OPEC considers a possibility to decrease oil output. During OPEC meeting due December 14 the members are expected to change the level of oil output as Iraq, Iran and Venezuela said they would also support the production cut. Moreover, Saudi Arabia showed signs it would agree on the cause.
Ongoing strikes in the mines producing copper coupled with rising concerns over political clashes in Congo, the second largest copper producer, add to the probability of copper deficit in the next year. Currently copper prices are weak due to pessimistic economic outlook; however, decreasing supply of the raw metal may lead to a highly bullish sentiment on the market. At the moment copper is trading
On Tuesday Standard & Poor's 500 Index extended gains adding 0.22% or 2.64 points closing at 1,195.19. Index appreciated for the second trading day in a row led by energy companies. Cabot Oil & Gas Corp. added 3.84%, Teco Energy edged up 2.65%, while Denbury Resources jumped 4.24%. Financial shares that were leading the gains on Monday became the major losers on Tuesday after Italian
17-nation currency plunged toward 8-week record low against greenback on rising concerns that instruments proposed by European leaders will cease debt affliction. The common currency fell against the US Dollar for the second consecutive day. Euro lost 0.3% reaching $1.3284 in London morning trade. The pair currently is trading at $1.3301. Jeremy Hale, Citigroup Inc. executive of macro strategy, believes the markets are expecting
Euro zone officials announced they would like IMF to expand its role in tackling Europe sovereign debt crisis as the EFSF leverage still does not meet the target. Finance ministers agreed during their meeting to attempt to increase the IMF resources and to allow it join forces with EFSF. Dutch FM, Jan Kees de Jager, told IMF capital reserves should be increased to provide lending
According to Statistics Korea, South Korea's factory output dropped 0.7% in October compared to previous month. European debt turmoil is shrinking demand for goods from highly export-dependent Asian economies. Samsung Electronics Co. and LG Electronics Inc. have already reported declines in their profit as Europe struggles with surging borrowing costs.
The Bank of Thailand lowered borrowing rates for the first time since 2009. Thailand's national bank has cut its overnight rate by 0.25 percentage points to 3.25%. Central bank expects Thailand's economy will grow at 1.8% rate next year or 0.8% less than was predicted earlier. Nalin Chutchotitham, Kasikornbank Pcl's economist forecasts further cut of 0.5% percentage points in forthcoming two months.
Juergen Stark, the member of European Central Bank Executive Board said substantial wage cuts are the last instrument left for Eurozone to stop debt crisis. He argued that adjustment in relative prices through salary reductions may be the only approach to lessen total debt. Stark also reminded that ECB rejects calls to be a creditor of last resort as it doesn't have capacities to back
US stocks mostly extended gains on Tuesday as markets monitored European summit in Brussels, hoping for progress in tackling debt crisis. Standard & Poor's 500 Index gained 0.22% or 2.64 points closing at 1,195.19. Dow Jones Industrial Average Index edged up 0.3% or 32.62 points to 11,555.63. Nasdaq Composite Index did not follow its major peers and fell 0.5% or 11.83 points to 2,515.51.
Australian government is going to implement budget cuts worth A$6.8 bn ($6.7 bn) in order to decrease spending and meet PM's Julia Gillard's oath to provide a budget surplus, as European debt problems fold economic growth. The surplus is forecast to reach A$1.5 billion. Australia holds the highest AAA grade received from all main rating agencies. Wayne Swan, a treasurer,
On Wednesday morning European stock markets traded down as S&P ratings agency reported downgrade of 37 international banks including major US and European financials. Moreover, investors kept monitoring developments in Brussels. FTSE 100 and French CAC 40 Index both dropped 0.8% to 5,294.98, and 3,003.05 respectively, while German DAX edged down 0.7% reaching 5,761.17.
In November UK's consumer confidence remained near to its 2.5 year-low. The sentiment index added 1 point reaching -31 or 1 point higher compared to October. The estimate for the expectations for British economy lost 2 points to -33 hitting 2.5 year-low. According to Nick Moon, GfK Social Research's director, the results are not surprising, taking into account pessimism in mass media.
The New Zealand and Australian Dollars reached the week record high against their US peer after European Finance Ministers reached an agreement how to extend EFSF bailout firepower and said to provide more details on December 9. However, both currencies offset gains as Asian stock markets escalated a drop. Kiwi fell from $0.7610 to $0. 7606 while Aussie dropped to $0.9978 after hitting $1.0087. NZD/USD currently
Canada's dollar gained against US dollar for the fourth consecutive day, as US reported a surge in American customer confidence. An increase in oil prices also fuelled the escalation of the so-called loonie. Canadian national currency climbed 0.2% on Tuesday reaching C$1.0321 per one US dollar in Toronto trading session. Despite the recent appreciation, Canadian dollar has weakened 3.2% on a yearly basis. The
On Tuesday evening European officials finally agreed on two options how to increase firepower of EFSF bailout package. The first option implies that bond holders can get limited risk protection of about 20-30% guaranteed by EFSF. The other option denotes the creation of co-investment funds to allow combining private and public funding in order to purchase bonds both from primary and secondary markets. Also ministers
According to government report, India's GDP added 6.9% on yearly basis in the 3rd quarter. The GDP estimate matched that predicted Dow Jones Newswires economists' survey. Country's GDP growth has slowed down compared to 2nd quarter when it advanced 7.7%. Manufacturing output increased 2.7% compared to previous year whereas mining output dropped 2.9%.
On Tuesday Standard & Poor's Ratings Services downgraded ratings of 15 international banks. The downgrade takes place amid new rating methodology implementation. New system incorporates into banks' ratings the degree of government provision. So far, new criteria have affected 37 banks. Among firms that experienced immediate cut were four major US banks: Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and J.P. Morgan Chase
On Wednesday Asian shares experienced modest decline as European Finance Ministers announced further meetings will be held in next month, returning uncertainty back to markets. China's Shanghai Composite index lost 2.3%, South Korea's Kospi traded down 0.7% while Hong Kong's Hang Seng Index declined 1.9%. Australian S&P/ASX 200 fell 0.1% and Japan's Nikkei Stock Average edged down 1.3%.
The ECB drained EUR 194.199 billion from banking system in line with its seven-day liquidity declining project. However, the amount is less than expected as the bank planned to drain EUR 203.5 billion. The bank also reported that 85 banks made bids reaching EUR 194.1986 billion.
According to Wall Street Journal, Chancellor George Osborn announced that British government plans to raise its bank levy. The current rate of 0.078% will be raised to 0.1%. The increase will produce additional 2.5 billion pounds for British government. Osborn will deliver this plan today at the meeting at the House of Commons.
A consortium of companies in India won a right to develop iron ore deposits in Afghanistan, according to Afghanistan mining ministry. The consortium represents seven companies that have won $10.3bn contract to develop three mine sites in Afghanistan. Officials claim the deal is going to be the largest foreign investment project in Afghanistan.
US stock futures rose amid hopes for euro-zone leaders will rectify economic problems in the EU. Futures on the Dow Jones Industrial Average gained 53 points to 11,551 and futures on the Standard & Poor's 500 stock index climbed by 7.10 points to 1,198.2. Nasdaq 100 futures advanced 7.50 points to 2,228.5.
Shares opened flat on Tuesday after a strong jump on Monday. Stocks were little affected by news about soaring Italian bond yields. Dow Jones industrial average opened 0.05% or 5.60 points down at 11,517.41, Standard & Poor's benchmark gained 0.01% or 0.08 points reaching 1,192.63 while Nasdaq Composite Index gave up 0.2% or 5.15 points to 2,522.19.
Norway's financial system has become more vulnerable to global difficulties since 2011. Norway's economic outlook was decreased, banks plan on setting risk premia higher thus making bank funding becomes less accessible, reported Norges Bank. Increased instability in financial sector was mainly caused by situation in credit and money markets, the bank added.