Japan's market sentiment looks pessimistic amid strong yen and European woes, according to Tankan survey. The sentiment of large manufacturers declined to minus four from plus three since September, reported the Bank of Japan. Experts claim the sentiment may slide further in case the yen gets firmer and Europe's crisis continues.
European share markets opened modestly higher on Thursday. Stoxx Europe 600 index added 0.2% to 232.96, French CAC 40 index traded flat at 2,976.19 whereas German DAX 30 index climbed 0.4% at 5,696.40. UK's FTSE 100 index ascended 0.2% reaching 5,377.84. Recovery was mainly led by financial stocks.
Chancellor Angela Merkel is being stricken by German political turbulence, impending to disturb her struggle to implement measures developed during the last week's summit. The political crisis overwhelmed Chancellor's administration 5 days after she announced that agreements made during EU summit is a step forward to resolve crisis. The disruptions occurred as Jens Weidmann, Bundesbank's President, indicated the central bank might not deliver its
Canadian Dollar depreciated against the Greenback reaching the lowest value in 2-weeks after European borrowing costs surged depressing demand for less secure assets. Canada's currency lost 0.5% to C$1.0397 in Toronto evening trade, the lowest level since November 28 when it hit C$1.0474. USD/CAD is currently trading at C$1.0367.
New Zealand and Australian Dollars weakened against most of their counterparts on growing investor concern that deepening European debt crisis will hinder economic growth. Australian Dollar reached record low against the Greenback since November 28 and was trading at $0.9869 In Sydney evening trade while New Zealand's Dollar lost 0.5% to $0.7466 also breaching 2-week low. AUD/USD currently is trading at 0.9920 and NZD/USD
The Dollar index, measuring the US dollar against a bundle of 6 other currencies traded 80.502 in Asia trade compared to 80.538 during North American evening trade on Wednesday. European common currency succeeded to regain small fraction of value lost against the Greenback on Wednesday, climbing $1.2986 to $1.2991 in New York afternoon trade. EUR/USD currently is trading at $1.2995.
On Wednesday US shares closed down for a third consecutive day as investors dumped gold and euro amid European debt fears. Moreover, euro breached the psychological $1.3 level. Dow Jones Industrial Average lost 1.1% or 131.46 points to 11,823.48, while Nasdaq Composite Index fell 1.6% reaching 2,539.31. S&P 500 Index edged down 1.1% or 13.91 points to 1,211.82.
In November foreign direct investment (FDI) in China dropped on annual basis, the first time since 2009. According to Ministry of Commerce, FDI lost 9.8% to $8.76 bn, after gaining 8.8% in October. Liu Li-Gang, economist at Australia & New Zealand Banking Group Ltd., suggests the policy makers may be forced to lower further the reserve requirements in December.
Ben Bernanke, head of the Federal Reserve in a closed meeting with Senate Republicans said Fed is not planning to bail out Europe. However, Bernanke admitted Europe's failure to solve debt crisis can harm US economy. According to Bob Corker, Tennessee Republican, Fed Chairman pointed out that Fed has is not going to intervene further in region's debt turmoil.
Japanese leading producers have become more pessimistic than was predicted by the economists. In December the Tankan large manufacturer sentiment index slumped to minus 4, said Bank of Japan. Economists surveyed by Bloomberg earlier predicted an estimate of minus 2. Japanese outlook reflects developments in debt troubled Europe, told Yoshimasa Maruyama, Itochu Corp.'s economist.
Chinese Purchasing Managers' Index, estimated by HSBC, in November was 49 indicating that factory output and number of new orders declined. Although the figure is below 50 which indicates contraction, it still is slightly better than October's reading of 47.7, meaning that contraction is slower than in previous month. China should put more effort on fiscal and monetary easing, said Qu Hongbin, executive at HSBC's Asian
Asian markets tumbled on Thursday led by commodity producers after investors received data which showed Chinese industry production activity contracted last month. Both Hong Kong's Hang Seng Index and South Korea's Kospi fell 2.1%. Shanghai Composite Index dropped 1.6%, Australia's S&P/ASX 200 index declined 1.2%, while Japan's Nikkei Stock Average traded down 1.5%.
Prices for import in the US increased unexpectedly last month, according to the official data. Import prices increased by 0.7% on a seasonally adjusted basis in November as compared to 1.1% increase expected by analysts. On a yearly basis, the import prices increased 9.9% in November, falling below the forecast of 10.1% rise.
Natural gas decreased to the 27-month low amid mild weather forecasts and concerns over high natural gas inventory level in the US. Temperatures for the period from December 14 to December 23 will be at about five degrees above the average level, reported the Commodity Weather Group. On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.193 per
Canada's manufacturing sales decreased more than previously projected after increasing for three consecutive months, according to the official data. The indicator declined by 0.8% in October on a seasonally adjusted basis as compared to 2.6% gain in September. However, manufacturing sales in October achieved CAD48.7 billion being the second highest after September.
Industrial production in Euro zone decreased in October declining for the second month in a row, according to the official data. Industrial production decreased by 0.1% in October on a seasonally adjusted basis as compared to 0.1% expected increase, reported Eurostat. Following the data, USD climbed higher against the Euro and the pair EUR/USD is currently traded at 1.2959.
Cotton futures fell to 16-month low as the growing concerns over the euro-zone put investors off risky assets. On the ICE Futures U.S. Exchange, cotton futures for delivery in March traded at USD0.8624 a pound at the European afternoon trade, declining by 1.23% since opening.
The Euro continued to tumble against the US Dollar even after crossing a $1.30 border. The euro fell to $1.2978 from $1.3026 in the late US trading yesterday. The Euro started to tumble after Italy sold 3 billion euros of bonds maturing in five years with record high yields of 6.47%. During the year the Euro decreased by 3% against the USD.
Corn futures increased on the poor weather conditions in South America which in turn increased worriers over the commodity supplies from the second and third biggest corn producers. On the Chicago Mercantile Exchange, corn futures for delivery in March traded at USD5.9662 a bushel at the early European trade, adding 0.41% since opening.
Copper futures have declined for the third day in a line after Fed's decision not to start the next round of QE and signs of the difficulties in China's economy. On the Comex division of the New York Mercantile Exchange, copper futures for delivery in March traded at USD3.401 a pound at the early European trade, losing 1.15% since opening.
E*Trade Financial Corp. announced the average volume of trades decreased by 11% on a yearly basis in November. The daily revenue trades in November totaled 141,361, losing 10% from the previous month. The company added 24,541 new accounts while it added 30,355 new accounts a year ago. The share price of the company lost 46% during 2011.
German Chancellor, Angela Merkel, said that despite not signing the EU summit agreement, the UK remains close EU partner. She also expressed regret that David Cameron, UK PM, was not able to join other EU members in creating closer fiscal ties. The announcement followed the decline of the Euro below $1.30 and ВЈ0.84 on the uncertainty over the euro-zone crisis.
The Reserve Bank of India is expected to ease its prudent monetary policy in view of slower growth and spreading debt crisis in the euro-zone. However, the falling Rupee weights on the continuation of the tight monetary policy with unchanged interest rates. There are fears that economic growth decelerates faster than expected and taken exorbitant 9% inflation the economic perspectives for India remain bleak, said
Airline shares surged following Delta Air Lines announcement of the higher-than-expected profit for this year. NYSE Arca Airline Index almost advanced by 1% to 33.38 points. Stock price of Delta gained 3% while US Airways added 2.4% and United Continental jumped by 2.4%. JetBlue Airways gained 2.3% and Southwest Airlines added 1.6%.