IMF reduced its growth expectations for Chinese economic expansion for 2012, cutting it from 9.0% to 8,25%. IMF cited weakening global export demand as the main decelerator of economy. IMF also recommended Beijing to add monetary stimulus via fiscal measures rather than boosting banking system.
Debt swap talks between Greek PM Papademos and three Greek parties leaders have been postponed until Tuesday as premier plans to meet with involved creditors, reported Associated Press on Monday, European officials, including Chancellor Merkel and President Sarkozy, have pressed Greek government to commit more quickly to austerity measures which are necessary to receive a second bailout package. Greece is likely to default
US President Obama ordered to freeze all Iran's central bank and governments assets deposited in US or in any overseas branch of US entity, announced the White House today. President Obama claimed Iran current activities to be a serious threat to international financial system. Before the order, only assets owned by sanctioned Iranian individuals or entities were frozen.
Gold futures for April delivery lost 0.9% or USD 16.10 to USD 1,724.40 per ounce on Comex division of the New York Mercantile Exchange. The sharp declined was mainly caused by the appreciation in US Dollar which harmed the interest for precious metals. Stronger greenback negatively affects gold and other commodities priced in US Dollars as they become more expensive
Australian national currency surged after the Reserve Bank of Australia announced it will stick to previous key interest rates, signalling optimism towards worldwide economic outlook. Aussie appreciated 0.7% against US Dollar, reaching USD 1.0800 and gained 0.9% to Japanese Yen, hitting JPY 82.83. Kiwi was little changed at USD 0.8337. Currently AUD/USD is trading at USD 1.0801 while NZD/USD is
17-nation currency slipped against most of its peers before Greece's PM Papademos meets with politicians from three leading parties as officials still cannot agree on debt reduction plan. The meeting scheduled on Tuesday. Greece representatives and creditors still have to agree on EUR 600 million of fiscal measures for this year. Euro declined 0.2% to USD 1.3109 in London trade.
UBS AG, one of Switzerland's leading banks reported its fourth quarter profit fell 76% as lender's investment unit posted loss for the second straight quarter. The net revenue declined to CHF 393 million (USD427 million) compared to CHF 1.66 billion previous year. Economists questioned by Bloomberg predicted net revenue to reach CHF 721 million.
The Reserve Bank of Australia decided to keep country's benchmark interest rates unchanged as two previous reductions in 2011 helped to partly offset the negative effects from European debt turmoil, pushing the currency to 6-month record high against most of its peers. Central bank's governor Glen Stevens announced the benchmark cash rate will remain at 4.25% as European and US
After a successful performance on Friday, European share markets closed down on Monday as Greece's officials failed to conclude nation's debt swap agreement. Stoxx Europe 600 lost 0.1%, German Dax index traded close to flat, giving up only 0.03%. UK FTSE 100 index slipped 0.2% and French CAC 40 index tumbled 0.7%.
Japan used monetary intervention in November as appreciating Yen harmed nation's main exporters including car markers and electronics producers. Finance Ministry today disclosed data, showing that country sold JPY 1.02 trillion or USD 13.3 billion in the early November to depreciate Japanese currency. Foreign exchange strategists expect further intervention from Japanese officials.
Mitt Romney won Nevada caucus yesterday, strengthening his main player status in Republican presidential competition. Romney gained 48% of votes, followed by Gingrich with 23%, Ron Paul with 19% and Rick Santorum with 11%. In his speech Romney confronted Obama, claiming private sector and Americans led for improvements in US job market, instead of the current President.
US stock markets followed European path and rallied on Friday supported by strong US employment data. Dow Jones Industrial Average finished 1.23% or 156.82 points up at 12,862 and gained 1.6% on weekly basis. Nasdaq Composite Index edged up 1.61% or 45.98 points and closed at 2,905.66 or 3.2% weekly jump. S&P 500 Index added 1.46% or 19.36 points and
German factory orders expanded more than expected in December, suggesting European biggest economy suffered less from regional crisis due to overseas demand. Factory orders added 1.7% in December compared to a 4.9% fall in November. Economists earlier predicted an increase of 1.0%. Orders from Euro Zone countries slumped 6.8%.
German DAX 30 index traded lower on Monday amid fresh worries over Greek debt swap talks. German benchmark declined 0.5% at 3,730.70, weighted down by financials as Deutsche Bank AG dropped 2.2% and Commerzbank AG edged down 1.2%. Losses were partly offset by utilities firm RWE AG which jumped 2.1% after HSBC upgraded the its shares to neutral, predicting future
After showing strong performance on Friday, FTSE 100 Index retreated on Monday as Greek lawmakers kept struggling with the approval of austerity measures required by bailout funding providers. FTSE 100 dropped 0.3% to 5,884.21, pushed down by Glencore International PLC on news that its merger with Xstrata PLC is likely to be investigated by the EU competition commission. Glencore lost
Japan's Nikkei Stock Average rallied on Monday, lifted by upward revised profit forecasts and export shares which climbed on optimistic US labour market data. Nikkei 225 index surged 1.08% or 95.09 points and finished at 8,927.02. Oki Electric jumped 14% and Nikon added 11% after both companies raised their profit forecasts. Car markers also contributed positively to the index with
Hong Kong's Hang Seng index offset strong early gains and closed lower on Monday as the optimism on US jobs report was outweighed by Greek bailout uncertainty. Hang Seng index dropped 0.23% or 47.04 points and closed at 20,709.94, driven by property and telecommunication shares. China Resources Land Ltd. fell 4% while China Overseas Land & Investment Ltd gave up
Dow Jones Industrial Average Index appreciated sharply on Friday, lifted by report which showed US economy gained 243,000 new jobs in January and jobless rate fell to 8.3%. Blue chip index surged 1.23% or 156.82 points up at 12,862 with 28 of 30 shares reporting gains. Bank of America soared 5%, followed by Caterpillar with a 3% gain. The only
Canadian currency appreciated for a fourth straight week as positive US economic data amid manufacturing growth in Europe and China spurred demand for higher yielding assets. Loonie strengthened 0.9% against greenback to CAD 0.9934, the longest gain streak since October 28. USD/CAD currently is trading at CAD 0.9972.
S&P 500 index rallied on Friday, fuelled by US government job report, showing higher-than-expected hiring and a drop in the unemployment level. US benchmark index jumped 1.46% or 19.36 points and settled at 1,344.90 with all 10 sectors posting substantial gains, driven by financial shares. Genworth Financial surged 14%, after the insurer reported it returned to profit in 4th quarter.
Crude oil declined from three day record high on investor concern Greece may fail to avoid financial collapse, harming fuel demand. Oil futures due March gave up 78 cents and traded at USD 97.06 per barrel. On year to day basis oil has declined 1.6%. March delivery Brent oil lost 22 cents to USD 114.36.
Bank of America, JP Morgan Chase &Co and Well Fargo & Co was sued over use of property loan database by Eric Schneiderman, Attorney General of New York. According to Schneiderman, the lenders' use of database (MERS) led to inadequate foreclosures. Banks are accused of misleading home-owners, undermining foreclosure proceedings and creating uncertainty about proprietorship interests in real estate.
Greece is balancing on the edge between failure and success as debt swap agreement talks linger said Greek FM Evangelos Venizelos. While consensus had been reached on government asset sales and bank recapitalization, all parties involved still cannot agree on fiscal measures for 2012 and labour reforms. Venizelos claimed the talks with other EU FMs are very challenging.
European share markets improved sharply on Friday after US jobs report showed better that expected hiring and a drop in unemployment level. Stoxx Europe 600 and German DAX 30 index each added 1.7% while UK FTSE 100 index climbed 1.8%. French CAC 40 index advanced 1.5% but Greece ASE Composite index lost 3.8% as Greek PM Lucas Papademos threatened to quit.