Next year Shinzo Abe will have an opportunity to replace or reappoint members of the BOJ, as their service term is nearing the end. Since the last vote on expansion of the asset purchases was only 5-4 in favour, the Prime Minister may be inclined to change some of the members who oppose ultra easy monetary policy. However, the concerns
After the release of weak China's manufacturing data the Australian Dollar slumped. The Aussie fell to $0.8757 against the US Dollar at the start of session this morning. The low Chinese PMI negatively affects the demand for Australia's exports, which are already facing a tough period. However, the currency pair can still change the direction, as the RBA is to
The European manufacturing sector growth in October stayed close to zero, as the reading came out at 50.6, even though up from 50.3 in September. The survey of managers showed positive signs of expansion in Ireland, the Netherlands, Spain and Germany, while the output in France and Italy contracted.
So far in the fourth quarter the China's economy demonstrates weakness due to softening in the export demand and decreasing activity in the real-estate market. The downturn is also evidenced by the latest reading of services PMI, which stood at 53.8 in October, down from 54.0 a month earlier. However, many economists expected more resilience from the world's second largest
The Euro zone consumer price index respected the forecast, tranquillising the nervousness in the market. After a 0.4% increase in prices was published, the Euro traded at $1.2579 against the US Dollar, thus slightly trimming the previous losses. Furthermore, the unemployment rate also did not deviate from the consensus level of 11,5% in September.
The confidence amid small Australian business continues to be uncertain, while private sector survey shows the bigger stock market companies are displaying positive signs. The SME survey reveals that small companies confidence shrank one index point against four points during the third quarter, as the property and constructions firms provided support.
Haruhiko Kuroda, the Bank of Japan Governor, has persuaded the unsteady board to enhance already large monetary stimulus programme. Some analysts predicted such a step, as the Japan economy failed to achieve BOJ's 2% inflation target and the possibility of an additional increase in sale tax persisted. Still, to many market participants it was a surprise action that sent Nikkei
In the Eurozone the Economic sentiment grew against economists forecast. It could be a sign the Euro area is raising from the downturn, with Index of executive and consumer confidence increasing to 100.7 versus 99.9 in September. The ECB is sustaining the Region adding stimulus, as the robust confidence may help the area's flagging weak economy.
The German jobless rate reached 6.7%, the lowest point in six months, a sign the companies have more confidence in the Europe's largest economy. Even as the business sentiment has been in decline recently, the employment is increasing, with job openings climbing to a three-year peak. According to the statistics, the number of unemployed people slumped 18,000 in the Western
The sturdy pace of business spending in the third quarter is a demonstration that the U.S. economic growth is increasing and the businesses start to trust sustainability of the recovery. The progress is broadly supported, namely by trade, government spending, housing and consumers. According to a survey of economists, the GDP should expand by 3.0% in annual terms.
The Yen will probably strengthen against the U.S. Dollar to around 105 at the end of the year, estimate the HSBC analysts. According to them, it is too early for the monetary authority to rise borrowing costs. Indeed, Janet Yellen may not want to halt economic recovery by increasing long-term interest rates. The Japanese currency rose 0.08% against the US
The ECB expects the demand for loans from Eurozone banks will notably increase in the last three months of the year following a surge in the third quarter. The Euro area banks have already made it easier to raise capital, and they will continue to make the conditions even less demanding. However, the banks report no changes in the standards
The World Bank suggests the second biggest economy to cut its economic growth target and focus on reforms. After thirty years of high-paced development, China wants to reorganise its economic system and realise better-quality growth, but has remained strict regarding achieving growth objectives. Meanwhile, the World Bank asserts there will be no repercussions with respect to the Chinese labour market
China shows signs of weakness, as the industrial profit growth decreased. Chinese manufacturers have grappled with falling prices, with PPI falling 1.8% in September with respect to the month one year earlier. The annual economic growth is rising at the weakest pace since the global financial crisis. It may have also been the new levy on the earnings of some
The Euro reached its opening trade value against the U.S. Dollar, despite it gaining at the beginning of the Asian session. After the European markets opened, the Euro slid down to $1.2689, breaking the $1.2700 level. According to Peter Praet, the ECB council member, the bloc will likely avoid negative growth, while the IMF sees recession as a significant probability.
The Japan's retail sales are soaring, as the economy is overcoming the turmoil provoked by Shinzo Abe, who increased the sales tax in April. The data showed an increment of 2.7% in sales from September to August. Economists suppose the stronger sales, realised in the last four months, could provoke an additional rise in the levy at the end of
Deflation can entail positive and negative effects for a country. Economists expect Europe to face 'bad' deflation, as the bloc's growth is feeble, unemployment is significantly elevated and debt levels are increased. At the same time, the U.S. is expected to experience a positive impact of deflation, as the energy costs coming down push the economy forward.
After the ECB's stress test, the European banks' failure list shrinks due to positive financial behaviour of most of the lenders. Indeed, only 25 were found with a deficit, while eightbanks have not already planned a solution to cover the capital gaps. Half of the banks are located in Italy, including Banca Monte dei Paschi di Siena SpA, which has
After deciding to keep its benchmark interest rate at the level of 0.05%, the ECB revealed more details concerning its asset-backed securities purchase programme. ECB President Mario Draghi stated that the bank will commence purchasing covered bonds this present month and the rest of assets will be bought in the last three months of 2014, continuing in this manner for
Gold extended its weekly decline as investors continued to eye the possibilities concerning the increase of the U.S. interest rates which would lessen gold's appeal as a safe haven investment. Gold for immediate delivery lost 0.3% to $1,211.06 per ounce, adding to its total losses of 0.6% this week. On September 30, gold was at $1,204.57, its lowest in 2014.
The U.S. Dollar managed to post gains versus the Yen for the first time in three days as economists expect that employers will have created the biggest amount of new employment positions in three months time in September. The Dollar gained modest 0.5% percent to 108.91 Yen early morning in London after having fallen 1.1% in total for the last
The service sector in China posted its slowest growth in eight months time on the account of new orders, which had their first decrease since 2008. The non-manufacturing PMI slid to 54.0 for the month of September, a four point dip from August. Generally, a score over 50 indicates a growing economy. China's economy is stalled by the abating activity
Saudi Arabia decided to decrease its official selling price of oil, causing global oil prices to fall to their lowest in over two years time. Other contributing factors to the price dip are increased U.S. output, worries over a global supply glut, and decreasing global demand. Overall, Brent crude lost more that 1%, sliding to $93, which is its lowest since mid-2012. Light crude has not
European shares are expected to open a touch higher on Friday, even though many investors were left rather unsatisfied after ECB President Mario Draghi's speech. Many expected a more explicit explanation of Draghi's planned asset purchase program. Draghi also shied away from talking about an American-style quantitative easing program. FTSE is expected to add 34 points to 6,480, and the