While March figure was revised upwards by 1% to 3.2%, April results fell short of expectations – a drop in factory orders by 1.9% instead of an expected 1% contraction. The ministry thinks that this decline should be treated just as a correction of strong March figures. The fall is attributed to decreasing foreign demand, because foreign orders tumbled 3.6%, while domestic orders advanced 0.4%,
Cristobal Montoro, Spain's Treasury Minister, said that taking into consideration the massive borrowing expenses faced by Spain, the country cannot gain access to the private bond market. As the risk premium is drastically high, it prevents Spain from entering the markets in case of the necessity to refinance debt. Montoro believes, since the banks in Spain do not require a considerable sum for recapitalization, the
As Standard & Poor's stated that there is a 33% chance that Greece may leave the 17-nation area, China began drafting all possible scenarios that may be detrimental for the country. According to China Daily, the government will consider how the exit may influence the commerce, rate of exchange as well as the investment flow. However, the main concern of China lies not in
On Tuesday, Statistic Canada reported that the amount of permits for new buildings issued in Canada slumped 5.2% in April, which is significantly more than an anticipated 2.0% decline. This outweighs strong gains during previous month, when the figure grew revised 4.9%.
Eurostat reported on Tuesday that Eurozone retail sales decreased by 1% in April, which is more than an expected 0.1% drop. This added to concerns over Eurozone's economic outlook. In March, retail sales gained 0.3%, however, this figure is unrevised yet. At the same time year-on-year decrease of retail sales was 2.5% in April.
As the euro crisis continues to progress, the Eurozone manufacturing as well as services output experienced a drop at the most rapid rate during the period of three years. According to the statistics by Markit Economics, the EC Composite PMI Output index in both sectors maintained below 50 during the past 4 months with the last figures being 46.7 and 46 for April and May,
Although European markets mostly rose on Tuesday as investors awaited the outcome of G-7 meeting, German stocks prolonged their losses. German DAX edged down almost 0.7% after data showed German Factory Orders plunged 1.9% instead of a drop of 1%. Moreover Spanish budged minister Montoro called for aid for Spain. Utilities weighed on the index with RWE AG sinking 1.4%
Rural commodities apart from sugar moved higher on Monday as weather conditions in the US key growing regions deteriorated.Wheat advanced by more than 2%, rising for the first time in the last five trading sessions. Brighter demand prospects after Iran reported it plans to import 50,000 MT of wheat spurred the commodity price.Corn climbed the most in the last two
Energy markets were solid on Monday amid QE hopes in the US and China. Meanwhile, energy prices are expected to remain volatile ahead of G7 emergency call conference due on Tuesday.Crude oil rose on bargain buying and expectations for drop in the US inventories last week. Moreover possible monetary easing in the US and China boosted demand prospects.Brent oil gained
Industry metals tumbled on choppy Monday trade as dismal manufacturing data from all over the world continued to dominate investors' sentiment.Aluminum continued its fall amid signs of global economic stagnation and even easing worries about Eurozone debt crisis failed to support the light metal. Copper lost more than 4% over the last week as US reported unexpected fall in factory
Precious metals retreated on Monday amid profit taking among investors after previous rally. However, broadly weaker US Dollar and hopes for easing measures in the US limited the downswing.Gold ended the day on a negative note along with weaker US equities and profit-taking. Meanwhile, the yellow metal's tie to riskier assets weakened as gold failed to rise on stronger Euro.
As China's non-manufacturing sector grew at a lower rate for the second consecutive month, China's shares dropped to its record low in 6 months. During the morning trade the Shanghai Composite Index slumped to its record low since 30 November to 2308.55 experiencing a 2.7% decline; the Shanghai Shenzhen CSI 300 Index plummeted to 2559.03 representing a 2.8% drop; the Hang Seng China Enterprises Index
The euro climbed above the psychologically significant level of USD1.25 amid rising optimism that at a meeting later today world leaders will insist on more policy action to solve the debt crisis. The euro touched USD1.2525, up from USD1.2493 on Monday, but failed to keep its position above USD1.25. Even this modest improvement will probably be only temporary, if G7 finance ministers and central bank
Light, sweet crude-oil futures for July delivery rose 0.9%, to USD 84.76 per barrel in Asian trading, amid hopes that finance ministers and central-bank governors from the G7 economies will support policy actions to solve Europe's debt crisis. The ICE dollar index that measures the dollar's performance against a basket of six major currencies, dropped to 82.552 from 82.878 on Friday.
Hong Kong's shares slightly rebounded on Tuesday as investors hoped policy makers during G-7 discussion will come up with some measures to tackle debt crisis. Better China service PMI also contributed positively to the index. Hang Seng index climbed 0.4% or 73.44 points to 18,259.03. Wharf Holdings rallied 2% on report that the company had agreed with the Hong Kong
The Reserve Bank of Australia decreased the cash interest rate to 3.5 percent, from 3.75 percent in an attempt to protect the economy from growing global risks. On this news the aussie added 0.34 percent, reaching 97.61 U.S. cents. S&P/ASX 200 index extended earlier gain by 1.3 percent to 4035.50. The cash rate has been already cut in May by unexpectedly-high 0.5 percent. This decrease
Japan's Nikkei Stock Average started recovering from previous steep losses on Tuesday after Yen depreciated against most of country's export partner currencies, particularly US Dollar and Euro. Nikkei 225 index jumped 1.04% or 86.37 points and settled at 8,382.00. Canon Inc advanced 3.4% after the company announced it would buy back $640 million of its outstanding shares. Fast Retailing plunged
Dow Jones Industrial Average kept downward trend on Monday led by drop in factory orders and JP Morgan loss report. Blue chip index shed 0.14% or 17.11 points and finished at 12,101.46. JP Morgan Chase fell 2.9% on news the lender is likely to post a 4.2 billion trading loss for the second quarter, reducing EPS to around USD 0.65
S&P 500 index traded flat on Monday as investors reacted to mixed news. Cheaper S&P 500 price-earnings valuation overshadowed a decline in US factory orders. As result US leading index traded almost flat, 0.01% or 0.14 points up at 1,278.18. Chesapeake Energy jumped 6% on news it may replace almost 50% its board. Regions Financing gave up 5.6% after Deutsche
Josef Ackermann, former CEO of Deutsche Bank, trusts that Germany will undertake the necessary measures to ensure that the euro survives the crisis. Moreover, Ackermann stated that the abolition of the Eurozone will entail considerably more costly repercussions rather than continued aid. The reason why Germany appears to be taking actions at a slow, yet careful pace is due to the fact that Germany is
Canadian Dollar hit a 6-month record low ahead of Bank of Canada meeting due Wednesday. Policy makers are predicted to postpone higher interest rates. Canadian currency closed at CAD 1.0394 yesterday. Yields on 10-year bonds keep fluctuating close to record lows since 1950s as investors perceived country's assets as save haven.
Central bank governors and finance ministers representing Group of Seven nations prepare to discuss deepening European debt turmoil and threats to global economy. Members of Group of Seven are worried about unstable situation in world economy. G-7 discussions will take place around 2 weeks prior to the summit of G-20 in Mexico due June 18-19.
The 17 nation currency advanced for a third straight session as finance ministers and governors of central banks gather in a meeting today to discuss European debt woe. Euro added 0.2% versus greenback to USD 1.2522 and gained 0.1% against Japanese Yen to JPY 98.06. Currently EUR/USD is trading at USD 1.2514 and EUR/JPY is trading at JPY 98.06.
European equity markets traded mixed yesterday. German shares declined most, led by car makers which are heavily dependent on China's and US economy health. German DAX dropped 1.2% and Stoxx Europe 600 sank 0.5%. French CAC index added 0.1% and IBEX 35 recovered 2.9%. UK markets were closed celebrating Queen's Diamond Jubilee.