The European common currency appreciated versus its major counterparts, as Italy improved its deficit reduction plan ahead of European summit on Eurozone's debt crisis. Italian PM reported plan for austerity measures worth €30 bn euros. Euro gained 0.1% both against US dollar and Japanese yen reaching $1.3404 and ¥104.51 respectively in Tokyo trade. EUR/USD currently is trading at $1.3408 while EUR/JPY is trading at ¥104.55.
According to officials familiar with matter, the European leaders' proposal to guide central banks' loans through IMF could provide nearly €200bn to tame debt crisis. According to proposal central banks will recycle capital via IMF. As Germany is not willing to lend extra money to troubled countries, the proposal would reveal additional source of funding.
US jobless rate declined to 8.6% in November, the lowest level in the last two years. US economy succeeded in creating over 120,000 jobs in the period, reported Labor Department. However, experts claim that the decrease was mainly caused by fall in the total labor force as more than 315,000 people stopped searching jobs during November indicating the desperation among the society.
German benchmark index DAX 30 jumped by 1.4% on Friday with Deutsche Bank AG up 4.2% and Commerzbank AG gaining 5.2%. German Auto makers also provided a positive contribution to the index as BMW AG edged up 2.3%, Volkswagen AG added 2.4% and Daimler AG rose by 3.3%. Philip Shaw, Investec Securities' chief economist claims markets look forward next week's summit hoping for the positive
On Friday London trade UK's FTSE 100 jumped by 1.4% to 5,566.95 led by HSBC Holdings PLC and Standard Chartered PLC each adding 3% and 3.3% respectively. Among major gainers were also resource shares: energy giant BP PLC rallied 2% while miner company BHP Billiton PLC jumped above 3%. Simon Smith FxPro's chief economist said markets feel more comfortable during past few days as
Dow Jones Industrial Average closed lower on Thursday compared to previous day's rally. Index remained steady ahead of US jobs report and after applications for unemployment allowances increased last week. Index declined 0.2% or 25.65 points reaching 12,020.03. 20 out of 30 its constituents dropped. Biggest gainers were Boeing Company and Bank of America which advanced 3.33% and 1.65% respectively. On the downside were Alcoa
On Thursday S&P 500 Index was slightly down 0.2% or 2.37 points and closed at 1,244.59. On the upside were technology and resource stocks which were the best performers among 10 industries. Netflix added 4.09% while Cf Industries Holdings gained 5.14%. Yahoo! Inc joined successful performers within the index trading by 3.31% higher after Alibaba Group Holding announced it is planning make a bid. On the downside were financials with Citigroup
Game designer Zynga, creator of popular Farmville game for Facebook, plans listing on the stock market. Prior estimates indicate the company may raise about $925m from floatation. Zynga plans to sell over 100 million shares at $8.50 to $10 per share. The valuation can make the company the largest by the share market value in the US game market.
The unemployment rate increased unexpectedly in Canada in November, according to official data. The indicator rose to 7.4% in November on a seasonally adjusted basis from 7.3% in October while analysts predicted the rate stay unchanged, according to Statistics Canada.
On Friday trade Japan's Nikkei Stock Average added 0.54% or 46.37 points and closed at 8,643. Increase was mainly led by export dependent car producers as European economic outlook improved after Merkel's and Sarkozy's announcements. Both Toyota Motor Corp. and Nissan Motor Co. added 1.1% after reporting surge in US sales. On the upside many Japan's retailers also gained. J. Front Retailing Co. edged up
Hong Kong's Hang Seng Index extended modest gains on Friday and closed at 19,040.39 adding 0.2% or 38.13 points. Banks listed in Hong Kong helped to improve the index. Bank of China Ltd. advanced 4.5%, China Merchants Bank Co traded up 2%, while HSBC Holdings PLC surged 1.6%. At the downside, stocks of footwear producer Belle International Holdings Ltd. plunged 6.6% after CDH Investments reported it
US stock futures increased rapidly on Friday in line with European equity markets. Futures for the Dow Jones Industrial Average added 0.9% or 103 points, while futures on Standard & Poor's 500 gained 1% or 12.10 points reaching 1,256. Nasdaq 100 futures edged up 0.1% or 22.75 points. Markets extend gains on hopes for positive job report from US later today.
German Chancellor Angela Merkel in her speech compared tackling debt crisis with marathon. She also rejected again the idea of issuance of common Eurobonds as well as claimed that ECB should not be required to resolve crisis alone. Merkel emphasized that the role ECB is different from that of Fed or Bank of England. Chancellor told only long term steps can end
Italian bond yields decline for a third consecutive day as French President Sarkozy claimed more discipline is needed to solve Eurozone's debt turmoil. The 10-year Italian borrowing costs dropped 13 b.p. or 0.13 percentage points reaching 6.52%. In contrast German bond yields added 2 b.p.reaching 2.18%. ECB's President Draghi confirmed that bank could help to fight the woe if stricter
France and Germany are emphasizing the need of stronger economic ties among common currency countries and pushing for stricter enforcement of budget cuts to stop debt crisis escalation. President Sarkozy called for stronger discipline and penalizing countries that do not follow fiscal rules. German Chancellor Merkel reminded that ECB should not accept political pressure.
The Russian Ruble depreciated against US dollar for a second consecutive day after Urals crude dropped yesterday. Russian domestic currency gave up 0.2% reaching 30.806 per dollar. Urals crude which is the country's main exporter lost 1.3% yesterday reaching $109.52 per barrel as French President Sarkozy claimed the Eurozone risks collapse if member countries will not manage to agree on
Switzerland's retail sales decreased more than projected in November falling for the third consecutive month, according to official data. The sales dropped by 0.2% on a seasonally adjusted basis as compared to 0.9% in the previous month, reported Federal Statistics Bureau. Economists expected an increase of 1.2% in November.
Rio Tinto PLC is able to sell all iron ore it is capable to produce despite global downturn and tightening policies of the China's government, said the executive of Rio Tinto PLC. Many iron ore producers experience difficulties in raising credit but Rio Tinto claims that its exports continues to expand.
Natural gas futures increased essentially on Thursday after the release of U.S. Energy Information Administration report that indicated commodity's inventory decline last week. The decline signals on the beginning of the heating season in the country. On the New York Mercantile Exchange, natural gas futures for January delivery were traded at USD3.683 per million British thermal units during U.S. early trade, surging 3.73% since opening.
Stocks of Hop Hing Group Holdings, large producer of edible oils, increased essentially after the company stated it agreed to purchase the company that owns a franchise of the Yoshinoya and Dairy Queen fast food chains in China. Shares of Hop Hing Group will take over the company for HK$3.48 billion using convertible securities. Hop Hing's shares closed the session being 60% higher.
The construction industry in the UK slowed down in November while new orders jumped in Q3, according to official data. Construction PMI indicated the expansion in the construction activity but the pace is considerably lower than in previous month. New orders increased by 12.8% in Q3 as compared to 15.7% in Q2, according to National Statistics data. Meanwhile, CIPS construction activity index was it 52.3
Rio Alto Mining Ltd., Canadian resource company developing copper/gold projects of the La Arena located in Peru, reported that its output is in line with expectations despite blockade conducted illegally in September. The output approached 39,125 ounces from May to November. The company also plans to increase its iron ore production to 36,000 tons per day.
Tom Glocer, CEO of news group Reuters, announced he is stepping down after running the company for 10 years. He will step down on 1 January and the current chief operating officer, James Smith will replace him. The change follows the worries about a decline in the company's share price by 29% this year.
Shares of Yahoo increased after announcements that China's Alibaba Group, one of the largest China's internet companies, is planning to place a bid to have a stake in Yahoo. Yahoo shares jumped by 3.3% on the Nasdaq exchange. Unknown sources claim Alibaba is ready to pay about $20 per share that is higher than yesterday's close of $16.23 a piece. Alibaba has not made