As the economic state of the E.U. is in jeopardy, many investors in May saw the dollar as a safe haven. The U.S. dollar posted its top earnings since the year 2011 by outperforming stocks, commodities and bonds. In actual figures, the Intercontinental Exchange Inc.'s Dollar Index rose by 5.5%, the Dollar Index grew by 3.8% in the respective month.
Following 12.7% unemployment rate in the previous year, according to Vitor Gaspar, The Finance Minister of Portugal, the jobless rate in the country will increase to 15.5% in 2012 and to 16% in 2013. The Minister also added that afterwards a decline should be experienced in the unemployment levels. The initial projections for the year 2012 were 14.5%.
With the increase of Japan's capital spending by 3.5%, the more likely are the chances for the country's successful rehabilitation from the earthquake in 2011. In addition, other factors contributing to Japan's recovery are stable exports to the U.S. as well as the revival of the country's key companies. Consequently, coupled with the European crisis and anxiety regarding Greece's exit, the yen is growing in
Rural commodities slid on Thursday on broadly stronger US Dollar and improving weather conditions in the US and Russia.Wheat dropped by more than 1% as falling corn prices started to erode wheat's appeal as more cost-efficient feed alternative for livestock production in the US. Moreover expected rainfalls in the US and Russia are likely to boost crop prospects.Corn sank because
Energy markets apart from natural gas fell on Thursday as deteriorating situation in the Eurozone continued to dent demand prospects.Crude oil declined by more than 1%, posting the largest monthly decline in the last three years. Turmoil in the Eurozone and slowing China's economy weighted down on the commodity price.Brent oil plunged amid weakening demand; however, lack of resolution of
Industry metals tumbled on Thursday amid indications of cooling manufacturing activity worldwide and continuous economic uncertainty in the Eurozone. Aluminum dropped as weak manufacturing and job market data from the US pressured the light metal. Copper fell on potential increase in global supplies as Peru plans to boost red metal's output by 75% by 2015.Nickel posted losses despite expected increase
Precious metals were mixed on Thursday as Fed announced that new round of quantitative easing is highly unlikely despite softer than expected labour and manufacturing data.Gold ended the day on a negative note as persistent turmoil in the Eurozone pushed EUR/USD to two-year low of 1.2314.Silver followed bearish trend amid weakness of global equities and rallying US Dollar. Platinum managed
As the demand from China and Europe is weakening so are the South Korean exports, which have declined by 0.4% from the previous USD 47.2 billion, as stated by the Ministry of Knowledge Economy. The ministry also provided export figures based on the initial 20 days in May signifying that the overseas sales to the E.U. plunged by 16.4%, exports declined by 10.3%
Based on Istat statistics, the Italian unemployment surged to 10.2%, the highest in a 12-year period, exceeding all forecasts. The previous joblessness figures was 9.8% in Q1 2012 and 9.1% in Q4 2011. To ameliorate situation in the labour market, the Senate located in Rome issued an overhaul encompassing regulations regarding the recruitment and termination of employees. However, prior to its implementation the reform should be
Eurozone manufacturing activity fell further in May, indicating that the economy will continue experiencing difficulties as the debt crisis escalates. The data coming from France and Spain shows that the figures are at the lowest level for the past three years, as well as the reading of Germany was negative, meaning that the Euro bloc's biggest economy is influenced by the troubles of periphery countries.
The Euro zone unemployment in March and April was in line with the forecasts and reached 11%. This is the highest level since 1995 when the time series started. In Spain, where government is struggling with banking crisis, unemployment increased by 0.2% since March and reached 24.3% - the highest level amongst all Euro zone countries. In France and Portugal unemployment
Hong Kong's stocks prolonged losses on Friday on weaker than expected official Chinese PMI report. HSBC separate research indicated contraction in manufacturing activity with PMI reading dropping to 48.4 Hang Seng index declined 0.38% or 71.18 points and finished at 18,558.34. Shippers extended drop with Cosco Pacific edging down 2.5% and Citic Pacific deteriorating 2.7%. On the upside remained Hong
SouFun Holding Ltd. has stated that China's housing prices have plunged to their lowest level in sixteen months, dropping by 0.3% in May to 8.684 CNY/m2 (1.364 USD/m2). The decline has been impacted by the government's decision to maintain the property curbs, which have in turn weakened the demand. In addition, the regressing economic state has also negatively influenced home values. SouFun has emphasized that
Japan's Nikkei Stock Average tumbled on Friday after China reported it's official manufacturing activity index fell to 50.4 instead of expected smaller drop to 52.1. Moreover Yen kept appreciating against Euro, damping export stocks. Nikkei 225 lost 1.20% or 102.48 points and finished at 8,440.25. Sony Corp, which is heavily dependent on market situation in China and US, fell 3.5%.
Dow Jones Industrial Average index declined on Thursday weighed down by disappointing data from US labour market and economic activity. Blue chip index fell 0.21% or 26.41 points and finished at 12,393.45 with 16 of 30 stocks posting loss. Dow index has lost 6.2% on monthly basis. Exxon Mobil shed 1.5% . Surging US stockpiles and crawling economic expansion boost
S&P 500 index extended loss on Thursday after data showed US labour market added more jobless claims and GDP for the first quarter was revised down. US benchmark slipped 0.23% or 2.99 points and closed at 1,310.33. S&P 500 has given up 6.3% for the month. Kohl Corp fell 6.2% after retailer reported its same store sales declined by 4.2%
As China's Purchasing Manager Index tumbled to its lowest point in May to 50.4 since last December, it is more likely that that the government will increase its stimulus package. To ensure that the world's 2nd largest economy does not deteriorate to a greater degree, it could force Wen Jiabao to undertake more stringent actions. According to Credit Suisse, the county's stimulus plan could total
Asian shares dropped experiencing its sharpest slump since the year 2008. On top of that, oil also plummeted to its bottom point during the period from October as Chinese weakening growth will most likely cut the demand of oil whilst the supplies increase. In contrast, the Dollar Index reached its peak since the year 2010.
German Chancellor Merkel faced critics from European leaders for allowing crisis to broaden. Italy's PM Monti and ECB President Draghi called Germany to stop opposing direct aid for indebted banks. Currently Germany rejects the issuance of euro bonds and direct capital injection into banks. Monti claims that Merkel's tools chosen for tackling the crisis are not prompt and sufficient.
European stock indices ended May with the largest loss since August last year. Thursday's session was mostly negative for shares as weaker US data drove down investor sentiment. Stoxx Europe 600 index lost 0.4% and gave up 7% for the May. Spanish IBEX 35 traded almost flat but ended previous month 13.1% lower. French CAC 40 managed to end session
US shares closed Thursday on negative note weighed by several disappointing macroeconomic news. Data showed US labour market added more jobless claims and GDP for the first quarter was revised down. S&P 500 index dropped 0.23% or 2.99 points and closed at 1,310.33. S&P 500 is 6.3% down for the month. Dow Jones Industrial Average fell 0.21% or 26.41 points and finished at
British Sterling declined versus greenback on Thursday on speculation the widening European debt turmoil is curbing UK economic outlook. The Pound fell 0.5% versus its US peer to USD 1.5408 and dropped 1.4% against Yen to JPY 120.66. Currently GBP/USD is trading at USD 1.5384.
The New Zealand and Australia Dollar declined after data showed Chinese manufacturing is decelerating more than analysts had predicted. Aussie fell 0.5% versus US Dollar to USD 0.9685 while Kiwi dropped 0.3% against greenback to USD 0.7517. Currently AUD/USD is trading at USD 0.9698 and NZD/USD is trading at USD 0.7523.
The US currency advanced against its main 16 counterparts as it was prized as safe haven asset. Worries that Chinese economy is slowing added to Dollar's strength. The greenback climbed 0.1% versus common currency to USD 1.2350 and gained 0.2% against Japanese Yen to JPY 78.46. Currently EUR/USD is trading at USD 1.2356 and USD/JPY is trading at JPY 78.46.