Crude oil futures increased by 2.2 percent to USD 86.11 per barrel following American Petroleum Institute statement that the supplies in the United States experienced a sharper decrease than anticipated the week before. According to data provided by API, the supplies of crude oil for the previous week dropped in the amount of 1.8 million barrel. In contrast, distillate inventories rose 1.8 million barrels; gasoline
The Daily Telegraph announced that, according to an advisory company PIRC, British banks are facing undeclared losses in the amount of GBP 40 billion (USD 61.5 billion), which does not allow them to provide the necessary loans to families and businesses. The newspaper indicated that PIRC investigated major 5 banks in the UK and concluded the following: Royal Bank of Scotland has undeclared losses totaling
On Wednesday, Germany witnessed a fall of the borrowing costs to a new record low during an auction of 5-year government bonds. Germany's Treasury sold 5-year government bonds for EUR3.978 billion at an average of 0.41%, which is less than an average yield of 0.56% in the previous month. However, demand was dim, exceeding supply only 1.6 times.
Destatis, German federal statistical office, reports that German industrial production decreased by 2.2% in April, which is significantly more than an expected slight 1.0% decline. March's industrial production was revised down from an earlier reported 2.8% gain to 2.2%. The figure for March was revised down to a 1.4% increase from 1.6% reported previously.
On 6 June the E.U. stated that it is planning to establish a banking union for Europe that would be responsible for managing bank-related crises and bailouts. It is expected that the plan encompasses an EU deposit for all banking institutions in the union, which would have a close concept to the Federal Deposit Insurance Corporation. Further, the banking union would have a mutual authority
Eurozone's economy stagnated during the first quarter of 2012. Eurostat reported that the gross domestic product of Eurozone was flat, remaining unchanged from its preliminary estimate and meeting expectations. Annualized GDP declined by 0.1%; consumption of households remained flat; expenditure on gross fixed capital decreased by 1.4%.
German DAX index recovered and traded higher on Wednesday as investors hoped for an interest rate cut by ECB. These expectations managed to offset negative effect from weaker German Industrial Production data for April. Index slightly retreated but remained strong after ECB decided to keep benchmark interest rate flat. Banks and car makers rebounded from previous losses. Commerzbank added 1.4%
UK FTSE 100 index rallied on Wednesday as investors returned from two holidays. Growth linked miners and financials supported the index on upside. The provider of alternative investment products Man Group jumped 7.3% after Citigroup upgraded the share from neutral to buy. Banking shares also climbed ahead of ECB key rate decision. The rally slowed down after ECB announced the
Rural commodities were mixed on Tuesday as global economic woes continued to dampen demand perspectives while better weather conditions are likely to boost crops.Wheat was slightly higher as Russia production is likely to fall this marketing season after unfavorable weather conditions in May. Corn managed to add almost 3% as recent fall in corn prices increased its appeal as livestock
Greece's continued issues with tax evasion have become more severe as the election campaign season has been extended. According to the Finance Ministry, Greece failed to reach its target tax collection by EUR 495 million (USD 615 million) during the initial 4 months of the current year. According to Holger Schmieding, Berenberg Bank's chief economist, the EC-ECB-IMF troika most certainly will recognize that Greece missed
Energy commodities rose on Tuesday as demand concerns eased after positive US services PMI data. Crude oil edged up on supportive data from the American Petroleum Institute that reported a fall in the US crude oil stockpiles last week. Brent oil was marginally higher as traders await developments regarding Iranian nuclear programme.Natural gas extended previous gains as warm weather forecasts
Industry metals declined in choppy trade on Tuesday as disappointing data from Germany impacted the commodity pack. Germany reported sharp fall in industrial orders in April on Tuesday.Aluminum futures declined following weak industry data releases and soft automobile sales in the US.Copper fell after dismal Eurozone manufacturing data. The Eurozone's Composite PMI tumbled to 46 in May from 46.7 in
Precious metals were mostly higher in Tuesday trading despite broadly stronger US Dollar after the US reported faster than expected services sector expansion.Gold was the only loser as Fed officials claimed that the US economy does not need additional monetary stimulus and dismal data releases last week are likely to indicate short-term weakness.Silver rose by about 1% amid mixed global
As Spain continues to fall further into the economic crisis, the country's industrial production output reached its record-low since October in 2009 and dropped by 8.3% from the previous year. According to the Bank of Spain, the country will suffer from another recession since 2009, as Mariano Rajoy in the period of one year is attempting to achieve a 40% decrease in the budget
The G-7 officials during the conference call on 5 June stated that they will in fact support Greece and Spain in resolving the current crisis. Jun Azumi, Japan's Prime Minister, said that the G-7 leaders have decided to unite their efforts in assisting the two countries in correctly allocating their financial state in order to ensure ongoing stability. Azumi also added that there was no
Palladium is likely to be one of the top-performers in the nearest future amid rising demand and tough supply, said Jeff Swinoga, CEO of North American Palladium. Currently, global palladium supply stands at 6.8 million ounces, with the largest output coming from South Africa and Russia. At the same time, world's vehicle production is expected to grow from 77 million
Industrial production of Spain slumped by annualized 8.2% in April, indicating the largest monthly fall in more than a year, reported national statistics office. The data comes after industrial output fell by 7.5% in the preceding month. Industrial production of the country has faced bleak performance for the last year, indicating either decline or no changes over the last 14
Japan's Nikkei Stock Average rallied on Wednesday for a second straight day lifted by weaker Yen and renewed hopes for China monetary accommodation. Nikkei 225 surged 1.81% or 151.53 points and closed at 8,533.53. Dollar strengthened 0.5% and Euro added 1% versus Japanese currency. Exporters who generate most of their earnings abroad advanced sharply. Nippon Sheet Glass jumped 11% and
The European Commission designed proposals of new legislation aimed at protecting taxpayer's money from being spent on bailing out banks. Proposals suggest that bank shareholders as well as creditors have to cover bank's losses. The plan is likely to decrease vulnerability of the entire financial system to economic instability in peripheral countries. However, the new law is expected to come
Gold futures gained in Asian session on Wednesday ahead of key meetings of the ECB and Fed that may announce easing measures in view of weak economic state. COMEX gold August contract traded at 1,625.35 US Dollars per troy ounce on the New York Mercantile Exchange, gaining 0.52%. Meanwhile, COMEX silver for delivery in July traded at 28.587 US Dollars
Crude oil futures eased up in Asian session on Wednesday after the American Petroleum Institute announced that US oil supplies declined by 1.6 million barrels last week. Moreover, stronger than initially expected performance of the US services sector stimulated price increase. Light, sweet crude oil futures for July delivery traded at 84.42 US Dollars per barrel on the New York
China has experienced rapid growth during the past year; however, according to some analysts, the country may not live up to its expectations in the upcoming future. Credit Suisse stated that several factors, which previously contributed to China's growth, now seem to present less potential; one of those impacts being the country's admission to the WTO that boosted China's development during the 2000's. The top
Dow Jones Industrial Average retreated on Tuesday after US reported its non-manufacturing expanded instead of expected slight drop. ISM gauge climbed from 53.5 to 53.7 in May. Blue chip index added 0.22% or 26.49 points and settled at 12,127.95. JP Morgan recovered from yesterday's slump and posted the biggest gains for the index, jumping 3.2%. Other lender Bank of America
S&P 500 index climbed on Tuesday lifted by an improvement in US service activity in May. US benchmark index advanced 0.57% or 7.32 points and finished at 1,285.50. Eight out of ten sectors within the index advanced. SanDisk rallied 5.5% after mobile device memory chip maker was upgraded to outperform by Pacific Crest Securities. The world's largest coffee-shop operator Starbucks