2% decline in earnings in Q2. Meanwhile, Advanced Micro Devices posted a more than 11% drop
10-year government bonds added value after Germany sold them at an auction for EUR 4.15 billion, with an interest rate of 1.31%. After the sale the yield dropped another basis point to 3.30%, as reported by the Bundesbank on July 11.
Due to the slowdown in the international economic growth, European stocks are weakening. The Stoxx Europe 600 Index lost 0.3% and reached 254.89. However, futures on Standard & Poor 500 Index and the MSCI Asia Pacific Index added 0.5% and respectively 0.1%.
The Prime Minister of Spain, Marianno Rajoy, announced new tax boost and government spending cuts of EUR 65 billion. Sales levy will be increased from 18% to 21%. To lower government spending unemployment benefits will be reduced and no tax rebate will be provided for home buyers. Moreover local governments will be consolidated, while not all public workers will receive bonus at the end of the
China's export is boosting and in comparison with previous year readings trade surplus increased by 42.9% to USD 31.7 billion in June 2012. However, export growth slowed down from 15.3% in April to 11.3%. Moreover, citing China's customs bureau, growth in imports halved from May's 12.7% to 6.3% in June. Such drop was mainly determined by reduced amount of commodity imports. Although the Chinese economy growth
The oil prices started to recover from being low for a week. August-delivery oil increased by USD 0.84 to USD 84.75 a barrel on Mercantile Exchange in New York. Contract prices in total were down by 14% this year. Although, August-settlement Brent crude gained 0.6% in London, being USD 98.52 a barrel now. Last week US oil inventories fell by 695 000 barrels, reported by American
The International Labour Organisation said the Eurozone may lose 4.5m more jobs in a period of next four years if not to abandon austerity. It also reported that all 17 Eurozone's countries will be in trouble, as those already suffering as the healthiest ones. According to Juan Somavia, ILO director-general, unless the necessary measures are undertaken, the unemployment will be