Dollar extends its longest rally in two decades
May 18, 2012 - 14:19
Spain added to Euro-zone's worry list
On Thursday, focus shifted to a downgrade of 16 Spanish banks by Moody’s, the latest blow for a country already facing economic recession. Moody's Investors Service cut the long-term debt and deposit ratings of the 16 Spanish banks, including Banco Santander, the Euro-zone's largest, quoting the government's ability to support some banks had weakened.
Figures on Thursday confirmed that Spain has officially slipped into recession in the first quarter this year, as the turbulent Euro-zone...
Greece and Spanish Banks Downgraded
May 18, 2012 - 11:49
Fitch downgraded Greece’s credit score to CCC from B- yesterday as the risk increased that the country may leave the European Union. The country’s political parties continue to exhibit combative stances on austerity and have yet to form a collaborative government to proceed with the mandated EU-IMF bailout program.
In other news, Moody cut ratings on 16 banks in Spain late Thursday causing investors to flee more risky investments including Spanish, Italian and peripheral euro-zone government bonds when markets...
Stock Markets Down in Europe and U.S.
May 17, 2012 - 18:13
United States (US) first time unemployment insurance claims came in at a seasonally adjusted 370,000 over the week ending May 12, according to the advance figure released by the US Department of Labor on Thursday. While the figure was a bit higher than economists’ expectations of 366,000 it was similar to the revised count over the week before, suggesting the labor market is stabilizing. Additionally, the less volatile four week moving average lessened 4,750 to 375,000, less from the previous week’s calculated average. ...
QE3 could be on the way
May 17, 2012 - 14:30
Further blow to investors risk sentiment
Greece's inability to form a government has led to call for fresh elections on June 17 and has also triggered fresh concerns that Greece could exit the Euro-zone. On Wednesday, Greece appointed a senior judge as interim prime minister to lead the nation to its second election in just over a month’s time. The elections on June 17 will decide the fate of debt-burdened country and its existence in the Euro-zone. This delay could deprive the country of much-needed international aid.
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NZ Producer Input Prices up 0.3%, Output Prices down 0.1%
May 17, 2012 - 05:32
New Zealand producer input prices increased 0.3% in the three months to March 2012 compared to the December 2011 quarter, the slowest increase in over two years, according to data by Statistics New Zealand on Thursday. The March 2012 quarter increase was mainly from higher electricity generator prices. On the other hand, manufacturers of food paid lower international prices for livestock and milk as the input purchasing price index (PPI) reduced 1.2%. Year-over-year, prices paid by all producers (input prices) increased 2.3%. ...