The pound covered losses against USD after six-week low. US government announced a cut in US GDP growth forecast that caused greenback's decline against pound. GDP/USD rose by 0.07% to 1.5654. However, the pound was slightly lower against other currencies. EUR/GDP increased by 0.18% reaching 0.8639.
Spain's 3-month borrowing costs reached 5.11% more than double the rate requested during previous auction last month. Even Greece has lower yields for 3-month notes as Treasury paid 4.63% for 13-week bonds. Surge in Spanish yields took place after recently elected People's Party asked EU to rescue nation as it cannot afford to pay 7% on its 10-year debt.
Stocks of Thomas Cook declined dramatically after news about possible increase of the amount it iplans to borrow. The share price decreased by 65%. The bank is negotiating ВЈ100m credit that would increase its total debt from ВЈ900m to ВЈ1bn. Thomas Cook also announced its plans to close down 200 from its 1,200 High Street travel agencies and currency exchanges.
Stock exchange in Egypt was suspended after main share index EGX 100 index decreased by 5%. The decline has followed a sharp share decrease on Monday by 4%. The reason is mass demonstrations on the streets of Cairo lasting for three days already. The exchange was opened again after one hour and the day close was 5.5% lower. The Egyptian index is 47% lower since the beginning
European stocks prolonged losses after US statistics department reported less-than-expected GDP growth for third quarter. Stoxx Europe 600 Index gave up 0.3% reaching 224.15 at midday trading session in London. US economic growth in 3rd quarter reached 2% or 0.4 percentage points less than expected. Slowdown in GDP growth was mainly caused by cuts in company inventories and overall reduction in investment.
Treasury prices slightly increased while the dollar suffered losses after the US government announced the decrease in its projected GDP growth from 2.5% to 2% in Q3. The dollar index was traded at 78.23 down from 78.20. The euro gained on the dollar index decrease and was $1.3523 from $1.3527. Yields on 10-year notes declined by one basis point to 1.96%.
Dollar Tree Inc agreed to buy back $300 million of its shares from Wells Fargo Bank to facilitate its buyback programme. Dollar Tree already plans to repurchase $200 million of shares from JPMorgan Chase & Co under approved buyback budget of $500 million. Many companies now consider repurchasing its stock as markets remain extremely volatile. The stocks of Dollar Tree closed at $75.69 yesterday gaining
US economy develops slower than expected. The Commerce Department decreased its projected growth rate from 2.5% to 2% in Q3. Lower growth rate was mainly caused by companies reducing inventories and decreasing investments. Experts expect the growth cut to 2.3%. However, the rate is quite promising as it is the highest since the end of 2010.
Nasdaq Composite Index dropped 1.9% or 49.36 points closing at 2,523.14 following other US market indices' downward path as US supercommittee failed to approve budget cuts on Monday. Among major negative contributors to the index were Gilead Sciences Inc which lost 9% after announcing plans to acquire drug developer Pharmasset Inc and Analog Devices Inc which traded 2.72% down after announcing financial results for the last quarter and
On Monday Dow Jones Industrial Average Index gave up 2.11% or 248.85 points and closed at 11,547.31. Monday's decline has pushed the index in negative annual return area attaining 0.3% off. All 30 of Dow Jones constituents sank. Bank of America lost 5%, while Boeing Co declined by 4.7%. However, the index still is about 900 points above its close price of 10,655.30
On Monday S&P 500 extended its biggest decline since September and closed at 1,192.98, 1.86% or 22.67 points down compared to previous trading. Index was mainly hit by financial firms on growing anxiety about US inability to cut spending by $1.2 trillion. All 10 industries in the index experienced shrinkage. Hewlett-Packard Co and Caterpillar Inc each tumbled about 2.9%. Gilead Sciences Inc plummeted 9% after announcing plans
On Tuesday Japanese Nikkei 225 index prolonged its losses and closed at 8,314.74, 0.4% or 33.53 points down compared to Monday. Despite overall decrease in index, Japanese automakers and tech-companies managed to recover. Honda Motor Co. added 2%, Toyota gained 0.1% and Nissan Motor Co inched up by 1.8%. Samsung Electronics Co and Toshiba Corp each advanced 1.4% and 4.5% accordingly. Nevertheless, analysts warn about general
Although most of Asian markets declined on Tuesday's trading session, Hang Seng Index managed to recover from losses and closed higher. Hang Seng ended at 18,251.59, 0.1% or 25.74 points higher than in the previous session. Hong Kong index received positive contribution from globally exposed firms. Ports operator Cosco Pacific Ltd added 1.8% and Li & Fung surged 3.4% while Tsingtao Brewery Co gained 1.6%. Among main decliners
Spain's Treasury sold 3 billion euros of three and six-month bills today despite essentially increased yields after Sunday's elections. The Treasury bills sold for 2.1 billion euros generate yield of 5.22%, while the same bills sold less than a month ago produced only 2.35% yield. The current sale has bid-to-cover ratio of 4.94% as compared to October's sale ratio of 2.59%.
On Tuesday the FTSE 100 Index advanced 0.4% reaching 5,245.05 in morning trading session. Markets reflected relief as major rating agencies confirmed US credit rating despite failure to approve debt-cut plan. Financial institutions and resource equities were among the major gainers on Tuesday. HSBC Holdings PLC and Heavyweights Standard Chartered PLC each added about 1.7% while Lloyds Banking Group gained 1.3%. Mining companies Rio Tinto PLC and Anglo American PLC
The net borrowing of the UK's public sector decreased more than expected. The figure for October is ВЈ6.5bn being lower than ВЈ7.7bn in previous year, the Office for National Statistics reported. Experts predicted the borrowing to be around ВЈ6.8bn. The decrease signals slight improvement of the economic situation in the country; however, the general picture is not optimistic, said Brian Hilliard, chief UK economist at
Danish lenders are facing risks in mortgage-bond business as they are struggling to attract $90 bn from investors in securities' auction starting this week. Denmark's Mortgage Bankers' Federation is pushing banks to stop selling one-year notes used to fund home loans, claiming that such funding is too risky. Danish Mortgage Banks' association refutes the criticism saying that one-year notes are stable.
On Tuesday yields on French 10-year bonds surpassed German peers by 155 bp. The widest gap of 200bp was reached on Nov 17 when it hit the record low since 1990. Currently France's yields exceed AAA rated UK counterparts over 1 percentage point. According to Bill Blain, Newedge Group's strategist, markets do not wait for Moody's or Standard & Poor's judgement and already have downgraded
The British Pound recovered from six-week drop against US dollar ahead of a government report as economists expect it will confirm that UK's budget deficit lessened in October. On Tuesday during London morning trading session the pound advanced 0.3% reaching $1.5684 after hitting the lowest level at $1.5613 yesterday. The pair is currently trading at 1.5633 US Dollars per Pound.
Nigerian central bank left its key interest rate level unchanged first time in 2011 and devalued national currency Naira to stimulate growth in Africa's largest oil producing country. Central bank kept interest rate at record high 12% while devalued exchange rate from 150 Naira per US dollar to 155 Naira per US dollar. In 3rd quarter country's economic growth decelerated to 7.4% from 7.7% as
Edinburgh's biggest real estate managers Scottish Widows Investment Partnership and Standard Life Investments are boosting their investments in commercial buildings in south-east England and London on predictions that rents will surge quicker than in other regions of the UK. Scottish Widows' Gerry Ferguson thinks that return on property in respective areas is going to provide annual return of at least 7% in next five years.
Russia has approved lending package worth $9 bn to finance the building of nation's first nuclear power station as both countries strengthen their economic connections. According to Phan Minh Tuan, Vietnam Electricity's development department manager, the value of a loan can vary between $8 bn and $9 bn depending on construction costs. The lending period is said to be 28 years, however, interest rate wasn't
Antonis Samaras, the leader of Greek New Democracy party, was advised by the European Commission president to stop so-called political games and cancel his refusal to sign written agreement for Greek budget reduction as a requirement for the next package of overseas aid. Jose Barroso told Samaras that EU and IMF have to be certain that Greek commitment is sustainable.
Today Moody's Investors Service announced it downgraded Norwegian export credit institution Eksportfinans from Aa3 to Ba1 also known as junk. The downgrading is imposed after Norwegian government took over the support of country's export industry by granting its loans. Rating agency claimed Eksportfinans's excessive focusing on sole exposures was as an additional reason for downgrading.