Australian government is going to implement budget cuts worth A$6.8 bn ($6.7 bn) in order to decrease spending and meet PM's Julia Gillard's oath to provide a budget surplus, as European debt problems fold economic growth. The surplus is forecast to reach A$1.5 billion. Australia holds the highest AAA grade received from all main rating agencies. Wayne Swan, a treasurer,
On Wednesday morning European stock markets traded down as S&P ratings agency reported downgrade of 37 international banks including major US and European financials. Moreover, investors kept monitoring developments in Brussels. FTSE 100 and French CAC 40 Index both dropped 0.8% to 5,294.98, and 3,003.05 respectively, while German DAX edged down 0.7% reaching 5,761.17.
In November UK's consumer confidence remained near to its 2.5 year-low. The sentiment index added 1 point reaching -31 or 1 point higher compared to October. The estimate for the expectations for British economy lost 2 points to -33 hitting 2.5 year-low. According to Nick Moon, GfK Social Research's director, the results are not surprising, taking into account pessimism in mass media.
The New Zealand and Australian Dollars reached the week record high against their US peer after European Finance Ministers reached an agreement how to extend EFSF bailout firepower and said to provide more details on December 9. However, both currencies offset gains as Asian stock markets escalated a drop. Kiwi fell from $0.7610 to $0. 7606 while Aussie dropped to $0.9978 after hitting $1.0087. NZD/USD currently
Canada's dollar gained against US dollar for the fourth consecutive day, as US reported a surge in American customer confidence. An increase in oil prices also fuelled the escalation of the so-called loonie. Canadian national currency climbed 0.2% on Tuesday reaching C$1.0321 per one US dollar in Toronto trading session. Despite the recent appreciation, Canadian dollar has weakened 3.2% on a yearly basis. The
On Tuesday evening European officials finally agreed on two options how to increase firepower of EFSF bailout package. The first option implies that bond holders can get limited risk protection of about 20-30% guaranteed by EFSF. The other option denotes the creation of co-investment funds to allow combining private and public funding in order to purchase bonds both from primary and secondary markets. Also ministers
According to government report, India's GDP added 6.9% on yearly basis in the 3rd quarter. The GDP estimate matched that predicted Dow Jones Newswires economists' survey. Country's GDP growth has slowed down compared to 2nd quarter when it advanced 7.7%. Manufacturing output increased 2.7% compared to previous year whereas mining output dropped 2.9%.
On Tuesday Standard & Poor's Ratings Services downgraded ratings of 15 international banks. The downgrade takes place amid new rating methodology implementation. New system incorporates into banks' ratings the degree of government provision. So far, new criteria have affected 37 banks. Among firms that experienced immediate cut were four major US banks: Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and J.P. Morgan Chase
On Wednesday Asian shares experienced modest decline as European Finance Ministers announced further meetings will be held in next month, returning uncertainty back to markets. China's Shanghai Composite index lost 2.3%, South Korea's Kospi traded down 0.7% while Hong Kong's Hang Seng Index declined 1.9%. Australian S&P/ASX 200 fell 0.1% and Japan's Nikkei Stock Average edged down 1.3%.
The ECB drained EUR 194.199 billion from banking system in line with its seven-day liquidity declining project. However, the amount is less than expected as the bank planned to drain EUR 203.5 billion. The bank also reported that 85 banks made bids reaching EUR 194.1986 billion.
According to Wall Street Journal, Chancellor George Osborn announced that British government plans to raise its bank levy. The current rate of 0.078% will be raised to 0.1%. The increase will produce additional 2.5 billion pounds for British government. Osborn will deliver this plan today at the meeting at the House of Commons.
A consortium of companies in India won a right to develop iron ore deposits in Afghanistan, according to Afghanistan mining ministry. The consortium represents seven companies that have won $10.3bn contract to develop three mine sites in Afghanistan. Officials claim the deal is going to be the largest foreign investment project in Afghanistan.
US stock futures rose amid hopes for euro-zone leaders will rectify economic problems in the EU. Futures on the Dow Jones Industrial Average gained 53 points to 11,551 and futures on the Standard & Poor's 500 stock index climbed by 7.10 points to 1,198.2. Nasdaq 100 futures advanced 7.50 points to 2,228.5.
Shares opened flat on Tuesday after a strong jump on Monday. Stocks were little affected by news about soaring Italian bond yields. Dow Jones industrial average opened 0.05% or 5.60 points down at 11,517.41, Standard & Poor's benchmark gained 0.01% or 0.08 points reaching 1,192.63 while Nasdaq Composite Index gave up 0.2% or 5.15 points to 2,522.19.
Norway's financial system has become more vulnerable to global difficulties since 2011. Norway's economic outlook was decreased, banks plan on setting risk premia higher thus making bank funding becomes less accessible, reported Norges Bank. Increased instability in financial sector was mainly caused by situation in credit and money markets, the bank added.
On Tuesday Japan's benchmark Nikkei Stock Average jumped 2.3% or 190.33 points and closed at 8,477.82, indicating optimism on today's summit in Brussels held to provide detailed solutions for taming debt turmoil. Auto makers and energy companies were among major winners: Nissan Motor Co. improved by 2.7%, Honda Motor Co. rose 3.6%, while JX Holdings Inc. advanced 2.8%.
Copper futures gained in value and approached two-weeks high as Dollar weakened ahead of the EU finance ministers' meeting. On the Comex division of the New York Mercantile Exchange, copper futures for March delivery reached USD 3.385 a Pound at the early European trade, adding 0.41%.
Hong Kong's Hang Seng Index extended gains on Tuesday depicting investor hopes European leaders will provide details how to solve debt crisis. Hang Seng Index advanced 1.21% or 218.39 points and closed at 18,256.20. Asian exporters and banks made major positive contribution to index. Lenovo Group Ltd. jumped 3.8%, Esprit Holdings Ltd. added 4.6% while Cosco Pacific Ltd. rallied by 7.8%. Among the financial sector Industrial
Transocean Ltd., oil drilling company, announced it is going to offer 26 million shares of common stock in order to raise finance for its recent acquisition. Shares of Transocean fell by 4.2% to $44 before the company said it plans to issue new shares that would represent about 8.9% of the total shares outstanding.
German DAX 30 Index followed its British peer and opened 0.4% lower on Tuesday morning after sharp gains during Monday trade. Weaker opening was mainly caused by anxiety that S&P rating agency said it may cut credit rating of France. During the day session the index recovered and climbed 1% fuelled by financial institutions. Insurer Allianz SE gained 2.8% while Commerzbank AG added 2.3%. Among
Italy's cost of borrowing jumped after the country sold 7.5 billion euros of government bonds. Three-year bonds now produce yield of 7.89% as compared with 4.93% yield in October. The 10-year bonds added 24 basis points to 7.31%. Yields continue to rise while prices carry on falling.
FTSE 100 index closed higher on Monday gaining 2.9 points or 148.11 points to 5,312.76, reflecting investor optimism towards European officials' ability to solve debt crisis. On Tuesday, however, FTSE 100 index opened slightly lower mirroring worries as S&P rating agency threatened to downgrade French AAA rating. During the day index regained 0.2% to 5,325.03, led by mining and financial companies. Randgold Resources Ltd. added
Wheat futures increased after testing four-month low as Italy had quite strong demand at bond auction even despite rising bond yields. On the Chicago Mercantile Exchange, wheat futures for March delivery approached USD 5.9788 a bushel at the early European trade, increasing by 0.89%.
On Monday trading session Nasdaq Composite Index closed at 2,527.34, 85.83 or 3.5% up. Index experienced the biggest percentage advance since August 23 as most of its stocks surged. First Solar and Amazon.Com were among the main gainers each gaining 10.52% and 6.44% respectively. First Solar recently announced that it will become the main supplier of German solar hybrid company.