European shares opened down on Monday, led by mining companies and financials. Stoxx Europe 600 index lost 0.7% or 1.79 points reaching 238.73 and FTSE 100 index dropped 0.5% or 28.8 points to 5,598.60. German DAX 30 index declined 1.3% or 80.94 points to 5,907.70. French CAC 40 index edged down 1.1% attaining 3,136.08.
Italian borrowing costs jumped on Monday after Moody's Investors Service alerted that the credit ratings of EU countries stay under pressure as last week's summit delivered only a few new instruments to tackle debt crisis. The borrowing costs on 10-year Italian domestic bonds added 19 b.p. reaching 6.43%, said FactSet Research. France and Italy will have debt auctions later today.
Moody's Investors Service still is considering reviewing the credit ratings for all EU nations at the beginning of 2012, said the agency on Monday. According to Moody's such decision is made amid enduring lack of decisive policy tools. European summit last week provided few new actions and majority of proposed measures are similar to earlier announced ones, told agency.
The Australian dollar depreciated against US dollar after report confirmed that the country's trade surplus contracted more than expected indicating that woes in Europe is harming global growth. Aussie lost 0.4% to $1.0174 on Monday trade after experiencing 0.5% gain on Friday. New Zealand dollar gave up 0.3% to $0.7729. AUD/USD currently is trading at $1.0101, while NZD/USD is trading at $0.7665.
Fitch Ratings is ready to reduce growth prospects for Asian countries as European debt turmoil push down the economic outlook for the region. Quarterly expectations for Asian nations are going to be downgraded in nearest future, said Andrew Colquhoun, the head of Asia-Pacific Sovereigns. China's economy, is cooling as export demand from Europe weakens.
US unemployment rate dropped less than firing rate indicating that companies still lack confidence to employ new workers. In November jobless rate has dropped to 8.6% from 10.1% in October. In contrast applications for jobless allowances have declined 40%. Julia Coronado, BNP Paribas North America chief economist suggests that absence of demand in economy drives a wedge between unemployment rate and jobless claims.
US unemployment rate dropped less than firing rate indicating that companies still lack confidence to employ new workers. In November jobless rate has dropped to 8.6% from 10.1% in October. In contrast applications for jobless allowances have declined 40%. Julia Coronado, BNP Paribas North America chief economist suggests that absence of demand in economy drives a wedge between unemployment rate and jobless claims.
Japan decided to extend its tax breaks on fuel-efficient cars in an attempt to support its domestic car production. The tax breaks had to expire in April 2012 but now they are prolonged until April 2015. Domestic vehicle production was impacted by natural disasters as well as the strong yen and the new measure is likely to bolster the growth of the sector
Hu Jintao, China's Presidents, has promised to stimulate imports as part of the global trade boosting strategy. He said the imports might achieve $8 trillion in five years as compared to $1.39tn of imports in 2010. Imports of the country increased by 22% and exports jumped by 14% in November, according to official data.
The nuclear reactor owned by France's government, Areva, is likely to report about large loss this year, according to French industry minister. The financial position of Areva was impacted by Japan's nuclear disaster of Fukushima in March. The company is likely to write-down about 1 billion euros of its assets' value. Areva will unveil the new strategy later this week
The New Zealand dollar declined against the US following the EU leaders' summit which resulted in agreement on stronger economic integration but did not provide exact measures to combat the crisis. NZD/USD approached 0.7704 at the late Asian trade, being the daily low. The pair subsequently consolidated at 0.7695, losing 0.77% since opening.
The government of South Korea cut unexpectedly the growth forecast citing the fall in exports. The Asia's fourth-largest economy is projected to grow by 3.8% this year and by 3.7% next year, according to the Ministry of Strategy and Finance. Analysts predicted the growth to expand by 4.5% for 2011 and 2012. Korea exports growth are likely to fall to 7.4% in the next
Australia's trade surplus fell to 1.6 billion Australian dollars on a seasonally adjusted basis in October. The indicator was at A$2.2 billion in preceding month, reported Australian Bureau of Statistics. Exports achieved A$25.7 billion; analysts expected the surplus to be A$2.0 billion, according to ABS.
ABB Ltd announced it will take over Newave energy Holding SA for $183 million in cash as a part of its business expansion strategy. ABB Ltd offered 36% premium to the volume-weighted average stock prices for the last 60 trading days. The board of the Newave Energy supported the acquisition. ABB share closed 16.5% lower on Friday.
Natural gas futures fell to the lowest level in three weeks on Friday on the mild weather forecasts and high inventory level in the US. The weather group reported the projected temperatures are five degrees higher than normal level in the US. On the New York Mercantile Exchange natural gas futures for January delivery dropped to USD3.337 per million British thermal units on Friday, losing
The Eurozone's debt turmoil has affected negatively the global financial markets, increasing borrowing costs and pushing down debt issuance. Gross debt release in overseas markets declined to $1.66 trillion during July-September period, the record low since 2005. The drop in debt issuance was mainly caused by buyers' demand for higher compensation for risk.
Germany's leading banker denied speculations that ECB will expand its role after European officials agreed on new fiscal treaty. Jens Weidmann, the Bundesbank President told although new agreement indicated progress, the main responsibility in terms of financing should be held by national governments rather than ECB. On Friday ECB President, Draghi praised the fiscal treaty, fuelling optimisms among investors that ECB could involve in debt purchases.
The 17-nation currency depreciated against Japanese yen as France and Italy prepare to sell bonds on concern the Eurozone debt crisis is expanding to bigger countries. The euro lost 0.3% to ВҐ103.57. The yen was flat at ВҐ77.65, EUR/JPY currently is trading at ВҐ103.60, while USD/JPY is trading at ВҐ77.65.
The US dollar appreciated against most of its major peers on Monday, as analysts predict investor confidence in Germany to plunge to a 3-year record low, bolstering demand for securer assets. The German report on investor confidence will be released tomorrow and economists surveyed by Bloomberg expect the confidence index to be at around -55.8. The dollar gained 0.4% to $1.3338 in London morning trade.
Japan's Nikkei Stock Average added 1.46% or 124.97 points on Monday closing at 8,661.43. The gains for Nikkei 225 followed increase in US markets on Friday as European officials approved steps to create a tighter fiscal alliance. Export dependent technology shares were best performers with Toshiba Corp. gaining 3.9%, Fujitsu Ltd. advancing 2.9% and Samsung Electronics Co. adding 2.7%. Chip producer Elpida Memory Inc. rallied
Grain futures in the US declined essentially amid wheat and soybean prices falling to the number of months low following the US Department of Agriculture report on the record high production level of the grain commodities and lower US soybean exports forecast. On the Chicago Mercantile Exchange corn futures for delivery in March were traded at USD5.9338 per bushel on Friday, losing 1.47% over the
TNT Express NV announced it is going to sell its Indian road operations to India Equity Partners in order to concentrate on the international business. The sale is scheduled on 30 December and it follows TNT judicious revision of the India's road business' prospects in the TNT Express portfolio.
Gold prices decreased amid stronger US dollar that weighted down on dollar priced commodities. The USD index advanced to 78.76 from 78.622 at the North American trade on Friday. Gold futures for delivery in February decreased by $17.20 to $1,699.60 at the Asian trade, losing 1% since opening.
The government of Australia awarded several contracts of defense companies such as Rheinmetall AG, German defense firm. The country allocated 7.5 billion Australian dollars for the project aimed at increasing military vehicles by 7,500 to improve support of the armed forces. Australia also started discussion with Haulmark Trailers to provide 2,500 trailers for vehicles.