US durable good orders recovered in May relieving worries the world's biggest economy is entering recession. Orders for goods supposed to last at least three years surged 1.1%, the first advance in four months. Stocks appreciated on better monthly reading. Orders posted a 0.2% decline in April. On a year to year basis durable goods orders have lost 6.8%.
US Dollar depreciated versus most of its peers on Thursday as EU officials gather in Brussels today to tackle Eurozone debt turmoil. The greenback gave up 0.4% to USD 1.2519 in London trade and slipped also 0.4% versus Yen to JPY 79.42. Currently EUR/USD is trading at 1.2495.
The Financial Service Authority (FSA) fined Barclays for manipulating key interbank lending interest rates. Barclays will have to pay penalties worth 59.5 million British Pounds. Four the most senior bank executives will have to forgo bonuses this year. The FSA added that the bank's malpractice was serious and widespread.
German DAX index edged higher on Wednesday supported by fertilizer giant K+S AG. Nevertheless, investors stayed cautious ahead of upcoming EU summit due Thursday. K+S AG rallied 3.0% after Bank of America Merrill Lynch raised the company from underperform to buy. Utility firm E.ON AG gained 2.2% after HSBC upgraded the shares from neutral to overweight. Meanwhile HSBC reduced Infineon
Farm commodities surged on Tuesday on unfavorable weather conditions in the main growing regions across the globe.Wheat attained nine-month high on expectations that demand for the commodity to produce feed for livestock will increase as corn price soared.Corn rocketed as US supplies are dropping at the fastest pace since 1996 on hot and dry weather in the main planting areas.Sugar
Energy markets were bullish on Tuesday as strike of oil workers in Norway created supply risk-premium for oil products.Crude oil was almost unchanged for the day, balancing between potential supply disruptions as tensions between Syria and Turkey are growing and concerns over the Eurozone's economy.Brent oil rallied as strike by oil workers in Norway is tightening supplies from North Sea.
Industry metals apart from copper dropped on Tuesday after US consumer confidence tumbled to five-month low in June. Persistent worries about economic health of the Eurozone also weighed on the base metals pack.Aluminum declined on global risk-aversion ahead of the EU summit. Meanwhile, massive production cuts may result in slight deficit in the market, according to International Aluminum Institute.Copper was
Precious metals moved lower on Tuesday as investors are pessimistic about the EU summit due to start on Thursday.Gold slid amid mixed data from the US. CB consumer confidence dropped to five-month low in June while US real estate market is showing signs of recovery as house prices rose slightly in April.Silver declined amid escalated concerns over the Eurozone's financial
The economy of Spain is likely to slump at faster pace this quarter, according to the Bank of Spain. Spain's GPD contracted by 0.3% in Q1 of 2012 on a quarterly basis and taken falling domestic consumption, lower retail and car sales the economy is expected to shrink further in Q2, the bank added.
China proposed to establish a special credit line for Latin American states to provide financial aid for infrastructure projects. Wen Jiabao, China's PM, made the proposal during his visit to Latin America. Moreover, he proposed to set up free trade agreement between China and Mercosur, block that includes Brazil, Paraguay, Argentina and Uruguay.
Italy's costs of borrowing advanced at six-month sovereign bond auction on Wednesday. Investors were cautious head of the EU summit due to start on Thursday. Italy sold the targeted amount of 9.00 million Euros of six-month bonds with average yield of 2.957% as compared to 2.104% at auction conducted in December 2011. Meanwhile, 10-year bond yield fell from 6.18% to
China's economy is likely to expand at faster annual rate than 7.5% expected in the first half of the year; however, the downside risk still persists. Experts surveyed by Reuters predicted China's GDP to grow by 7.9% in the first half of 2012 and full year expansion to achieve 8.2%. The growth pace is in compliance with government's target but
Gold prices declined during European trade on Wednesday as investors are cautious ahead of The EU summit due to start on Thursday. Traders doubt that the summit will result in closer fiscal integration that may enable the EU to resolve deepening crisis in the area. COMEX gold futures for delivery in August traded at 1,570.95 US Dollars per troy ounce,
Crude oil declined in European morning session on Wednesday as traders are cautious ahead of the EU summit and US supply data. The EIA report is expected to indicate a 0.5 million barrels decline in crude oil inventories last week. Light, sweet crude oil futures for August delivery traded at 79.20 US Dollars per barrel on the New York Mercantile
Span cannot sustain high borrowing costs at long run, said Mariano Rojoy, Spain's PM. Recently, yields on 10-year sovereign bonds soared to 6.8%, the level considered to be unaffordable. Mariano Rajoy claimed that a subject of financing is of paramount importance as country has applied for funds but has not been bailed out yet.
Japanese PM Yoshihiko Noda may harm country's economic growth by allowing to implement higher sales tax. The drop in consumption is very likely even though tax increase will help to tackle nation's debt burden. The lower house of Japanese parliament yesterday approved a motion to lift sales tax from current 5% to 8% and then to 10%. Analysts warn the tax
The trade balance of New Zealand narrowed in May, reported Statistics New Zealand. The country's trade surplus dropped to 301 million New Zealand Dollars on a seasonally adjusted basis as compared to 355 million New Zealand Dollars in April. After the data release, the New Zealand Dollar depreciated against its US counterpart by 0.21%, with NZD/USD trading at 0.7890.
Japan's Nikkei Stock Average retreated from three day losses on Wednesday lifted by improvement signs in US property markets and renewed speculations for China's stimulus. Nikkei 225 index gained 0.77% or 66.50 points and finished at 8,730.49. Japan Tobacco rallied 3.7% on speculation the higher sales tax may give the cigarette maker an opportunity to raise prices. Retailers also contributed
Hang Seng Index led the gains during Asian trade on Wednesday though it spent morning session into red area. Analysts explained the advance in Hong Kong markets with investor willingness to buy shares cheaply ahead of Chinese macroeconomic indicators few weeks ahead. More traders start to anticipate nation's soft landing, analysts claimed. Hang Seng index gained 0.80% or 152.81 points
Dow Jones Industrial Average rebounded on Tuesday lifted by report which showed US home prices climbed 1.3% in April, the first gain since autumn 2012. Blue chip soared 0.26% or 32.01 points and settled 12,534.67. On the upside energy shares recovered from previous slump with Chevron Corp adding 1.9% and Exxon Mobil gaining 1.4%. On the downside Kraft foods slipped
Canadian currency appreciated from two-week record low against its US counterpart after equity markets rebounded and demand for higher yielding assets slightly climbed. Loonie strenghtened 0.5% versus greenback to CAD 1.0238 on Toronto session. Currently USD/CAD is trading at 1.0244.
The British Pound reached the strongest value against common currency this month on expectations EU summit this week will not bring any measures to stop Eurozone debt crisis. The Pound climbed 0.5% versus Euro to GBP 0.7992 and added 0.1% against US Dollar to USD 1.5594. Currently EUR/GBP is trading at 0.7993.
US stocks appreciated on Tuesday supported by data which showed US home prices added 1.3% in April, the first gain since autumn 2012. S&P 500 surged 0.48% or 6.27 points and closed at 1,319.99. Dow Jones Industrial Average soared 0.26% or 32.01 points to 12,534.67 and Nasdaq Composite advanced 0.63% or 17.90 points settling at 2,854.06.
The President of ECB Mario Draghi might consider lowering its deposit rate to from 0.25% to zero or even lower as the region is moving deeper into recession. Federal Reserve resisted cutting its interest rate of 0.25% last year. Julian Callow at Barclays Capital suggests that cutting deposit rate to zero is likely to be the first move of ECB