Crude oil futures achieved one week low following the appreciation of USD and ECB President Mario Draghi's refusal to raise purchases of bonds. On the New York Mercantile Exchange, crude oil futures for delivery in January were traded at USD98.34 a barrel at the late U.S. trade, losing 2.15% since opening.
PPI input in the UK increased unexpectedly in November, according to official data. The UK PPI input jumped by 1% in November on a seasonally adjusted basis from -0.8% in October, reported the National Statistics. Analysts expected the indicator to decline by 0.1% in November.
Credit ratings of three leading banks in France were downgraded by Moody's due to their borrowing difficulties. The credit rating agency decreased ratings of Credit Agricole and BNP Paribas to Aa3 down from Aa2. Societe Generale was downgraded from Aa3 to A1. Liquidity and funding deteriorated essentially for French banks, the agency explained.
European shares, shared currency and US market index futures rebounded after region's officials agreed on bolstering the rescue fund and restrict budget rules to tackle area's debt crisis. Overnight talks added $267 bn firepower and stricter anti-deficit regulations. Stoxx Europe 600 Index gained 1.2% erasing morning loss, futures on Standard & Poor's 500 jumped 1% while euro added 0.5% reaching $1.3405. In contrast, Italian bonds
On Thursday trade Dow Jones Industrial Average erased gains accumulated since December 2 and tumbled 1.63% or 198.67 points at 11,997.70. Drop was mainly caused by European officials' inability to agree on joint position, based on which investor confidence declined. 29 of 30 companies within blue chip index experienced loss led by Bank of America and JP Morgan Chase giving up 5.09% and 5.24% respectively. The
Gold futures decreased despite bullish market sentiment on growing concerns over the euro-zone, after European summit failed to reached an agreement on measures for combatting the debt crisis. On the Comex division of the New York Mercantile Exchange gold futures for delivery in February were traded at USD1709.05 a troy ounce, edging down by 0.23% since opening.
China's Politburo agreed to maintain the current monetary policy but announced it would fine-tune the policy in response to economic environment's changes if needed. The policies will stay unchanged but in case of necessity the government t is ready to make them more flexible, focused and proactive, according to the report of the Politburo. The report followed the news about falling inflation rate in the
US stock futures increased as investors anticipated economic data of the US and were inspired by news that 23 members of the EU agreed on closer fiscal cooperation. Futures on the Dow Jones Industrial Average added 53 points to 12,065 and futures of the Standard & Poor's 500 index gained 5.70 points to 1,235.9. Nasdaq 100 futures increased by 7 points to 2,288.5.
German exports declined by 3.6% in October in response to falling demand in the southern Europe affected by recession, according to official data. The decrease was the largest in the last six months; analysts projected the fall to be 1%. Imports declined by 1%, also signaling lower domestic demand.
In case the US impose sanctions against Iranian oil, the level of oil exports of the country will not fall, the US and Europe hope, said Barclays Capital. The demand for crude oil is too strong to be significantly affected by such measures. The sanctions will result only in oil supply disruptions while Iranian exports will go to Asian countries with constantly growing oil consumption,
After straight four day gain, S&P 500 experienced a sharp decline on Thursday, as Dow Jones presented details of preliminary proposal however US benchmark index plunged even further after Reuters reported that Germany opposed several measures in draft proposal. S&P 500 Index lost 2.11% or 26.66 points and closed at 1,234.35 led by financial companies. Hartford Financial Services Group Inc sank 8.2% when the insurer
On Friday Hong Kong's Hang Seng Index lost 2.73% or 521.58 points and closed at 18,586.23 on news from European summit indicating that leaders did not manage to agree on tighter fiscal union. On the downside were Chinese banks listed in Hong Kong that pushed heavily on the index. Bank of Communications Co. traded down 3.8%, while Agricultural Bank of China Ltd. and HSBC Holdings
European officials rejected earlier proposal which implied that investors must share the charge of bailouts. Restraining private sector engagement was a part of a bundle agreed upon in today's summit. The decision was a defeat for Chancellor Angela Merkel who was willing to expose bond-holders to losses in debt reforms as her voters resisted expanding bailout program.
UK PM David Cameron announced he had chosen not to take part in an agreement offered by France and Germany to alter existing treaty and bind EU countries into tighter fiscal alliance. The offer is not in Great Britain's interests, said Cameron during a press conference after overnight discussions in Brussels. British prime insisted that UK support joint approach in solving debt crisis, however without
On Friday morning trade European shares opened lower led by financials. Investors were monitoring EU summit where leaders did not manage to get support from all 27 EU nations for rewriting treaty, though they found a consensus regarding additional rescue funds. Stoxx Europe 600 index lost 0.6% at 236.38 while German DAX 30 index declined 1% to 5,820.34. FTSE 100 index gave up 0.4% at 5,451.54
Japanese stocks declined sharply on Friday pushing Nikkei 225 Stock Average to its biggest loss in two weeks after ECB rejected speculation it would buy more debt from troubled EU nations. Japanese benchmark index lost 1.48% or 128.12 points and closed at 8,536.46. Export-dependent companies were among main decliners on Friday. Electronics producer Sony Corp. dropped 3.3%, and Kawasaki Kisen Kaisha Ltd fell 5.4% as Mitsubishi
Chinese manufacturing production and fixed asset investment growth slowed down more than predicted in November, said National Bureau of Statistics. Factory production for November added annual 12.4% compared with expected figure between 12.8% and 12.5%. Fixed asset investment gained 24.5% from January to November. Analysts expect the data may stimulate Chinese officials to raise a question of further policy easing.
Moody's Investors Service cut the credit ratings Societe Generale SA, BNP Paribas SA and Groupe Credit Agricole. Moody's claimed there is a very high probability the financials will get government support if needed. Agency cut credit rating for Societe Generale to A1 while ratings for BNP Paribas and Credit Agricole were reduced one level down to Aa3. The downgrading proposes threat to France's AAA debt
Italy's notes fell amid concern European leaders will not be able to provide solution how to solve region's debt crisis. 10-year bonds dropped for a third consecutive day after officials said European Stability Mechanism will not receive a banking certificate that would permit to bolster its firepower. Italian 10-year borrowing costs added 13 b.p. t0 6.59% in London morning trade.
Malaysian exports developed at a faster pace than was previously estimated by economists as sales of energy products and sales of commodities surged. Foreign shipments climbed 15.8% reaching a record $20 bn on a yearly basis, after adding 16.6% in September. Economists surveyed by Bloomberg previously predicted growth of 7.3%. Nevertheless, analysts foreseen slowdown in country's growth in the nearest future due to strengthening debt crisis
On Friday Toyota Motor Corp. cut its current fiscal year profit outlook by 54% as company's production output was seriously harmed by immense flooding in Thailand. Japanese leading car producer estimates its annual net profit to reach Y180 billion, revised down from Y390 billion. Global sales outlook has been reduced to 7.38 million cars.
In November UK housing value was unchanged, reported Acadametrics Ltd. The average value of a house in Wales and England was ВЈ220,043 ($343,800). The number of deals added 4.5%. On a yearly basis, however, property prices were down 0.7%. Acadametrics explain the increase in transactions by relatively low interest rates in market.
New Zealand and Australian home currencies dropped to one-week record lows on investor speculation EU summit will not provide a tangible solution for debt crisis, hampering demand for upward yielding assets. Australia's dollar lost 0.6% against the Greenback reaching $1.0102 in Sydney trade while New Zealand Dollar gave up 0.8% to $0.7668. The AUD/USD currently is trading at $1.0065 and NZD/USD is trading at $0.7646.
On Friday Asian trade Euro moved close to one-week record low against the greenback after European officials failed to reach unanimous agreement for halting debt crisis. 17-nation currency fell from $1.3341 yesterday to $1.3334 in Tokyo morning trade and in total has lost 0.4% since December 2. Euro has lost 0.9% against Japanese Yen this week. EUR/USD currently is trading at $ 1.3313 and EUR/JPY