Futures for natural gas dropped significantly in the U.S. Monday morning trading session, as the last week's report renewed concerns over the excess supply, and investors mostly did not pay attention to warm weather forecasts. On the NYMEX, July delivery futures for natural gas were traded at USD2.241 a MMBtu, which was a 2.5% fall since the beginning of the session.
U.S. markets slumped on Monday ahead of Greek elections. The Dow Jones Industrial Average retreated 4.73 points to 12,549.47. The Standard & Poor 500 Index gained 0.5 points to 1,326.23.The Nasdaq Composite dropped 2.88 points, a 0.1 per cent decline, to 2,855.54.
Canadian markets edged higher on news about Spanish aid request from the EU. The Standard & Poor TSX jumped 0.1 per cent. The country's currency weakened versus the USD, with the greenback buying C$1.0271, comparing to C$1.0224 in the previous session.
UK FTSE 100 index rose sharply in the morning trade adding 1% as investors prized Spanish bailout. Banks rallied with Lloyds Banking adding 2.4% and Barclays surging 1.1%. On the downside Tesco shed 0.9% after retailer reported a 1.5% fall in same-store sales. The index retreated during afternoon trade on news the anti-austerity party in Greece is gaining strength 6
German DAX index soared rapidly on Monday after Spain over the weekend called European Union to provide help for the nation's struggling banking sector. Euro opened at two week high but retreated during session. German banks and car makers recovered on hopes Spain's turmoil will be resolved at least for short-term period. Deutsche Bank surged 1.5% and Commerzbank advanced 1.1%.
On Monday, Ministry of Finance reported that Japanese Business Survey Index of manufacturing conditions grew less than it was expected in the first three months of the year. BSI of large manufacturing conditions reached the seasonally adjusted level of −5.7, rising from an annual rate of −7.3 in the previous quarter. Analysts, however, had expected that the index would rise to −2.4.
George Osborne told the Sunday Telegraph that he believes that the turmoil of the 17-nation euro currency bloc prevents the U.K.'s economic revival. The Chancellor of the Exchequer said that Britain's economy is already being impacted by costly oil prices; whereas, the debt crisis does not ease the current situation. Osborne also added that whilst a resolution will be determined for the Spanish banking system,
Gold value accelerated on Monday after Spanish officials asked for a USD 126 billion aid from European governments to rescue country's banking system. Gold to be delivered in August advanced 0.4% or USD 7.2 to USD 1,598.60 an ounce during European session. July silver futures gained 1% or USD 0.28 to USD 28.75 an ounce.
After the Euro zone governments agreed to the countries banking sector, demand for Spains 2 year notes increased pushing the yield below 4% for the first time in a month. The yield decreased by 33 basis points to 3.95% around 10 a.m. GMT. Spanish 10 year bond yield remained above 6% after speculations that bond holders will be ranked behind official creditors of the bailout. The yield decreased by
Tension grows around China's stimulus plan as inflation slows and the production output does not meet the forecasts. According to the National Bureau of Statistics, the inflation rate dropped by 3% from the previous year, production grew by 9.6% and the retail sales increased by 13.8%. In contrast, the projected figures by Bloomberg were 3.2% with regards to the inflation and 9.8% - manufacturing output.
Japan's Nikkei Stock Average rallied on Monday after Spain requested USD 126 billion loan from EU and China's exports grew double the pace expected. Nikkei 225 index surged 1.96% or 165.64 points and closed at 8,624.90. Sumco Corp rocketed 14.5% after reporting operating profit three times bigger than analysts' estimate. On the downside Olympus fell 4.1% after firm announced it
Hong Kong's main stock index edged sharply higher on Monday after China reported a higher than expected surge in exports. Positive data offset another report saying annual retail sales were weaker in May. Hang Seng index jumped 2.26% or 418.58 points and finished at 18,916.28. Ports operator Cosco Pacific and China Life Insurance each rallied 6%. Heavyweight HSCB Holdings gained
Dow Jones Industrial Average closed higher on Friday, supported by hopes that European leaders will be able to tame Spanish banking turmoil. Blue chip index added 0.75% or 93.24 points and settled at 12,554.20. 26 out of 30 stocks finished into green area. Wal-Mart Stores rallied most in the Dow, gaining 3.6%. Other major retailer Home Depot ascended 2.2%. On
S&P 500 index advanced on Friday as investors incorporated into prices speculation about rescue of Spanish banking system. US benchmark index gained 0.81% or 10.67 points and finished at 1,325.66. Nine of ten industry groups in the S&P 500 posted gains. Only energy shares weakened as, energy prices faded. The main gainer for the index was cell phone provider Sprint
The Wall Street earnings from trading and investment banking at US companies my shrink for a third straight year reaching even a 30% drop compared to first quarter, Richard Ramsden from Goldman Sachs predicted on Monday. Greek crisis has had a negative impact on trading volumes. Moreover Wall Street companies are likely to reduce bonuses and jobs amid European uncertainty.
The USD 126 billion bailout package for Spanish banking system adds an extra pressure on Italian government to avoid market rout. Analysts claim the investors will carefully follow every development in Italy before trading sovereign bonds. Markets may assume that Italy is likely to follow Spain's path, analysts suggest.
European stocks edged lower on Friday after Fed rejected speculations about further monetary stimulus and Fitch Ratings downgraded Spain's debt to two notches from junk. Stoxx Europe 600 index fell 0.3% and German DAX declined 0.2%. British FTSE 100 also shed 0.2%. French CAC 40 sank 0.6%.
With the global economic slowdown and the Dollar strengthening, the US companies find it difficult to sell their products overseas. US exports fell in April, declining $1.5 billion or 0.8% from the previous month to $182.9 billion. Imports also decreased, due to deepening Eurozone's crisis and China's economic downturn, which affect US trade.
Ignazio Visco, Bank of Italy Governor, urges leaders of Group of 20 to pursue policies aimed at stimulating economic growth to avoid a new global downturn, which might weigh on a frail financial system. Mr. Visco prompts to set up a European fund in order to resolve the banking crisis. He supports the unified system of rules and supervision of
Spanish government agreed on Saturday to accept $125 billion in financial aid for Spanish banks. Prime Minister Mariano Rajoy said on Sunday that the EU bailout for the ailing banks will prop up the country's economy. "It will allow the restarting of credit to families, entrepreneurs, small and medium-sized businesses so that they can all carry out their projects," Mr.
US shares mostly advanced on Friday as investors appreciated possible rescue of Spanish banks. S&P 500 index gained 0.81% or 10.67 points and finished at 1,325.66. Dow Jones Industrial Average added 0.75% or 93.24 points and closed at 12,554.20. Nasdaq Composite climbed 0.97% or 27.40 points and settled at 2,858.42.
Crude oil hit the five-month record high on speculation demand for fuel accelerate after Spain received a rescue loan from European governments. Moreover Chinese imports of oil reached a record high. July crude climbed by USD 2.54 to USD 86.64 a barrel. Brent oil to be delivered in July rose USD 1.98 to USD 101.45 a barrel.
Canadian currency strengthened versus greenback and recorded a first weekly gain in almost two months after central bank curbed expectations about benchmark rate reduction. Moreover hiring in Canada accelerated more than projected in May. Loonie appreciated 1.4% last week to CAD 1.0266. Currently USD/CAD is trading at CAD 1.0205.
Spanish PM Mariano Rajoy's capitulation to ask for a bailout from European governments may weaken his authority, experts suggested on Monday. Rajoy's call for rescue diminishes credibility the PM will be able to meet his goals for budget deficit reduction.