Crude oil prices dropped below 80 US Dollars per barrel in European morning trading on Monday as worries over the Eurozone financial instability rose. Traders also are cautious ahead of EU summit due to start later in the week. Light, sweet crude oil futures for August delivery traded at 79.28 US Dollars per barrel on the New York Mercantile Exchange,
Moody's Investors Service is set to cut ratings of many Spanish banks later in the day, probably after the US stock market will be closed at 21:00 GMT, according to Expansion. Most banks that will be downgraded are likely to fall into ‘junk' status. However, the largest banks as Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA and CaixaBank SA
Fitch Ratings downgraded Cyprus from BBB- to BB+ and maintained negative outlook. The agency attributed its decision to high probability that banks will need essential fund injections as many financial institutions are exposed to Greek debts. Fitch expects that about 4 million euros will be necessary for the country's banks in addition to 1.8 million Euros needed to recapitalize Cyprus
Spain formally applied for a bailout package from the Eurozone members to stabilize its banking system. The Eurozone agreed to lend about 100 billion Euros to Spain; however, no specific data were provided. Independent audits showed that banks need 62 billion Euros for recapitalization. Spain announced that the results of audit should be only a starting point and 100 billion
The summer Olympics 2012 which will take place in London are likely to be cost almost two times more than initially was estimated, Said Business School reported on Monday. The expenses may outperform the over-budget games in Atlanta in 1996 where costs turned out to be 147% of expected amount. UK government has increased its first budget already to GBP
The New Zealand and Australian Dollars depreciated ahead of Italian and Spanish bond auctions due tomorrow on worries European debt crisis continues to deepen, weighing on demand for higher yielding assets. Aussie gave up 0.3% versus greenback to USD 1.0035 and Kiwi lost 0.4% to USD 0.7878. Currently AUD/USD is trading at 1.0025 and NZD/USD is trading at 0.7875.
Hong Kong stocks faced a choppy session on Monday as weaker commodities and anxiety over debt trouble across Europe kept weighing on the investor sentiment. Hang Seng index gave up 0.51% or 98.68 points and finished at 18,897.45. Declining commodity shares reflected disappointing manufacturing data released last week. Aluminum Corp shed 3% and China Coal Energy fell 2.6%. The losses
Dow Jones Industrial Average closed into green area on Friday lifted by ECB announcement it will take further decisive actions to relieve tension in banking sector. Blue chip index climbed 0.53% or 67.21 points and finished at 12,640.78. 28 out of 30 shares posted gains within the index. Despite improvement on Friday Dow has dropped 1% on the weekly basis.
European stocks finished the week with an average gain of 1%, though Friday trade was mostly negative. Stoxx Europe 600 dropped 0.7%, French CAC declined 0.8% and UK FTSE 100 closed 1.0% down. German DAX tumbled 1.3% but Spanish IBEX 35 rallied 1.5% after auditors said Spain would need smaller rescue package than earlier estimated.
US shares closed higher on Friday lifted by ECB announcement it will take further actions to relieve tension in banking sector. S&P 500 index gained 0.72% or 9.51 points and finished at 1,335.02. Dow Jones Industrial Average climbed 0.53% or 67.21 points and finished at 12,640.78. Nasdaq Composite added 1.17% or 33.33 points and settled at 2,892.42.
Treasuries topped other US fixed income assets first time in 9 months as investors preferred safer securities. US sovereign debt has added 2.9% in three months compared to 1% increase in mortgages, 1.8% improvement in municipal notes and a 1.9% gain in corporate bonds. Treasuries are surpassing the worldwide debt market by 1.3 p.p. compared to 2.4 p.p. shortfall in the
The 17-nation currency depreciated to almost one-week record low on ahead of Spanish and Italian debt auction due tomorrow on anxiety European debt woe is curbing both large economies. Euro fell 0.2% versus greenback to USD 1.2542 in Asian trade and gave up 0.3% to Japanese Yen reaching JPY 100.77. Currently EUR/USD is trading at 1.2526.
Samsung Elections, the world's largest producer of flat screens and memory chips tumbled to four-month record low on speculation second quarter's revenues may fail to meet analysts' expectations. Taurus Investment and Securities today cut the estimated for firm's second quarter's operating profit from KRW 7.2 trillion to KRW 6.9 trillion (USD 6 billion).
Germany is likely to go against the expanding bloc of Eurozone countries that require more decisive policies to rescue common currency area. Italian and Spanish leaders have join other nations calling for more incremental approach from Germany. Before the Brussels EU summit region's officials will gather in pre-summit meetings to discuss key disagreements.
Chinese Yuan dropped to 7-month record low after PBOC lowered the reference rate of currency to support country's exports amid slowing world demand. Nation's central bank lowered its daily fixing by 0.3% to CNY 6.3230. Chinese currency depreciated 0.2% to CNY 6.3769 at Shanghai trade.
Japan's Nikkei Stock Average disrupted a two day rally and traded lower on Friday as US jobs and housing data trailed estimates. Losses, however, were limited by exporter companies who gained on weaker Yen which attained 5-week record low. Mitsubishi UFJ Financial Group sank 1.1% after ratings of 15 worldwide banks were cut by Moody's Investors Service. Olympus Corp added
Shares in Hong Kong extended decline on Friday as signals of worsening global economic recession damped traders' willingness to invest in higher yielding assets. Hang Seng index faded 1.39% or 267.05 points and finished at 18,994.82. Financials posted substantial losses within the index. Agricultural Bank of China lost 1.3% and heavyweight HSCB Holdings shed 1.1% as it was one of
Dow Jones Industrial Average fell sharply on Thursday as weaker production data amid disappointing situation in US labour and property market. Blue chip index gave up 1.96% or 250.82 points and closed 12,573.57. 28 out of 30 stocks posted losses for the index. Commodities firms tumbled on global growth concerns. Exon Mobil plunged 3.4%, Chevron shed 3.5% and Alcoa fell
S&P 500 index experienced a second worst trading session this year as manufacturing data from all world regions indicated contraction. S&P 500 index tumbled 2.23% or 30.18 points finishing at 1,325.51. Celgene Corp plunged 11% after it cancelled its application in Europe to use Revlimid as a first option and maintenance therapy for patients with a deadly blood cancer. Micron
Rural commodities apart from coffee decreased on Thursday on long-awaited rains in the US and expected demand fall as global economy slows.Wheat futures retreated from four-week high on speculation that wetter weather in the US Great Plants will boost harvest.Corn was the top-loser as large harvest in Brazil is likely to add to global surplus while stagnating US growth weights
Energy markets except for natural gas dipped on Tuesday on global demand concerns and sell-off of riskier assets.Crude oil was top-loser amid high output levels from OPEC and potential demand slump in view of slowing economic expansion in the US and persistent financial woes in the Eurozone.Brent oil posted losses as negative headlines from the US, China and the Eurozone
Industry metals moved lower on Thursday on bleak global economic outlook. Weak manufacturing data also weighed on the base metals pack. Aluminum dropped despite large production cuts that may result in scarcity in the market. Primary aluminum production contracted to 67,900 tonnes from 69,900 as weak prices led to closure of smelting facilities worldwide.Copper continued its slump caused by deteriorating
Precious metals extended previous losses on Thursday on growing rick-aversion among investors as global data releases indicated economic weakness.Gold followed bearish trend on low risk-appetite among traders. The yellow metal continued to move in tandem with riskier assets, being pressured by fiscal instability in the Eurozone and slowing growth in China.Silver fell amid weakness of the global equities and broadly
The Euro improved versus the Greenback as market was focused on U.S. manufacturing slowdown more than on the index of German business sentiment. EUR/USD was traded at 1.2550, gaining 0.11%. The Eurо was also higher versus the British Pound and the Japanese Yen. EUR/GBP reached 0.8043 gaining 0.01%, while EUR/JPY rose by 0.02%, hitting 100.70.