French President's Hollande's Social Party got the vast majority in parliamentary elections, exit polls indicated on Sunday. The Socialist party took 314 out of 577 seats while its main competitor Sarkozy's Popular Movement gained 228 places. The victory provides Socialists with a control over almost all French political institutions starting from presidency to lower and upper houses of parliament.
Greece's two historically competing parties are rushing to build a coalition as the nation's cash reserves fade, bank deposits leave the country and EU requires re-introducing austerity measures before providing more bailout financing. Greece may run out of cash in the middle of July. EU political officials demand Greece to renew spending cuts in order to receive next portion of USD 305 billion rescue
Greek voters elected a pro-austerity parties on Sunday, easing concerns about short term future of Euro Area and sending financial markets higher. Preliminary results show that pro-austerity force New Democracy has won with 29.7%. The anti-austerity party is likely to end second with a 26.9% gain. Currently ruling Pasok party gained 12.3%. Analysts expect that pro-austerity coalition consisting of New Democracy
The United Kingdom and the France increased their holdings of the US treasury securities by more than 26% in April. U.K.'s holding increased by 26.5% and reached USD 154b. France's holdings increased by almost 30% and reached USD 59.4b. The biggest buyer of US securities remained China which holds USD 1.15T as by now. Specialist state that US treasuries ares till considered safe
German DAX index moved higher on Friday as investors prized report from G-20 saying that global central banks are ready to intervene if Greek parliamentary elections signal deeper financial turmoil. Commerzbank provided the main gains for the index adding 3%. Car makers also partly recover from earlier losses. Daimler advanced 1.3% and Volkswagen soared 2.1%. BMW breached the positive trend
UK FTSE 100 retreated from previous loss on Friday as the board of the Bank of England signalled it will boost its cheap lending program to inject money into British firms and households. Banks rallied on cheap loan perspectives with RBS gaining 8.3% and Lloyds advancing 4.4%. Royal Dutch Shell gained 2.3%. Oil shares rose after crude price climbed above
On Friday, official data showed that U.S. treasury International Capital grew in April less than it was expected. The U.S. Department of Treasury reported that TIC long-term purchases rose to 25.6 billion on a seasonally adjusted basis from 36.0 billion in the month before. Analysts' expectation was that U.S. TIC long-term purchases would increase to 45.3 billion.
The Euro fell versus the Greenback on Friday despite the weak U.S. economic data, since investors were focused on upcoming Greek elections and continuing Spanish financial crisis. EUR/USD was traded at 1.2614, losing 0.15 during the early U.S. trade. The pair's support was likely to be found at 1.2443, and resistance could possibly be at 1.2647.
On Friday, official data showed that manufacturing activity in New York grew less than expected. Federal Reserve Bank of New York reported that the index of Empire State manufacturing activity surged to 2.3 on a seasonally adjusted basis, whereas the figure for the preceding month was 17.1. Analysts predicted that the Empire State manufacturing index would be 13.0.
Futures for gold were growing in the early U.S. trading session, as both expected disappointing U.S. economic data and Eurozone fears triggered the demand for the precious metal. On the NYMEX, August delivery futures were traded at USD1626.25 per troy ounce, adding 0.41% during the early trade. Support was prone to be at USD1583.05, while resistance could be at USD1628.95.
Mervyn King in his speech announced that the central bank and the government will flood the banking system of the U.K. with 100 billion Pounds through providing the banks with low-cost long-term funding. The Bank of England and the ministry of finance have designed a scheme that will offer banks loans at below market rates, but demanding the banks to increase lending to households
In a report on Friday, Eurostat said that the trade balance for Eurozone was EUR5.2 billion. This is a decrease comparing to the March's EUR7.5 billion on a seasonally adjusted basis. However, this is an increase comparing to the same month in the previous year, when the trade deficit was EUR4.5 billion. In April, exports tumbled 1.3% and imports slumped 3.0% compared to the previous month.
The pound lost ground on Friday on the country's Central Bank speculations on purchase of government debt in order to support U.K. economy as European debt crisis worsens. Sterling fell 0.1 per cent to $1.5549, a 0.1 per cent decline to 81.22 against the euro.
On Friday, Eurostat reported that the Eurozone employment level declined by 0.2% during the first three months of the year, in line with expectations, whereas it remained stable in the whole European Union. Comparing to the same quarter in the previous year, employment level dropped 0.5% in the single currency bloc, and fell by 0.1% in 27 EU countries.
European stocks jumped on Friday, on contingency plans reports of governments and central banks that will start to fall into place after elections in Greece. The Stoxx Europe 600 index added 0.4 per cent to 242.70 and Spain's IBEX 35 index climbed 1 per cent. The German DAX 30 index and the French CAC 40 index inched higher 0.5 per cent and 0.7 per
The euro gained versus the greenback on Friday ahead of weekend's Greek elections. The single European currency ticked higher from $1.2613 to $1.2631. The ICE dollar's index, which shows currency's relation to its six major counterparts, edged lower to 81.770, compared to 81.917 on Thursday.
The yen rose versus the euro and the dollar on Friday after the Bank of Japan decided to keep monetary policy measures. Japan's currency gained 0.4 per cent to 79 per U.S. dollar and climbed 0.5 per cent to 99.79 against the single European currency.
Futures for natural gas declined in the European trading session on Monday. On the NYMEX, July delivery futures for natural gas were traded at USD2.513 a MMBtu, shedding 0.70% by 09:00 GMT. Earlier, natural gas was traded at USD2.498, a session low. The support for natural gas futures were likely to be found at USD2.170, whereas resistance may be at USD2.543.
According to official data, the trade balance in the U.K. fell more than it was previously expected. On Friday, National Statistics reported that the British trade balance declined to minus 10.1 billion Pounds on a seasonally adjusted basis from the preceding month's minus 8.7 billion. Analysts' forecast, however, was that the trade balance would be minus 8.5 billion Pounds.
Japan's Nikkei Stock Average fluctuated between gains and losses on Friday. On the upside the index was supported by Reuters report which said national banks are ready to ensure liquidity if necessary. Nikkei 225 index traded almost flat adding 0.43 points and finishing at 8,569.32. On the downside heavyweight machinery companies dropped with Sumitomo Heavy Industries losing 2.2% and Kawasaki
Hong Kong's stocks led the Asian markets on Friday with a notable rally as investors expected further stimulating actions from national banks. Hang Seng index jumped 2.26% or 452.54 points and finished at 19,233.94. Esprit Holdings partly rebounded from previous sessions' slump and gained 9.6%. Commodities accelerated on weaker US Dollar sending mining shares higher. Aluminum Corp. of China and
Despite worse than expected jobless claims, Dow Jones Industrial Average surged on Thursday lifted by hopes about possible expansionary monetary policy. Blue chip index added 1.24% or 155.38 points to 12,651.91. 28 stocks out of 30 posted gains. Home improvement retailer Home Depot jumped 2.3% and entertainment company Walt Disney advanced 2.1%. Bank of America rallied 2.1% and The Travelers
S&P 500 index experienced a strong session on Thursday on signals global policy makers may apply extra measures to boost slowing economies. US benchmark jumped 1.08% or 14.22 points and closed at 1,329.10. International Game Technology rallied 14%, Casino machines maker announced a $1 billion share buyback plan in an effort to reward investors after a 23% share drop in
Farm commodities were mixed as weather conditions in the US improved while global demand remains uncertain.Wheat advanced on speculation that lower Russia production is likely to boost demand for US grains. Russia output is expected to fall by annualized 5.7% over 12 month, starting from June 1.Corn rose on expected increase in demand for US supplies. However, recent rains in