European stocks are traded mainly lower in Thursday morning giving back exorbitant gains caused by yesterday's action taken by global central banks. The Stoxx Europe 600 index lost 0.2% to 239.46, the German DAX 30 was down by 0.4% to 6,062.69 and the French CAC 40 index tumbled by 0.4% to 3,141.94. Meanwhile, the FTSE 100 index gained 0.2% to 5,517.75.
Gold futures are steady near two-week high after rapid yesterday's increase caused by news about coordinated action of central banks to inject liquidity in financial system. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were traded at USD1,748.95 a troy ounce at the European morning trade, edging down 0.08% since opening.
Switzerland's GDP expanded in compliance with analysts' forecasts in Q3, according to official data. The country's GDP added 0.2% on a seasonally adjusted basis in Q3 compared with 0.4% growth in Q2. The economy of the country grew by 1.3% in Q2 at annual rate exceeding the expected 1.8%. The growth was mostly stimulated by increase in consumption and investments in construction. USD/CHF was traded
France and Spain are going to offer bonds worth €8.25 bn ($11 bn) in today's auction in order to reinforce euro zone's fire powers against contagion. Spain is planning to sell notes valued at €3.75 bn while France is going to offer bonds at €4.5 bn. The bond auction will examine investor confidence as Fed, ECB and four more central banks eased cost of dollar
On Thursday Japanese Yen weakened against most of its major counterparts as Asian shares rallied stimulating demand for safe assets. The yen reached almost 2-week low against Euro on Fed's announcement that it has lowered dollar swap rates to support Europe. Japanese domestic currency hit ВҐ104.60 from ВҐ104.37 on New York trade yesterday. The pair currently is trading at ВҐ104.45.
Australian national currency tumbled from almost 2-week high on government reports indicating building permits plunged in October while private consumption reduced. Building licenses declined by 10.7% in October on monthly basis. Aussie weakened against most of its 16 major peers giving up 0.6% against US dollar, reaching $1.0226 in Sydney morning trade. The pair currently is trading at $1.020.
John Ryding, RDQ Economics LLC's chief economist told that Fed's action is dealing with the results of crisis rather than causes. In his opinion easing borrowing costs not only demonstrate central banks' power to shock global markets but also depict their limited ability to tackle debt crisis. Ryding, former BoE economist suggested that stabilization of debt situation requires ECB bond purchases; however the bank so
US shares advanced rapidly on Wednesday as Federal Reserve and five major banks approved reducing dollar swap rate measures to aid Europe. Major market indices experienced biggest one day gains since 2009. S&P 500 Index gained 4.3% reaching 1,246.96, Dow Jones Industrial Average and Nasdaq Composite both jumped 4.2% to 12,045.68 and 2,620.34.
Manufacturing surveys published yesterday showed the industrial production has contracted in November. According to China Federation of Logistics and Planning report production Purchasing Managers' Index dropped to 49.0 of 100 point gauge, declining below October reading of 50.4.The estimate earlier predicted by Dow Jones Newswires was 49.7. IHS Global's analysts claim the index as alarming indicating business environment deterioration.
Asian shares surged on Thursday following global markets trends as several major central banks cut dollar borrowing costs and relieved monetary provisions in China. Shanghai Composite Index jumped 3.5%, Hong Kong's Hang Seng Index rocketed 5.9%. Japan's Nikkei Stock Average added 2.2%, Australia's S&P/ASX 200 index gained 2.6% while South Korea's Kospi edged up 4.2%.
Unemployment rate in the euro-zone increases unexpectedly for the second month. The rate increased to 10.3% on a seasonally adjusted basis in October compared with 10.2% in September, according to Eurostat. Experts predicted the euro-zone's unemployment rate remain unchanged at 10.2%. The number of unemployed in the euro-zone approached 23.55 million people in October.
The euro moved higher against USD during the Asian trade due to central banks announcement about taking coordinated action to ease dollar-borrowing costs in the euro-zone. Restored investors' confidence pushed the euro to $1.3459 from $1.3446 in late American trading. The dollar index declined to 78.273 from 78.345.
Crude oil futures experienced essential increase on Wednesday despite release of report indicating US crude oil supplies rose more than expected during last week. The move was mainly caused by news on coordinated action by global central banks aimed at injecting liquidity into financial system. On the New York Mercantile Exchange, crude oil futures for delivery in January were traded at $101.44 a barrel at the
Private sector employment in the US increased by 206,000 from October to November on a seasonally adjusted basis, according to the ADP National Employment Report released on Wednesday. The expected increase was 130,000. Moreover, the manufacturing activity in Chicago rose to 62.6 in November being the seven-month high, exceeding the forecast of 58.6.
Natural gas futures decreased rapidly on Wednesday as unusually warm temperatures impacted investors. Investors are also looking forward to U.S. Energy Information Administration's weekly report on natural gas inventories due on Thursday. On the New York Mercantile Exchange, natural gas futures for January delivery dropped to $3.561 per million British thermal units at the early U.S. trade, losing 2% since opening.
Commodities tend to respond quickly to fluctuations of stock prices and bond yields. During the recent months commodity prices were extremely volatile despite commodities being considered as the safe investment option. Experts claim the reason for instability in the market is the demand for commodities as it is strong enough to prevent further price decrease but cannot sustain the prices at high level.
Libyan oil production was severely impacted by civil war occurred earlier in 2011. Before the unrest Libya, the country with world eighth largest oil reserves, has been producing more than 1.6 million barrels a day. At the moment Libya has restarted its oil production that stands at the level of 750,000 barrels a day, reported Libya's National Oil Corporation.
After global central banks announced they would take a coordinated action in order to boost liquidity in the financial system bond yields across Europe declined. Yield on 10-year bonds in Italy declined by 6 basis points to 7.03%, those in Spain fell by 9 basis points to 6.30% and those in Belgium decreased by 24 basis points to 5.12%.
Canadian stocks have increased for third consecutive day as investors gain more confidence after the global banks decided to boost liquidity to financial system. Moreover, the higher than expected GDP growth in Canada contributed to market sentiment. GDP grew by 3.5% in Q3 as compared with 3% projected. Toronto's benchmark S&P/TSX Composite Index gained 2.3%, to 11,997.57. Canadian currency increased against USD by 1.5% to
The UK is going to expel Iranian diplomats after the British embassy was attacked in Tehran, announced William Hague, Foreign Secretary. Hundreds of people in Tehran stormed UK's embassy expressing their protest against sanctions imposed by UK over Iranian nuclear programme. The immediate closure of the embassy of Iran in London is ordered, the Secretary added.
Federal Reserve lowered interest rate on US dollar swaps to ease funding for European financials. Fed cut interest rate from 100 b.p. to 50 b.p. and extended the program to February 2013. Fed's action is an attempt to ease pressure in the world's markets and stimulate central banks' capability to back international financial system. Federal Reserve will cooperate with 5 leading banks including Bank
Germany's DAX 30 Index rallied on Wednesday after international central banks including ECB and US Federal Reserve declared they will lessen pressures in the markets. As a result, DAX 30 jumped 4.2% to 6,038.26. Index was boosted by German car giants as they are heavily dependent on economic growth. BMW AG advanced 2%, Volkswagen AG added 2.4%, while Daimler AG soared 2%.
FTSE 100 Index rocketed on Wednesday after People's Bank of China lowered banks' reserve requirements by 0.5 p.p. Resource and mining companies reacted immediately as the second biggest economy in the world is an important consumer of natural resources. BHP Billiton PLC gained 1.7%, Xstrata PLC added 2.9% whereas Rio Tinto PLC edged up 1.6%. Financials HSBC Holdings PLC and Barclays PLC managed to offset
In third quarter Poland's economic growth rate was higher than was predicted by economists. The growth of gross domestic product was mainly accelerated by surging private consumption, investment and depreciated home currency which helped to improve exports. GDP rose 4.2% on a yearly basis compared to 4.3% in 2nd quarter. Polish factory output added 7.7% on a yearly basis.