Asian stocks experienced a drop on Monday. Both Australia's S&P/ASX 200 index and Japan's Nikkei Stock Average fell by 0.5%, while South Korea's Kospi declined 0.4%. China's Shanghai Composite lost 0.3%, whereas Hong Kong's Hang and Seng traded down 0.2%. According to Tom Kaan, Louis Capital Markets manager of equity trading, Asian investors are concerned with ongoing events in Europe as Greek PM agreed to resign.
Chief executive of Industrial & Commercial Bank of China Ltd., Jiang Jianqing, said that worries over the nation's real estate market are overstated and that the Fed is likely to introduce next round of quantitative easing to stimulate U.S. economic growth.
US stocks experienced a sharp growth on Thursday following Greece's abandonment of bailout referendum and surprising ECB interest rate cut. Dow Jones Industrial Average gained 1.8% or 208.43 points, S&P 500 Index rose 1.9% or 23.24 points, while Nasdaq Composite Index climbed 2.2% or 57.99 points. According to Paul Nolte, Dearborn Partners managing director, the cut of ECB repo rate to 1.25% contributed significantly to growth in US
Asian equities advanced sharply after an unexpected interest rate reduction by the European Central Bank. Stock rally also was fueled by Greece's refusal of to make country's bailout referendum. Hong Kong's Hang Seng Index gained 3.3%, whereas Shanghai Composite jumped 0.8%. Japan's Nikkei Stock Average increased by 1.4%, while South Korea's Kospi climbed 2.9% and Australia's S&P/ASX 200 index add 2.6%.
US stocks returned back to an upward trend after investors gained clarity regarding ECB interest rate cut and Greece's referendum. Dow Jones Industrial Average gained 106.56 points, S&P 500 Index climbed 8.69 points while Nasdaq Composite jumped 19.86 points. Major retrieval came from announcement that Greek prime minister abandoned the plans for referendum on EU bailout plan.
European Central Bank (ECB) has unpredictably lowered the interest rate from 1.5% to 1.25%. According to ECB president Mario Draghi, several predictions regarding economic growth in 2012 have been revised downwards and therefore initiated interest rate cut. Draghi characterized eurozone as a highly uncertain economic environment facing many challenges that can hinder economic growth.
Greece Prime Minister and the referendum initiator George Papandreou said on Thursday that nations' opinion is required as alternative in case the strong opposition in Greek parliament will not back the bailout package agreed earlier. He stated that if the opposition will support tough bailout requirements, the referendum is not a necessity.
Greek PM George Papandreou faced a severe opposition when trying to propose referendum on EU debt crisis plan. Four ministers including Finance Minister Evangelos Venizelos voted against referendum. According to EU officials, Greece will not have access to bailout funding until it approves the agreement. George Papandreou has received requests from his own party members to resign.
Viewpoints of the policymakers have split over the right course of further monetary policy: one top policymaker suggested extra stimulus provision is necessary, while another pointed at a necessity of monetary policy tightening. Jeffrey Lacker, the head of the Richmond Fed, admitted that although the US inflation is more likely to diminish in the next months due to declines of
Stephane Deo, head of European economic research at UBS, believes that Greece would be required to introduce a 100% haircut in order to make its debt manageable. The expert added that the only possible solution to tackle debt woes is to involve a larger share of the private sector.
Viewpoints of the policymakers have split over the right course of further monetary policy: one top policymaker suggested extra stimulus provision is necessary, while another pointed at a necessity of monetary policy tightening. Jeffrey Lacker, the head of the Richmond Fed, admitted that although the US inflation is more likely to diminish in the next months due to declines of
According to ZIFX.com analysts the main support levels may be found at 1.3581, 1.3464 and 1.3340. These are expected to hold intraday dips. Alternatively, if the European currency gains in value comparatively to the greenback, resistances might be in focus. The immediate line is located at 1.3814, followed by 1.3930. The highest indicated resistance is situated at 1.4050. Currently the
Investors are putting increased pressure on European officials pushing them to design a rescue plan for region's struggling banks before November G20 summit. Simon Maughan, head of sales and distribution at MF Global Ltd. in London, claims that a decision on general capitalization, and occasionally - over-capitalization of banks is likely the only chance left for European leaders. According to IMF, banks
Investors are putting increased pressure on European officials pushing them to design a rescue plan for region's struggling banks before November G20 summit. Simon Maughan, head of sales and distribution at MF Global Ltd. in London, claims that a decision on general capitalization, and occasionally - over-capitalization of banks is likely the only chance left for European leaders. According to IMF,
Investors are putting increased pressure on European officials pushing them to design a rescue plan for region's struggling banks before November G20 summit. Simon Maughan, head of sales and distribution at MF Global Ltd. in London, claims that a decision on general capitalization, and occasionally - over-capitalization of banks is likely the only chance left for European leaders. According to IMF, banks
Average worker salaries of around USD 4 200 per year are expected to double until 2015, Jae-Man Noh - head of joint venture operations in China at Hyundail. Rising wages have been a headache for international companies of nearly all industries outsourcing production to China, and gradually China is losing its perceptional image of a country with low-cost production. A