US shares closed higher on Monday as worries about European debt crisis were outweighed by data indicating the recovery of US economy. Dow Jones Industrial Average added 0.27% or 32.77 points and finished at 12,392.69, S&P 500 index rose 0.2% or 2.89 points at 1,280.70 while Nasdaq Composite gained 0.1% or 2.34 points, closing at 2,676.56.
European equity markets closed lower on Monday led by UniCredi SpA after Merkel-Sarkozy meeting. Although Merkel emphasized the progress reached in talks she also admitted Greece must implement its debt reduction soon otherwise it will not receive the second bailout package. Stoxx Europe 600 index lost 0.5% or 1.11 points and settled at 246.42, while French CAC 40 index dropped 0.3% or 9.67 points to 3,127.69.
Olympus Corp. announced it will request to cover losses valued at $1.7bn, created by firm's president, Shuichi Takayama and 18 other past and present executives which are accused for involving in a scheme to shroud investment losses. Olympus gained 21% in Tokyo morning trade lifted by investor hopes that company will remain publicly traded in stock exchange.
Alcoa Inc. the leading US aluminum manufacturer reported first trimestral loss since 2009 as prices for the metal tumbled. The net loss of fourth quarter of 2011 $191 million or $0.18 per share, compared to net revenue of $258 m year before. Alcoa shares fell 44% last year making company the second worst performer within Dow Jones Industrial Average Index.
Consumer borrowing in US rose in November reaching a 10-year record-high indicating households feel safe to borrow and financials are ready to lend. Consumer Credit surged by $20.4 bn, the biggest increase since November 2001, to $2.48 trillion, said Federal Reserve. Analysts questioned by Bloomberg predicted an expansion of only $7 bn.
China's import declined hitting two-year record low in December, stressing a slowdown in world's second biggest economy. Imports added annual 11.8% in December less than was predicted by analysts earlier. Exports surged 13.4% widening the trade surplus to $16.5 bn. Timothy F. Geithner, Treasury Secretary, is expected to reintroduce pressure for a stronger Chinese Yuan.
The agreement with Greece's bondholders had to be concluded soon as Greece needs to receive the second bailout package, said Angela Merkel. In case Greece does not get 130bn Euros coupled with 50% write offs of the country's bond value, the country may default and will have no choice rather than leaving the Euro Zone, she added.
China will continue its tight monetary policies but is ready to fine-tune them in case of necessity, announced the PBOC, closing the work conference. The PBOC plans to adjust the supply of credits and maintain social financing at a reasonable growth. The country will focus on stimulating agricultural sector, optimizing credit structure, developing small and medium enterprises and supporting affordable home projects.
Gold prices added to Friday's losses as uncertainty over the Euro zone and firmer UD dollar continued to weight down on the yellow metal's price. COMEX gold for delivery in February traded at USD1,610.45 a troy ounce, on the New York Mercantile Exchange, declining by 0.39%.
Natural gas futures increased on Friday after falling to 28-month low as markets were inspired by colder weather forecasts that are likely to increase the heating fuel demand. Natural gas futures closed at USD3.074 per million British thermal units on Friday, on the New York Mercantile Exchange, gaining 3.5% during the week.
Italian PM, Mario Monti, announced that 'the Euro is not in crisis' as the common currency manages to maintain its exchange rate versus the USD. Moreover the banking system of Italy stabilizing and is not under threat, he added. He also claimed the problem of the EU is high level of public debt that is a systematic crisis. The speech came after UniCredit announced it plans
China will boost the stock market confidence over the next five-year period, reported Xinhua. The boost of the stock market confidence, which remained bearish since the last world's financial crisis, has become an important issue. The government aims to improve the system of IPOs, dividends allocation and delisting, said Wen Jiabao, Chinese PM.
Russia and Iran agreed to use their national currencies for conducting trade between them rather than using the USD. The move follows fresh sanctions imposed by the US and the EU on the Iranian oil exports. Russia claims the sanctions are unacceptable and the nuclear issue can be resolved through negotiations.
Coffee futures slumped on favorable weather forecasts in the largest coffee producers as Colombia and Brazil. Arabica coffee for delivery in March traded at USD2.1905 a pound at the European afternoon session, on the ICE Futures Exchange, tumbling 1.13%.
Euro Zone's investor confidence for this month improved more than expected but remained in the negative territory for the sixth month in line. Sentix index added 2.9 points to minus 21.1 this month from minus 24 in December, reported Sentix market research group. Experts predicted the index to gain 0.5 points to minus 23.5.
Copper futures declined to six-day low on the ongoing concerns over the Euro Zone's debt crisis. COMEX copper for delivery in March traded at USD3.421 a pound at the early European trade, on the New York Mercantile Exchange, easing down 0.4%.
Philip Hildebrand, the chairman of the Swiss National Bank, resigned after he had faced allegations in malpractice. His wife was accused of using leaked information on the reduction of the Frank exchange rate to raise currency deals. Both continue to deny guilt. The SNB claimed that Philip Hildebrand and his wife had not broken any rules.
Corn futures rebounded after hitting one-week low as worries on South American crop conditions weighted up on the commodity price. Corn futures for delivery in March traded at USD6.5112 a bushel during the European morning session, on the Chicago Mercantile Exchange, soaring 1.17%.
Germany's industrial production decreased more than expected in November, falling for the first time for four consecutive months. Industrial production declined by 0.6% seasonally adjusted in November, reported Destatis. Analysts had expected the production to contract by 0.5%. On an annual basis, the production expanded by 3.6% in November while experts predicted 3.9% rise after a 4.2% increase in the preceding month.
SeaFrance was officially liquidated by the French court and was forced to stop activity. The liquidation means more than 130 jobs loss in the UK. The Tribunal de Commerce made a decision after the EC adjudged the 200m Euros rescue package provided by the France's government was illegal.
Crude oil saw gains on Monday on persistent worries on supply disruption from Iran and on anticipation of the meeting between Nikolas Sarkozy and Angela Merkel. Light, sweet crude oil futures for February delivery traded at USD101.81 a barrel at the early European trade, on the New York Mercantile Exchange, gaining 0.25%.
Retail sales in Suisse increased essentially more than expected in November. The retail sales surged 1.8% on an annual basis in November while analysts expected them to add 0.5%, reported Switzerland's Federal Statistical Office. After the data release, Swiss Franc stayed higher against the USD and the pair USD/CHF is currently trading at 0.9536, shrinking 0.16%.
German exports totaled EUR 94,9 billion while imports totaled EUR 78,7 billion in November, reported Destatis. The exports expanded by 8.3% while imports added 6.7% on a yearly basis in November. Considering monthly changes, the exports gained 2.5% while imports declined by 0.4%. The foreign trade balance was EUR 16.6 billion in November, Destatis added.
Thai economic expansion is likely to slow down, falling below the forecast of 1.8% growth in 2011, reported the central bank of Thailand. Severe floods coupled with global economic downturn impacted the country's economy, said Songtum Pinto from the central bank of Thailand. However, the bank left the forecast of 4.8% GDP growth this year unchanged.