Crude oil futures approached to two-week high, being above USD102-a-barrel as increasing tensions between West economies and Iran weighted up on possibility of supply disruption from the third biggest oil exporter. On the New York Mercantile Exchange, crude oil futures for January delivery were traded at USD102.12 a barrel at the early U.S. trade, gaining 1.15% since opening.
UK manufacturers expect zero growth in the next three months as gloomy economic outlook continue to discourage manufacturing sector of the country, according to a survey. The government announced it will provide borrowing incentives for businesses but worsening situation may need more firm action from the government's side to stimulate economic growth, Engineering Employers' Federation stated.
Coffee futures increased on the unfavorable weather conditions in Brazil and Colombia, the world's largest coffee exporters. The Colombia's coffee output is expected to be steady in the 2011-2012 season as strong rains damaged plants, said the National Federation of Coffee Growers of Colombia. On the ICE Futures Exchange, Arabica coffee for March delivery was traded at USD2.3105 a pound at the early U.S. trade,
Service sector activity in the euro-zone decreased again in November with the highest decline in Spain, according to surveys. The euro-zone's PMI is 47, the level below 50 indicates contraction of the activity. Spain experienced a decline to 36.8 as compared to a drop to 41.8 in October, signalling an accelerated downturn in the country.
Gold futures remain steady, fluctuating between slight gains and losses with investors eying the situation in the euro-zone. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were traded at USD 1,749.65 a troy ounce at the morning European trade, edging down 0.09% since opening.
European stocks increased on the optimism across the euro-zone as Italy adopted austerity measures and investors are inspired by the meeting of leaders of Germany and France. The Stoxx Europe 600 added 0.7% to 242.47 in the early trade. Financial shares also gained; KBC Group NV added 9.3% in Brussels, Lloyds Banking Group PLC increased by 6.3%, Banco Espirito Santo SA rallied 4.9%.
After the report of IAEA on possible development of nuclear weapons by Iran, Western economies warned Iran on blocking its oil exports. The country responded that in case the exports are ceased the average price for oil will jump above $250/bbl thus slowing down the global recovery after crisis, said Ramin Mehmanparast, spokesman of Iran's Foreign Ministry.
US factory orders dropped more than projected in October, decreasing for the second month in line, according to official data. Factory orders decreased by 0.4% on a seasonally adjusted basis in October while analysts expected 0.3% decline. After the data release greenback edged down against the euro. EUR/USD thus gained 0.55% to 1.3467.
COMEX silver trading is increasing, the volume of silver trade jumped by 39.3% last month to 1,327,376 contracts from 952,314 contracts in the previous month. Meanwhile, the open interest declined by 8% coupled with 4% fall in silver prices signalling that investors worry about assets' safety. The issue was also impacted by the CME Group inability to repay investors' money after MF Global collapse.
The GDP growth for Q3 is expected to be around zero while the largest market players such as Banco Itau and Banco Santander Brasil project a slight decrease in the economic growth of the country, according to Nelson Barbosa, the Finance Ministry's executive secretary. Some analysts claim the government is anticipating a slowdown after which it is likely to announce new stimulus for the economy,
Price of US Treasuries decreased, weighting up on yields as investors shifted to riskier assets like bonds and dollar amid hopes for euro-zone's leaders are moving towards resolution of the debt crisis. Yields on 10-year notes gained 4 basis points to 2.08% while two-year yields edged up one basis point to 0.27%.
US prices for corn and soybeans fell on Friday after weekly gains as worries over lower demand for US crops weighted down on prices; however, wheat futures approached two-week high after release of strong US export sales data. On the Chicago Mercantile Exchange, corn futures for March delivery were traded at USD5.9538 per bushel, adding 1.21% over last week.
Commerzbank AG, the second biggest bank in Germany, offered to repurchase hybrid instruments valued at €600 m ($806 m) as it tries to meet capital requirements set by European Banking Authority. Martin Blessing, CEO of Commerzbank, said the bank may need to acquire around €2.94 bn to fulfil requirements. While the buyback of hybrid instruments will secure Tier 1 ratio, further fund raising will be necessary, said analysts familiar with
Deutsche Bank AG faced a claim from Sebastian Holdings Inc., an investment fund that accuses bank in creating losses valued at $2.5 bn via miscarried foreign-exchange transactions. Sebastian Holdings insists that Deutsche Bank permitted a trader to break forex trading limits during period 2006-2008. Losses for Sebastian took place when company had to close positions and assemble margin calls. Deutsche Bank in its statement admitted only unpaid
Premier Mario Monti proposed austerity plan on Sunday requiring Italians to sacrifice €30 bn in order to reduce country's burden. Monti's plan includes linking pension to total employee contributions instead of last salary, revise property taxes and impose taxes on luxury goods. Monti's plan is the third attempt to introduce debt reduction since July and is expected to face resistance both from Parliament and Italian
Germany benchmark index DAX 30 maintains upward trend. Index closed last week 0.7% or 45 points up at 6,080.68, led by financial companies and auto producer stocks. It was the biggest weekly gain for DAX 30 since 2009. BMW AG gained 0.8%, Daimler AG rose 1.7% and Volkswagen AG edged up 1.5%. On Monday trade index kept upward path climbing 0.4% to 6,102.87. Industrial company
On Friday UK's FTSE 100 index closed week at 5,552.29, 63 points or 1.2% up, led by banking stocks. Barclays PLC rose 7% HSBC Holdings PLC added 3% while Standard Chartered PLC gained 3.2%. On Monday trade UK benchmark index extended gains after Mario Monti proposed a plan to reduce Italy's debt burden. FTSE 100 gained 0.5% or 26.25 points to 5,578.54 in London morning trade.
Dow Jones Industrial Average Index closed slightly down on Friday giving up 0.01% or 0.61 points to 12,019.42. Despite Friday's decline the overall weekly gain for the index reached 7%, a record-high since 2009. Similarly to S&P 500 banking shares brought main positive contribution J. P. Morgan Chase added 6.14% and Bank of America gained 1.99%. Main decliners were Hewlett-Packard and Johnson&Johnson dropping 1.91% and
On Friday S&P 500 benchmark index closed at 1,244.28, 0.02% or 0.3 points down. Nevertheless index gained 7.4% on weekly basis as Fed cut dollar borrowing rates for European banks and China announced monetary policy easing. For S&P 500 Index last week was the best since March 2009. Banking stocks were among main gainers. Morgan Stanley advanced 6.96%, J. P. Morgan Chase & Co. added
Japanese benchmark Nikkei 225 closed 0.6% or 52.23 points higher at 8,695.98 on investor hopes for progress in tackling debt crisis. Financial shares were among main advancers in Japan. Sumitomo Mitsui Financial Group added 2.2%, Mizuho Financial Group Inc. gained 2.9% while Nomura Holdings Inc. rose 2.8%. Asian exporters also contributed positively to the index: Elpida Memory Inc. edged up 4.1% and Toyota Motors Corp. surged 2.66%.
Although US stocks opened higher on Friday morning trade, Dow Jones Industrial Average and S&P 500 Index did not manage to maintain gains and closed slightly down. Dow Jones Industrial Average gave up 0.01% or 0.61 points and closed at 12,019.42 while S&P 500 slid 0.02% or 0.30 points and ended week at 1,244.28. Nasdaq Composite was the only of three major indexes that managed to
According to preliminary results of Russian parliament elections, United Russia party has lost majority in State Duma as it gained 49.8% votes compared to 64.1% in previous elections in 2007. Initial results show that 3 other parties that have surpassed 7% boundary are the Communist party that gained 19.2%, Just Russia party with 13.1% and Liberal Democratic Party that got 11.7%. Nevertheless, PM Putin has claimed
On Sunday Italian premier Mario Monti's government anticipated emergency austerity measures valued at €30 bn. According to Italian Cabinet's statement, the package consists of proposals aimed at stimulating growth worth €10bn as well as €20bn of structural measures that should be implemented by the end of 2014. The decision comes ahead of European summit due December 9.
Hong Kong's Hang Seng Index ended 0.7% or 139.30 points up closing at 19,179.69 as investors reflected their optimism that European leaders will be able to provide tangible solution for debt crisis this week. Exporters Hong Kong, Li & Fung Ltd. and Lenovo Group Ltd. supported the index adding 3.3% and 2% respectively. China Southern Airlines Co. weighted down the index as its shares lost