Orders for durable goods in US decreased by 0.7% in October; the sector was mainly affected by a fall in commercial transportation. However, the decrease is lower than expected as the forecast was 1.5% decline. Bookings for transportation devices, extremely volatile sector, were down by 4.8% while orders for aircraft fell by 16.4%.
The sale of German 10-year notes worth €6 bn attracted bids worth only €3.889 bn. Bundesbank was forced to pick up remaining €2.356 bn. According to Nick Stamenkovic, RIA Capital's fixed-income economist, the poor auction indicates that investors are turning away from Eurozone. Germany's 10-year yields increased by 12 bp reaching 2% in the secondary market.
On Tuesday S&P declined for the fifth session in a row dropping 0.4% or 4.94 points and closing at 1,188.04. Utility and energy companies led the decline while consumer staples and health care were the best players among 10 industries. Hewlett-Packard Co a blue-chip company lost 0.8% after Meg Whitman, chief executive recommended investors to reduce expectations about fiscal performance in 2012.
The British Pound reached six-week record low against Greenback after Bank of England in its meeting minutes reported greater stimulus might be needed. Monetary Policy Committee also decided to stick to key borrowing rate at 0.5% and leave the amount of quantitative easing worth $428 bn unchanged. The pound lost 0.4% reaching $1.5569 in London trade. Hydeskov, chief analyst at Danske Bank in London expects Pound
Australian Dollar depreciated against US peer reaching lowest level in a month while New Zealand Dollar hit the lowest value since March amid Europe's rising yields reduced investors' confidence. Aussie lost 0.7% against US dollar and was trading at $0.9767 in Sydney evening trade. Kiwi dropped 0.4% reaching $0.7442 - record low since March. The pair NZD/USD currently is trading at $0.7420 while AUD/USD is
The Bank of England's Monetary Policy Committee supported the decision about sustaining the interest rate at 0.5% and leaving the amount of asset-purchase strategy at 275 billion pounds. Last month the bank expanded the size of the strategy by 75 billion pounds as part of its quantitative-easing program. However, worsening situation in the euro-zone increases the level of risk and the bank decided to stick
Crude oil futures continue to decline reaching a two-day low after the news on contraction of the manufacturing output Europe caused by concerns about debt crisis spread. On the New York Mercantile Exchange oil futures for January delivery lost 1.12% to USD96.91 a barrel. Crude oil prices also declined at the Asian trading as the manufacturing output of China decreased as well.
The European Commission is going to discuss new rules requiring the members of the euro-zone to hand it their planned tax and spending strategies to the EU before they are passed by national parliaments. It will allow the EU to detect the countries that experience financial problems. The decision will be presented alongside with the report on three options on euro bonds issuance, according to
Libya's Bouri oil field a part of which is owned by Italy's ENI SpA has resumed its operations, announced the head of the company. The company restarted output at 10,000 barrels a day and is projected to achieve a full capacity of 40,000 barrels till the end of the year. Restart of the activity facilitates the country's development after war period.
Cost of borrowing across the euro-zone has increased as the bailout plan for Belgian bank Dexia SA proved to be infeasible, Belgian newspaper reported. France's 10-bond yield was impacted by the report as France has to provide rescue package for Belgium. France's cost of borrowing increased by 10 basis points to 3.62% while Belgium 10-years bonds yield increased by 17 basis points to 5.21%, FactSet Research
Britain's benchmark stock index decreased after the announcement about the decrease in China's manufacturing output; manufacturing purchasing managers index fell to 48 indicating contraction. In UK the FTSE 100 index decreased by 0.8% to 5,166.4 in early trading. Mining UK shares were impacted the most. Rio Tinto PLC declined by 2.3% and Fresnillo PLC dropped by 2%.
Copper futures experienced losses decreasing to the month-low after weak demand for German 10-year bonds caused by worries about crisis in the euro-zone. On the Comex division of the New York Mercantile Exchange copper futures lost 2.15% to USD3.261 a pound. Europe is the second largest consumer of industrial metals so the growing concerns over crisis impact the prices of copper.
Shares of travel company Thomas Cook experienced a dramatic decline yesterday after it started negotiations about increasing the amount of loans. Thomas Cook explained that the company was affected by demonstrations in Egypt and Thailand's floods, thus more loans are required. At the moment the company's share price is 12.65 pounds increasing by 24.02%.
On Wednesday Hong Kong's Hang Seng Index extended its decline and dropped by 2.1% closing at 17,864.43 or 387.16 points down compared to Tuesday. The sharp decline was mainly caused by China's disappointing manufacturing survey. PCCW Ltd was among major losers in index, giving up 3.3% after pricing its telecom trust at lowest level in price range. Resource and banking industry shares also added negatively to
European share markets traded lower on Wednesday; STOXX Europe 600 index lost 0.2% to 222.87 On Tuesday it also decreased by 0.7% because of cut in US growth forecast. Today's decline was caused mainly by report of drastic decrease in China's manufacturing output and IMF's announcement about setting up a credit line aimed at preventing debt crisis in Europe.
China plans to overtake the US becoming the world's largest online market by 2015, reports Boston Consulting Group. China's e-commerce market is expected to increase by 33% and overcome a 2 trillion Yuan threshold in transaction value by 2015 with the number of customers buying online growing to 329 million at the same period. Moreover, e-tailers will contribute 7.4% to the total retail value
Focus Media Holdings Ltd was accused by Muddy Waters of deliberately overpaying for takeovers in order to overvalue its assets. After allegations Nasdaq-listed shares of Focus Media Holdings dropped by 66 cents to $15.43 being 52-week low. However, Focus Media Holdings denies the accusations and plans to take legal action against Muddy Waters.
Despite the reported contraction in manufacturing output China overtakes the US in the smartphones industry. More than 24 million smartphone shipments were performed in China in Q3. The amount exceeds those in the US by one million. However, considering the amount of revenue generated the US still retains the leading position in the sector.
Canada's core retail sales exceeded expectations, according to official sources. Core retail sales excluding automobile sales increased by a seasonally adjusted 0.5% while the projected increase was 0.4%. Total retail sales also increased by 1% in September being higher than 0.5% expected, according to report of Statistics Canada.
The Bank of Greece announced that the country's economy is in the worst state since post-war time and Greece may withdraw from the euro zone. Greece has to put all efforts in meeting the targets of October agreement as otherwise it will face severe crisis that would force Greece to get out of the Eurozone, said the Bank of Greece.
Australian government is going to impose a new regulation under which the largest mining companies will be obliged to pay 30% tax. The law has already passed through the lower house and is expected to be approved by upper senate in the beginning of 2012. The tax will come in force in July next year. Under the tax giant companies like Rio Tinto and
China's businesses survived in the global crisis in 2008 hoping that the things will get better. However, economic state has become even worse and now it is a high time for China's companies to restructure their operations and invest essentially in innovation in order to stay competitive in the world markets, said Zhou Haichang, president of Guangdong-based Guoguang Electric Co Ltd.
Thousands of people in Cairo Tahrir Square continue demonstration despite a promise from military to speed up the approval of laws on civil rights. Mohamed Hussein Tantawi, Field Marshall announced the next presidential elections in July 2012. However, protesters claimed that it is not enough and wanted Mohamed Hussein to resign. Demonstrations continued even after dark. More than 30 people were killed and hundreds injured
It was taken for granted that US planned deficit reduction by $1.2tn will result in drastic cuts of investment in defense. However, what is called "drastic cut" in Congress means only more moderate growth in security spending than predicted. Recently announced reduction in defense spending actually resulted in increase in investment into national security between 2012 and 2020 by 16%, from $695 billion to $818