Analysts predict US service industry expanded last month, probably reaching the quickest pace in previous quarter. Economists questioned by Bloomberg expect the Institute for Supply Management's index climbed to 53 in December compared to 52 in November. Analysts also forecast the number of unemployment claims dropped last week.
Greece may need extra fiscal measures to comply with 2011 budget requirements, said the government spokesman. Moreover, the interim government developed 'very specific' measures to pursue the goal of staying in the Euro Zone, the official added.
Experts predict Chinese foreign trade to expand by 20% to 3.6 trillion U.S. dollars. However, the trade surplus is likely to narrow further to about 160 billion U.S. dollars last year, according to Chen Deming, Commerce Minister. The National Statistics Bureau will release all data for 2011 next week.
Germany's retail sales in November decreased by 0.9% while analysts expected the figure to increase by 0.1%. However, retail turnover in 2011 is likely to increase by between 1.1% and 1.3% from the previous year, reported Federal Statistical Office. After the release of data, the Euro saw losses against the USD and the pair EUR/USD is currently trading at 1.2921, edging down 0.15%.
Hungary saw surge in the borrowing costs as investors claim the country may be let to default by international authorities. Trader's sentiment was impacted by the fall of the Forint's value to all-times low against the Euro, by drastic constitutional reforms that may put the IMF and the EU off providing new bailout package and by essentially discounted rights issue by UniCredit. Moreover, the country
Eastman Kodak shares tumble 28% amid the speculation that company is going to apply for bankruptcy protection. The company did not comment the rumours. However, the Wall Street Journal claims the company has begun looking for options to prevent its bankruptcy and filed for bankruptcy protection of Chapter 11 in the US. Moreover, Kodak started negotiations with banks to raise about $1bn to continue operations
China's Ministry of Commerce announced it expects the outbound direct investment to reach the amount of FDI over the next five years. The amount of ODI is likely to approach US$560 billion in the period. The growth of the ODI remained resilient to the global economic slowdown and will expand by around 17% annually, according to the 12th Five Year Plan.
The central bank of Suisse refuted the accusation of the Philipp Hildebrand's wife that she has used the confidential information of the SNB intervening into the market. Kashya Hildebrand purchased $504,000 three weeks before central bank decided to reduce value of Swiss currency. Later she sold the USD and bought property. The bank claimed the family did not break the rules. Philipp Hildebrand will
China's inflation is expected to rise to 4% last month on a yearly basis, driven by increased food prices during the forthcoming festival season. Inflation rate is expected to hit 4.1% in December on an annual basis, said Chu Jianfang, chief economist with CITIC Securities. China's CPI for the full 2011 is projected to jump to 5.4%, being above the target of 4%.
Australian trade balance increased less than initially expected in December, according to official data. The country's trade balance increased to AUD 1.38B on a seasonally adjusted basis as compared to AUD1.60B in November. Experts predicted the figure to hit AUD1.66B last month.
Canadian domestic currency depreciated against its US peer on Wednesday amid investor fears European debt turmoil is worsening. Loonie fell from 1-month high where it settled on better-than-expected US PMI data. It lost 0.2% against US Dollar, attaining C$1.0127 in Toronto trade. Currently USD/CAD is also trading at C$1.0127.
Greek Prime Minister Lucas Papademos announced that further cuts of spending are the only possibility to stay in Euro Zone and to obtain financing from abroad. Papademos emphasized Greece has to give something up in order not to lose a lot. Later in January Papademos will continue talks with IMF and ECB about economic plan for 2012-2015.
Australia's and New Zealand Dollars weakened against most of their counterparts on Thursday after Italian biggest bank UniCredit SpA announced large discount on its shares prompting fears European banks may face difficulties to raise funds. Aussie lost 0.3% against Greenback reaching $1.0339 in Sydney wile Kiwi tumbled 0.2% against its US peer to $0.7862. Currently AUD/USD is trading at $1.0326 and
17-nation currency moved towards 11-year record low against Japanese Yen on Thursday before French bond auction due today as investors express anxiety if Euro Zone banks and governments will manage to attract enough funds. The Euro lost 0.2% against Japanese Yen reaching ВҐ 99.13 in London trade. Common currency also slipped 0.2% against US Dollar hitting $1.2916. Currently EUR/JPY is trading at ВҐ 99.16.
One of biggest Italian lender UniCredit SpA faced biggest decline in stock price since 1988 after the bank announced it is preparing to sell €7.5 bn ($9.7bn) of shares at 43% discount of from yesterday's last price. Shareholders will be able to buy two new-issued stocks for €1.943 each for every old share they already hold. UniCredit is attempting to raise funds
European markets faced a decline on Wednesday as investors began to sell Spanish and Italian bank stocks extensively amid reintroduced worries about region's debt turmoil. Stoxx 600 lost 0.6% and closed at 249.62, German DAX 30 slipped 0.9% reaching 6,111.55, while French CAC 40 index fell 1.6% 3,193.65. UK FTSE 100 index gave up 0.6% and finished at 5,668.45.
Shares on China and Shanghai recovered on Thursday as investors anticipated news that China may cut reserve requirement ratio for lenders. Japanese markets experienced a decline as technology stocks made a weak performance. Hong Hong's Hang Seng index gained 0.4%, while South Korea's Kospi and Shanghai Composite each gained 0.3%. On the downside were Japan's Nikkei Stock Average dropping 0.7% and
US shares mostly gained on Wednesday as data on robust post Christmas shopping and car sales in previous month helped to offset worries about European debt woe. Dow Jones Industrial Average added 0.2% or 21.04 points and finished at 12,418.42 while S&P 500 Index advanced 0.02% or 0.24 points, at 1,277.30. Nasdaq Composite, however, ended modestly down 0.01% or 0.4
Hungarian currency, the Forint tumbled to a record low against the Euro on worries that country will not be capable to secure the bailout package from the IMF and the EU because of recently approved government's policies. The Forint fell to 319.35 per euro, reported FactSet. The deterioration of the country's economic conditions made Hungary more vulnerable to recession in the Euro Zone, said Benoit
The annual rate of inflation in the Euro Zone was 2.8% in December as compared to 3% in November, according Eurostat. The inflation rate basically was in compliance with expectations. However, the rate remains above the target of the ECB of 2%. After the release of data, the Euro depreciated against the USD and the pair EUR/USD was trading at 1.3043, down 0.05%.
Crude oil futures fell after approaching seven-week high as investors' confidence was dampened by fresh worries over the Euro Zone's recession. The ECB deposit facility's use hit a new record high of EUR453.1 billion on Tuesday, indicating banks' unwillingness for interbank lending. Light, sweet crude oil futures for February delivery traded at USD102.59 a barrel at the early European trade, on the New York Mercantile
Crude oil and gold prices are likely to surge soon on the US-Iran war, claims Jim Rickards. He says the war has been started as tensions and sabotage between two countries reached a peak. The price for crude oil is likely to soar to above $200 a barrel while gold will jump to a range between $3000/oz and $5000/oz in 2012. Hedge funds as
The contraction of the service sector in the Euro Zone slowed last month. The Markit Euro Zone purchasing managers' index approached 48.8 in December, being a three-month high. Analysts expected the figure to hit 46.9 in December after being 46.4 in November. However, the results still show there is a high risk of new recession in the region.
China's National Audit Office has found $84bn of irregularities in the government debts. The irregularities include irregular collateral and credit guarantees. The incident raised worries over the amount of bad debts held by the government. Figures showed bad debts totaled $1.7tn in 2010. Currently, the State Council plans to review the debt management practices to reduce the fiscal risks.