European equity markets experienced one more choppy session on Wednesday led by banks after Fed Chairman Bernake claimed Europe's crisis is not over yet. Moreover US home sales unexpectedly declined. Stoxx Europe 600 index slipped 0.1%, FTSE 100 index traded flat while German DAX added 0.2%. French CAC lost 0.1% and Italian FTSE MIB index lost 1.3%.
China's retail sales are likely to surge by 15% in 2012, said one government official. Consumption is expected to outplace investment, being the main engine for economic expansion in 2012, according to Chinese Academy of International Trade. Retail sales grew by 14.7% year-to-year over two month before March, decelerating from 18.1% increase in December, reported the National Bureau of Statistics.
Loonie advanced against its commodity-linked counterparts on hopes it will gain from US growth and surging oil prices. Canadian currency slipped versus US Dollar which climbed versus most its peers after home sales data. Loonie added 0.1% versus Aussie and Kiwi to CAD 1.0377 and CAD 0.8094 respectively. It slipped 0.1% against greenback to CAD 0.9922. Currently USD/CAD is trading
China fuelled rural credit by lowering reserve ratios for divisions of Agricultural Bank of China, the country's third largest lender. 565 branches will face a ratio cut by two percentage points and that will free up CHY 23 billion (USD 3.6 billion), People's Bank of China said on Wednesday. The main aim is to support small companies and boost lending in
Japan reported an unexpected trade surplus last month, after facing record deficit in January. The surplus approached 32.9 billion Yens as compared to a deficit of 1.5 trillion Yens in the preceding month, according to Ministry of Finance. The major contributor to the surplus was recovering US economy that spurred the demand for Japan's goods. The exports declined by 2.7%
The preliminary PMI reading from HSBC Holdings Plc and Markit Economics dropped from 49.6 in February to 48.1 in March reaching the lowest value since November and adding pressure on PM Wen Jiabao to implement measures to stimulate growth. A reading below 50 shows contraction.
German DAX index traded in tight range on Wednesday. Car makers and telecommunication companies advanced after upgrades but retreated during the session completely offsetting all morning gains. Metro AG tumbled 4.3% after HSBC lowered stock's rating from neutral to underweight. Adidas AG lost 1.8% after Morgan Stanley cut the share from equal-weight to underweight. At the moment of writing DAX
Crude oil is expected to surge by 30% in case the supply from Iran is halted, claimed Christine Lagarde. Brent crude oil may soar above 120 US Dollars per barrel after total Iranian oil embargo. Christine Lagarde also stressed that growing energy prices will create serious challenges for large oil importing countries as well as are likely to slow down
British FTSE 100 index advanced on Wednesday driven by telecommunication sector but retreated and erased most of its gains during day as data showed UK budged deficit nearly doubled in February. Vodafone added 1.4% after Goldman Sachs reaffirmed its buy rating, while retailer J Sainsbury rallied 3.5% on strong fourth quarter sales. Main downside contribution came from resource stocks as
Indian value of the gold imports is likely to approach 100 billion US Dollars by 2015-2016, reported ASSOCHAM. However, the 4% import duty is not enough to fully control yellow metal's imports and further increase in gold's import tax have to introduced, the report added. Moreover, the India's government may launch public awareness campaign to direct the public savings to
The government of the US allowed 10 EU countries and Japan to be excluded from the Iranian oil sanctions as these countries managed to cut Iranian oil imports essentially. The sanctions are aimed at punishing countries that go on purchasing large amounts of Iranian oil. The biggest oil importers as South Korea, China and India were not exempted from the
Oil futures soared on Wednesday despite a Saudi Arabia's promise to boost its oil production by 25% to offset any supply shortages caused by Iran's oil import embargo. The major contributors to the oil price surge were weaker US Dollar, instability in North Africa and Middle East as well as persistent tensions between Iran and Western economies. Light, sweet crude
Wheat price was pressured by worries over the excessive global supplies due to improved crop conditions in the US. Wheat futures for delivery in May traded at 6.4038 US Dollars per bushel at the early European session on the New York Mercantile Exchange, tumbling by 0.4%.
Rural commodities apart from coffee were lower on Tuesday on the firmer US dollar and weaker equities. Grains were the top-losers as negative news from China are likely to impact the country's demand for the commodities. Wheat hit one-week low as rains in the US are expected to create highly favorable conditions for winter harvest. Moreover, Russia's decision not to
Energy commodities slid on Tuesday on the appreciating US Dollar and easing supply disruption worries. The energy market was under pressure from rumours that Saudi Arabia plans to boost its oil output to offset any shortages after total Iranian oil embargo comes in force. Moreover, the crude and Brent oil were volatile during Tuesday's sessions due to expiration of April
Base metals slumped on Tuesday on the strengthening US Dollar and weaker equities. The commodity pack losses were also sparked by BHP Billion report that indicated sharp fall in China's ore and steel demand. Moreover, cut in the Australia's growth outlook pulled the industry metals down. Aluminium is likely to face downward move in the nearest future as China's demand
Precious metals tumbled on Tuesday amid broadly stronger US Dollar and improving US economic outlook. The commodity group was also pressured by the increase in the 10-year US Treasury yields that signal on recovering US economy. However, soaring energy prices continued to weight up on the inflation rate thus increasing appeal of the traditional inflationary hedges such as precious metals.
British budget gap nearly doubled in February on improved spending and drop in taxes, the Office for National Statistics reported on Wednesday. The net borrowing eliminating support for lenders reached GBP 15.2 billion compared to a GBP 8.9 billion a year ago. The analysts questioned by Bloomberg earlier predicted a deficit of around GBP 8 billion.
The borrowing costs on German bunds climbed to three month record high after Greek PM Lucas Papademos got parliamentary support for a EUR 130 billion rescue package, curbing demand for safe securities. The yields on 10-year German notes added two basis points, reaching 2.06% on Wednesday. Germany's bills marked the sixth decline in seven days.
Japan's Nikkei Stock Average tumbled on Wednesday as investors returned from holiday and anticipated news from China. Nikkei 225 index fell 0.55% or 55.50 points and closed at 10,086.49. Nissan Motor lost 2.9% after car maker presented its spending plans including the revival of its Datsun brand after 30 years. Exporters added to loss with Sony falling 4.5%, Toyota Motor
Hong Kong's Hang Seng index extended losses on Wednesday as enduring concerns about China's economic development pushed down exporter and commodity shares. Hang Seng index fell 0.15% or 31.61 points and finished at 20,856.63. Petrochina shed 0.2% and Lenovo Group dropped 0.8%. Sun Hung Kai Properties shares prolonged their decline, giving up 1.7% after one of its executives were arrested
Dow Jones Industrial Average index declined on Tuesday as China raised gasoline and diesel prices. Blue chip index edged down 0.52% or 68.94 points and settled at 13,170.19. Walt Disney Co fell 0.5% after company said it predicts science-fiction film John Carter to lose around USD 200 million. Resource demand dependent Caterpillar and Alcoa tumbled 2.6% and 1.5% respectively. Bank
Canadian Dollar weakened from nearly 6-month record high against US Dollar on rumours China economy keeps slowing down. Canada's currency depreciated 0.5% against its US counterpart on Tuesday to CAD 0.9915. Loonie became weaker also versus Euro and Swiss Franc. Currently USD/CAD is trading at CAD 0.9887.
S&P 500 index retreated from recent rally and declined on Tuesday after Billiton announced the demand for steel from China was falling. US benchmark index lost 0.3% or 4.23 points to 1,405.52. Oil and gas sector contributed most to the downside. Tiffany surged 6.7% to USD 73.27 as stock market rally encouraged jewelry purchases. Apple jumped 0.8% to a new