Thursday, September 03, 2009
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
LONDON: Gold hit a four-week high of $966.20 an ounce as concerns over falling equities pushed the metal through technical resistance levels in the wake of US jobs data, and amid weakness in the dollar index. Spot gold was bid at $964.90 an ounce at 1257 GMT, against $955.85 an ounce late in New York on Tuesday. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $10.20 to $966.70. Equities were already weak yesterday, with rumours about further problems in the banking sector around. That definitely spurred some safe haven buying in gold, said Alexander Zumpfe, a trader at precious metals house Heraeus. After $960 broke, technical buying came in, he said. The dollar index, which measures the US unit s performance against a basket of major currencies, weakened after data showed US private employers cut 298,000 jobs in August, fewer than a revised 360,000 jobs in July. The stronger than expected jobs number failed to ease investor concerns about broader market sentiment. Oil prices fell, extending Tuesday s hefty 3 per cent slide to slip below $68 a barrel. Gold prices often track moves in oil, as the metal can be bought as an inflation hedge.
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Thursday, September 03, 2009KARACHI: British Deputy High Commissioner, Robert W Gibson has said that British companies working in Pakistan were having continued interest to work as well as looking forward to expand their business in future. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI) on Wednesday, he said that 100 British companies with an investment portfolio of 1.7 billion dollars are operational in Pakistan over the last many years.
He said that Pakistan, with a population of 170 million, is a market with huge potential and the UK is keen to invest further here. He said the Pakistan was the most business-friendly country in Asia, as lots of opportunities are here to attract the foreign investors.
The country is quite different from what it was painted by TV and other media. Karachi, Lahore and Islamabad are quite safe places, he added. British Deputy High Commissioner pointed out that two way trade has increased by 12 percent per annum whereas last year British investors have made huge investment in Pakistan.(BRecorder)
Euro Libor rates mark new lows
Posted by imdurrani Labels: Europe, forex trading, World Currencies, world forexFriday, August 28, 2009LONDON: The interbank cost of borrowing euros hit new lows on Thursday with liquidity still abundant, but data showed money was still not reaching the real economy and central bankers continued to warn of an uncertain outlook. Benchmark sterling and dollar rates also marked new lows, with the latter remaining below equivalent yen rates, a market anomaly seen this week for the first time in 16 years.
Despite around 160 billion euros of excess liquidity in the system, loans to eurozone households and businesses fell in July to record their slowest annual growth ever, the European Central Bank said on Thursday. "The key thing is that there is little sign that the ECB's liquidity provisions are encouraging banks to lend to the wider economy," said Ben May, an economist at Capital Economics.
Meanwhile, ECB Governing Council member Mario Draghi was the latest central banker to sound a cautionary note, saying the global financial and economic crisis is easing but the outlook remained uncertain. His comments echo those of other policymakers in recent days, which have supported government bonds and interest rate futures in the eurozone.
"There doesn't appear to be any final demand behind the positive indicators we're seeing, it's more an inventory cycle thing going on at the moment," said Nordea's chief analyst Niels From.
Benchmark three-month euro Libor rates were almost a basis point lower at 0.8025 percent, with the dollar equivalent just over a basis point lower at 0.36036 percent. The premium that dollar Libor trades over a risk-free benchmark, Overnight Index Swap rates - a gauge of stress in the banking sector - fell to 18 basis points, a level seen in August 2007 just as the credit crisis erupted.(Reuters)Visit Finance.KalPOint.Com for latest financial stories...
Thursday, August 27, 2009
BRUSSELS (AFP): Europe s economy has not made a firm recovery from the global downturn despite some encouraging signs, EU Commission chief Jose Manuel Barroso said Tuesday. The impact of the financial and economic crisis is still tangible in Europe and we have much still to do, he said at a joint press conference with Lithuanian President Dalia Grybauskaite.Lithuania is suffering the worst recession in the European Union. Several European countries are seeing encouraging signs of recovery but firm recovery is not here yet, he cautioned. While Germany and France have pulled out of recession and have nearly managed to bring the rest of the eurozone with them, analysts say much of the recovery is due to massive government stimulus measures for businesses.Unemployment is also rising as companies struggle to stay viable.Visit Finance.KalPoint.Com for latest financial stories...
Germany exits recession, prospects brighten
Posted by imdurrani Labels: Europe, global economy, world economyWednesday, August 26, 2009
BERLIN: Germany exited recession in the second quarter despite a massive drop in inventories and restocking by firms could spur the economy to faster growth. Federal Statistics Office data confirmed on Tuesday that gross domestic product (GDP) grew by 0.3 percent in April-June period, as net trade and private consumption offset the reduction in firms' inventories.
The data ended four straight quarters of contraction, and could offer support for Chancellor Angela Merkel's ruling coalition as a federal election approaches on September 27. Having overcome its deepest slump since World War Two, analysts believe the German economy should rally as companies ramp up production and rebuild their depleted stocks.
"The big decline in inventories suggests that these need to be built up again and that production will get a boost," said Juergen Michels, an economist at Citigroup in London. "The recovery has a relatively solid foundation." Government stimulus measures, such as a subsidy for scrapping old cars in exchange for newer, more environmentally friendly models, were seen by many as a key driver of growth in the April-June period.
"Despite today's positive numbers, the German economy is still on a drip, getting infusions from policymakers," said Carsten Brzeski, an analyst at ING Financial Markets. "The coming weeks and months look good but some doubts remain whether the economy can already stand on its own feet." The figures showed that adjusted for working days, German GDP contracted by 5.9 percent on the year in the second quarter, confirming preliminary estimates from August 13.
In the first quarter, it shrank by 6.7 percent. Many analysts believe job losses in Germany will accelerate in the autumn as the effects of government support for the labour market - notably incentives for firms to put workers on shortened hours rather than fire them - wear off.
In a breakdown of the data, the Office said net trade added 1.6 percentage points to GDP as a sharp drop in imports outpaced a decline in exports. Private consumption added 0.4 points and a liquidation in inventories subtracted 1.9 points. Since Germany reunified in 1990, inventories had only once hit GDP harder, an Office spokesman said.
Then, in the last quarter of 2006, the blip was caused by statistical factors, and did not properly reflect the state of the economy at the time, he added. Latest indicators, such as the Ifo institute's gauge of business sentiment, have risen, suggesting the recovery is gaining strength.
The data ended four straight quarters of contraction, and could offer support for Chancellor Angela Merkel's ruling coalition as a federal election approaches on September 27. Having overcome its deepest slump since World War Two, analysts believe the German economy should rally as companies ramp up production and rebuild their depleted stocks.
"The big decline in inventories suggests that these need to be built up again and that production will get a boost," said Juergen Michels, an economist at Citigroup in London. "The recovery has a relatively solid foundation." Government stimulus measures, such as a subsidy for scrapping old cars in exchange for newer, more environmentally friendly models, were seen by many as a key driver of growth in the April-June period.
"Despite today's positive numbers, the German economy is still on a drip, getting infusions from policymakers," said Carsten Brzeski, an analyst at ING Financial Markets. "The coming weeks and months look good but some doubts remain whether the economy can already stand on its own feet." The figures showed that adjusted for working days, German GDP contracted by 5.9 percent on the year in the second quarter, confirming preliminary estimates from August 13.
In the first quarter, it shrank by 6.7 percent. Many analysts believe job losses in Germany will accelerate in the autumn as the effects of government support for the labour market - notably incentives for firms to put workers on shortened hours rather than fire them - wear off.
In a breakdown of the data, the Office said net trade added 1.6 percentage points to GDP as a sharp drop in imports outpaced a decline in exports. Private consumption added 0.4 points and a liquidation in inventories subtracted 1.9 points. Since Germany reunified in 1990, inventories had only once hit GDP harder, an Office spokesman said.
Then, in the last quarter of 2006, the blip was caused by statistical factors, and did not properly reflect the state of the economy at the time, he added. Latest indicators, such as the Ifo institute's gauge of business sentiment, have risen, suggesting the recovery is gaining strength.
(Reuters)
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LONDON: Europe's leading stock markets surged on Wednesday, boosted by Wall Street as investors eyed a global economic recovery following positive earnings and economic data, analysts said.
"Stock markets across Europe rose for the third day in a row on Wednesday after better then expected Intel results after the bell last night," said City Index market analyst Nick Serff, referring to the US technology firm.
London's FTSE 100 gained 2.57 percent to close at 4,346.46 points.
Frankfurt's DAX soared 3.07 percent to close at 4,928.44 points and in Paris the CAC 40 rose 2.90 percent to 3,171.27.
The DJ Euro Stoxx 50 index of leading eurozone shares surged by 3.24 percent to 2,447.58 points.
Wall Street shares shot higher Wednesday after a stronger-than-expected quarterly report for tech giant Intel ignited optimism about the economic and earnings outlook.
The Dow Jones Industrial Average lifted 1.82 percent to 8,511.24 in early trade. The tech-heavy Nasdaq rallied 2.42 percent to 1,843.23 and the Standard & Poor's 500 broad-market index climbed 1.82 percent to 922.33.
"Intel Corp.'s solid quarterly report and upbeat outlook have galvanized Wall Street bulls," said Joseph Hargett at Schaeffer's Investment Research.
"The report helped bolster hopes for a solid round of corporate earnings, especially since Goldman Sachs Group took the edge off with its better-than-expected quarterly report on Tuesday morning."
Goldman Sachs posted a net profit of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
"Investors will be making the most of this post-Goldman optimism," said IG Index market strategist Anthony Grech.
The FTSE was also boosted by British unemployment data.
"Although the unemployment number hit its highest rate since January 1997, the number of people claiming jobless benefits rose by less than expected. This helped the FTSE trade above 4,300 for the first time in weeks," added Serff.
The number claiming unemployment benefits in Britain rose in June at the slowest pace for 13 months, official data showed, but the unemployment rate hit a 12-year high of 7.6 percent, amid Britain's worst recession in decades.
Japanese stocks ended narrowly mixed Wednesday as investors reacted coolly to the gains on Wall Street, dealers said.
Leading the way in London on Wednesday were miners and banks. Anglo-Swiss miner Xstrata soared 8.42 percent to 666 pence and Barclays banking group gained 4.43 percent to 313.3 pence.
"Commodity producers are leading the charge higher, as analysts are forecasting increased demand from China," said Grech.
Elsewhere in Europe, the Swiss market Index rose 2.02 percent to 5,473.33, Milan soared 3.68 percent to 19,130, Amsterdam 3.54 percent to 260.82, Madrid 2.82 percent to 9,905.30 and Brussels 2.79 percent to 2,082.29.
(AFP)
"Stock markets across Europe rose for the third day in a row on Wednesday after better then expected Intel results after the bell last night," said City Index market analyst Nick Serff, referring to the US technology firm.
London's FTSE 100 gained 2.57 percent to close at 4,346.46 points.
Frankfurt's DAX soared 3.07 percent to close at 4,928.44 points and in Paris the CAC 40 rose 2.90 percent to 3,171.27.
The DJ Euro Stoxx 50 index of leading eurozone shares surged by 3.24 percent to 2,447.58 points.
Wall Street shares shot higher Wednesday after a stronger-than-expected quarterly report for tech giant Intel ignited optimism about the economic and earnings outlook.
The Dow Jones Industrial Average lifted 1.82 percent to 8,511.24 in early trade. The tech-heavy Nasdaq rallied 2.42 percent to 1,843.23 and the Standard & Poor's 500 broad-market index climbed 1.82 percent to 922.33.
"Intel Corp.'s solid quarterly report and upbeat outlook have galvanized Wall Street bulls," said Joseph Hargett at Schaeffer's Investment Research.
"The report helped bolster hopes for a solid round of corporate earnings, especially since Goldman Sachs Group took the edge off with its better-than-expected quarterly report on Tuesday morning."
Goldman Sachs posted a net profit of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
"Investors will be making the most of this post-Goldman optimism," said IG Index market strategist Anthony Grech.
The FTSE was also boosted by British unemployment data.
"Although the unemployment number hit its highest rate since January 1997, the number of people claiming jobless benefits rose by less than expected. This helped the FTSE trade above 4,300 for the first time in weeks," added Serff.
The number claiming unemployment benefits in Britain rose in June at the slowest pace for 13 months, official data showed, but the unemployment rate hit a 12-year high of 7.6 percent, amid Britain's worst recession in decades.
Japanese stocks ended narrowly mixed Wednesday as investors reacted coolly to the gains on Wall Street, dealers said.
Leading the way in London on Wednesday were miners and banks. Anglo-Swiss miner Xstrata soared 8.42 percent to 666 pence and Barclays banking group gained 4.43 percent to 313.3 pence.
"Commodity producers are leading the charge higher, as analysts are forecasting increased demand from China," said Grech.
Elsewhere in Europe, the Swiss market Index rose 2.02 percent to 5,473.33, Milan soared 3.68 percent to 19,130, Amsterdam 3.54 percent to 260.82, Madrid 2.82 percent to 9,905.30 and Brussels 2.79 percent to 2,082.29.
(AFP)
Europe stocks bounce but doubts persist
Posted by imdurrani Labels: Europe, world finance, world stocksWednesday July 15, 2009
LONDON : Europe's leading stock markets rose on Tuesday after strong US bank earnings and economic data, but doubt crept in with investors already looking anxiously ahead for more indicators, dealers said.
Bailed out US investment banking giant Goldman Sachs reported stronger than expected earnings of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
The US government said retail prices rose for the second month in a row in June.
The reports gave markets a lift in early afternoon European trading, but analysts warned that investors were still haunted by uncertainty over the economic outlook.
"The market is still very much in a state of flux at the moment with both falls and rallies being short-lived," said Angus Campbell, a trader at Capital Spreads.
London's FTSE 100 index closed 0.85 percent higher at 4,237.68 points as European markets extended Monday's strong gains.
Frankfurt's DAX rose 1.26 percent to 4,781.69 points and in Paris the CAC 40 index rose 0.97 percent to close at 3,081.87.
Financial companies fared well in London trading, with Royal Bank of Scotland up 1.99 percent to 36.92 pounds and Lloyds Banking Group two percent to 65.8 pounds.
Likewise in Frankfurt, Deutsche Bank rose 2.60 percent to 46.69 euros and Commerzbank 0.61 percent to 4.91.
The Eurostoxx 50 composite index gained 0.90 percent.
Elsewhere there were gains of 0.70 percent on the Madrid stock exchange, 1.61 percent in Brussels, 0.94 percent on the Swiss Market Index, 0.85 percent in Amsterdam and 1.28 percent in Milan.
But analysts played down the apparent boost from the Goldman Sachs news as markets looked ahead to a wave of other banking results and economic data in coming days.
"With the lack of follow through this afternoon on the back of the Goldman Sachs's numbers, it could well be that this rally has now run its course," said David Jones, a strategist at IG Index.
Goldman's rivals JPMorgan Chase, Bank of America and Citigroup are all due to issue earnings reports this week. Markets were also awaiting US and eurozone inflation data, plus US manufacturing and housing reports.
US stocks struggled in early trade as investors took profits from a big rally on Wall Street, having already digested optimism over Goldman Sachs.
The Dow Jones Industrial Average dropped 0.36 percent to 8,301.67 in early trade. The technology-heavy Nasdaq dipped 0.31 percent to 1,787.70 while the broad-market Standard & Poor's 500 index edged down 0.24 percent to 898.92.
Goldman Sachs shares edged up 0.56 percent to 150.28 dollars, extending gains from Monday, but the rest of the finance sector was under pressure on Wall Street.
Japanese share prices closed up 2.34 percent on Tuesday, snapping a nine-day losing streak. Hong Kong soared 3.66 percent.
(AFP)
LONDON : Europe's leading stock markets rose on Tuesday after strong US bank earnings and economic data, but doubt crept in with investors already looking anxiously ahead for more indicators, dealers said.
Bailed out US investment banking giant Goldman Sachs reported stronger than expected earnings of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
The US government said retail prices rose for the second month in a row in June.
The reports gave markets a lift in early afternoon European trading, but analysts warned that investors were still haunted by uncertainty over the economic outlook.
"The market is still very much in a state of flux at the moment with both falls and rallies being short-lived," said Angus Campbell, a trader at Capital Spreads.
London's FTSE 100 index closed 0.85 percent higher at 4,237.68 points as European markets extended Monday's strong gains.
Frankfurt's DAX rose 1.26 percent to 4,781.69 points and in Paris the CAC 40 index rose 0.97 percent to close at 3,081.87.
Financial companies fared well in London trading, with Royal Bank of Scotland up 1.99 percent to 36.92 pounds and Lloyds Banking Group two percent to 65.8 pounds.
Likewise in Frankfurt, Deutsche Bank rose 2.60 percent to 46.69 euros and Commerzbank 0.61 percent to 4.91.
The Eurostoxx 50 composite index gained 0.90 percent.
Elsewhere there were gains of 0.70 percent on the Madrid stock exchange, 1.61 percent in Brussels, 0.94 percent on the Swiss Market Index, 0.85 percent in Amsterdam and 1.28 percent in Milan.
But analysts played down the apparent boost from the Goldman Sachs news as markets looked ahead to a wave of other banking results and economic data in coming days.
"With the lack of follow through this afternoon on the back of the Goldman Sachs's numbers, it could well be that this rally has now run its course," said David Jones, a strategist at IG Index.
Goldman's rivals JPMorgan Chase, Bank of America and Citigroup are all due to issue earnings reports this week. Markets were also awaiting US and eurozone inflation data, plus US manufacturing and housing reports.
US stocks struggled in early trade as investors took profits from a big rally on Wall Street, having already digested optimism over Goldman Sachs.
The Dow Jones Industrial Average dropped 0.36 percent to 8,301.67 in early trade. The technology-heavy Nasdaq dipped 0.31 percent to 1,787.70 while the broad-market Standard & Poor's 500 index edged down 0.24 percent to 898.92.
Goldman Sachs shares edged up 0.56 percent to 150.28 dollars, extending gains from Monday, but the rest of the finance sector was under pressure on Wall Street.
Japanese share prices closed up 2.34 percent on Tuesday, snapping a nine-day losing streak. Hong Kong soared 3.66 percent.
(AFP)
European exchanges wilt on oil price fall
Posted by imdurrani Labels: Europe, global economy, world finance, world stocks| Saturday July 11, 2009 |
| LONDON: European stock exchanges wilted on Friday, dragged down by a disappointing report on US consumer confidence and a fall in oil prices. The London FTSE 100 index shed 0.76 percent to close at 4,127.17 while in Paris the CAC 40 fell 1.41 percent to finish at 2,983.1. The Frankfurt Dax slipped 1.16 percent to 4,576.31. Elsewhere in Europe there were declines of 1.27 percent on the Swiss Market Index, 1.04 percent in Madrid, 1.58 percent in Amsterdam and 0.23 percent in Brussels. US stocks sputtered in early trade Friday with investors fretting over fears that recovery from the global recession remains distant. The blue-chip Dow Jones Industrial Average had fallen 1.08 percent to 8,094.90 by mid-day while the tech-heavy Nasdaq was down 0.56 percent at 1,742.82. Ahead of the opening, the government said the US trade deficit narrowed sharply in May to its lowest level in nearly a decade, led by a plunge in imported oil. The deficit fell nearly 10 percent in May to a seasonally adjusted 26.0 billion dollars, the lowest level since November 1999. The news appeared moderately positive for the US economy but also reflected weakness in overall global trade. Patrick O'Hare at Briefing.com said that "the impetus for the weak tone this morning was the weak finish yesterday, along with a report that China's exports declined for the eighth straight month." He said this "is diluting some of the hope that China's domestic red shoots will germinate the green shoots of a global recovery." The economic outlook "has most folks confused," said Al Goldman at Wells Fargo Advisors. "We believe the data suggests that the end of the recession is near that's the good news for investors. However, the data also appears to indicate, as we have been saying for a month, that a strong economy is not just around the corner." In Europe market analysts said sentiment was also depressed by the University of Michigan US consumer confidence index, which plunged to 64.6 points this month from 70.8 in June, a far sharper fall than had been expected. In London weaker commodity prices sent mining issues lower. Rio Tinto lost 3.33 percent to finish at 1,901.50 pence while Xstrata gave up 2.10 percent and closed at 597 pence. With crude prices sliding, oil-related stocks came under selling pressure in Paris. Total fell 1.68 percent to 35.98 euros, Technip lost 6.35 percent to close at 32.76 euros and CGG Veritas shed 4.39 percent to end the week at 10.87. Telecom equipment maker Alcatel-Lucent gave up 3.49 percent to close at 1.49 euros after announcing a new plan to cut 1,000 jobs in France by next year. In Frankfurt, Lufthansa gave up 1.66 percent to reach 8.58 euros on news that its bid for Austrian Airlines had stalled after the EU's anti-trust watchdog ruled that the German flag carrier had failed to address competition concerns raised by the acquisition. Energy giant EON fell 1.63 percent to 22.88 euros. One of the day's leading gainers, steel maker Salzgitter, added 1.23 percent to reach 59.37 euros after Citigroup raised its recommendation on the share. Asian dealers remained cautious Friday, with markets finishing the week mixed and looking for clues to an economic recovery ahead of the second-quarter earnings season. Toyko edged 0.04 percent lower, the eighth consecutive trading day of losses for the Nikkei, while Hong Kong lost 0.46 percent and Shanghai 0.29 percent. However, there were gains in Sydney, which added 0.82 percent, as Taipei dipped 0.32 percent. (AFP) |
| Friday July 10, 2009 |
| LONDON: European stock markets halted a three-day losing streak Thursday and finished in positive territory on better-than-expected US employment data. Sentiment was also boosted by news that US aluminium giant Alcoa had limited its second quarter loss to 454 million dollars, a better showing than the market had expected. In London the FTSE 100 index gained 0.45 percent to close at 4,158.66 points while in Paris the CAC 40 rose 0.54 percent to reach 3,025.94. The Frankfurt Dax added 1.26 percent to close at 4,630.07. Elsewhere in Europe there were gains of 1.18 percent in Milan, 0.88 percent in Madrid, 1.01 percent in Amsterdam and 0.30 percent on the Swiss Market Index. Wall Street wavered in early trade as investors fretted that the corporate earnings season would trample on signs of recovery from the severe recession. The Dow Jones Industrial Average had risen 0.13 percent to 8,188.84 at 1545 GMT. The tech-heavy Nasdaq composite gained 0.62 percent to 1,757.94. New York stocks pared back opening gains that had been bolstered by the Alcoa results, which unofficially kicked off the new round of quarterly corporate earnings. "With Wall Street nearly shaking in its boots ahead of a new round of corporate earnings, Alcoa Inc.'s better-than-expected quarterly report came as a breath of fresh air," said Joseph Hargett of Schaeffer's Investment Research. Alcoa, which jumped more than 4.0 percent in opening trade, was down 0.74 percent at 9.39 dollars. "There has been a sharp increase in investor pessimism in recent days," said Scott Marcouiller of Wells Fargo Advisors. On the macroeconomic front, new claims for US unemployment benefits fell 8.4 percent in the past week to a six-month low. But the number was skewed by fewer-than-expected layoffs in the automotive sector, the Labor Department said. The Labor Department said that initial claims fell to a seasonally adjusted 565,000 in the week ended July 4, shortened by the Independence Day holiday. Andrew Gledhill of Moody's Economy.com said the Labor Department's seasonal adjustment "anticipated a jump in layoffs due to summer auto plant shutdowns. Since these layoffs had already occurred, the jump never materialized, sending claims plummeting." In Europe, the US employment data was enough to spark a modest rebound, although gains began to fade in line with a loss of momentum on Wall Street. Trading volumes were weak in the absence of further data. "I don't think investors have much of an appetite when there are few indicators," said Alice Lhabouz of Turgot Asset Management. State-owned electricity group EDF nonetheless shot up 1.32 percent to reach 31.36 euros after its chief executive, Pierre Gadonneix, said the company was looking for a 20 percent hike in tariffs over three years. With a pick-up in crude prices in New York, oil giant Total rose 1.07 percent to finish at 36.60 euros. In Frankfurt steel makers, under heavy pressure on Wednesday, bounced back. ThyssenKrupp added 1.38 percent to reach 16.85 euros while Salzgitter gained 2.37 percent to finish at 58.65 euros. Mining issues were among the day's big winners in London, where Anglo American rose 5.59 percent to 1,651 pence and Rio Tinto 3.77 percent to 1,967 pence. Markets were mixed in Asia Thursday with a stronger yen sending Tokyo's market down for a seventh straight session, while jitters left many dealers sidelined before the corporate earnings season. Japan's Nikkei lost 1.38 percent, while Sydney was 0.12 percent off. However, Hong Kong bounced back from early selling pressure to rise 0.39 percent and cap a three-day losing streak, with dealers following further gains in China's markets. Shanghai added 1.37 percent on strong car sales, while Singapore added 2.11 percent. (AFP) |
Euro off lows
Posted by imdurrani Labels: Europe, forex, forex market, forex trading, World CurrenciesSaturday July 04, 2009
TOKYO: The euro struggled back from its lowest levels in a week on Friday, after a wave of sell orders compounded losses made on bleak US jobs numbers, and it found support as some investors judged it may have slipped too far. Dealers said the euro hit stop-loss sell orders around $1.3980, and possible hedge fund selling, in the crossover between late US trade and the start of the Asian day, sending it down to $1.3927 on electronic trading platform EBS.
The euro and currencies such as the Australian dollar, which have benefited from investor hopes for economic turnaround, had already weakened on Thursday after data showed US employers cut 467,000 jobs in June, far more than expected.
But analysts said market players then bought the euro back on Friday, helping it off the lows, although it was still weaker than before the employment data and investors were still dismayed the jobs numbers spelled a slower recovery than hoped.
The euro stood at $1.4002 on EBS, after shedding more than 1 percent on Thursday. It had hit a one-month high above $1.4200 earlier in the week. The euro dropped as far as 133.58 yen on Friday, extending a fall of nearly 2 percent on Thursday, but had edged back to 134.44 yen later in Asian trade.
It had also faced selling pressure after comments from European Central Bank President Jean-Claude Trichet the previous day that euro-zone activity would likely remain weak for the rest of the year. The ECB left its benchmark refinancing interest rate at a record low of 1 percent, as expected.
The dollar was steady against the yen at 96.00 yen, holding well within a range of 93.50-100 that has limited it since mid-April. With the jobs data out of the way, traders said focus was shifting to the Group of Eight meeting on July 8-10 and the US corporate earnings season that kicks off next week.
"Market players will watch China's comment on an alternative global currency. This is something that could take about 50 to 100 years, but the country's comment could still affect the market, even very briefly," said Tsutomu Soma, a senior manager in the foreign securities department at Okasan Securities.
(Reuters)
TOKYO: The euro struggled back from its lowest levels in a week on Friday, after a wave of sell orders compounded losses made on bleak US jobs numbers, and it found support as some investors judged it may have slipped too far. Dealers said the euro hit stop-loss sell orders around $1.3980, and possible hedge fund selling, in the crossover between late US trade and the start of the Asian day, sending it down to $1.3927 on electronic trading platform EBS.
The euro and currencies such as the Australian dollar, which have benefited from investor hopes for economic turnaround, had already weakened on Thursday after data showed US employers cut 467,000 jobs in June, far more than expected.
But analysts said market players then bought the euro back on Friday, helping it off the lows, although it was still weaker than before the employment data and investors were still dismayed the jobs numbers spelled a slower recovery than hoped.
The euro stood at $1.4002 on EBS, after shedding more than 1 percent on Thursday. It had hit a one-month high above $1.4200 earlier in the week. The euro dropped as far as 133.58 yen on Friday, extending a fall of nearly 2 percent on Thursday, but had edged back to 134.44 yen later in Asian trade.
It had also faced selling pressure after comments from European Central Bank President Jean-Claude Trichet the previous day that euro-zone activity would likely remain weak for the rest of the year. The ECB left its benchmark refinancing interest rate at a record low of 1 percent, as expected.
The dollar was steady against the yen at 96.00 yen, holding well within a range of 93.50-100 that has limited it since mid-April. With the jobs data out of the way, traders said focus was shifting to the Group of Eight meeting on July 8-10 and the US corporate earnings season that kicks off next week.
"Market players will watch China's comment on an alternative global currency. This is something that could take about 50 to 100 years, but the country's comment could still affect the market, even very briefly," said Tsutomu Soma, a senior manager in the foreign securities department at Okasan Securities.
(Reuters)
Sterling falls versus euro
Posted by imdurrani Labels: Europe, forex market, forex trading, World Currencies, world finance, world forexThursday July 02, 2009
LONDON: Sterling slid against the euro on Wednesday as worries persisted over the extent of the economic downturn in Britain, but gained against the dollar, which was broadly weaker ahead of key US employment data.
Worse-than-expected gross domestic product (GDP) figures on Tuesday showing the UK economy contracted by 2.4 percent in the first quarter continued to weigh on the pound, which reacted little to an above-forecast UK factory activity survey.
Sterling turned higher against the dollar as the US currency came under broad pressure, but it remained well below an 8-month high hit early on Tuesday after a surprisingly strong Nationwide UK housing survey.
Analysts expect trading to be cautious ahead of the non-farm payrolls data, which should provide fresh evidence on the health of the US economy. "The (PMI) numbers this morning were nothing too exciting for sterling. We're just teetering around and waiting for tomorrow's US payrolls numbers," said James Hughes, markets analyst at CMC Markets.
At 1433 GMT, the euro had climbed 0.4 percent against sterling at 85.55 pence. The pound rose 0.5 percent against the dollar to $1.6537, but stayed well below the 8-month high of $1.6745 hit on Tuesday. Sterling had spent most of the session trading lower against the dollar until figures showing US private employers cut more jobs than forecast pushed the US currency lower.
Sterling's trade-weighted index fell to 83.5, well below the 2009 high of 84.7 hit on Tuesday. Some analysts believe sterling could be set for some more gains near-term, however, particularly with UK equities performing strongly as the new quarter got underway, with the FTSE 100 index trading up 2 percent.
BNP Paribas currency strategist Ian Stannard said he viewed any falls in sterling against the dollar as a potential near-term buying opportunity. Further out, however, Stannard noted that sterling could be vulnerable to growing signs that investors may have been over-optimistic in their forecasts for a UK recovery.
Sterling gained around 15 percent against the dollar during the second quarter to post its best quarterly performance since late 1987. British manufacturing activity fell at its slowest pace in more than a year in June, with the latest CIPS/Markit manufacturing PMI index rising to 47.0 from 45.4 in May, the highest since May 2008.
Other data showed British service sector output posted its smallest fall in six months during April. "The latest news on the manufacturing and services sectors confirmed that the economy's rate of contraction eased markedly in the second quarter," Capital Economics analyst Jonathan Loynes said.
(Reuters)
European stock markets surge
Posted by imdurrani Labels: business finance, Europe, global economy, world stocksThursday July 02, 2009
LONDON: European stock exchanges surged ahead on Wednesday in line with a robust opening on Wall Street and in response to some positive US economic data despite worse-than-expected unemployment figures.
The London FTSE 100 index added 2.15 percent to close at 4,340.71 points while in Paris the CAC 40 rose 2.43 percent to reach 3,217. The Frankfurt Dax gained 2.0 percent to end the session at 4,905.44.
There were gains of 1.18 percent in Madrid, 2.12 percent in Brussels, 1.99 percent in Milan and 2.19 percent in Amsterdam.
Wall Street shares earlier in the day opened a new month and quarter on an upbeat note, with the Dow Jones Industrial Average up 1.36 percent at 8,561.57 at mid-day. The tech-heavy Nasdaq had risen 1.24 percent to 1,857.77.
Wall Street looked to overseas markets for early cues, shrugging off an early report showing a weaker-than-expected US labor market.
"Some upbeat manufacturing data from China and Europe are helping soothe concerns that the economic reality has fallen behind the recent rally in the equity markets since mid-March," said analysts at Charles Schwab & Co.
That helped offset a survey from payrolls firm showing the US private sector shed 473,000 jobs in June.
"The ADP report for June wasn't as dire as the initial headlines indicated," said Patrick O'Hare at Briefing.com
"Nonetheless, it isn't good news. It is a sobering reminder that the labour market is weak and that there is a heightened risk of disappointment in the (official) nonfarm payrolls number that will be reported Thursday."
But gains accelerated on a report showing the US manufacturing sector showed signs of emerging from its slump in June, after similar reports from Europe and China.
The US Institute of Supply Management said its index of the sector also known as the purchasing managers (PMI) index, increased to 44.8 percent from 42.8 percent in May.
It was below the 50 percent level that separates expansion and contraction, and just under the 45 percent expected by private economists.
But Ryan Sweet at Moody's Economy.com said the ISM report "suggests that the worst of the manufacturing contraction is behind us. The details of the report were much more upbeat than the headline number would suggest."
In Asia on Wednesday, Japanese share prices ended slightly lower as investors took profits after a key index of business confidence rose by less than expected, dealers said.
Tokyo's benchmark Nikkei-225 index lost 18.51 points, or 0.19 percent, to end at 9,939.93, a day after ending at a two-week high.
The Nikkei topped 10,000 points at one point during the day but failed to hold above the key level.
"As the index topped 10,000, it was a good time to sell," said Hideaki Higashi, a strategist at SMBC Friend Securities.
The Bank of Japan said in its quarterly Tankan survey that business confidence among major Japanese manufacturers had improved for the first time in two-and-a-half years.
(AFP)
Wednesday July 01, 2009
LONDON: Pakistan's exports to UK have crossed $1 billion mark this year for the first time in history. With the growth rate of 16.29 per cent during the period July 2008-April 2009, Pakistan has seen an all time high export to the UK, which is one of Pakistan's top three export markets in the world for the last four years from 2005-2006 through 2008- 2009 financial years.
Due to dedicated efforts of Commercial Wing of Pakistan High Commission, UK remains among top three markets with balance of trade in favour of Pakistan. Exports from Pakistan to the UK were worth 1.03 billion during the financial year 2007-2008. The exports mainly constituted such items as textile yarn, rice and cereals, fruit and vegetables and value added items like apparel and clothing accessories, power generating machinery and equipment.
Officials at Pakistan High Commission explained that by diversifying products a huge potential of enhancing further exports could be exploited. Three new sectors with export potential to the UK are high quality periods replica furniture, health care items including pharmaceuticals, surgical and beauty care instruments, herbal medicines, hospital linen besides dairy and Halal meat products.
In this context the commercial wing of Pakistan High Commission has planned sector specific conferences. A conference for promotion of Healthcare sector is being organised here from July 21 to 23. As market access remains a crucial factor in expanding trade share Pakistan has insisted time and again for concessions and preferences such as GSP plus.
The surge in exports due to effect of award of GSP plus in the past is evident from the comparison of data of FY 2003-2004 with the successive years. According to the officials, in UK there is great interest for trade with Pakistan, which could be translated into growth of exports through greater outreach to importers and by rectifying misperceptions about Pakistan, as travel advisories by FCO and discreet policies of companies of not providing insurance cover to travel to Pakistan create reluctance among people to travel to the South Asian country for business.
(APP)
LONDON: Pakistan's exports to UK have crossed $1 billion mark this year for the first time in history. With the growth rate of 16.29 per cent during the period July 2008-April 2009, Pakistan has seen an all time high export to the UK, which is one of Pakistan's top three export markets in the world for the last four years from 2005-2006 through 2008- 2009 financial years.
Due to dedicated efforts of Commercial Wing of Pakistan High Commission, UK remains among top three markets with balance of trade in favour of Pakistan. Exports from Pakistan to the UK were worth 1.03 billion during the financial year 2007-2008. The exports mainly constituted such items as textile yarn, rice and cereals, fruit and vegetables and value added items like apparel and clothing accessories, power generating machinery and equipment.
Officials at Pakistan High Commission explained that by diversifying products a huge potential of enhancing further exports could be exploited. Three new sectors with export potential to the UK are high quality periods replica furniture, health care items including pharmaceuticals, surgical and beauty care instruments, herbal medicines, hospital linen besides dairy and Halal meat products.
In this context the commercial wing of Pakistan High Commission has planned sector specific conferences. A conference for promotion of Healthcare sector is being organised here from July 21 to 23. As market access remains a crucial factor in expanding trade share Pakistan has insisted time and again for concessions and preferences such as GSP plus.
The surge in exports due to effect of award of GSP plus in the past is evident from the comparison of data of FY 2003-2004 with the successive years. According to the officials, in UK there is great interest for trade with Pakistan, which could be translated into growth of exports through greater outreach to importers and by rectifying misperceptions about Pakistan, as travel advisories by FCO and discreet policies of companies of not providing insurance cover to travel to Pakistan create reluctance among people to travel to the South Asian country for business.
(APP)
Euro Libor rates extend decline
Posted by imdurrani Labels: business finance, Europe, World Currencies, world financeTuesday June 30, 2009
LONDON: Bank-to-bank lending rates for euro funds extended their decline on Monday and are set to remain low as the market is awash with liquidity following the European Central Bank's massive injection of one-year funds last week.
Highlighting the abundance of liquidity, commercial banks deposited 236.2 billion euros at the ECB's overnight vault - the most since January 19 - latest data showed, and well above the 7.4 billion euros banks had deposited before taking delivery of last week's record cash injection.
"What the deposit spike means is that banks are filling up with liquidity now. It's not a fear factor so much as excess liquidity," said David Keeble, global head of interest rate strategy at Calyon in London. The three-month London interbank offered rate was fixed at 1.10625 percent - the lowest on record. The equivalent dollar and sterling rates also hit fresh lows.
This followed a drop in the three-month Euribor rate, traditionally the main gauge of interbank euro lending, to a fresh all-time trough of 1.108 percent. At the very short end, the Euro overnight index average, a weighted average of all overnight unsecured lending in the interbank market, was last fixed at a record low of 0.388 percent.
The one-week refinancing operation on Tuesday will be closely watched. Last week, ahead of the one-year tender, banks borrowed just 167.902 billion euros of one-week funds from the ECB, compared with 309.621 billion euros previously.
The ECB lent 1,121 banks 442 billion euros of one-year funds at a 1 percent rate last week at its first 12-month refinancing operation, aimed at spurring lending and boosting the economy. Analysts said whether the ECB will deliver any more measures to boost the economy remains to be seen.
Dollar Libor rates were also mostly down with the three-month at a record low of 0.59688 percent. In Asia, Hong Kong interbank lending rates fell after the HKMA intervened to back the territory's currency peg by injecting cash into the money markets. The overnight HIBOR was fixed at 0.05000 percent, below Friday's 0.06929 percent and the 1-month HIBOR eased to 0.10214 percent from 0.11214 percent.
(Reuters)
LONDON: Bank-to-bank lending rates for euro funds extended their decline on Monday and are set to remain low as the market is awash with liquidity following the European Central Bank's massive injection of one-year funds last week.
Highlighting the abundance of liquidity, commercial banks deposited 236.2 billion euros at the ECB's overnight vault - the most since January 19 - latest data showed, and well above the 7.4 billion euros banks had deposited before taking delivery of last week's record cash injection.
"What the deposit spike means is that banks are filling up with liquidity now. It's not a fear factor so much as excess liquidity," said David Keeble, global head of interest rate strategy at Calyon in London. The three-month London interbank offered rate was fixed at 1.10625 percent - the lowest on record. The equivalent dollar and sterling rates also hit fresh lows.
This followed a drop in the three-month Euribor rate, traditionally the main gauge of interbank euro lending, to a fresh all-time trough of 1.108 percent. At the very short end, the Euro overnight index average, a weighted average of all overnight unsecured lending in the interbank market, was last fixed at a record low of 0.388 percent.
The one-week refinancing operation on Tuesday will be closely watched. Last week, ahead of the one-year tender, banks borrowed just 167.902 billion euros of one-week funds from the ECB, compared with 309.621 billion euros previously.
The ECB lent 1,121 banks 442 billion euros of one-year funds at a 1 percent rate last week at its first 12-month refinancing operation, aimed at spurring lending and boosting the economy. Analysts said whether the ECB will deliver any more measures to boost the economy remains to be seen.
Dollar Libor rates were also mostly down with the three-month at a record low of 0.59688 percent. In Asia, Hong Kong interbank lending rates fell after the HKMA intervened to back the territory's currency peg by injecting cash into the money markets. The overnight HIBOR was fixed at 0.05000 percent, below Friday's 0.06929 percent and the 1-month HIBOR eased to 0.10214 percent from 0.11214 percent.
(Reuters)
Eurozone sentiment up on recovery hopes
Posted by imdurrani Labels: business finance, Europe, world financeTuesday June 30, 2009
BRUSSELS: Eurozone economic sentiment improved more than expected in June, data showed on Monday, as the European Commission predicted the worst could be over for the 16-country currency area. A monthly survey by the Commission, the European Union's executive arm, showed economic sentiment in the eurozone rose to 73.3 points in June from 70.2 in May, the third improvement from a trough of 64.6 points in March.
In a separate, quarterly report, the Commission said the worst may be over for the eurozone, although growing unemployment posed a threat to recovery. "The worst seems to be behind us in terms of GDP contraction and our spring forecast predicts a subdued recovery for 2010," it said.
Analysts polled by Reuters had expected an increase in economic sentiment to 70.8 points. A separate business climate index released by the Commission also showed gains, but remained at weak levels. "Like many other surveys this indicator has underestimated the extent of the downturn in recent quarters," said Daniele Antonucci at Capital Economics.
"Hence, while we agree that the economy is no longer in free fall, we remain cautious at this stage," said Antonucci, noting there was still a mixed picture on the second quarter from core economic data released so far. Bayerische Landesbank economist Joerg Angele said the data heralded a slow recovery and expected the European Central Bank to keep interest rates low until the middle of next year.
The sentiment improvement was fuelled by the services sector, consumers and, to a lesser degree, industry. Morale in the construction sector stagnated and fell in the retail sector. "The increase observed at sector and country level is mainly driven by improving expectations, as the main economic actors seem to be gaining confidence that the crisis is easing," the Commission said in a statement.
The survey confirmed deflationary pressure in the eurozone. Inflation expectations 12 months ahead among households fell again in June to set a new low of -9 points from a downwardly revised -8 points in May, marking the third consecutive month of expectations of falling prices.
But selling-price expectations among manufacturers increased to -11 from May's -12. The European Central Bank watches inflation expectations closely in its policy decisions, aiming to anchor them at its price stability target of inflation just below 2 percent over the medium term.
With inflation moving to negative territory and recession persisting, the ECB has cut its main rate to a record low of 1.0 percent. Separately, the Commission said its business climate indicator rose to -2.97 in June from a revised -3.11 for May, fractionally above expectations but still at historically low levels.
(Reuters)
BRUSSELS: Eurozone economic sentiment improved more than expected in June, data showed on Monday, as the European Commission predicted the worst could be over for the 16-country currency area. A monthly survey by the Commission, the European Union's executive arm, showed economic sentiment in the eurozone rose to 73.3 points in June from 70.2 in May, the third improvement from a trough of 64.6 points in March.
In a separate, quarterly report, the Commission said the worst may be over for the eurozone, although growing unemployment posed a threat to recovery. "The worst seems to be behind us in terms of GDP contraction and our spring forecast predicts a subdued recovery for 2010," it said.
Analysts polled by Reuters had expected an increase in economic sentiment to 70.8 points. A separate business climate index released by the Commission also showed gains, but remained at weak levels. "Like many other surveys this indicator has underestimated the extent of the downturn in recent quarters," said Daniele Antonucci at Capital Economics.
"Hence, while we agree that the economy is no longer in free fall, we remain cautious at this stage," said Antonucci, noting there was still a mixed picture on the second quarter from core economic data released so far. Bayerische Landesbank economist Joerg Angele said the data heralded a slow recovery and expected the European Central Bank to keep interest rates low until the middle of next year.
The sentiment improvement was fuelled by the services sector, consumers and, to a lesser degree, industry. Morale in the construction sector stagnated and fell in the retail sector. "The increase observed at sector and country level is mainly driven by improving expectations, as the main economic actors seem to be gaining confidence that the crisis is easing," the Commission said in a statement.
The survey confirmed deflationary pressure in the eurozone. Inflation expectations 12 months ahead among households fell again in June to set a new low of -9 points from a downwardly revised -8 points in May, marking the third consecutive month of expectations of falling prices.
But selling-price expectations among manufacturers increased to -11 from May's -12. The European Central Bank watches inflation expectations closely in its policy decisions, aiming to anchor them at its price stability target of inflation just below 2 percent over the medium term.
With inflation moving to negative territory and recession persisting, the ECB has cut its main rate to a record low of 1.0 percent. Separately, the Commission said its business climate indicator rose to -2.97 in June from a revised -3.11 for May, fractionally above expectations but still at historically low levels.
(Reuters)
Tuesday June 30, 2009
LONDON: European stock exchanges recorded strong gains on Monday, with investors in a buying mood as the first half of the year winds down ahead of key US data later in the week.
In London the FTSE 100 index climbed 1.25 percent to close at 4,294.03 points, gaining strength following a positive start to the trading day on Wall Street.
In Paris the CAC 40 rose 2.04 percent to finish at 3,193.68 while in Frankfurt the Dax added 2.27 percent to reach 4,885.09.
Elsewhere there were gains of 1.5 percent in Amsterdam, 1.21 percent in Brussels, 1.64 percent in Madrid, 0.17 percent in Milan and 1.25 percent on the Swiss Market Index.
In New York the Dow Jones Industrial Average was up 0.89 percent at mid-day at 8,513.28. The tech-heavy Nasdaq had risen 0.45 percent to 1,846.50.
The economic calendar was empty Monday but investors faced a slew of data in the holiday-shortened week, with the market closed Friday for the July 4 Independence Day holiday.
Among the key reports are the June consumer confidence reading on Tuesday, June automobile sales on Wednesday and the June unemployment report, a bellwether on economic momentum, on Thursday.
"The market is in a discerning state of wait-and-see, as it looks for justification in the upcoming second quarter earnings reports and incoming economic data to keep the recovery rally going," said Patrick O'Hare of Briefing.com.
"We think it could be disappointed given the lack of economic evidence suggesting there has been a strong pickup in end demand that would allow for the majority of companies to deliver top-line driven earnings surprises."
In London sentiment was largely driven by the banking and insurance sector, with investors attracted by positive comment from analysts.
Lloyds Banking Group jumped 6.12 percent to 70.56 pence after Goldman Sachs added it to its list of preferred stocks.
Barclays rose 4.31 percent to 279.65 while Schroders gained 3.67 percent to finish at 846.50 pence.
In Paris, according analyst Alice Lhabouz of Turgot Asset Management, "there has been some technical buying before the end of the first semester."
She said portfolio managers appeared ready to invest in cyclical -- and riskier -- stocks before drafting their semester reports.
Oil issues were well supported, taking advantage of rising crude prices. Total added 2.53 percent close at 38.97 euros while Vallourec rose 3.32 percent to 87 euros.
In Frankfurt companies that are especially dependent on macroeconomic developments were in demand.
The industrial conglomerate Siemens added 3.19 percent to close at 50.41 euros while chemical group BASF gained 3.93 percent to finish at 29.12 euros.
Volkswagen crept up 0.71 percent to 251.18 euros. But the auto maker suffered from tensions with Porsche, its principal shareholder.
Porsche, the heavily indebted maker of German luxury sports cars, rejected a merger offer by Volkswagen.
Deutsche Telekom rose 2.49 percent to close at 8.43 euros on press reports that its British rival Vodafone was preparing an offer for Deutsche Telekom's British subsidiary T-Mobile UK.
In Asia on Monday, Tokyo ended down 0.95 percent and Hong Kong slipped 0.39 percent, ending a three-day winning streak, as investors took profits ahead of a series of economic reports due this week.
(AFP)
LONDON: European stock exchanges recorded strong gains on Monday, with investors in a buying mood as the first half of the year winds down ahead of key US data later in the week.
In London the FTSE 100 index climbed 1.25 percent to close at 4,294.03 points, gaining strength following a positive start to the trading day on Wall Street.
In Paris the CAC 40 rose 2.04 percent to finish at 3,193.68 while in Frankfurt the Dax added 2.27 percent to reach 4,885.09.
Elsewhere there were gains of 1.5 percent in Amsterdam, 1.21 percent in Brussels, 1.64 percent in Madrid, 0.17 percent in Milan and 1.25 percent on the Swiss Market Index.
In New York the Dow Jones Industrial Average was up 0.89 percent at mid-day at 8,513.28. The tech-heavy Nasdaq had risen 0.45 percent to 1,846.50.
The economic calendar was empty Monday but investors faced a slew of data in the holiday-shortened week, with the market closed Friday for the July 4 Independence Day holiday.
Among the key reports are the June consumer confidence reading on Tuesday, June automobile sales on Wednesday and the June unemployment report, a bellwether on economic momentum, on Thursday.
"The market is in a discerning state of wait-and-see, as it looks for justification in the upcoming second quarter earnings reports and incoming economic data to keep the recovery rally going," said Patrick O'Hare of Briefing.com.
"We think it could be disappointed given the lack of economic evidence suggesting there has been a strong pickup in end demand that would allow for the majority of companies to deliver top-line driven earnings surprises."
In London sentiment was largely driven by the banking and insurance sector, with investors attracted by positive comment from analysts.
Lloyds Banking Group jumped 6.12 percent to 70.56 pence after Goldman Sachs added it to its list of preferred stocks.
Barclays rose 4.31 percent to 279.65 while Schroders gained 3.67 percent to finish at 846.50 pence.
In Paris, according analyst Alice Lhabouz of Turgot Asset Management, "there has been some technical buying before the end of the first semester."
She said portfolio managers appeared ready to invest in cyclical -- and riskier -- stocks before drafting their semester reports.
Oil issues were well supported, taking advantage of rising crude prices. Total added 2.53 percent close at 38.97 euros while Vallourec rose 3.32 percent to 87 euros.
In Frankfurt companies that are especially dependent on macroeconomic developments were in demand.
The industrial conglomerate Siemens added 3.19 percent to close at 50.41 euros while chemical group BASF gained 3.93 percent to finish at 29.12 euros.
Volkswagen crept up 0.71 percent to 251.18 euros. But the auto maker suffered from tensions with Porsche, its principal shareholder.
Porsche, the heavily indebted maker of German luxury sports cars, rejected a merger offer by Volkswagen.
Deutsche Telekom rose 2.49 percent to close at 8.43 euros on press reports that its British rival Vodafone was preparing an offer for Deutsche Telekom's British subsidiary T-Mobile UK.
In Asia on Monday, Tokyo ended down 0.95 percent and Hong Kong slipped 0.39 percent, ending a three-day winning streak, as investors took profits ahead of a series of economic reports due this week.
(AFP)
German banks under fire for credit policies
Posted by imdurrani Labels: business finance, Europe, world financeMonday June 29, 2009
FRANKFURT: German banks are facing a firestorm of criticism from the government and industry federations that accuse them of threatening small businesses with their tight-fisted credit policies. More than 16,600 small and medium-sized companies in Germany failed in the first half of the year, 14 percent more than in the same period of 2008, the association Creditreform has estimated.
The bankruptcies affected 250,000 jobs and Creditreform has warned that a total of 540,000 jobs could be eliminated by the end of the year. Tight credit policies have been a major factor in the failures, according to most official business administrators polled by ZIS, a research group specialising in troubled enterprises. "Getting credit has become very difficult," administrator Markus Ernestus told AFP.
"Even companies that have a temporary need for cash to fill their orders are getting turned down." The tight money approach prevails despite a steady monetary easing by the European Central Bank, whose benchmark interest rate has been brought down from 4.25 percent to a record low 1.0 percent. "Banks have not lowered their rates, in order to build up their profit margins, and have raised their risk surcharges," said Karl-W. Giersberg, head of the federal small- and medium-sized business association BKM.
The banks are also under pressure from capital reserve requirements imposed by their lending. To reassure investors and to shore up their share price, banks often apply stricter standards than those prescribed by international practice.
As a result, warned Anton Boerner, head of the German exporters' association BGA, "a massive credit crisis" looms between now and the middle of September. German banks reject the criticism, arguing that co-operative banks have made loans of 164 billion euros (231 billion dollars) to companies in the first quarter of the year, an annual increase of 4.7 percent.
(AFP)
FRANKFURT: German banks are facing a firestorm of criticism from the government and industry federations that accuse them of threatening small businesses with their tight-fisted credit policies. More than 16,600 small and medium-sized companies in Germany failed in the first half of the year, 14 percent more than in the same period of 2008, the association Creditreform has estimated.
The bankruptcies affected 250,000 jobs and Creditreform has warned that a total of 540,000 jobs could be eliminated by the end of the year. Tight credit policies have been a major factor in the failures, according to most official business administrators polled by ZIS, a research group specialising in troubled enterprises. "Getting credit has become very difficult," administrator Markus Ernestus told AFP.
"Even companies that have a temporary need for cash to fill their orders are getting turned down." The tight money approach prevails despite a steady monetary easing by the European Central Bank, whose benchmark interest rate has been brought down from 4.25 percent to a record low 1.0 percent. "Banks have not lowered their rates, in order to build up their profit margins, and have raised their risk surcharges," said Karl-W. Giersberg, head of the federal small- and medium-sized business association BKM.
The banks are also under pressure from capital reserve requirements imposed by their lending. To reassure investors and to shore up their share price, banks often apply stricter standards than those prescribed by international practice.
As a result, warned Anton Boerner, head of the German exporters' association BGA, "a massive credit crisis" looms between now and the middle of September. German banks reject the criticism, arguing that co-operative banks have made loans of 164 billion euros (231 billion dollars) to companies in the first quarter of the year, an annual increase of 4.7 percent.
(AFP)
Daimler launches first German hybrid car
Posted by imdurrani Labels: business finance, Europe, global economy, investment, world financeMonday June 29, 2009
FRANKFURT: German luxury car maker Daimler launched its first hybrid model last week, almost 10 years after the market leader, Toyota. The world's best-selling limousine, a favourite of world leaders, the Mercedes Benz S Class, is now available in Europe with two motors, one electric and the other petrol (gasoline), to save fuel and cut pollution.
The "CO2 champion of luxury cars," as Mercedes bills it, nonetheless cranks out 186-189 grams of carbon dioxide per kilometre, remaining one of the biggest polluters on the road, well above the European average of around 160 grams.
A comparable S model with a normal engine can spew out as much as 234 grams, Daimler counters. A spokesman added that "we want to launch at least one hybrid model per year."
It is by all accounts a mini revolution in the German auto sector, which generally produces big, powerful cars by brands including Mercedes, Porsche, BMW and Audi.
Porsche plans to roll out a hybrid version of its Cayenne sports utility vehicle in late 2010, and BMW is preparing a saloon (sedan) from its Series 7 line this year, even though it is "too early to speak of full distribution," according to a BMW spokeswoman. Auto expert Gerd Lottspiesen from the environmental association VCD told AFP that the German car industry "has been asleep for several years."
"It repeatedly dismissed hybrids. If it is finally waking up, it's pretty late" compared with Toyota, which sold its first hybrid Prius model in Europe nine years ago. Lexus, the luxury line from Toyota, has offered a hybrid system for four years.
"For years, the German automobile sector did not believe hybrids had a chance ... but at a certain point, under market pressure, the industry changed its mind," said Stefan Bratzel, professor at a specialised auto centre in the western city of Bergisch Gladbach.
German companies mainly focused on diesel engines, the specialists noted. As a result, the German market is dominated by diesels, while hybrids represented only 0.2 percent of the market last year with the sale of 6,500 Toyota, Lexus or Honda hybrids, according to national registration figures.
Since its launch, Toyota has sold 22,000 Prius in France and around 17,000 in Germany, which has a market three times bigger, according to Toyota data.
"The Prius has never been a best-seller here," a spokeswoman for the Japanese group acknowledged. Germans, who are strongly attached to their national brands, could begin to switch over if domestic hybrid models are available however.
"The environmental trend is becoming dominant," said Frank Schwope, an auto analyst at the NordLB bank. Daimler is a good example.
Until now it has been considered one of the most resistant to environmental trends.
But in the past few months, Daimler has begun to highlight its determination in the area. It recently acquired a battery company and a 10 percent stake in the US electric car maker Tesla. A sign for auto specialists that Germans could be at the leading edge of the next big step, fully electric automobiles.
(AFP)
FRANKFURT: German luxury car maker Daimler launched its first hybrid model last week, almost 10 years after the market leader, Toyota. The world's best-selling limousine, a favourite of world leaders, the Mercedes Benz S Class, is now available in Europe with two motors, one electric and the other petrol (gasoline), to save fuel and cut pollution.
The "CO2 champion of luxury cars," as Mercedes bills it, nonetheless cranks out 186-189 grams of carbon dioxide per kilometre, remaining one of the biggest polluters on the road, well above the European average of around 160 grams.
A comparable S model with a normal engine can spew out as much as 234 grams, Daimler counters. A spokesman added that "we want to launch at least one hybrid model per year."
It is by all accounts a mini revolution in the German auto sector, which generally produces big, powerful cars by brands including Mercedes, Porsche, BMW and Audi.
Porsche plans to roll out a hybrid version of its Cayenne sports utility vehicle in late 2010, and BMW is preparing a saloon (sedan) from its Series 7 line this year, even though it is "too early to speak of full distribution," according to a BMW spokeswoman. Auto expert Gerd Lottspiesen from the environmental association VCD told AFP that the German car industry "has been asleep for several years."
"It repeatedly dismissed hybrids. If it is finally waking up, it's pretty late" compared with Toyota, which sold its first hybrid Prius model in Europe nine years ago. Lexus, the luxury line from Toyota, has offered a hybrid system for four years.
"For years, the German automobile sector did not believe hybrids had a chance ... but at a certain point, under market pressure, the industry changed its mind," said Stefan Bratzel, professor at a specialised auto centre in the western city of Bergisch Gladbach.
German companies mainly focused on diesel engines, the specialists noted. As a result, the German market is dominated by diesels, while hybrids represented only 0.2 percent of the market last year with the sale of 6,500 Toyota, Lexus or Honda hybrids, according to national registration figures.
Since its launch, Toyota has sold 22,000 Prius in France and around 17,000 in Germany, which has a market three times bigger, according to Toyota data.
"The Prius has never been a best-seller here," a spokeswoman for the Japanese group acknowledged. Germans, who are strongly attached to their national brands, could begin to switch over if domestic hybrid models are available however.
"The environmental trend is becoming dominant," said Frank Schwope, an auto analyst at the NordLB bank. Daimler is a good example.
Until now it has been considered one of the most resistant to environmental trends.
But in the past few months, Daimler has begun to highlight its determination in the area. It recently acquired a battery company and a 10 percent stake in the US electric car maker Tesla. A sign for auto specialists that Germans could be at the leading edge of the next big step, fully electric automobiles.
(AFP)
European stocks fall as three-month surge fizzles
Posted by imdurrani Labels: Europe, global economy, world finance, world stocksSaturday June 27, 2009
LONDON: Europe's main stock markets fell on Friday, dragged down by Wall Street despite upbeat US economic data as investors locked in profits from and a three-month surge seemed to fizzle, dealers said.
"There is simply not enough positive news flow to fuel sentiment," said David Jones, a strategist at IG Index, commenting on London trading.
"After a 30 percent bounce back off the year's lows (in recent months), investors are struggling to see much upside, particularly with the prospect of the usually quiet summer period around the corner."
London's FTSE 100 index closed 0.27 percent lower at 4,241.01 points. In Paris the CAC 40 index fell 1.05 percent to close at 3,129.73 points and Frankfurt's Dax fell 0.50 percent to 4,776.47 points.
"It is clear that the upbeat outlook that powered the FTSE from the 3,500
mark in March to above 4,500 in early May has gone for the moment," Jones said.
In Paris, investors were "correcting the 30-percent rise in three months," said strategist Jean-Louis Mourier of strockbrokers Aurel BGC. "The correction is not finished," he added.
On the foreign exchange market, the European single currency advanced to 1.4054 dollars.
Swiss mining group Xstrata bucked the trend in London, gaining 2.52 percent. It is trying to convince rival Anglo American to merge with it, citing potential annual benefits of more than 1.0 billion dollars.
London-based Anglo American, a British-South African group, on Monday rejected the merger proposal. Its shares fell 1.47 percent on Friday, while its rival Rio Tinto lost 0.96 percent and BHP Billiton 0.70 percent.
British Airways rose 2.13 percent after announcements of pay cuts on Thursday.
Japanese shares had climbed for a third straight day on Friday, tracking the previous day's gains on Wall Street. The benchmark Nikkei-225 index rose 0.83 percent to end at 9,877.39 points.
US stocks fell as investors took profits and digested largely positive government data on personal income and spending.
On Wall Street the Dow Jones Industrial Average shed 0.64 percent to 8,418.44 in early trade after posting on Thursday its first triple-digit gain since June 1.
US consumer spending posted a modest gain in May, government data showed Friday, suggesting recovery in a key driver of the recession-mired economy.
Elswehere in Europe, Milan's Mib fell 0.58 percent to 18,832 points and Brussels' Bel-20 fell 0.12 percent to 2,013.32.
The Swiss Market Index rose 0.27 percent to 5,375.99 points, Amsterdam's AEX 0.12 percent to 254.43 points and Madrid's Ibex-35 0.20 percent to 9,986.90.
"It seems unlikely we are going to experience the sort of stomach churning sell-offs we saw earlier this year," Jones said.
"But it would not be surprising for stock markets to continue gradually
unwinding at least some of the gains of the past three months."
(AFP)
LONDON: Europe's main stock markets fell on Friday, dragged down by Wall Street despite upbeat US economic data as investors locked in profits from and a three-month surge seemed to fizzle, dealers said."There is simply not enough positive news flow to fuel sentiment," said David Jones, a strategist at IG Index, commenting on London trading.
"After a 30 percent bounce back off the year's lows (in recent months), investors are struggling to see much upside, particularly with the prospect of the usually quiet summer period around the corner."
London's FTSE 100 index closed 0.27 percent lower at 4,241.01 points. In Paris the CAC 40 index fell 1.05 percent to close at 3,129.73 points and Frankfurt's Dax fell 0.50 percent to 4,776.47 points.
"It is clear that the upbeat outlook that powered the FTSE from the 3,500
mark in March to above 4,500 in early May has gone for the moment," Jones said.
In Paris, investors were "correcting the 30-percent rise in three months," said strategist Jean-Louis Mourier of strockbrokers Aurel BGC. "The correction is not finished," he added.
On the foreign exchange market, the European single currency advanced to 1.4054 dollars.
Swiss mining group Xstrata bucked the trend in London, gaining 2.52 percent. It is trying to convince rival Anglo American to merge with it, citing potential annual benefits of more than 1.0 billion dollars.
London-based Anglo American, a British-South African group, on Monday rejected the merger proposal. Its shares fell 1.47 percent on Friday, while its rival Rio Tinto lost 0.96 percent and BHP Billiton 0.70 percent.
British Airways rose 2.13 percent after announcements of pay cuts on Thursday.
Japanese shares had climbed for a third straight day on Friday, tracking the previous day's gains on Wall Street. The benchmark Nikkei-225 index rose 0.83 percent to end at 9,877.39 points.
US stocks fell as investors took profits and digested largely positive government data on personal income and spending.
On Wall Street the Dow Jones Industrial Average shed 0.64 percent to 8,418.44 in early trade after posting on Thursday its first triple-digit gain since June 1.
US consumer spending posted a modest gain in May, government data showed Friday, suggesting recovery in a key driver of the recession-mired economy.
Elswehere in Europe, Milan's Mib fell 0.58 percent to 18,832 points and Brussels' Bel-20 fell 0.12 percent to 2,013.32.
The Swiss Market Index rose 0.27 percent to 5,375.99 points, Amsterdam's AEX 0.12 percent to 254.43 points and Madrid's Ibex-35 0.20 percent to 9,986.90.
"It seems unlikely we are going to experience the sort of stomach churning sell-offs we saw earlier this year," Jones said.
"But it would not be surprising for stock markets to continue gradually
unwinding at least some of the gains of the past three months."
(AFP)
Euro Libor's biggest fall in six months
Posted by imdurrani Labels: Europe, forex, forex trading, World Currencies, world financeFriday June 26, 2009
LONDON: The bank-to-bank cost of borrowing euros fell by the most in six months on Thursday and analysts expect further falls in months ahead as the European Central Bank's latest liquidity boost takes effect. London interbank offered rates (Libor) for three-month dollars also marked a lifetime low after the Federal Reserve kept interest rates steady.
But the heftiest moves were in euro rates as funds from the ECB's first-ever one-year tender started to flow. The eurozone's central bank lent banks 442.24 billion euros, stepping up efforts to revive interbank lending that has been crippled by the financial crisis and is one major barrier to a return to economic growth.
The ECB hopes its biggest money market operation ever will give enough financial security to spur banks to make more long-term loans to companies and consumers. The three-month London interbank offered rate for euros fell 4.2 basis points to 1.14250 percent while overnight euro Libor rates slumped by almost a full percentage point to a record low.
However, the overnight rate had been pushed higher in the previous session as banks sought stop-gap funds until they got the one-year money. This followed a drop in the three-month Euribor - traditionally the main gauge of interbank euro lending and a mix of interest rate expectations and bank's appetite for lending - to a lifetime low of 1.145 percent, close to the ECB's refi rate of 1 percent. "We've seen three-month Euribor fixings fall to a new record low today and we think that will continue," Christoph Rieger, an analyst with Commerzbank/Dresdner Kleinwort.
Sounding a cautious note, ECB Governing Council member Christian Noyer said on Thursday money markets are generally improving though they are not quite back to normal. Commercial banks overnight borrowing from the ECB jumped to an eight-year high as banks awaited funds from the one-year auction.
Meanwhile, three-month dollar Libor continued falling after the Fed signalled it will keep its policy rate in a zero to 0.25 percentage range for "an extended period". The rate gap between three-month T-bills and three-month dollar Libor was at 43 basis points from 41 basis points in late trading on Wednesday.
(Reuters)
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