Hiring in US probably advanced in December extending increase for a second straight month, said economists questioned by Bloomberg. According to median forecast, payrolls soared to 150 000 in December compared to 120 000 in November. Labor Department will issue data on January 6. However, report may also depict a slight increase in jobless rate, predict analysts.
On Tuesday German stocks led the gains in European markets fuelled by modestly better than expected manufacturing data as German PMI rose from 47.9 in November to 48.4 in December. German DAX opened 1.45% higher at 5,983.74 and extended its gains during day climbing 2.11% to 6,023.58. Among winning stocks was Siemens AG adding 2.09%, drug producer Bayer AG advancing 2% and chemicals manufacturer BASF SE surging
German sovereign bonds declined on the first trading day in 2012 as India and China reported an increase in Purchasing Manager's Index boosting optimism world economy may stabilize. The borrowing costs on German 10-year notes added 3 basis points or 0.03% reaching 1.86% on Tuesday morning. Yields for 2-year bonds gained three basis points attaining 0.18%.
Turkey's Lira recovered and advanced for a third straight day after it experienced a record low depreciation of 1.9224 per US Dollar last week. Lira ascended 0.4% to 1.8833 per US Dollar. Turkey's currency weakened by 17.7% last year and faced the largest depreciation among emerging economies, trailed by Bloomberg. Country's central bank intervened and sold dollars extensively on December 30.
Euro depreciated against Japanese Yen hitting 11-year record low before recovering on investor fear European debt turmoil will decelerate economic growth and undermine financial markets in 2012. 17-nation currency fell against its Japanese counterpart after data showed European industrial production deteriorated for a fifth consecutive month in December. Euro plunged ВҐ98.66 in morning session and lost 0.1% against greenback reaching $1.2947. Currently EUR/JPY is trading at
Dutch industrial production fell in December extending contraction for a fourth month in a row, said NEVI, Dutch research institute. The manufacturing gauge increased to 46.2 in December, compared to 46.0 in November. However the reading still is below 50.0, signalling contraction. Dutch PMI fell below 50 in September as budget cuts and slowing world trade began to harm demand.
Crude oil prices eased down during the last trade of 2011 on the negative headlines from the Euro Zone but the price was supported by fears over the disruption to oil supplies from Iran. Light, sweet crude oil futures for February delivery traded at USD98.89 a barrel, on the New York Mercantile Exchange, tumbling 0.95% during the week. On a yearly basis crude oil
China saw an improvement in core gauge of manufacturing that increased optimism over the stable economic expansion in 2012. The PMI increased to 50.3 in December as compared to 49 in November on the improved demand during the holidays. The December figure indicates that significant slowdown is not expected to occur this year, reported CFLP.
France's new car registrations tumbled 18% last month on a yearly basis. The decline was expected by analysts. French car manufacturers saw a 29% drop in registrations, while foreign producers faced only a 4.3% fall last month. During the 2011, new car registrations dropped 2.1% with Peugeot Citroen seeing a fall by 4.9% and Renault experiencing a decline of 9.6%.
Exxon won the case with Venezuela's government on the compensation for nationalization of the company's crude oil project. The amount of compensation totaled $908m that is $1bn less than the Venezuelan government offered three months ago. Exxon hopes for better court decision on the case regarding nationalization of Cerro Negro oil project.
The era of the common currency union is likely to end in the next decade with Italy and Greece leaving the Euro Zone in 2012, said leading expert. There is 99% probability that the single currency will not exist over the next 10 years, reported the CEBR. According to the CEBR forecast, the Britain economic growth will contract in the Q1 of 2012.
Grain futures jumped to several-week high on the adverse weather forecasts in Brazil and Argentina that may hurt the crops. US corn, soybean and wheat futures all posted gains in the last nine trading sessions. On the Chicago Mercantile Exchange, soybeans, wheat and corn futures for delivery in March increased over the last week by 3.25%, 4.8% and 2.8% respectively.
Oil prices almost doubled in many regions of Nigeria after the government withdrew oil price subsidy that cost $8bn a year. Residents are disappointed as higher oil price will also increase the price for other goods. Trade unions call people to go on strike. Nigeria being the African largest oil producer still imports the refined oil as corruption and malpractice made it impossible to refine
CME gold futures for delivery in February lost 5.1% or $82.10 during the last trade of 2011 on Friday. The gold shares also saw decline with NYSE Arca Gold Bugs Index decreasing by 6.6%. The move was unexpected by analysts as the gold futures traded higher before the holidays in the 8 years out of last 9, remarked Mitsui, Japanese gold dealer.
Spain public deficit in 2011 is expected to be much higher that targeted 6% of the GDP, said Luis de Guindos, Economy Minister on Friday. The announcement increased fears over the indebted Euro Zone and created downward pressure on the Euro which hit the record low against the Yen with the pair EUR/JPY currently trading at ВҐ99.54.
India may ease the monetary policy on the worries about the global economic downturn, announced the RBI. The bank plans to concentrate on the measures aimed at boosting growth rather than on controlling inflation. The bank increased its interest rate 13 times during the last 10 months to combat exorbitant inflation but growing worries over the slower growth forced officials to start reviewing monetary policy.
Natural gas futures saw losses on Friday's trade as investor's sentiment was impacted by mild weather forecasts and increasing inventory level. Natural gas futures for February delivery traded at USD2.966 per million British thermal units on Friday, on the New York Mercantile Exchange, losing 5.45% during the week.
Hyundai and Kia Motors announced they expect to see essentially slower growth in sales in 2012 than in 2011 amid the global economic slowdown. European recession and increased competition from Japanese car producers are likely to limit expansion, said Chung Mong-koo, Hyundai Motor's chairman. Companies predict sales in 2012 to increase by 6%, approaching 7 million cars as compared to 15% jump in 2011.
Industrial production activity across Euro Zone countries indicated a contraction for a fifth straight month. Purchasing Managers' Index in December climbed to 46.9, rebounding from 28-month record low of 46.4 in November. The reading shows that production activity continued to decline but at slower pace than before. PMI survey confirms European manufacturers are highly concerned with domestic demand, pointed out Howard Archer, IHS Global Insight's chief
Canadian currency traded on average close to parity last year, reaching strongest mean value since 1976. The Loonie averaged C$0.9892 per US Dollar in 2011. Canadian Dollar experienced its highest annual closing price against the Euro since 1999. The strength of national currency is provided by long-term conservative practices and regulations, said C.J. Gavsie, forex trading unit executive at Bank of Montreal. The Loonie
European stock markets opened up on the first trading session this year, led by German shares, as investors responded positively to PMI data. However, the activity was limited as UK and US markets are closed for a holiday. Both Stoxx Europe 600 index and French CAC 40 index added 0.1% to 244.86 and 3,163.89, respectively. German DAX jumped 1.45% 5,983.74 led by SAP AG
India's industrial production expanded in December reaching the quickest pace in 6 months strengthening inflationary pressure and lessening possibility for the national bank to lower interest rates. In December Purchasing Managers' Index climbed to 54.2 compared to 51.0 in November, according to HSBC Holdings Plc's report. Production activity recovered in India as number of new orders and output rose.
India's government has decided to allow foreign individual investors to purchase directly domestic equities as the nation attempts to stimulate capital inflows and lessen volatility in its financial markets. The new law is expected to be approved by January 15. At the moment overseas investors are allowed to invest in stocks only via participatory notes.
European officials return from Christmas holidays striving for extra time to Italian and Spanish governments to put under control their debts and save the common currency. According to UBS AG debt worth about 157 bn euros ($203 bn) will mature during the first quarter of 2012. By the end of that three-month period officials have to approve stricter rules for monitoring government spending.