The Federal Reserve announced growth of USD 17.12 billion of consumer credit in May. It is USD 8.62 billion more than predicted by Wall Street economists. Revolving credits (through credit cards) increased by USD 8.01 billion, whereas non-revolving, including cars and student loans, gained USD 9.10 billion. Consumers are spending more , which is likely to stimulate the economy and new work places creation,
China is about to face a deflationary spiral. In 2011 the real money supply (M1) decreased the most since the modern history of China records. Additionally, producer and consumer prices fell during the last months. Orders from Japanese machine factories dropped by 14.8% in May, which is the biggest fall since 2001. Moreover, the joint volume of lending by the four biggest banks contracted
China's imports grew only by 6.3% last month, confronting expectations of an increase of 11.3% as seen from the results of the Dow Jones Newswires pool. The country's exports added 11.3% in June 2012; however, they are still below their peak of 15.3% in May this year. This slowdown shows that the Chinese economy needs additional stimulus, say experts.
Italian national statistics office announced on Tuesday, July 4, that industrial production recovered by 0.8% in May after contraction of 1.9% in April. However, economists still expect economy to contract by 2.4% by the end of the year. Total industrial output declined by 6.9% in May for the year period. Mario Monti, Italian Prime Minister, started to implement austerity measures for the economy in December 2011.
Norway's government managed to stop 16-day strike and pushed oil and gas workers to continue their job. This intervention will lead to the arbitration process in the National Wages Board to end disputes about retirement rights. Oil prices rose on Monday. The Norwegian Oil Industry Association assumes the strike to cost NOK2.9 billion.
As the sovereign debt crisis prevails in the Eurozone, the 17-nation currency continues to depreciate further. On Tuesday, July 10, the Euro has declined by 0.4% against the Us Dollar, reaching two-year low. Joseph Capurso, a strategist from Commonwealth Bank of Australia, claimed the Euro is expected to stay especially weak against the US Dollar and the Yen. Current trading rates are USD 1.2297 and
EU governments will start with providing EUR100 billion loans to help Spanish banks to recover and could write off these costs from the Spain's government balance sheet. EUR30 billion will be provided by the end of July to support banks directly, without adding to the existing government debts as it was initially planned. Policymakers also expressed their intentions to offer
Economists changed forecasts about India from 0% growth to 4.8% expansion this year. Such change was determined by Industrial Production index that rose from 0.1% in April to 1.8% in the beginning of July. Infrastructure sector also recovered slightly, with its output growing by 3.8% in May on an annual basis. However, eight core industries faced contraction. Though the economy growth is still below average
As reported by the World Gold Council, the demand for gold will strengthen in 2012 and reach 870 metric tons,13% more than in 2011. Commerzbank AG pointed out in its report the increasing interest from the growing middle class and the rising capacity of China's Central Bank as main factors. China is on the second place after India with a
The Canadian Dollar fell to a week low against the US counterpart on Tuesday, July 10. The greenback is currently trading at CAD 1.0221, though MacNeil Curry, an expert from Bank of America, proposed that loonie might slide to CAD 1.05 per USD in the near future. On the other hand, after the ECB lowered interest rates, the Canadian Dollar appreciated against the
On Tuesday, July 10, Japanese Cabinet Office presented results on consumer confidence survey conducted in June. The participants were general households (two or more people in family) and survey took into consideration such factors as jobs and incomes. The results showed that slowdown of the world economy and European debt crisis worsened sentiment. Consumer confidence index decreased from 40.7 in May to 40.4 in the previous
Mariano Rajoy, the Prime Minister of Spain, might announce new austerity measures in the upcoming days. Currently the government faces the third largest budget deficit in the Eurozone, EUR 95.5 billion in 2011. Due to increasing risks ten-year public bonds' interest rate has reached 7.06% on Monday, July 4. To deal with the deficit the government is considering such policies as rising taxes for food,
German shares edged down on early Monday's session on persistent worries over the Eurozone's financial instability after Spain's 10-year bond yields rose to 7%. German DAX 30 Index lost 0.03% to 6417.00 in early European trading. Consumer services and basic materials faced the largest losses on Monday while telecommunications sector was the strongest performer, with Deutsche Telekom gaining 0.99%.The country's
UK stocks declined on Monday after Spanish borrowing costs sparked again, escalating worries over worsening debt crisis in the area. Commodity-heavy index dropped 0.36% to trade at 5646.30, led by mining stocks. Shares of Xtrata, Rio Tinto and BHP Billiton all tumbled 1.83%, 1.16% and 1.11%, respectively. Oil and gas sector also added pressure on the FTSE 100 Index, with
China's stocks fell sharply on Monday's trading hours as recent cut of benchmark interest rate by PBoC continued to weight on the country's stock markets. Moreover, dismal headlines from the US pushed Chinese equities down. The worst-performing sectors were basic materials and technology amid. Property developers also plunged after Chinese Premier Wen Jiabao said that measures aimed at controlling speculative
Japanese stocks posted sharp losses on Monday's session after US labour report indicated that employers created less than expected jobs in June. Nikkei 225 sank 1.37% to 8896.88 after reports that Japan's core machinery orders plunged 14.8% in May compared to a forecast of a 2.4% decline. Heavy Machinery producers as Komatsu and Sumitomo Heavy Industries both slid 4% and
Blue chip stocks plunged 0.96% on Friday after dispiriting US jobs report. Traders turned to safe-haven assets as analysts are not convinced that the Fed will launch more easing measures to stimulate sluggish economic recovery in the nearest term. Technology and base materials sectors were the worst performers in the index, losing 1.95% and 1.54%. IBM, Microsoft and Intel Corp
US stocks slid on Friday after news about dismal performance of the US labour market last month. The data spurred risk-aversion among investors as it may signal stagnation of the world's largest economy. From another side of the Atlantics headlines were also disappointing as borrowing costs of peripheral countries of the single currency union rose again. S&P 500 declined by
Rural commodities mostly retreated from recent highs on Friday as weather conditions are likely to improve in the US.Wheat was the top-loser after AccuWeather reported that temperatures in the US are expected to decrease in the next days. Cooler weather is likely to boost crop prospects in the country.Corn retreated from the nine-month high as exports demand started to slow
Energy commodities declined on Friday on rallying greenback and persistent demand concerns. US economic data continued to disappoint, with US non-farm payrolls growing less than expected in June and services sector's weakening.Crude oil futures decreased on sentiment that US economy is stagnating thus pressurizing energy demand of the world's largest economy.Brent oil followed bearish trend on demand worries. However, supply
Industry metals ended the week on a negative note as weak manufacturing activity worldwide and rising bond yields in peripheral countries of the Eurozone both weighted down on the base metals pack. Aluminum lost 2.52% at LME amid deteriorating investors' confidence and weak global equities. Copper traded lower on Friday on stronger US Dollar and escalating concerns over the global
Precious metals dropped on Friday after rising in the beginning of the week ahead of the ECB key interest rate decision. However, profit booking after benchmark interest rate cut sent the commodity pack lower.Gold was pressured by strengthening US Dollar and fading stimulus from more accommodative policies of the ECB and PBoC. Silver slipped on volatile world's equities. Moreover, analysts
Lower-than-expected number of new jobs in June will force the Federal Reserve System to hold its benchmark interest rate close to zero till the second half of 2015, said Goldman Sachs Group Inc. and Bank of America Corp., two of the 21 biggest central bank's dealers. According to Goldman Sachs' chief economist, Jan Hatzius, Fed's earlier commitment to keep the
The Euro has lost in value against the greenback, trading at USD 1.23 on Friday and depreciating by 0.9%. On July 5 the ECB lowered the interest rates to 0.75% and there has been a relatively few new jobs created in June in the U.S.A. - only 80K, thus spurring demand for a safe haven currency.