Mervyn King, the governor of the Bank of England, said the bank may cease adding extra financial stimulus to the economy as UK manufacturing and service gauges increased unexpectedly previous month indicating country's economy may be gaining positive momentum. Still officials are caution regarding possible impact of European debt crisis.
Most of Asian stock markets fell on Thursday after Chinese officials reported country's consumer prices rose at 4.1%, slightly lower than in November. Australia's S&P/ASX 200 dropped 0.2%, Shanghai Composite Index edged down 0.1% and Hong Kong's Hang Seng Index traded almost flat. Japan's Nikkei Stock Average gave up 0.7% but on the upside was South Korea's Kospi which edged
Spain and Italy prepare to sell bonds worth around 17 bn Euros today as Italian PM Monti calls investors to prize nation's austerity measures. Monti and Spanish PM Rajoy both are attempting to persuade investors the countries have put much effort to reduce debt. Spain's Parliament approved 15 bn Euro austerity package yesterday.
CIT Group Inc. the largest US factoring provider decided to stop giving loans to the suppliers of Sears Holdings Corp. CIT Group Inc. provide short-term funding for producers to manufacture goods. Chris Brathwaite, a representative of Sears told the decision is irrational as company has adequate liquidity and sufficient resources at its disposal.
US equities mostly offset losses on Wednesday as Europe continue to show signs of deepening recession while US data indicates recovery. S&P 500 Index traded nearly flat increasing by 0.03% or 0.4 points at 1,292.48. Dow Jones Industrial Average finished 0.1% or 13.02 points down at 12,449.45, while Nasdaq Composite advanced 0.31% or 8.26 points reaching 2,710.76.
Europe's stock markets fell on Wednesday following the drop in the oil prices. Stoxx Europe 600 index lost 0.35% or 0.89 points and closed at 249.9 while German DAX 30 index declined 0.17% or 10.64 points at finished at 6,152.34. UK FTSE 100 index tumbled 0.45% at 25.88 points, reaching 5,670.82 and French CAC 40 Index deteriorated 0.19% or 5.96
Japanese FM Jun Azumi said the country will back economic sanctions against Iran by restricting oil imports to resist nuclear development. The announcement comes a day after Chinese officials refused Timothy F. Geithner's calls to join oil embargo. Iran is one of the China's main petroleum suppliers. Crude for delivery due February jumped 38 US cents or 0.4%.
The leader of the Italian Social Democrat Party said Italy has to leave the EU and abandon the single currency. Italians do not perceive themselves as a part of the EU any more, he added. The party does not have seats in the Parliament but its members occupy seats in other government's organizations, he stressed.
European wheat prices followed a downward trend of the US grain futures as investors wait for the US crop report due on Thursday. European investors also anticipate the results of the bidding for the commodity imports under the TQS. The European benchmark wheat, Paris wheat futures for March delivery, lost 0.25% to EUR201.25 a ton.
Germany sold 3.15B Euros of the five-year notes generating the yield of 0.9% on Wednesday. The auction was successful with the bids exceeding supply 2.8 times. The Euro continues to face losses trading near to 16-month low against the USD as worries over the Euro Zone's debt crisis dampen investors' sentiment.
Russia's crude oil production decreased to 10.32 million barrel per day in December from 10.34 million barrel per day, reflecting 0.2% fall, reported the Energy Ministry. Exports via Transneft pipeline edged down to 4.26 million barrel per day, losing 5.6% on a monthly basis. However, Russia is likely to become an alternative oil supplier for the EU in case a complete ban on oil imports
Spain's industrial output tumbled in November, declining the most in the last two years. The fourth-largest economy in the EU signaled contraction even before the government started to implement the austerity measures. Adjusted industrial output lost 7% in November on a yearly basis, reported the National Statistics Institute in Madrid.
The Indian government is expected to allow export of additional 1 million tons of sugar in the 2011-12 sugar season. The decision is based on the expected sugar surplus in the country. Moreover, more exports will enable traders to pay farmers without delays. Over the current sugar season, India is likely to produce about 26 million tons of sugar while country's consumption is estimated to
The EC said Hungary did not take any firm action to limit the excessive budget deficit. The country deficit remained at 3% of GDP in 2011 and is likely to remain unchanged this year. In effect, the EC is forced to take action against Hungary over excessive deficit. International lenders also are likely to demand tougher conditions from the country for new loans later this
Copper futures advanced to almost one-month high as metal's price was supported by hopes of the China's monetary easing. COMEX copper March contract traded at USD3.541 a pound at the early European trade, on the New York Mercantile Exchange, easing up 0.8% since opening.
Economy of the Euro Zone grew less than previously estimated in Q3 of 2011. The Euro Zone's GDP expanded by 0.1% seasonally adjusted in Q3 as compared to 0.2% preliminary reported. The GDP in the previous quarter grew by 0.8%. After the data release, the Euro stayed lower against the USD and the pair EUR/USD lost 0.56% to 1.2706.
German GDP added 3% in 2011, surging most during in the first 6 months of the year, said the federal statistics office on Wednesday. The annual growth estimate matched the forecasts. Growth in European biggest economy decelerated from a record high expansion of 3.7% in 2010. Last year's surge in GDP was mainly driven by domestic demand as household consumption expanded by 1.5%.
Japan currently is not planning to take part in international boycott of Iranian oil imports, reported Dow Jones Newswires on Wednesday. Tokyo considers the fuel shortage may have a negative impact on country's recovery from March earthquake and tsunami. Announcement appears shortly before Tim Geithner's visit to Tokyo to discuss the embargo.
Asian markets mostly expanded on Wednesday led by commodity linked companies as investors continued to foresee China's further monetary easing. Australia's S&P/ASX 200 index added 0.9%, Hong Kong's Hang Seng Index was up 0.1% while Japan's Nikkei Stock Average climbed 0.2%. On the downside were China's Shanghai Composite and South Korea's Kospi, each giving up 0.7% and 0.4% respectively.
The New Zealand and Australian Dollars weakened on Wednesday erasing two day gains as Italy and Spain prepare to sell domestic bonds tomorrow amid concerns their sovereign ratings may be downgraded. Aussie depreciated 0.3% to $1.0279 against the greenback while Kiwi lost 0.1% to $0.7935. Currently AUD/USD is trading at $1.0302 while NZD/USD is trading at $0.7951.
Mitt Romney paved his position as the main Republican presidential candidate yesterday after he won in the New Hampshire. Romney surpassed his closed rival by 16 percentage votes in New Hampshire. Ron Paul of Texas was second with 23% of the vote followed by Jon Huntsman with 17%. Romney told his supporters his preparing new confrontation against Obama.
The 17-nation currency slipped against the US Dollar first time in last three days before Italian, Spain and German bill auctions. Germany will sell 4 bn Euros of 5-year notes today, while Italy and Spain plan to auction around 17 bn Euros of debt tomorrow. Investors also are awaiting for industrial production output data for Euro region due tomorrow. The Euro depreciated 0.3% to $1.2741
Timothy F. Geithner, the US Treasury Secretary will call Asian two largest economies to reduce oil imports from Iran in his meetings with Chinese and Japanese PMs Wen Jiabao and Yoshihiko Noda. Geithner also will require China to review Yuan's exchange rate, as US insists that Chinese domestic currency is undervalued, thus creating unfair competition.
European stocks climbed on Tuesday after investors anticipated sales from Alcoa Inc. which reported higher than expected results. French shares including those for luxury goods rallied after Fitch said it is not planning to downgrade France this year. Stoxx Europe 600 index rose 1.8% to 250.82, French CAC 40 index rocketed 2.7% while UK's FTSE 100 index and German DAX gained 1.5% and 2.4% closing at 5,696.70