People's Bank of China withdrew CNY 44 billion (USD 6.98 billion) from Chinese money market via open market operations to curb excess liquidity. The draining of funds comes amid news Chinas consumer price unexpectedly surged in January. Nevertheless central bank refused to auction 3-month and 1-year bonds.
Rio Tinto Group, the third biggest mining firm in the world reported a 59% drop in its annual profit after executing one time payment on its aluminium division. The annual net income amounted USD 5.8 billion compared to USD 14.3 billion previous year. Economists earlier predicted net income to reach USD 15.6 billion.
Most European equity markets finished lower on Wednesday as Greece continued to struggle with international creditors about nation's debt swap agreement. Stoxx Europe 600 index and UK FTSE 100 index each edged down 0.2% at 263.01, and 5,875.93 respectively. DAX 30 index and French CAC 40 each fell 0.1% at 6,748.76 and 3,410.00 respectively.
The Bank of Korea decided to leave its benchmark interest rate unchanged for the eight consecutive month. The bank's step matched analysts' expectations. BOK kept its key interest rate at 3.25%, citing improving foreign economic outlook and balanced home inflation as factors, curbing the pressure for an interest rate cut.
The second largest Swiss bank Credit Suisse posted a loss in 4th quarter, first time since 2008, harmed by unfavourable markets and costs related to reorganization of its investment bank unit. The net loss totalled CHF 637 billion (USD 698 billion) compared to CHF 841 billion profit year earlier. Analysts predicted a profit at CHF 446 billion. Credit Suisse already have announced
Japanese core machinery orders, an economic indicator which is considered as one of key measures, declined sharply in December, giving up 7.1% on annual basis, reported country's government on Thursday. The median estimated of analysts was a decrease of 5%. Core orders exclude volatile purchases such as ships and utility equipment.
The 17-nation currency strengthened to a 2-month record high as Greek government said Euro Zone's finance ministers will approve the second rescue package. Euro gained 0.2% against US Dollar to USD 1.3281 in Asian trade and added 0.3% against Japanese Yen, climbing to JPY 102.49. Currently EUR/USD is trading at USD 1.3301 while EUR/JPY is trading at JPY 102.64.
China's consumer prices unexpectedly rose in January, fuelled by spending during week long Lunar New Year holidays. Accelerating inflation limited room for possible monetary easing as European turmoil hampered exports amid cooling property market. Inflation added 4.5% in January, estimated on annual basis. Analysts predicted consumer prices to escalate by 4%.
German DAX 30 index retreated and climbed 0.7% on Wednesday, lifted mainly by financials. Deutsche Bank AG added 1.7%, while Commerzbank AG jumped 8% after its Polish division reported a 46% increase in 4th quarter profit. Car maker Daimler AG advanced 1% ahead of its earnings report due tomorrow. DAX 30 erased some of its gains after ECB said it
UK FTSE 100 Index opened higher on Wednesday, supported by mining and energy stocks as developments Greece spurred hopes the country might avoid default. Rio Tinto PLC surged 1.4%, Fresnillo PLC added 0.2% and Kazakhmys PLC gained 2%. On the downside BHP Billiton PLC lost 1.2% after reporting a drop in its profit. During the session FTSE 100 climbed 0.1%
Nokia Oyi, one of biggest cell phones manufacturer which sales are concentrated in Asia, announced it will eliminate about 1000 jobs in Finland, 2300 in Hungary and 700 in Mexico as company wants to concentrate its resources closer to suppliers in Asia. The company plans to transfer its device assembly to Asian plants where the component suppliers are located.
German exports declined more rapidly than economists predicted in December as debt crisis harmed the export demand across the troubled region. Exports lost 4.3% compared to November when they added 2.6%. In contrast, analysts predicted only a 1% decline in European biggest economy's exports. Nevertheless economists suggest the German exports may gain momentum in 2012 as business confidence surged in January.
Hong Kong's Hang Seng index appreciated 1.54% or 319.27 points at 21,018.46 on Wednesday as investors sentiment improved on Greek debt talks and China announced it will apply measures to support first time home purchasers. Property shares rallied on the announcement with China Resources Land Ltd. gaining 3%, China Overseas Land & Investment Ltd. surging 5% and Agile Property Holdings
Asian shares markets improved on Wednesday, supported by car maker stocks on the upside amid Greek deal optimism. Japan's Nikkei Stock Average and South Korea's Kospi each gained 1.1% while Australia's S&P/ASX 200 index added 0.4%. China's Shanghai Composite jumped 1.6% and Hong Kong's Hang Seng Index advanced 1.5%.
Dow Jones Industrial Average Index retreated on Tuesday on news the number of new job openings in January climbed more than expected and Americans borrowed more in December. Blue chip index added 0.26% or 33.07 points and finished at 12,878.20. Coca-Cola climbed 0.8% after the world's biggest soft-drink producer, reported higher than expected 4th quarter profit. McDonalds Corp. surged 1.4%
S&P 500 index traded higher on Tuesday as data showed consumer borrowing surged in December and Greek officials said they are close to approve budged measures. US stock index gained 0.2% or 2.72 points and closed at 1,347.05 with seven of ten sectors posting gains. Anadarko Petroleum Corp. jumped 5.2% after oil producer's profit beat Wall Street expectations. Sears Holdings
Coca-Cola the world's biggest soft-drink producer, reported higher than expected 4th quarter profit as juices and teas stimulated sales in Asia. Profits totalled 79 US cents per share compared to 77 cents a share predicted by analysts. Coca Cola shares gained 1.3% on the announcement. Company's stocks advanced 6.4% in 2011.
People's Bank of China is preparing to ease lending rules for first time house buyers to ensure cheaper house projects. Wei Yao, economist at Societe General admitted the decision is likely to spur private demand in rapidly fading property market. Nevertheless, Yao does not expect softer requirements for developers as the government still fears to fuel speculative demand.
Japanese merchandise trade experienced the first yearly deficit in more than a 50 years as the trade gap reached JPY 1.609 trillion. In December, however, the current account surplus broadened to JPY 303.5 billion (USD 3.95 billion) compared to predicted JPY 331.4 billion. Exports lost 7% while imports gained 9.8% in the last month of 2011.
Borrowing costs on German government notes surged, sending 10-year yields to 2-week record high as investors became more optimistic about soon resolution of Greek debt crisis. The yield on German 10-year bill soared 0.08 percentage points to 1.96%, while the borrowing costs for 2-year notes gained 4 basis points to 0.22%.
Canada's currency appreciated on Tuesday as investors digested news that Greece is moving towards final version of its debt swap agreement. Loonie gained 0.2% or CAD 0.9944 amid climbing crude and stock prices. Meanwhile Canada's 10-year benchmark yield advanced to 2.03%. Currently USD/CAD is trading at CAD 0.9946.
Japanese currency depreciated against most of its counterparts on Wednesday as Asian stock markets traded higher, curbing demand for safer investments amid country's current account data. Japanese Yen slipped 0.5% against US Dollar to JPY 77.14 and edged down 0.6% against Euro to JPY 102.35. Currently USD/JPY is trading at JPY77.05 and EUR/JPY is trading at 102.29.
US stock markets finished up on Tuesday lifted by news that Greece is close to finding consensus on its austerity measures to get bailout money and Ben Bernake confirmed the Federal Reserve will stick to low interest rate despite optimistic employment data. S&P 500 index gained 0.2% or 2.72 points and closed at 1,347.05, Dow Jones Industrial Average index added
Gold appreciated during Asian session as investors became more optimistic about Greece's escape from default. Gold futures for delivery in April added 0.1% or USD 2.40 per ounce and traded at USD 1,751.2 on Comex division of New York Mercantile Exchange. Copper futures to be delivered in March rallied 1.2% to USD 3.92 a pound.