China may raise export tax rebates in 2012 in an attempt to stimulate its exports amid global economic instability. The decision will be made when time is appropriate and will be the first tax rebate increase in the last three years, said Zhong Shan, Deputy Minister of Commerce. The country will try to stick to its current foreign policies but
Mazda Motor Corp. announced it will issue new shares worth JPY 100 billion to aid its business. Japanese auto manufacturer predicts large scale net loss valued at JPY 100 billion this year, marking the fourth negative year in a row as strong Yen harms company's vehicle exports. Additionally Mazda is planning increase debt by JPY 70 billion through loans from
China's key money market rate declined on investor speculation the liquidity will advance after government's decision to lower reserve requirement ratios. Seven day repurchase costs, an indicator of capital availability, gave up 49 points to 4.88%. The repurchase rates are likely to diminish further, said Dariusz Kowalczyk, Credit Agricole CIB's strategist in Hong Kong.
The central bank of Australia said it still has some space for monetary relieving if necessary. The Reserve Bank of Australia kept its key interest rate unchanged earlier this month. In case demand conditions worsen dramatically, current inflation outlook provides a scope for additional monetary easing, reported RBA in its latest meeting minutes. Australian Dollar slightly depreciated on the announcement.
17-nation currency appreciated against the Greenback and the Japanese Yen after European Finance Ministers approved the second rescue package for indebted Greece. Euro added 0.1% against its US peer to USD 1.3254 and strengthened 0.2% against Yen to JPY 105.62. Currently EUR/USD is trading at USD 1.3281 and EUR/JPY is trading at JPY 105.95.
Debt-troubled Greece won EUR 130 billion (USD 173 billion) rescue package after EU governments squeezed allowances from private creditors and persuaded investor representatives to give more debt alleviation. The bailout funding will allow Greece to repay debt due March and avoid default. Greece sustained its promise and accepted additional spending cuts valued at EUR 325 million.
British FTSE 100 index traded 0.8% higher on Monday ahead of European finance ministers meeting in Brussels as investors hoped it will result in second bailout package for Greece. Financial and resource shares which are closely linked to economic growth posted major gains. Lloyds Banking Group advanced 3.2% and Royal Bank of Scotland climbed 3.3%. Miner Rio Tinto soared 2.5%
Hong Kong's Hang Seng index opened 0.7% higher on Monday Asian trade as China released announcement it cut nation's reserve requirement ratio. However index erased gains later and finished 0.31% or 66.83 points lower at 21,424.79 after data showed a rapid slowdown in Chinese housing market. Resource stocks posted the biggest declines with China Petroleu giving up 5.5% and China
German DAX index extended gains on Monday lifted by hopes Greece would finally receive the rescue package and China's decision to ease reserve requirements. Among notable winners were HeidelbergCement AG and Infineon Technologies AG, surging 2.3% and 2.2% respectively. Financial stocks also supported DAX on the upside with Commerzbank advancing 2.3% and Deutsche Bank jumping 2.4%. At the moment of
Rural commodities rallied on Friday amid expectation of stronger demand for US grain supplies. Harmed crops in the South America created fresh stimulus for major grain importers such as China to replace South American supplies with increased imports from the US. Wheat, the top gainer, was also backed up by the further limitation of exports from Ukraine. Moreover, speculation over
Energy markets faced mixed performance on Friday, with rising crude oil and natural gas and falling Brent and heating oil. Crude oil was mainly lifted by strong economic data from the US and renewed geopolitical tensions over the Iranian nuclear program and violence in Nigeria and Iraq. However, the upswing may be capped by the instability of the Euro Zone's
Base metals ended the week mostly lower amid deteriorated investors' confidence on the uncertainty over the Greek bailout talks and weak demand from the main industry metals consumer, China. However, the downward movement was limited by the expected production cuts and positive headlines from the US. Firm equities also lent some support to the commodity group. Meanwhile, zinc faced the
Precious metals, excluding platinum, declined on Friday amid lack of clear decision over the Greek bailout. Precious metals were broadly tracking the movement of the Euro against the US Dollar. At the same time, upbeat US economic data put the investors off precious metals that traditionally are considered as safe haven. The yellow metal found additional support in the increased
The index, measuring French business sentiment stayed at 92 in February, matching economists' expectations. Although the February business confidence indicator is the lowest reading in two years, it has stopped its decline, indicating European second biggest economy may be gaining momentum for recovery.
Standard & Poor's rating agency reaffirmed Japan's AA- national debt rating on Monday. Nevertheless the company warned it may consider cutting Japan's short and long term ratings in case country's officials fail to reduce debt. Standard & Poor's emphasized it will watch Tokyo efforts to bring to order nation's fiscal policy.
Japan's Nikkei Stock Average extended gains on Monday, supported by China's decision to ease reserve requirements and investors expectations regarding outcome of meeting in Brussels. Nikkei 225 index added 1.08% or 100.92 points and settled at 9,485.09. Gains were limited on the upside as data showed Japan's trade gap widened notably in January. JFE Holdings jumped 8% after Credit Suisse
Dow Jones Industrial Average Index posted gains on Friday as US consumer prices climbed less than predicted and core inflation matched analyst expectations. Moreover, Conference Board said its index of major economic measures increased for a fourth straight month. Blue chip index advanced 0.4% or 45.79 points, settling at 12,949.87, led by Intel and E.I. Du Pont which gained 2%
S&P 500 index rose on Friday, supported by regained Greek optimism and better than predicted US economic data. American stock index added 0.23% or 3.19 points and finished at 1,361.23. Frontier Communications rocketed 7.3% after lowering its dividends to cut debt. Heinz gained 4.6% on successful earnings report. Gilead Sciences tumbled 14% after drug maker said its hepatitis C treatment
Finland's Finance Ministry considers the next Greek bailout is likely to be finally approved by the week which starts March 12. Currently, all necessary elements to sign an agreement on the 130 billion Euros worth bailout loan are ready, said French Finance Minister, Francois Baroin. However, it is still not clear how much the IMF plans to contribute to the
Deutsche Bank expects the industrial metals to be firm in Q2 as China's and Europe's economic situation is likely to stabilize. Copper is expected to average at 9,000 US Dollars per ton in Q2 while the metal's price is likely to fall to 8,500 US Dollars per ton in Q3 and recover to 8,700 US Dollars per ton in Q4.
Deutsche Bank announced that it maintains the bullish outlook for precious metals. The bank expects the gold to average at 1,800 US Dollars per ounce in Q2 and at 1,900 US Dollars per ounce in Q4. At the same time, silver price is likely to hit 34 US Dollars per ounce and 40 US Dollars per ounce in Q2 and
Grain futures in the US ended the week on the positive note. The soybean futures for delivery in March, were the top gainers, trading at 12,6662 US Dollars per bushel as China signed a contact on record high US soybean purchases. At the same time, corn and wheat also moved higher on the expected higher demand for US grain supplies.
Gold prices increased during the Asian session, following the news on the lowered RRR in China. The move weighted down on the US Dollar thus stimulating its hedge's, gold, jump. COMEX gold's April contract traded at 1,738.05 US Dollars per troy ounce on the New York Mercantile Exchange, soaring 0.7%.
The Greenback weakened against 17-nation currency and other important counterparts on speculation Monday meeting will bring a solution to Greek troubles. Depreciation was fuelled by China's decision to cut its reserve requirement ratio. ICE Dollar index lost 0.28% and declined from 79.334 to 79.082 during late American trade on Friday. Euro gained 0.12% against its US peer to USD 1.3216. Currently EUR/USD