Commodities tend to respond quickly to fluctuations of stock prices and bond yields. During the recent months commodity prices were extremely volatile despite commodities being considered as the safe investment option. Experts claim the reason for instability in the market is the demand for commodities as it is strong enough to prevent further price decrease but cannot sustain the prices at high level.
Libyan oil production was severely impacted by civil war occurred earlier in 2011. Before the unrest Libya, the country with world eighth largest oil reserves, has been producing more than 1.6 million barrels a day. At the moment Libya has restarted its oil production that stands at the level of 750,000 barrels a day, reported Libya's National Oil Corporation.
After global central banks announced they would take a coordinated action in order to boost liquidity in the financial system bond yields across Europe declined. Yield on 10-year bonds in Italy declined by 6 basis points to 7.03%, those in Spain fell by 9 basis points to 6.30% and those in Belgium decreased by 24 basis points to 5.12%.
Canadian stocks have increased for third consecutive day as investors gain more confidence after the global banks decided to boost liquidity to financial system. Moreover, the higher than expected GDP growth in Canada contributed to market sentiment. GDP grew by 3.5% in Q3 as compared with 3% projected. Toronto's benchmark S&P/TSX Composite Index gained 2.3%, to 11,997.57. Canadian currency increased against USD by 1.5% to
The UK is going to expel Iranian diplomats after the British embassy was attacked in Tehran, announced William Hague, Foreign Secretary. Hundreds of people in Tehran stormed UK's embassy expressing their protest against sanctions imposed by UK over Iranian nuclear programme. The immediate closure of the embassy of Iran in London is ordered, the Secretary added.
Federal Reserve lowered interest rate on US dollar swaps to ease funding for European financials. Fed cut interest rate from 100 b.p. to 50 b.p. and extended the program to February 2013. Fed's action is an attempt to ease pressure in the world's markets and stimulate central banks' capability to back international financial system. Federal Reserve will cooperate with 5 leading banks including Bank
Germany's DAX 30 Index rallied on Wednesday after international central banks including ECB and US Federal Reserve declared they will lessen pressures in the markets. As a result, DAX 30 jumped 4.2% to 6,038.26. Index was boosted by German car giants as they are heavily dependent on economic growth. BMW AG advanced 2%, Volkswagen AG added 2.4%, while Daimler AG soared 2%.
FTSE 100 Index rocketed on Wednesday after People's Bank of China lowered banks' reserve requirements by 0.5 p.p. Resource and mining companies reacted immediately as the second biggest economy in the world is an important consumer of natural resources. BHP Billiton PLC gained 1.7%, Xstrata PLC added 2.9% whereas Rio Tinto PLC edged up 1.6%. Financials HSBC Holdings PLC and Barclays PLC managed to offset
In third quarter Poland's economic growth rate was higher than was predicted by economists. The growth of gross domestic product was mainly accelerated by surging private consumption, investment and depreciated home currency which helped to improve exports. GDP rose 4.2% on a yearly basis compared to 4.3% in 2nd quarter. Polish factory output added 7.7% on a yearly basis.
According to a secret report acquired by the Guardian newspaper, in yesterday's summit, European leaders have been warned that Italy is exposed to insolvency. Report from ECB and EC said Mario Monti, Italian PM, should take more serious steps to contract nation's affliction such as tackling tax dodging. The report suggested the liquidity crisis may develop into solvency trouble whose consequences may be very harmful
On Tuesday Bank of America's stocks fell more than 3% reaching a new one-year record low at $5.03 which is its lowest share value since March 2009. On yearly basis company has lost 62%. Bank of America was among financials that was downgraded by S&P yesterday. Company's rapidly diminishing value may force it to sell assets. BoA is also planning to fire approximately 30,000 employees
Japan's Nikkei Stock Average dropped 0.51% or 43.21 points on Wednesday trade and closed at 8,434.61. On monthly basis Nikkei 225 has lost 6.2%. Tech and resource stocks were among main decliners in the index. Sony Corp. lost 1.4%, Advantest Corp fell 2.7% while Elpida Memory Inc. edged down 5.6%. Metal producer Sumitomo Metal Mining Co. traded down 1.7%. In contrast, Olympus Corp. added 2.2% after rejecting
On Wednesday trade Hong Kong's Hang Seng Index lost 1.46% or 266.85 points closing at 17,989.35 as uncertainty on European sovereign debt crisis flashed back into markets. Resource companies that boosted index at the beginning of week pushed it back down on Wednesday. Aluminium Corp. of China Ltd. traded down 4.3% while Jiangxi Copper Co. declined 4.4%. Financial shares also hurt the index with Bank
Allianz SE plans to restructure its real estate insurance operations in Germany; the revamp will involve layoffs and new products' launch being in line with the company's long-term strategy, reported Markus Riess, chief executive of Allianz Germany. The company projects the sales to achieve EUR9.5 billion by 2014 while currently it implements cost reduction strategy by eliminating 400 jobs by the same year.
The annual inflation rate in the 17 euro-zone countries remained the same in November as month before. The rate of inflation in November was 3% in compliance with forecasts but being still higher than 2% inflation rate target of ECB. Steadily higher inflation rate indicates the slowdown in the euro-zone economy caused by spreading fiscal crisis.
Turkey announced it imposes economic restrictions on Syria as Syrian forces employed violent measures to end demonstrations. More than 3,500 people were killed since the beginning of the demonstrations against regime of Assad. Turkey is going to cease all financial transactions with Syria and freeze all government assets of the country, said Ahmet Davutoglu Turkish Foreign Minister.
In last sessions gold futures have showed a positive correlation with other stocks and commodities, according to report of Commerzbank. There is a high probability the gold prices fall in a short run as equity and commodity markets remain quite weak due to higher risk aversion, Commerzbank added.
Gold futures experienced slight fluctuations on Tuesday remaining above psychologically significant level of USD 1,700-an-ounce as investors were affected by the developments in the EU like meeting of euro-zone finance ministers and successful Italian auction. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery achieved USD 1,718.75 a troy ounce at the U.S. early trade, adding 0.25% since opening.
Copper futures increased on Tuesday moving close to the two-week high due to weaker dollar on the rising hopes for the euro-zone. Weaker dollar often increases demand for industrial metals as they become an alternative investment option being less expensive for buyers using other currencies. On the Comex division of the New York Mercantile Exchange, copper futures for March delivery achieved USD3.385 a pound at
Samsung won the case of its Galaxy tablet ban in Australia initiated by Apple's claim that Samsung violated Apple's IPRs as Samsung's new tablet seems to be copied from touch-screen Apple's concept. Samsung redesigned the device and the court overturned a sales ban on Galaxy tab. In case Apple is not satisfied with the court decision it should go to the High Court.
Natural gas prices added 5% as the expiration of the December's natural gas contract is approaching. Contract expiration typically results in higher volatility on the gas market as investors tend to close their positions or reposition portfolios thus contributing to price fluctuations expected during the next sessions.
Nasdaq Composite Index consisting mainly of technology stocks experienced a slight decline in contrast to its major peers and traded down 0.50% or 11.83 points down, closing at 2,515.51. Netflix provided substantial negative contribution to index giving up 3.4% after reporting expectations for upcoming losses. Stocks of Green Mountain Coffee Roasters declined 4.06% while Wynn Resorts Limited lost 3.89%. Among biggest gainers were Research In Motion Limited and
The USD mainly declined against the major currencies; the dollar index lost 0.4% to 79.08 while gold futures added 0.25% to USD 1, 718.75 a troy ounce. The move was in line with expectations as gold prices typically fluctuate inversely to the greenback's value because the yellow metal becomes less expensive for other currency holders.
Chile Collahuasi Copper announced the miners finished strike on the mine Dona Ines, the world's third-largest copper mine. Workers started strike on Monday protesting against unfair employment contracts. The mine was obliged to cease its production in order to provide safety of miners and equipment during the strike.