Spain failed to fulfil its target budget deficit ratio for year 2011, putting pressure on government to seek news ways of reducing debt. Although the deficit eased from 9.3% of GDP in 2010 to 8.5% in 2011, it still is above set target of 8.0%. The official deficit target rate in EU is 6.0%. EU set an aim for Spain to reach
German Chancellor Angela Merkel gained the German lawmaker support for Greece rescue package after alerting parliament that eliminating Greece out of Euro Zone could create indeterminable damage. 496 members parliament voted in favour, 90 voted against and 5 abstained. Merkel also pointed out the fiasco could negatively affect whole EU and world economy.
German DAX index traded lower on Monday after G-20 countries said Germany should put more effort to contain region's debt crisis instead of just requiring additional money from IMF. German car makers lost ground on news Chinese government prepares to stop purchasing foreign made cars. BMW AG and Daimler AG led the losses tumbling 3.6% and 3.4% respectively. Deutsche Luft
British FTSE 100 index tumbled 0.9% on Monday, driven by financial shares after G-20 delayed aid to Europe and recommended region to expand its own financial firewall before borrowing from outside. Essar Energy PLC fell 9.5% after reporting a USD 881.1 million pre-tax loss for year 2011. HSBC lost 3.8% after heavyweight financial institution posted USD 21.9 billion pre-tax profit,
Japan's Nikkei Stock Average ended Monday Asian session slightly down as the upward movement was limited by surging crude prices and signals the market might be overbought. Although exporters kept collecting gains from weaker Yen, Nikkei 225 slipped 0.14% or 13.45 points and finished at 9,633.93. Inpex Corp fell 2.5% while Nikon Corp dropped 1.7% and Olympus Corp. tumbled 3.3%.
Hong Kong's Hang Seng index fell on Monday, ahead of German vote on Greek rescue package amid increasing concerns about the effect of high crude prices on the global economic expansion. Hang Seng index fell 0.88% or 189.00 points and finished at 21,217.86. Cathay Pac Air and Esprit Holdings posted the biggest losses, declining 4.4% and 3% respectively. On the
Dow Jones Industrial Average index closed almost unchanged on Friday with sector returns making relatively tiny movements. Blue chip index slipped 0.01% or 1.74 points to 12,982.95. The main gainer was American Express which added 1.3% though the company reported FDIC is going to take measures to fight late fees on some charge cards. Hewlett Packard prolonged its downward momentum
Asian equities traded mostly down on Monday trade as investors were concerned regarding rapidly growing oil prices. Hong Kong's Hang Seng Index and Australia's S&P/ASX 200 Index both dropped 0.9% while South Korea's Kospi index tumbled 1.4%. Japan's Nikkei Stock Average slipped 0.1% whereas China's Shanghai Composite was the only major stock index that ended on the positive side, advancing 0.3%.
S&P 500 index traded slightly higher on Friday, supported by US economic data including better than expected consumer sentiment and new home sales. However, gains were limited as climbing oil prices raised investor concerns. US stock index added 0.17% or 2.28 points and closed at 1,365.74. Sears Holdings extended its gains and jumped 10.5%. On Thursday the company said it
Rural commodities, except for wheat, rallied on Friday amid broadly weaker US Dollar. Sugar, the top gainer, continued to draw strength on the uncertainties over the Brazilian crops. Wheat, the only loser, faced pressure after the US government increased its forecast on the grain output. However, corn was more resilient to the US grain report and managed to gain 0.20%.
Energy commodities, excluding natural gas, ended the week with strong gains. Escalated geopolitical tensions between Iran and Western economies fueled by the IAEA report that indicated nuclear enrichment production in Iran created strong momentum for Brent and crude oil futures gains. Moreover, increased probability of military action from Israel contributed to the concerns over supply disruption. Improved economic situation on
Industry metals rallied on Friday amid improved US confidence and mixed housing data. Broadly stronger Euro also contributed to the gains of base metals pack. Aluminium, the top-performer, drew additional support from growing energy prices and better automobile sales. Metal also faced strengthening spot demand at the LME and may be buoyed by expected shortage in the market. At the
Precious metals, except for silver, ended the week on a negative note despite supportive news from the US and EU. Growing energy prices added to inflationary pressure thus bolstering inflation hedges such as precious metals. At the same time, broadly weaker US Dollar also limited the losses. Further, speculators increased their long positions in gold to the five-month high as
Statoil confirmed that it in conjunction with Repsol Sinopec and Petrobras made an oil discovery in the offshore Brazil. The initial estimate indicated the potential of 5,000 barrels of light, sweet crude oil per day and 26.5 million cubic feet of natural gas. It is the third oil discovery in the area and confirms high potential of the territory, Statoil
Italy sold about 8.75 billion Euros of six-month treasury bills with yield 1.202%, reported Italy's Treasury on Monday. The borrowing costs fell by 1.97% since last month. The demand was strong, with bids exceeding supply 1.36 times. Meanwhile, 10-year bond yield added 5 basis points approaching 5.44%, reported FactSet Research.
HSBC's yearly profits gained 15% attaining 13.8 billion British Pounds. The bank attributed its sound performance to growing revenues from fast-developing markets as Asia, Middle East, Latin America and North Africa where revenues increased by 12% over the year. These regions currently account 49% of the bank's revenue. HSBC is the most profitable among Western banks, outcompeting its rival JP
Consumers and businesses continued to withdraw money from Greece's banks at sharply increased pace in January, reported the ECB. Private deposits in the country's banks decreased by 3% on a monthly basis in January, approaching 174.9 billion Euros. Fall in the deposits in indebted countries as Portugal and Spain showed much better results, with slightly growing deposits in January.
China is not expected to loosen its prudent property policies in the nearest term but may consider some easing in a long-run, said industry expects. Such measures as limiting the amount of property one family could own and high minimum downpayments may be gradually eased after real estate prices approach reasonable level, said Carlby Xie from Colliers International. The housing
Crude oil futures edged down during the Asian trade on Monday after rallying on the indications of economic recovery in the Euro Zone and lingering supply concerns due to geopolitical tensions. Light, sweet crude oil April contract traded at 109.50 US Dollars per barrel on the New York Mercantile Exchange, falling by 0.25%.
Russian gold output is likely to approach 7.9 million ounces in 2015, according to the report of Interfax Europe. The country's gold output has risen by 38% during the post-Soviet Union period. Russia has the largest deposits of unexplored gold in the world and currently has over 600 companies engaged in the gold sector, including two main gold projects developers
The Thomson Reuters/University of Michigan's consumer sentiment index climbed from 75.0 in January to 75.3 in February as Americans regained confidence about the country's economic outlook. The economists earlier predicted a figure to be at 73.0. Improvements in job market are outweighing concerns about rallying oil prices and instability in Iran, said Richard Curtin, the director of survey.
China is likely to continue facing tight power supply conditions this year as demand is growing while supply is stagnating, reported the electrical power industry association. The demand is expected to exceed supply by 30-40 million kilowatts in 2012. The electricity consumption is likely to increase by 9.5% over the year, indicating 2% slower growth pace. At the same time,
Brazil announced that developing economies are willing to provide more funds to ease Euro Zone's economic crisis in case they are given more power in the IMF, said Guido Mantega, Brazilian Finance Minister at the G20 meeting in Mexico. The minister also claimed that EU nations have to provide more their own resources to ease situation in the region.
Growing energy prices slow down global economic recovery but in case of Israel's attack on Iran the situation will become much worse. Oil price has already climbed above 10-month high on Friday and is not going to stop its upward move. The impact on the Euro Zone will be the most severe as the region is already highly indebted and