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.
Factory output in Japan missed forecast in April, expanding by 0.2% as compared to an expected increase of 0.5%, reported the Trade and Industry Ministry. The ministry expects the output to decline further in May; however, the production is likely to rebound in June. The factory output was weakened by soft demand for electronic goods coupled with strong Yen.
Australian manufacturing activity decreased to the lowest level in the last nine months in May. The Performance of Manufacturing Index edged down by 1.5 points to 42.4 on a seasonally adjusted basis in May. The dismal state of non-mining industries in the country may create incentive for further cuts of the interest rate by the Reserve Bank of Australia.
The number of new houses sold in Beijing is likely to approach the pre- tightening level in May. More than 8,500 apartments were purchased in the first 26 days of May, indicating a 25% increase from the April's figure. Zhang Dawei, chief Centaline analyst, attributed strong performance of the real estate market to price reductions, growing supply and strengthening demand.
Crude oil futures moved down in Asian trading on Friday as traders were cautious ahead of US job market data due later in the day. Moreover, broadly stronger US Dollar added pressure on crude oil. Light, sweet crude oil for July delivery traded at 86.39 US Dollars per barrel on the New York Mercantile Exchange, declining by 14 cents since
Gold fell during Asian trading on Friday ahead of US data on the state of the labour market. COMEX gold August contract traded at 1,555.70 US Dollars per troy ounce on the New York Mercantile Exchange, falling by 8.50 US Dollars. Experts say that negative payroll data is likely to bolster the yellow metal price as likelihood of monetary easing
The commodity price index measured by ANZ dropped by 4.2 %, attaining 21-month low last month. The ANZ Commodity Price Index approached 260.8, indicating decline for the last 12 months. The major contributors to the decline were falling prices of diary and wool products while slight increase in kiwifruit and apple prices limited the downswing.
China's manufacturing activity slowed down in May, after growing for five months in a row. The PMI lost 2.9 points, approaching 50.4 in May as compared to April's figure of 53.3, according to China's Bureau of Statistics. Reading above 50 indicates expansion. Meanwhile, HSBC reported that its PMI estimate shank to 48.4 in May, being weaker than initial reading of
The British Chambers of Commerce cut UK growth forecast for 2012 to 0.1% from 0.6% while next year's expansion forecast was upgraded to 1.9% from 1.8%. The decision came after indications that the UK fell into recession again. The country has to create business bank to increase accessibility of capital for small firms as well as increase infrastructure spending to
Spain's policy makers say that they have time until October to raise the necessary funds needed to rescue Bankia. Currently the government's bailout fund makes up €12 billion; nevertheless, it requires to raise €7 billion more to rescue the ailing bank. It is planned to give Bankia €7 billion in July with remaining €12 billion provided in October.
Mario Draghi, ECB President, impels Europe's policy makers to develop a long term vision for Eurozone and form a "banking union" in order to avoid struggling banks putting under pressure the financial system. Additionally, ECB Chief suggested a deposit insurance guarantee system and centralised banking sector monitoring. Along with that, Draghi also admitted that the ESM might be used to
Liu Mingkang said in an interview that it is of paramount importance for China to lower its dependence on exports as the foreign demand is weakening with the European crisis. To ensure that the world's 2nd largest economic organism does not experience severe repercussions, it would have to increase its GDP by 7% during the upcoming 5 years as well as by 6%, at
Jose Manuel Gonzalez-Paramo, Executive Board member at the ECB, on his last day at the bank announced that there is a possibility for Spain to recapitalize its banks by utilizing funds from the Fund for Orderly Bank Restructuring. He correspondingly added that during the upcoming month further data regarding the assessment of the banking-sector requirements will be developed. Gonzalez-Paramo also highlighted that whilst seeing eye-to-eye
U.S. Labor Department announced an increase in the number of first-time unemployment claims to 383,000 in the recent week. Following the news, Treasuries prices advanced and the dollar weakened. Thus, yields on 10-year notes dropped 2 bp to 1.61%. The dollar index, which weighs the U.S. dollar against a basket of its six major rivals, lost 0.17 percent, falling from 83.053 to 82.89. Consequently, the
China's growing hunger for oil as well as additional energy sources is expanding to America both North as well as South. In order to satisfy its appetite China has been spending vast billions of dollars in energy assets acquisitions. In contrast to the weakening demand for oil in the U.S., China's basic need for oil is growing at a rapid pace and is projected
ADP National Employment Report for May 2012 states that the number of people working in the U.S. nonfarm private business sector rose by 133,000 comparing to the previous month. Analysts, however, predicted an increase of 145,000. The estimated improvement in this indicator from March to April was cut from 119,000 to 113,000. In May private service-providing employment added 132,000 jobs, goods-producing employment – 1,000 jobs. Employment
DAX 30 index surged at the beginning of Thursday's session on better than expected retail sales data. However, German benchmark index gave up all the morning trade gains after US data showed US unemployment claims jumped to 383,000 last week instead of expected drop. Moreover another report showed US economy grew less at in the first quarter reaching only a
UK FTSE 100 index climbed rapidly during morning trade supported by oil shares and miners as oil futures broke USD 88 a barrel resistance. However, British benchmark retreated after disappointing US jobless claims data and downward revised quarterly GDP data erasing most of its 1% gain. Admiral Group fell 4% on the Office of Fair Trading's decision to refer the
Goldman Group anticipates that Shanghai Stock Exchange Composite Index will grow by 15% by the end of 2012 to approximately 2,750. The main rationale behind the forecasts is the slowing inflation, which in turn provides the Chinese government with the possibility to ease the monetary policy and with the opportunity for businesses to receive more loans from the banks. Wang Hanfend at Gao Hua stated