Christine Lagarde, Managing Director of the International Monetary Fund, said the growth outlook for 2012 is likely to be reduced amid worsening labour market, investment and manufacturing activity in the US, Europe, Brazil, India and China. New projections will be reported in the next 10 days. Meanwhile growth estimate for the US has been already lowered to 2% from 2.1%
As the European economy is still in the recession, the ECB cut its core interest rate to 0.75% from 1%, the lowest rate in the Eurozone's history. Moreover, the bank decreased the deposit yield to 0% from 0.25% to encourage the lending among banks. Meanwhile Mario Draghi, ECB president, announced that the Eurozone's economy is expected to grow slightly or
The second time during the last two months the central bank of China has cut the benchmark interest rate in attempt to prevent the economic slowdown. Benchmark lending interest rates were decreased from 6.31% to 6%, whereas deposit rates were diminished by 0.25%, from 3.25% to 3%. During the first three months of 2012, China had the slowest economic growth
China's economy may expand at slower pace in Q2 as industrial output growth remained at 9.6%, unchanged in June on a monthly basis, said Zhang Liqun, Development Research Center of the State Council. The GDP growth may fall below 7.5% in Q2, Zhang Liqun added. Meanwhile China's government is attempting to stimulate economic expansion by easing its prudent monetary policies.
The South Korea's Won is expected to experience the worst quarter in 2012 as Eurozone's financial woes are dampening demand for South Korea's exports, reported Ray Farris, Credit Suisse Group AG. The South Korean currency is likely to decline 5.4% against the greenback to trade at 1,200 per US Dollar over the third quarter of 2012, Ray Farris added. Meanwhile
Auto production in Brazil continued to contract last month despite recent government's tax breaks that have provided some support for the industry. Vehicle output dropped by annualized 9.4% in the first half 2012. At the same time auto sales declined by 1.2% on a yearly basis; however, sales were 23% up from the May's figure. The market has strong growth
Crude oil futures edged down in Asia session on Friday after posting moderate gains on Thursday on larger than expected fall in the US crude oil inventories last week. Experts claim that stronger greenback added pressure on the commodity. Light, sweet crude oil futures for delivery in August traded at USD86.75 per barrel on the New York Mercantile Exchange, declining
Activity of the service sector in the US expanded at slower pace in June, posting growth for 30th month in a row. US non-manufacturing PMI decreased by 1.6 points to 52.1 last month compared to May's reading of 53.3, reported the Institute of Supply Management. Experts predicted the PMI to lose 0.7 points to 53.0 last month. After the data
Gold prices climbed on Thursday after the ECB's interest rates cut. Spot gold increased by 0.2% to USD1,618 an ounce . However COMEX gold futures for delivery in August went down by 0.2% to USD1,618.70 per ounce. At the same time, silver rose 0.5% to trade at USD28.26 per ounce, platinum was up 0.61% to USD1,481.75 and palladium faced a 0.56% increase, trading at
On Thursday, the stocks on European markets were almost unchanged ahead of the ECB and the Bank of England meetings as well as Spain and Ireland's auctions. Traders awaited freash easing measures from the ECB and BoE. The Stoxx Europe 600 index stood at 257.41, with financials, oil, food and drug sectors facing strong pressure.
Treasuries grew, boosting benchmark yields to 15 basis points ahead of the key job reports due later in the week. The Federal Reserve expresses its intentions to purchase about USD5.5 billion of US government securities in a period between August 2020 and May 2022. Benchmark 10-year yields lost 4 basis points to 1.59% in London, reported Bloomberg Bond Trader data.
The central bank of China reduced its interest rate twice during two-month period.The decision followed the ECB announcement about the interest rates cut. China's benchmark interest rate was lowered to 6%, whereas deposit rates were sent down to 3%. Proposed lending rates will be applied since Friday 5th of July. Moreover, China has reduced the RRR three times since November 2011, injecting additional 1.2
On the 4th of June, in the ECB cut its rates of interest to record-low level. The ECB reduced the key interest rate from 1% to 0.75%. Marginal lending rate also was decreased from 1.75% to 1.5%, whereas overnight deposits rate was cut to zero.The bank attributed the move to weakening economic situation in the area. The reduction followed easing measures by
The number of individuals who applied for jobless benefits in the US declined more than initially expected, according to US Department of Labor Statistics. The number of jobless claims fell by 14,000 to 374,000 on a seasonally adjusted basis. Experts predicted the unemployment claims to decrease by 3,000 to 385,000 last week. After the data release, the US Dollar posted
Brent and crude oil futures soared in European afternoon session on Thursday amid escalated worries over tightening supplies from Norway. From the demand side, energy commodities gained momentum as China reduced its core interest rate to 6.00%. Light, sweet crude oil futures for August delivery traded at USD88.74 per barrel on the New York Mercantile Exchange, soaring by 1.1%.
Agricultural commodities posted strong weekly gains in thin Thursday's trade as US markets were closed for holiday. Persistent worries over harvest conditions in the US and Brazil continued to support the commodity pack.Wheat climbed as dry and hot weather in the US escalated global supply concerns. Moreover, recent dryness in Black Sea regions weighted on the crop yields in the
Energy commodities soared over the week on easing hopes all over the world and global supply concerns. On Wednesday, US markets were closed for holiday.Crude oil gained 9.3% over the week as oil workers' strikes in Norway and rising Iranian tensions created supply risk premium for the commodity. Brent oil was bearish in the last five sessions on likelihood of
Industry metals moved lower in short Wednesday's session as Spain is set to start a new austerity measure of EUR30 billion after its borrowing costs rose again.Aluminum tumbled on lingering worries over the Eurozone's economy. However, strong vehicle demand is likely to support the metal.Copper dropped, following common trend of the base metals pack. At the same time the red
Precious metals retreated on Wednesday as markets have already priced in expectations for easing measures by the ECB and Bank of England. Broadly stronger US Dollar added pressure on the commodity group. Gold depreciated in choppy holiday trade on broadly stronger US Dollar and fading impact of the forthcoming ECB meeting.Silver declined as traders await US non-farm payrolls data due
On Thursday, 4th of July, Monetary Policy Committee of the Bank of England approved issuance of GBP50 billion from its reserves to finance asset-purchasing programme. The total amount of money issued for the year 2012 will amount GBP375 billion. The programme is expected to end in four months. Moreover, the committee decided to leave Bank Rate for commercial banks at 0.5% .
India plans to pay for Iranian oil in Euros through a Turkish bank as it is difficult to convert the Rupee to other currencies across the sea. The payments are proceeding regardless of US and EU recently imposed sanctions on Iranian oil exports. This case affected the Rupee negatively: it fell 0.9% against the US Dollar with INR/USD trading at
On Thursday, Barry Callebaut AG, the manufacturer of Swiss chocolate, claimed that the prices on cocoa are expected to stay flat in the nearest term. The company is one of the biggest cocoa consumers, which clients in turn are Nestle SA and Kraft Foods Inc. The company's CEO , Juergen Steinemann, told that during the previous weeks cocoa prices were
The Ireland National Treasury is set to sell EUR500 million of five-month bonds as a consequence of the favorable outcome of the EU Summit on June 28-29. Previously, Ireland sold EUR 400 million of bills, maturing in 4 1/2 month and 6 1/2 months with average yield of 1.907 and 2.23%. The result is a positive indication of Ireland re-entering the
On Thursday, the government of Spain sold EUR3 billion of 3,5 and 10- year debt with increasing interest rates.During the auction sale of 10-year bonds, Spain paid an average interest rate of 6.43%, while in the beginning of June it was 6.04%.