Greece's continued issues with tax evasion have become more severe as the election campaign season has been extended. According to the Finance Ministry, Greece failed to reach its target tax collection by EUR 495 million (USD 615 million) during the initial 4 months of the current year. According to Holger Schmieding, Berenberg Bank's chief economist, the EC-ECB-IMF troika most certainly will recognize that Greece missed
Energy commodities rose on Tuesday as demand concerns eased after positive US services PMI data. Crude oil edged up on supportive data from the American Petroleum Institute that reported a fall in the US crude oil stockpiles last week. Brent oil was marginally higher as traders await developments regarding Iranian nuclear programme.Natural gas extended previous gains as warm weather forecasts
Industry metals declined in choppy trade on Tuesday as disappointing data from Germany impacted the commodity pack. Germany reported sharp fall in industrial orders in April on Tuesday.Aluminum futures declined following weak industry data releases and soft automobile sales in the US.Copper fell after dismal Eurozone manufacturing data. The Eurozone's Composite PMI tumbled to 46 in May from 46.7 in
Precious metals were mostly higher in Tuesday trading despite broadly stronger US Dollar after the US reported faster than expected services sector expansion.Gold was the only loser as Fed officials claimed that the US economy does not need additional monetary stimulus and dismal data releases last week are likely to indicate short-term weakness.Silver rose by about 1% amid mixed global
As Spain continues to fall further into the economic crisis, the country's industrial production output reached its record-low since October in 2009 and dropped by 8.3% from the previous year. According to the Bank of Spain, the country will suffer from another recession since 2009, as Mariano Rajoy in the period of one year is attempting to achieve a 40% decrease in the budget
The G-7 officials during the conference call on 5 June stated that they will in fact support Greece and Spain in resolving the current crisis. Jun Azumi, Japan's Prime Minister, said that the G-7 leaders have decided to unite their efforts in assisting the two countries in correctly allocating their financial state in order to ensure ongoing stability. Azumi also added that there was no
Palladium is likely to be one of the top-performers in the nearest future amid rising demand and tough supply, said Jeff Swinoga, CEO of North American Palladium. Currently, global palladium supply stands at 6.8 million ounces, with the largest output coming from South Africa and Russia. At the same time, world's vehicle production is expected to grow from 77 million
Industrial production of Spain slumped by annualized 8.2% in April, indicating the largest monthly fall in more than a year, reported national statistics office. The data comes after industrial output fell by 7.5% in the preceding month. Industrial production of the country has faced bleak performance for the last year, indicating either decline or no changes over the last 14
Japan's Nikkei Stock Average rallied on Wednesday for a second straight day lifted by weaker Yen and renewed hopes for China monetary accommodation. Nikkei 225 surged 1.81% or 151.53 points and closed at 8,533.53. Dollar strengthened 0.5% and Euro added 1% versus Japanese currency. Exporters who generate most of their earnings abroad advanced sharply. Nippon Sheet Glass jumped 11% and
The European Commission designed proposals of new legislation aimed at protecting taxpayer's money from being spent on bailing out banks. Proposals suggest that bank shareholders as well as creditors have to cover bank's losses. The plan is likely to decrease vulnerability of the entire financial system to economic instability in peripheral countries. However, the new law is expected to come
Gold futures gained in Asian session on Wednesday ahead of key meetings of the ECB and Fed that may announce easing measures in view of weak economic state. COMEX gold August contract traded at 1,625.35 US Dollars per troy ounce on the New York Mercantile Exchange, gaining 0.52%. Meanwhile, COMEX silver for delivery in July traded at 28.587 US Dollars
Crude oil futures eased up in Asian session on Wednesday after the American Petroleum Institute announced that US oil supplies declined by 1.6 million barrels last week. Moreover, stronger than initially expected performance of the US services sector stimulated price increase. Light, sweet crude oil futures for July delivery traded at 84.42 US Dollars per barrel on the New York
China has experienced rapid growth during the past year; however, according to some analysts, the country may not live up to its expectations in the upcoming future. Credit Suisse stated that several factors, which previously contributed to China's growth, now seem to present less potential; one of those impacts being the country's admission to the WTO that boosted China's development during the 2000's. The top
Dow Jones Industrial Average retreated on Tuesday after US reported its non-manufacturing expanded instead of expected slight drop. ISM gauge climbed from 53.5 to 53.7 in May. Blue chip index added 0.22% or 26.49 points and settled at 12,127.95. JP Morgan recovered from yesterday's slump and posted the biggest gains for the index, jumping 3.2%. Other lender Bank of America
S&P 500 index climbed on Tuesday lifted by an improvement in US service activity in May. US benchmark index advanced 0.57% or 7.32 points and finished at 1,285.50. Eight out of ten sectors within the index advanced. SanDisk rallied 5.5% after mobile device memory chip maker was upgraded to outperform by Pacific Crest Securities. The world's largest coffee-shop operator Starbucks
The US Dollar depreciated versus Euro and other major counterparts on Wednesday after Asian markets traded higher, reflecting hopes for collaboration between G-7 countries to tackle European debt turmoil. The greenback shed 0.5% against the Euro to USD 1.2512. Currently EUR/USD is trading at USD 1.2482.
European equities edged higher on Tuesday, supported by better than expected May service activity indicator in US. Stoxx Europe 600 gained 0.3%, Spanish IBEX 35 soared 0.5% and French CAC jumped 1.1%. Greece extended its sharp drop and plunged 5.1%. UK markets were closed for a holiday.
US stocks traded slightly better on Wednesday after data showed ISM index for service businesses surged from 53.5 in April to 53.7 in May. S&P 500 index advanced 0.57% or 7.32 points and finished at 1,285.50. Dow Jones Industrial Average climbed 0.22% or 26.49 points to 12,127.95 and Nasdaq Composite gained 0.66% or 18.10 points to 2,778.11.
The credit rating of Commerzbank AG, the second largest lender in Germany, was cut by one level to A3. In total Moody's lowered ratings for three banks in Austria and seven banks in Germany. Moody's Investor Service is reviewing also Deutsche Bank AG.
Canadian currency appreciated on Tuesday after central bank officials announced they may increase interest rates as local economy is rebounding as predicted despite global uncertainty. Canadian Dollar added 0.1% versus its US peer to CAD 1.0381. Currently USD/CAD is trading at CAD 1.0336.
Australian national currency surged on Wednesday after data showed country's GDP grew more than twice in the first quarter of 2012. Aussie added 0.7% versus greenback to USD 0.9862 while Kiwi advanced 0.8% to USD 0.7624. Currently AUD/USD is trading at USD 0.9840 and NZD/USD is trading at USD 0.7613.
ECB may move closer to reducing borrowing costs to a record low as the European turmoil deepens threatening to curb global economy. While majority of economists surveyed by Bloomberg predict that Mario Draghi and other ECB officials will leave key interest rate unchanged at 1%, some predict a quarter point cut and one expects even half-point reduction. ECB is facing
Australian economy expanded at much faster pace than expected, pushing Australian Dollar, stocks and borrowing costs higher and reducing scope for RBA for further interest rate cuts. Australia's GDP surged 1.3% in the first quarter compared to a 0.6% gain in the fourth quarter. Analysts expected a similar increase as in previous three months at 0.6%.
Spain is likely to seek financial aid from Europe to support its ailing banks, as the country is losing access to financial markets due to increasing interest rates on Spanish bonds, according to the Budget Minister. The Eurozone policy makers developed measures to contain Spain's deepening financial crisis ahead of EU summit in Brussels at the end of June.