Crude oil futures fell after strong gains on the Iranian and Syrian supply threat and stronger consumer confidence in the US. Syrian oil production already dropped by 35% on sanctions imposed due to country's crackdown of the protestors. Crude oil futures for February delivery traded at USD101.17 a barrel on the New York Mercantile Exchange, easing down 0.17%.
Tepco shares tumbled on the Tokyo Stock Exchange on the worries that company may be nationalized. The company applied to the government for provision of additional 690bn Yen to pay compensation to the victims of disaster at Fukushima plant. The country plans to take temporary control over Tepco to ease company's financial problems. Following the news, shares of the company fell by 15% to 180
Japan and China have reached an agreement that stipulates Japan to hold China's bonds as a part of the country's foreign-exchange reserves. Japan will buy about $500 million worth China's sovereign bonds in 2012 thus adding to the Yuan status of reserve currency, reported Societe Generale. The move will diversify foreign-exchange reserves away from the USD, the French bank added.
Natural gas futures increased on the colder weather forecasts for the next week in the US. Colder than normal winter weather increases heating fuel's demand. Natural gas futures for delivery in February traded at USD3.171 per million British thermal units during the early US trade on Tuesday, on the New York Mercantile Exchange, soaring 1.05%.
UK's unemployment is expected to rise next year to 2.85m and reach a record in 2013, according to CIPD. The private businesses will not be able to provide enough jobs to offset 120,000 unemployed from the public sector next year. However, the labour market started to show signs of stability as government's reforms have had a positive impact. The number of jobless claims was falling
President Obama is going to call Congress to enlarge the debt cap by $1.2 trillion. According to Treasury official, Obama claimed the additional debt would help the country to survive most of the 2012. This request would enlarge US debt limit from $15.2 trillion to $16.4 trillion. Obama still must submit the new proposal to Congress. It can be rejected if both Senate and House
Japan's leading party suggested to increase twofold the sales tax by 2015. Democratic Party of Japan proposes to increase the sales tax from 5% to 8% in October 2013 and further to 10% in April 2015, said lawmakers Motoyuki Odachi and Takeshi Miyazaki. After party's meeting 9 members quit. Japan is struggling to recover from March earthquake while suffering from drop in exports. Proposed increase
Treasury Department issuing the semi-annual report announced China should be pressed for implementing greater flexibility in its exchange rate. Treasury declares the Chinese Yuan to be undervalued and calls for appreciation. US suggest Chinese undervalued currency gives unfair advantage to the nation's exporters. Japan also received critics from Treasury for selling Yen in October and August despite US objections.
The Euro maintained decline against Japanese Yen for a third consecutive day amid worries, European debt crisis will add to bond yields and hinder region's economic growth. The common currency weakened against 15 of 16 its major peers ahead of Italian bond auction due today. Euro depreciated from ВҐ101.80 to ВҐ101.62 in yesterday's New York trade. The 17-nation currency fell from $1.3071 to $1.3067. EUR/JPY currently
US stocks traded almost flat on Tuesday. Dow Jones Industrial Average finished slightly down giving up 0.02% or 2.65 points at 12,291.35. Gains from surge in consumer confidence did not outweigh losses from fall in housing prices and climbing Italian borrowing costs. S&P 500 Index finished 0.01% or 0.1 point higher at 1,265.43, while Nadaq traded 0.3% or 6.56 points up at 2,625.20.
Asian stocks declined on Wednesday amid news about bigger than expected drop in house prices and rising Italian borrowing costs. Increase in US consumer confidence did not manage to offset losses. Hong Kong's Hang Seng Index dropped 0.7%, Australia's S&P/ASX 200 index gave up 1.1%, and South Korea's Kospi fell 1.2%. Japan's Nikkei Stock Average tumbled 0.1% while Shanghai Composite was down 0.7%.
Japan's recovery from March tsunami and earthquake, was harmed by drop both in retail sales and production in November. Industrial production lost 2.6% compared to October while retail sales gave up 2.1%. As result, consumer prices excepting fresh food, tumbled 0.2% on a yearly basis. Japanese economy faces a downward path as exports are declining, said, Yoshimasa Maruyama, Itochu Corp. chief economist.
The Conference Board Consumer Confidence Index, which already advanced in November, extended its progress also in December. Index for December reached 64.5 compared to 55.2 in November. Analysts previously predicted a reading to reach 58.5. The index measuring present situation increased from 38.3 to 46.7 while expectations index jumped from 66.4 to 76.4.
Italian bonds declined pushing the borrowing costs on 10-year debt securities above 7% as country prepared to sell notes worth around 20 bn euros in the forthcoming bond auction. The yield for 10-year Italian bills hit 7.07% on Tuesday morning session. Alessandro Giansanti, a strategist at ING Groep NV predicts the auction to push Italian borrowing costs even higher.
The prices of real estate decreased more than predicted, said S&P/Case-Shiller group on Tuesday. S&P/Case-Shiller index of real estate value in 20 cities fell 3.4% in October compared to corresponding period last year. Economists surveyed by Bloomberg forecast a 3.2% decline. Index currently is down 32.1% compared to its top figure in 2006.
US home prices decreased by 1.2% in October, indicating 3.4% drop on a yearly basis. 19 out of 20 cities registered price decline with decrease in S&P/Case-Shiller 20-city composite home price index by 32.1% from its record in 2006.
Retail chain operator Sears Holding Corp. announced it will close around 120 stores and alerted of harsh drop in earnings measure. After the announcement shares of Sears Holding Corp. plunged 17.67% to $37.75 per share. Company plans to generate cash of $140 million to $170 million from sales of locations and inventory. Sears currently operates about 4000 stores in the US and Canada.
Japan's Nikkei 225 Stock Average traded 0.46% or 38.78 points down and closed at 8,440.56 on Tuesday amid investor worries about China's economic outlook. On the downside were Retailer Takashimaya Co Ltd and giving up 3.61% and civil engineering producer Furukawa Co Ltd dropping 3.08%. Among best performers were heavy machinery producer IHI Corp gaining 3.37% and Sumitomo Chemical Co Ltd adding 2.89%.
The Reserve Bank of India conducts its tough monetary policy aimed at lowering the inflation rate thus impacting the development of industrial sector, reported ASSOCHAM. Net sales in Q2 decreased to 20.41% as compared to 27.67% in Q1. The government encourages companies to concentrate on output increase rather than on imports as depreciating rupee will put additional pressure on such imports as oil, coal and
China's gold production soared in the period from January to October by 4.9% on a yearly basis to 290.75 metric tons, according to Ministry of Industry and Information Technology. The ten largest producers of gold saw about 12.04% increase in the yellow metal production to 151.28 metric tons.
Westmoreland Coal Co. plans to purchase Wyoming coal mine from Chevron Corp. paying over $74 million in cash and assuming $118 million in liabilities. The deal followed Chevron's announcement it would abandon coal industry and would sell its Wyoming mine. The transaction is expected to close at the end of the next month.
Gold prices are likely to continue declining approaching the previous low of $1560 per ounce. COMEX gold futures for delivery in February are currently trading near $1598.3 an ounce, losing $7.7 since opening. The market is expected to remain weak as investors are anticipating US CB consumer confidence data; the expected reading is 58.5.
Petroplus Holdings announced its creditors have frozen $1bn of the company's credit facilities. After the announcement Petroplus share price declined by 40%, losing 83% since the beginning of 2011. The company reported $147 million loss in Q3 as demand for oil products weakened on the dismal economic outlook. The company plans to cut its production by 24% next year.
NYMEX crude oil is trading near $100/bbl as tensions between Iran and Western economies increased. Iran has run series of navy exercises to demonstrate military strength to the EU and US. Earlier western economies warned about serious consequences Iran will face if it does not stop its nuclear programme while Iran answered it would completely block Strait of Hormuz in case of any action against