News on 23 outubro 2013

20:00

Dow -46.5 15,421.16 -0.30% Nasdaq -22.61 3,906.96 -0.58% S&P -7.33 1,747.34 -0.42%

19:21

American focus : the euro strengthened against the dollar

The euro rose against the dollar, while restoring previously lost ground, which has helped to publish a report on consumer confidence .

The European Commission said that the level of consumer confidence in the euro area increased further in October , reaching with its highest level in 27 months, which is likely to indicate continued increase in consumer spending , albeit slow pace. According to the report , a preliminary index of consumer confidence in the euro zone rose this month to the level of 14.5 , compared with 14.9 in September. Note that the latter reading is fully confirmed the average forecasts of experts. In addition , we add that the October result was the strongest since July 2011 , when the value of this indicator was -11 . Also note that the index rose for the eleventh consecutive month. However , the level of confidence remains below the average at around 13.3 since 1990 , reflecting the continuing high level of unemployment and low wage growth .

Meanwhile, data showed that the level of sentiment in the EU has remained unchanged during October - the corresponding index was 11.7 points. In September, the figure has exceeded its long-term average at 12.3 , the first time since June 2011. Introduced today, the report shows that spending growth may continue in the third quarter, after retail sales rose in July and August.

The pound recovered slightly against the dollar, but despite this, it is still trading at a substantial reduction . Note that the pressure on the British currency has had a publication of the minutes of the last meeting of the Bank of England. Minutes showed that in early October Monetary Policy Committee of the Bank of England voted 9 - "for" 0 - "against" keep interest rates and the asset purchase program unchanged.

The interest rate remained at a record low of 0.5 % , while the quantitative easing program totaled 375 billion pounds ( 607.99 billion dollars).

MPC said that he would consider raising the key interest rate at least until the unemployment rate drops to 7 percent from 7.7 percent. While the politicians predict that it will not happen before 2016 , but they noted this month that the improvement in the labor market showed that the economy is gaining momentum faster than expected in August. Investors are betting on a quick rise in interest rates.

All committee members agreed that neither inflation nor financial stability is not affected. "None of the members of the MPC did not consider it necessary to tighten monetary policy at this stage ," - said in a report.

This year, the UK 's economic recovery is gaining momentum , and the International Monetary Fund this month raised its growth forecast for the country.

The yen continues to trade near two-week high against the dollar, which has been associated with the release of data on China. It is learned that China's major banks have tripled the number of bad loans written off in the first half of the year , cleaning up their balance sheets before the new wave of possible defaults .

In the first six months of the Industrial and Commercial Bank of China, and its four largest competitors have written off the debt in the amount of 22.1 billion yuan (3.65 billion dollars), which can not be recovered , compared with 7.65 billion yuan a year earlier , the report showed . In the first -half profit rose to a record 76 billion dollars.

Writing off the worst of the bad debts can allow banks to mitigate the ratio of non-performing loans of increasing defaults in the second largest economy in the world. Since 2010 , China has loosened the rules debt relief to small businesses . Politicians call for lenders to increase the capital stock after an unprecedented credit boom that began in 2009 .

The Canadian dollar declined significantly against its U.S. counterpart , which was associated with the application of the Bank of Canada. As expected , the Bank of Canada decided to keep interest rates unchanged at 1% at the October meeting of the Monetary Policy .

In a statement issued after the decision was announced , the Bank of Canada said it expects modest growth in 2013 , but held that the uncertain economic conditions may have a negative impact on exports and business investment in Canada .

According to Central Bank estimates , the growth rate of real GDP should accelerate from 1.6 % in 2013 to 2.3 % in 2014 and 2.6 % in 2015 . The Bank expects that " around the end of 2015 the real economy will gradually return to full use of the productive capacity ."

Although the Central Bank has expressed concern and the current situation , it is still noted that " inflation is stable is below the average target value , which means that the downside risk of inflation becoming ever more important ."

18:20

European stock close

European stocks declined, following the longest rally for the region’s equities in 40 months, as companies from Orange SA to STMicroelectronics NV (STM) reported lower quarterly sales.

The Stoxx Europe 600 Index retreated 0.7 percent to 318.61 at 4:30 p.m. in London. The equity benchmark has still gained 2.6 percent so far this month as U.S. lawmakers agreed to extend the government’s borrowing authority until 2014.

The European Central Bank confirmed today that it will require lenders to have a capital ratio of 8 percent. It also changed the rules for what qualifies as capital.

‘Suppurating Sores’

“There are some festering sores suppurating in the European banks which will have to be addressed,” Justin Urquhart Stewart, who helps oversee about $6.8 billion at Seven Investment Management Ltd. in London, wrote in an e-mail. “European markets will take note of the European Central Bank’s 8 percent capital requirement for banks.”

National benchmark indexes in every Western-European market, except Switzerland and Iceland, declined today.

FTSE 100 6,674.48 -21.18 -0.32% CAC 40 4,260.66 -34.77 -0.81% DAX 8,919.86 -27.60 -0.31%

Orange dropped 5.3 percent to 10.09 euros after posting profit excluding some items that declined 7.7 percent as cost cuts failed to offset falling sales. Earnings before interest, taxes, depreciation and amortization of 3.37 billion euros ($4.6 billion) still beat the average analyst estimate of 3.34 billion euros.

STMicroelectronics tumbled 9.6 percent to 5.77 euros after taking a $120 million impairment charge for the third quarter. The company posted a $478 million loss in the year-earlier period. STMicro also delayed a profitability target after splitting up its venture with Ericsson AB.

Bankinter SA and Banco Popular Espanol SA retreated 4.8 percent to 4.33 euros and 2.5 percent to 4.06 euros, respectively, as a gauge of lenders posted the biggest decline on the Stoxx 600.

Heineken NV fell 4.5 percent to 50.46 euros. The world’s third-biggest brewer predicted that full-year profit will decline by a low single-digit percentage. It had forecast profit would be in line with 2012. The brewer of the eponymous lager posted third-quarter sales that missed estimates amid weak consumption in central and eastern Europe.

GlaxoSmithKline Plc lost 1.9 percent to 1,570.5 pence after it said third-quarter sales of pharmaceuticals and vaccines dropped 61 percent in China. The country’s authorities began a probe into alleged corruption involving the company in July. The U.K.’s biggest drugmaker said total revenue rose 1 percent to 6.51 billion pounds ($10.5 billion), missing the 6.64 billion-pound average estimate of analysts.

17:00

European stock close: FTSE 100 6,674.48 -21.18 -0.32% CAC 40 4,260.66 -34.77 -0.81% DAX 8,919.86 -27.60 -0.31%

16:40

Oil: an overview of the market situation

The price of oil fell today , dropping to $ 96 per barrel (mark WTI), which was the lowest value since July. Note that this trend was triggered by release of data on U.S. oil reserves , which indicated the next increase .

Energy Department data on changes in stocks in the U.S. for the week October 14-20, showed that:

- Oil stocks rose 5.246 million barrels to 379.784 million barrels ;

- Gasoline inventories decreased by 1,805 million barrels . to 215.504 million barrels . ;

- Distillate stocks rose by 1.537 million barrels . to 125.774 million barrels .

- Refining capacity utilization rate 85.9 % versus 86.2 % a week earlier ;

- Oil terminal in Cushing and rose 0.358 million barrels . to 33,344 million barrels .

Recall that on Monday, the U.S. government announced that oil reserves rose by 4 million barrels in the week to October 11.

Meanwhile, we add that the data presented yesterday its Petroleum Institute API. They showed that the capacity utilization fell to 85.6 % from 86.0% , distillate stocks for the week rose by 0.815 million barrels, gasoline inventories last week fell by 0.51 million barrels, while oil stocks for the week rose by 3 , 0 million barrels

" Traders are starting to realize that it is difficult to maintain an optimistic outlook for oil prices with an increase in inventory levels ," - says the president of Strategic Energy & Economic Research Michael Lynch.

We add that the increase in oil inventories was recorded also in China - the second largest importer of raw materials. In September the index rose by 1.43 % compared with August , reaching at this level to 237.6 million barrels.

The cost of the December futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 96.64 a barrel on the New York Mercantile Exchange.

December futures price for North Sea Brent crude oil mixture fell $ 1.41 to $ 108.60 a barrel on the London exchange ICE Futures Europe.

16:21

Gold: an overview of the market situation

Gold prices declined moderately today, departing from the four-week high as investors started to close their positions after yesterday's employment report, which was weaker than expected. Recall that on Tuesday, the price of the precious metal rose nearly 2%, reaching the highest level since Sept. 20, while the dollar fell to 8-month low against the data, reinforcing investors' expectations that the Fed will keep the amount of incentive program unchanged until next year.

"Yesterday's growth plays out very quickly, which is another sign that growth is indeed seen as an opportunity to sell, and people do not expect higher prices," said an analyst at ABN Amro Georgette Boulay. "People are selling because they are not too confident about the prospects, but they know that sooner or later, the U.S. economy will get better and the dollar is likely to grow, so this is a temporary phenomenon."

Data presented today also showed that stocks of the world's largest exchange-traded fund backed by gold SPDR Gold Shares on Tuesday rose by more than 6 tons, the biggest daily rise in two months. Recall that on Monday the fund holdings declined by more than 10 tons.

The cost of the December gold futures on COMEX today dropped to $ 1334.10 per ounce.