Germany lessened its GDP growth prediction for 2012 from 1% to 0.7%, said Philipp Roesler, German Economics Minister, in statement yesterday. Roesler suggested that the German economy may slow down in the first months of 2012 but strengthen later fuelled by increase in employment, and stronger growth. Domestic consumption is predicted to surge 1.1% this year compared to 2.2% in 2011.
Kodak announced that the company and its subsidies located in the US filed for chapter 11 in the US Bankruptcy Court. The chapter 11 stipulates business reorganization intended to boost liquidity and to provide the company with a possibility to concentrate on the most viable business lines. Kodak has got $950 million credit facility that will enable company to operate during Chapter 11.
UK’s Consumer Confidence Index declined to 38 in December as compared to 40 in the preceding month. Nationwide claimed that it was caused by growing cost of living and recession in the Euro Zone. It also warned that there are low changes for recovery this year; however, easing inflationary pressure may help to increase households’ budgets.
The official SNB exchange rate for EUR/CHF is 1.2081 today; yield on 10-year Swiss Confederation bonds increased to 0.74%. 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 0.69% since the opening bell, and is currently fluctuating around 6158 points.
Japan’s Nikkei Stock Average soared on Thursday, after PBOC announced it will allow more lending and postpone stricter capital requirement restrictions. Nikkei 225 Index gained 1.12% or 95.95 points to 8,646.53, driven by industrial and basic material sectors. Nomura Holdings Inc. climbed 4.3%, while Daiwa Securities Group Inc. added 4.9%. On the downside Japan Tobacco dropped 3.27% and video game software producer Konami Corp. lost 2.5%.
Daily maximum: 1.2925
Daily minimum: 1.2839
The single European currency advanced today, leaving the daily forecast (1.2794) intact, after Spain sold more than previously announced in its debt. Daily Resistance: 1.2908; 1.2955; 1.3042. Daily Support: 1.2774; 1.2687; 1.2640. Daily Bias: Neutral.
Daily maximum: 99.25
Daily minimum: 98.56
The pair continued its bullish correction on successful Spanish bond auction, showing risk appetite among investors is improving. The daily market participants’ target (98.23) remained untapped today. Daily Resistance: 99.23; 99.66; 100.43. Daily Support: 98.03; 97.26; 96.83. Daily Bias: Neutral.
Daily maximum: 1.5465
Daily minimum: 1.5416
GBP traded in a narrow channel today as no significant news has been released, leaving the target at 1.5327 intact. Daily Resistance: 1.5477; 1.5516; 1.5592. Daily Support: 1.5362; 1.5286; 1.5247. Daily Bias: Neutral.
Daily maximum: 76.97
Daily minimum: 76.70
The American dollar remained trading in 76-77 channel versus the Japanese yen, hitting the daily forecast mean (76.79) as the US m/m Core CPI was released in line with the analysts expectations (0.1% act./0.1% est.). Daily Resistance: 76.91; 77.00; 77.13. Daily Support: 76.69; 76.56; 76.47. Daily Bias: Strongly bearish.
Daily maximum: 0.9411
Daily minimum: 0.9348
The pair continued its bearish correction as US housing starts (0.66M act./0.69M est.) disappoined investors and traded below the 0.9400 level. Daily Resistance: 0.9562; 0.9632; 0.9689. Daily Support: 0.9435; 0.9378; 0.9308. Daily Bias: Neutral.
Spain, France Pay Mostly Lower Yields in Bond Auctions
Spain and France, both hit by ratings downgrades last week, paid predominantly lower borrowing costs Thursday than at their previous auctions.
Jobless claims near 4-year low, inflation muted
The number of Americans filing for new jobless benefits dropped to a near four-year low last week, pointing to some building up of momentum in the labor market and the economy.
Australia Jobs Fall in December, Zero Growth for 2011
TAustralian employment suffered a surprise fall of 29,300 jobs in December for a subdued end to a year that saw zero jobs growth, adding to the case for further cuts in interest rates and knocking the local dollar lower.