Germany’s economic sentiment increased essentially more than expected this month, hitting the highest level over the last half a year. ZEW index added 32.2 points to minus 21.6 this month as compared to minus 53.8 in the preceding month, reported the ZEW Centre for Economic Research. Analysts projected the index to gain 4.6 points to minus 49.2 in January.
Goldman Sachs reported a profit drop of 58% today, and the fall in revenues was followed by a deep cut in employee compensation. Q4 net income slid to USD 1.01B, or $1.84 per share. The employee compensation was reduced by 21%, and the international growth was boosted in order to gain more revenues for trading.
UK unemployment increased by 118 000 during three months until November, Office for National Statistics announced today. The Unemployment rate rose to 8.4% from 8.3% in the previous reading. The unemployment claims in December increased by 1200.
The official SNB exchange rate for EUR/CHF is 1.2091 today; yield on 10-year Swiss Confederation bonds decreased to 0.72%. 3-month LIBOR CHF stands at 0.06%, and is within the target range of 0.00-0.25%. Swiss SMI stock index has gained 0.89% since the opening bell, and is currently fluctuating around 6111 points.
Japan’s Nikkei Stock Average climbed on Wednesday, lifted by unexpected surge in German investor confidence and extending gains from China’s GDP announcement. Nikkei 225 Index advanced 0.99% or 84.18 points and finished at 8,550.58 led by Tokyo Electric Power Co. which rocketed 7.8%, after the company said it will increase electricity prices for corporate clients in April. On the downside were Japanese carmakers. After successful previous session Mazda Motor Corp. lost 2.4% and Suzuki Motor Corp. dropped 1.3%.
Daily maximum: 1.2845
Daily minimum: 1.2734
The shared European currency edged over the American dollar today and pierced the daily forecast mean (1.2732) after the IMF announced it will seek for additional $500B to increase its firepower. Daily Resistance: 1.2812; 1.2890; 1.2971. Daily Support: 1.2653; 1.2572; 1.2494. Daily Bias: Neutral.
Daily maximum: 98.70
Daily minimum: 97.69
EUR/JPY moved upwards today, piercing the daily market participants’ target (97.78) on the IMF announcement. Daily Resistance: 98.39; 98.94; 99.57. Daily Support: 97.21; 96.58; 96.03. Daily Bias: Neutral.
Daily maximum: 1.5437
Daily minimum: 1.5328
The British pound rose versus the American dollar after the jobless claims rose sharply less than forecast (1.2K act./9.1K est.), piercing the daily forecast mean at 1.5344. Daily Resistance: 1.5387; 1.5443; 1.5481. Daily Support: 1.5293; 1.5255; 1.5199. Daily Bias: Neutral.
Daily maximum: 76.87
Daily minimum: 76.65
USD/JPY declined on Wednesday trading after US month-on-month PPI index declined (-0.1% act./01.% est.), causing the pair to reach the daily market participants’ target. Daily Resistance: 76.95; 77.08; 77.28. Daily Support: 76.62; 76.42; 76.29. Daily Bias: Strongly bearish.
Daily maximum: 0.9496
Daily minimum: 0.9409
The pair traded below 0.9500 mark as the ZEW economic improved, showing the growing optimism among investors over the Swiss economy. Daily Resistance: 0.9562; 0.9632; 0.9689. Daily Support: 0.9435; 0.9378; 0.9308. Daily Bias: Neutral.
All terms on table as Greek debt talks resume: official
All terms in a planned debt swap — including the coupon rate — are being discussed as talks between Greece and its private creditors resume on Wednesday, a Greek government official said.
Builder Confidence Rises to Highest Level Since June 2007
Homebuilder confidence in the market for newly built, single-family homes rose for the fourth consecutive month in January to its highest level since June 2007 on the NAHB/Wells Fargo Housing Market Index.
China Home Prices Fall for Third Straight Month
China’s new home prices fell in December from November, a third straight month of declines, and analysts expect prices will fall further as Beijing sticks to its tightening campaign against the once-hot real estate market.