US Treasury Securities are still considered an attractive investment, as they bring more than the debt of other developed nations. The current yield on the US 10-year bond is 78 basis points higher than the average among the G7 countries. Yields on comparable Japanese and German debt are 0.355 and 0.37%, respectively.
Weatherford International Ltd, the Swiss oil and natural gas services company, is going to slash its workforce by 5,000 positions in the next three months. The decision was taken due do a harsh drop in crude oil prices, following the footsteps of its largest competitor Schlumberger Ltd. The cuts will cover the US and a part of Western Europe, and are
Gold rallied during the last two sessions, as the safe-haven asset is supported by uncertainty in Greece and China's efforts to spur its slowing economy. The precious metal added 0.4% to $1,274.18 an ounce, advancing 7.3% this year on fears that Greece may leave the Euro area and the Fed may delay an interest rate hike.
President Barack Obama announced a new tax plan for the US corporations with overseas profit. After the new legislation companies will be obliged to pay a 14% tax on the $2 trillion of foreign earnings they have accumulated. Meanwhile, this tax could encourage local companies to revoke their US residency as well as find a foreign purchaser.
Companies in the Euro zone increased hiring, as services and manufacturing sectors in the bloc grew faster than expected. A gauge of employment rose in both industries during the January and a Purchasing Managers' Index climbed from 51.4 to 52.6 in December.
UK services companies' growth exceeded economists' forecasts, since raw material costs declined and businesses hired more employees. Markit Economics announced on Wednesday that its Purchasing Manager's Index climbed from 55.8 to 57.2 in December, excelling the average 56.3 estimation of economists.
Six banks in Europe, including HSBC Holdings Plc and Credit Suisse Group AG, went through a rating cut by the S&P ratings agency amid the prospect governments are not likely to provide support during a crisis. The EU introduced the bank-resolution law in 2014 in an attempt to prevent bailouts using taxpayers' funds that prevailed during the financial crisis.
Asian stocks climbed along with the regional benchmark index, posting their highest advance in a month, since energy and material companies rallied. BHP Billiton Ltd. added 4.4%, Mitsubishi UFJ Financial Group Inc. climbed 5.2% and Hang Seng Bank Ltd. advanced 5.2%, while the MSCI Asia Pacific Index rose 1.6% to 142.07.
UK stocks declined, retreating from September high, since a decrease in earnings weighed on Hargreaves Lansdown PLC and Vodafone Group Plc. The FTSE 100 Index fell 0.2%, or 12.35 points, to 6,859.45 as of 8:51 a.m. London time, while Vodafone sank 1.1% and Hargreaves Lansdown lost 4.2%.
En enero el sector terciario de la economía del Reino Unido experimentó un puntaje de 57,2 unidades, superando así tanto al registro de diciembre de 55,8 como a la previsión de los analistas, quienes pronosticaban que el sector servicios mejorara hasta los 56,3 puntos. Cabe mencionar que este indicador ha estado cayendo paulatinamente desde el cinco de noviembre del 2013.
The US manufacturing index decreased to a new yearly minimum of 53.5 from the 55.1 level posted in December. Consumer spending also dropped in the same month after posting strong gains during the previous months. Despite that export and production slowed in January, the comments from producers concerning the demand remain positive amid the 50% plunge in oil prices.
Spain's labour market starts to exhibit recovery, as the growth in the number of unemployed is decelerating. The amount of claims for jobless benefits rose by 77,980 in January, compared to a mean of 144,000 calculated over the last seven years. However, there are still around 4.5 million people out of work, and the jobless rate is at 24%. Higher
European shares experienced a relief, as the new Greek government refused to push with the debt haircut further. This is expected to introduce more stability into the Euro zone. Another positive factor for the equity is be appreciation of oil, the price of which has gained 15% over the past four days.
Bullion fell, after its biggest monthly gain in three years, on prospects for higher interest rate in the US. The yellow metal for immediate delivery decreased 0.7% to $1,275.04 an ounce as of 9:43 a.m. London time, and gold for April settlement dropped 0.3% to $1,275.50 in New York during the Comex.
The Euro appreciated on assurances from the new government in Greece that it will carry out financial obligations, alleviating concerns that the country may push the currency block back into turmoil. The Euro advanced 0.3% to $1.1322 as of 7:19 a.m. in New York. It also gained 0.5% to 133.17 versus the Yen.
US stocks-index futures added, signalizing that equities will climb, after S&P 500 Index headed to its biggest monthly drop in a year. The Standard & Poor's 500 dropped 2.8% previous week, while Dow Jones Industrial Average futures gained 0.4% to 17,161, together with Exxon Mobil Corp, that rose 1.8% and Advances Micro Devices Inc. that added 3.1%.
China's manufacturing growth supposedly pushed from a two year's minimum in January, while the rebound is not seen permanent due to unstable export and weak investments. According to the forecasts, PMI could reach 50.2 points compared to a 50.1 points in December, the actual figure is to be announced on February 1. Regardless of the overall weakness, the factory output
Gold extended the decline, since investors are waiting for higher US interest rates after the Fed announced positive economic outlook, simultaneously considering global risks. Precious metal dropped 0.5% to $1,278.27 per ounce, while April's delivery Gold declined 0.3% to $1,283.20 an ounce. Silver plunged 0.9% to 17.84 dollars per ounce.
The data released this week did not meet the forecasts of economists made in the final quarter of 2014 year; moreover, the growth weakened every month of the previous year. Services output is 7.9% higher than its pre recession high, but manufacturing output is 6.4% lower compared to the 2008 level.
Strongly depressed crude oil prices reached their 2008 bottom after a release of the US government data showing that US crude inventories soared to 406.7 million barrels, the most since August 1982. According to Continental Resources Inc CEO Harold Hamm, the crude may rebound in the first two quarters of the current year, as the Brent production is decreased.
The Aussie declined to a 5.5-year low versus the greenback amid the Fed statement and poor import prices data in Australia. AUD/USD hit the lowest level of 0.7854 since 2009 after the Australian Bureau of Statistics stated that prices on import added 0.9% in the last three months, barely more than a half of the 1.5% expectation. In the meantime,
Gold prices declined on Thursday amid traders changing their estimates on US interest rate hike schedule. Prices fluctuated between $1,278.30 and $1,280.60 per troy ounce, whereas gold futures for April delivery slid by 0.51% to $1,280.60 per troy ounce on Comex, compared to 0.44% loss of $5.70 on the previous day. The US Dollar Index slightly strengthened and was close
On Thursday the US Dollar remained steady versus the Euro and the Yen due to the Fed's statement on interest rates unlikely rising until the middle of 2015. The USD/JPY reached a high of 118.09 overnight and last seen settling at 117.66, whereas the EUR/USD experienced barely any change and settled at 1.1287, compared to yesterday's high of 1.1382. The
On Thursday prices for NYMEX crude oil in Asia edged up slightly amid noticeable demand prospects in the US economy. Oil futures for March delivery added 0.20% to $44.54 per barrel in Asia, while WTI futures experienced further pressure despite US economy expansion. Meanwhile, Brent futures for March delivery slid 0.96% and traded at $49.13 per barrel on the ICE