AutoZone, large auto parts retailer, announced its Q1 net income increased by 11% to $191.1 million, up from $172.1 million the same period last year. The sales of the company added 7.4% to $1.92 billion, slightly exceeding the forecast of $1.9 billion sales as projected by FactSet Research.
Copper futures declined to three-day low following the announcement of Standard & Poor's possible downgrade of credit rating of 15 euro-zone economies, including Germany and France. On the Comex division of the New York Mercantile Exchange, copper futures for delivery in March were traded at USD3.551 a pound at the early European trade, losing 1.8% since opening.
Netherland's authorities announced they embarked on investigation into various mobile providers in the country. However, the officials do not disclose the purpose of investigation. Royal KPN NV, leading Dutch telecommunications company, confirmed the start of investigation and said that the statement clarifying the situation will be issued later.
The euro zone's GDP rose at an expected pace in Q3, according to official data. The GDP increased by 0.2% on a seasonally adjusted basis in three months ended in September fully meeting the forecast. GDP increased by 1.4% on a yearly basis also being in compliance with previous projections. After the data release the euro moved higher against the greenback. EUR/USD is trading
UK stocks decreased following the announcement that Standard & Poor's Rating Services may downgrade the ratings in 15 euro-zone countries. The FTSE 100 lost 0.2% in the morning trade. Mining and energy stocks are top-losers, Vendanta Resources PLC declined by 2.3% while Eurasian Natural Resources Corp. PLC tumbled by 1.8%. Energy companies also experienced losses with Essar Energy PLC decreasing by 2.6%.
Dow Jones Industrial Average Index added 0.65% or 78.41 points and closed at 12,097.83 on Monday trade as Monti's austerity and growth plan stimulated investor hopes for resolving debt crisis. Most of index's shares gained. Appreciation in the index was led by banks and tech-companies. Bank Of America Corp. advanced 2.66%, and J P Morgan Chase & Co climbed 3.65%. Microsoft Corp. soared 1.9% while
On Monday S&P 500 benchmark index advanced 1.03% or 12.80 points reaching 1,257.08 after Italian PM Monti presented austerity and growth plan. Main supporters for the index were banking shares while health-care firms were among main decliners. Morgan Stanley added 6.77%, Citigroup Inc. rose 5.89%, while J P Morgan Chase & Co jumped 3.65%. Washington Post Company and Newfield Exploration Company pushed down the index as
On Monday S&P 500 benchmark index advanced 1.03% or 12.80 points reaching 1,257.08 after Italian PM Monti presented austerity and growth plan. Main supporters for the index were banking shares while health-care firms turned out to be main decliners. Morgan Stanley added 6.77%, Citigroup Inc. rose 5.89%, while J P Morgan Chase & Co jumped 3.65%. Washington Post Company and Newfield Exploration Company pushed down
French President Sarkozy and German Chancellor Merkel released a joint statement yesterday saying they respect and take into account S&P decision. Nevertheless, both leaders insisted that tighter fiscal alliance and stricter control of national budgets and economic policies will promote financial stability growth across the region.
The US economy is endangered as oil prices continue to rise and the world will be impacted if the US economy suffers losses, said Robert Dudley, Chief Executive. The current price of crude oil is about $100 a barrel. OPEC members do not plan to decrease oil prices or amount of output as the balance of supply and demand occurs at this price level.
Japanese yen and US dollar appreciated against most of their main peers after Standard & Poor's warned it may downgrade France, Germany and 13 other euro union members. Japanese yen rose for third consecutive day and gained 0.3% against euro reaching ВҐ103.99 while greenback surge 0.2% to $1.3378. EUR/JPY currently is trading at ВҐ104.00 while EUR/USD is trading at $1.3369.
Italian political parties claimed they are not going to disrupt country's €30 bn ($40 bn) austerity plan that is supposed to protect both Italy and Euro. Monti presented his budget cut plan yesterday to the parliament. Austerity measures have been evaluated positively by investors as Italian borrowing costs declined and stock markets depicted upward trend.
On Monday Canadian dollar appreciated both against greenback and Euro after S&P reported it may downgrade 15 euro area countries. Canada's national currency increased 0.3% against its US peer to C$1.0165 per USD and surged 0.2% versus euro reaching C$1.3623. Canadian dollar extends gains as investors perceive the country as one the few safe havens. USD/CAD currently is trading at C$1.0185 while EUR/CAD is trading at C$1.3611.
German and French bonds declined after Standard & Poor's told it may lower the sovereign ratings of 15 European countries. Borrowing costs on French 10-year notes climbed 10 b.p. while those on German 10-year bonds increased 5 b.p. According to S&P statement, France, Germany and other AAA rated European nations may be downgraded if the summit on December 9 will turn out to be unsuccessful.
On Tuesday Hong Kong's Hang Seng Index edged down 1.24% or 237.46 points and closed at 18,942.23 after S&P released announcement it may cut credit rating for 15 Eurozone countries as lingering debt crisis threatens financial stability. Financials put main negative pressure on the index as Agricultural Bank of China Ltd lost 1.7%, Bank of China Ltd. declined 1.8% and HSBC Holdings PLC dropped 1% after
Japan's Nikkei Stock Average lost 1.39% or 120.82 points on Tuesday and closed at 8,575.16 amid worries created by Standard & Poor's that European countries may face downgrading. Most Japanese financials weighted down on the index as Nomura Holdings Inc. and Mizuho Financial Group Inc. both traded down 1.9%. Metal-sector companies also contributed to Nikkei 225 depreciation as Sumitomo Metal Mining declined 1.8% while JFE Holdings
Swiss franc edged down against the greenback following the data on more than expected fall in the country's CPI. The CPI fell by 0.5% annualized rate in November as compared to expected 0.3%. At the moment the pair USD/CHF is trading at 0.9271, or 0.7% up.
Crude oil prices declined following the downgrading of the credit ratings in 15 euro-zone countries by the rating agency Standard & Poor's. On the New York Mercantile Exchange, crude oil futures for due January were traded at USD100.75 a barrel at the early European trade, losing 0.25% since opening. However, analysts claim the decrease might have been higher as Iranian issue limited losses.
China's real estate pieces are expected to fall by 20% by the end of 2012 from their peak during the property boom in 2011, reported Credit Suisse. The tightening measures implemented by the government are likely to prolong a slump thus worsening the country economic outlook, the bank added.
European sovereign bond yields increased after Standard & Poor's Ratings Services downgraded the credit rating of 15 euro-zone countries. Italian 10-year bond yield increased by 20 basis points to 6.05%, those of Spain edged up to 5.17%, while German 10-year bond yields gained 2 basis points to 2.33%, French similar bonds now yield 3.19%.
Swiss CPI decreased in November for the second moth in line, according to official data. The CPI, main gauge of inflation, dropped by 0.2% last month as compared to 0.1% decline in October, reported the Swiss Federal Statistics Office. Consumer prices declined by 0.5% on annual basis in November and 0.1% in October. Experts previously projected the yearly rate to fall by 0.3%.
China Vanke Co, the top property developer in China by the market share, experienced the largest yearly decrease in sales in November signaling the real estate market requires easing of the government's tightening policies. The sales figures indicated a 36% decline last month. The report on lower sales followed China's central bank announcement about essential drop in real estate investments, as well as decline in
The Asian Development Bank downgraded growth forecast for East Asia for 2012 citing recession in the developed economies such as US and Europe. The bank projects 14 countries in the Asia to expand growth by 7.2% as compared to 7.5% expected earlier. The decrease in growth forecast was caused mainly by low export prospects, the bank added.
On Tuesday Tokyo Stock Exchange (TSE) announced Olympus Corp still might be delisted from public trading even if it will manage to announce earnings by December 14. Announcement was released after issue of independent report depicting false accounting schemes. TSE's report is likely to push down Olympus share price which has recovered since November 8.