Australian sovereign bills appreciated on Monday, driving the borrowing costs for 10-year notes and reaching record low on increasing concern, Europe will face many difficulties to overcome debt crisis. Yields for 10-year bonds lost 7 b.p., or 0.07 p.p. reaching 3.718% in Sydney morning trade.
The Australian national currency dropped against 15 out of its 16 main peers ahead of Reserve Bank's meeting minutes. Both Aussie and Kiwi also experienced downward pressure from concerns over Europe and North Korea's leader Kim Jong-il's death. Australian Dollar lost 0.7%, reaching $0.9911 while its New Zealand's counterpart fell 0.5% to $0.7579. AUD/USD currently is trading at $0.9941 while NZD/USD is trading at $0.7603.
Today European officials are holding a meeting to discuss additional funding valued at 200 bn euros ($261 billion) through IMF as well as consider mechanisms for implementing fiscal tightening. The main goal of conference is to meet a self-forced deadline for providing extra aid for debt woe. Nevertheless, analysts are cautions regarding effects the meeting will have on markets as there is too much uncertainty.
Fitch ratings lowered France's national credit outlook and put Italy, Spain, Slovenia, Belgium, Cyprus and Ireland on a review for downgrading due February. Fitch agency's move stimulates pressure on euro zone's officials to solve the 2-year debt turmoil. The main concern is lack of credible financial backing, said Fitch in its statement.
Moody's Investors Service lowered Belgium's credit rating two steps down on growing concerns that increasing borrowing costs, slackening growth and obligations from Dexia SA's breakup can expand the euro region's fifth largest debt burden. Moody's cut Belgium's sovereign debt rating from Aa1 to Aa3 indicating negative outlook.
US major stocks indexes traded mixed on Friday as Italy approved austerity measures while Fitch threatened to downgrade six national debt ratings. Dow Jones Industrial Average was almost flat trading 0.02% or 2.42 points down, finishing at 11,866.39, S&P 500 added 0.32% or 3.89 points reaching 1,219.65 and Nasdaq Composite gained 0.6% or 14.32 points closing at 2,555.33.
On Saturday Kim Jong-il the leader of North Korea passed away after a heart-attack, confirmed state-managed media Kim Jong-il was 69. The Asian stocks markets reacted sharply and extended loss on Monday while US Dollar boosted gains against South Korean domestic currency. Kim Jong-un, the leader's son is predicted to substitute his father into power.
Asian markets experienced a sharp decline on Monday, extending Friday losses on announcement about Kim Jong-il, North Korean leader's death. Hong Kong's Hang Seng Index lost 2.5%, Shanghai Composite dropped 2.6%, while South Korea's Kospi fell 4.1%. Japan's Nikkei Stock Average closed down 1.4% and Australia's S&P/ASX 200 index gave up 2.4%.
Canadian currency climbed against greenback for a second day in a row as US manufacturing report showed that factory output in Philadelphia and New York regions expanded at faster pace than predicted signaling recovery for the economy. Canadian dollar gained 0.2% against its US peer to C$1.0332. Currently USD/CAD is trading at C$1.0347.
Italian and Spanish note gained on Friday after PM Monti's government won a confidence ballot and Spain managed to sell almost twice as much debt as it planned. 2-year Spanish borrowing costs fell 52 b.p. or 0.52 p.p. Yields for 2-year Italian notes lost 48 b.p. reaching 5.06%. Dutch and German two-year borrowing costs hit euro-era record low as part of investors remained worried the European crisis will
Foreign investments in Canada increased less than expected, according to official data. Purchases of Canadian securities by foreign investors edged up to 2.03B in November on a seasonally adjusted basis as compared to 7.35B last month. Experts predicted the indicator to increase to 8.23 in November.
In November US consumer price level was flat, mainly due to dropping energy costs, said the Labor Department on Friday. Core prices excluding energy and food costs added 0.2%. The real readings mostly match with analysts' expectations. Inflation adjusted hourly salary declined 0.1%. Unadjusted Consumer prices rose 3.4% on yearly basis.
US stock index futures gained on Friday as investors mostly ignored Fitch downgrades for several key banks and kept waiting for US inflation data. Futures on Standard & Poor's 500 jumped 7.20 points reaching 1,218.9, while those on Dow Jones Industrial Average added 48 points attaining 11,870. Nasdaq 100 futures climbed 12.25 points at 2,235.5.
US stock index futures gained on Friday as investors mostly ignored Fitch downgrades for several key banks and kept waiting for US inflation data. Futures on Standard & Poor's 500 jumped 7.20 points reaching 1,218.9, while those on Dow Jones Industrial Average added 48 points attaining 11,870. Nasdaq 100 futures climbed 12.25 points at 2,235.5.
Indian crude oil output is expected to surge 21% to 45.57MT in the next two years as compared to 37.68 MT between 2010 and 2011, reported S Jaipal Reddy, Indian Oil Minister. The increase of the domestic oil output will reduce country's dependency on the foreign supplies. The largest contributor to higher oil production level will be Cairn India that currently produces about 125,000bpd of
The Euro Zone will experience refinancing problems in February, reported Ewald Nowotny, Governing Council member of the ECB. Refinancing eliminating deficit financing will reach about EUR1.3 trillion next year coupled with EUR1 trillion for refinancing of banking industry. It is crucial to work out short-and long-term measures to solve financial difficulties and further fine-tuning in the policies is necessary, he stressed.
Commodity price will be lower in the first two quarters of 2012 but they will increase over rest of the year, reported Bank of America Merrill Lynch. The most-probable scenario Europe will go in moderate downturn but the global GDP will grow by 3.5% pushing the gold prices to about $2000 on increased monetary easing. However, in the worst case the recession in the Euro
Deutsche Bank AG downgraded UK wealth managers by decreasing Man Group PLC rating from buy to sell on low cash flows that may affect company's earnings. However, the bank increased the rating of Ashmore Group PLC from hold to buy on inspiring investment performance. Following the news, stocks of Man Group PLC dropped by 2.6% while shares of Ashmore gained 0.9%.
Gold prices are likely to achieve $2000 an ounce in the first two quarters of 2012 as the long-term trend for precious metal remains bullish, said Jeff Nichols, Managing Director of American Precious Metals Advisors. The recent gold slump is not unusual and the price for precious metal will soon rebound loses and will climb above record high September's level of $1923 an ounce, he
Dell Inc. sees weaker PC demand in India on the hard disk supply disruptions and fell of rupee. Dell has a leading 15.5% market share in Indian PC marker and the fall in demand impacts the company's business. The prices of Dell's PC are expected to increase between 8% and 12% in the nearest future said Dell Inc. executives.
Silver flakes and powder are likely to be replaced by silver nanomaterials as they are more immune to silver volatility. Currently the market share of silver nano flakes and powder is negligent but it is projected to soar 80% annually to $300 million by 2016, according to NanoMarkets. During increasing silver prices the demand for hybrid material is growing and is likely to expand by
Slovakia plans to issue three new bonds with maturities three, four and five years, said Ardal, the Slovakia's Debt and Liquidity Management Agency. New bond lines can be added in case of investors demand. The country plans to hold bond auctions monthly and the first auction is due January 23, 2012.
Brent crude oil prices are likely to average near $111 a barrel this year being the highest during 150 years, reported IHS Cambridge Energy Research Associates. The crude oil price is the highest in the all history of petroleum age in both nominal and inflation-adjusted terms, said Daniel Yergin , IHS CERA chairman. However, global financial difficulties may weight down the oil price, he
Nickel was in surplus between January and October, the surplus achieved 5,600 tonnes, reported International Nickel Study Group. However, between January and September the market experienced deficit of 6,400 tonnes and the surplus appeared only in the last two months. The LME Nickel currently traded at $18,000/tonne, losing 35% over the year.