MADRID -- Spanish housing prices continued to fall in the second quarter, Spain's National Statistics Institute said Wednesday, after the collapse of a decade-long housing boom.
In a statement, the INE, as the Statistics Institute is known, said second-quarter housing prices fell by 0.4% from the first quarter and by 7.7% from the second quarter of last year.
Data released in July by Spain's Housing Ministry showed a steeper annual decline in second-quarter housing prices of 8.2%.
Spain's home-building boom, one of Europe's largest, started to deflate in 2007 after prices reached nearly three times their 1997 levels and after years of overbuilding.
The correction was hastened last year by tougher financing conditions in the aftermath of the global banking crisis.
Turkish Industry Min: "No Extension On Tax Cuts" - IHA
Posted in on by
ANKARA -- Turkish Industry Minister Nihat Ergun said Wednesday there will be no extension to tax cuts that the government implemented for some sectors in order to revive the economy, the Ihlas News Agency, or IHA, reports.
In March, the Turkish government introduced various tax cuts for some sectors, including automotive, white goods, and electronics.
The government in June extended the period of tax cuts for a further three months in a bid to boost the economy.
In March, the Turkish government introduced various tax cuts for some sectors, including automotive, white goods, and electronics.
The government in June extended the period of tax cuts for a further three months in a bid to boost the economy.
DATA SNAP: Italy Aug Producer Prices -6.7% On Year
Posted in on by
ROME -- Italy's producer price index in August fell less than expected on the year, as energy prices dropped at a slower pace, data from statistics office Istat showed Wednesday.
In August, producer prices fell 6.7% on the year, after a downwardly revised 7.6% annual fall in July. On the month, producer prices rose 0.6%, compared with a downwardly revised 0.5% fall in July.
A poll of economists predicted a 7.3% fall on the year and a 0.5% rise on the month.
Italian manufacturing prices have been falling every month since December 2008, due to lower energy prices and the slowing economy, which fell into a recession last year.
In August, producer prices fell 6.7% on the year, after a downwardly revised 7.6% annual fall in July. On the month, producer prices rose 0.6%, compared with a downwardly revised 0.5% fall in July.
A poll of economists predicted a 7.3% fall on the year and a 0.5% rise on the month.
Italian manufacturing prices have been falling every month since December 2008, due to lower energy prices and the slowing economy, which fell into a recession last year.
DATA SNAP: German Jobless Fell Again In September
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FRANKFURT -- German unemployment fell again in September, helped by the usual seasonal decline that accompanies the end of the summer holiday period, the Federal Labor Office reported Wednesday.
Even after seasonal adjustments, the number of jobless fell by 12,000, resulting in an unemployment rate of 8.2%. Economists polled earlier had predicted a rise of 25,000 in seasonally adjusted unemployed and a jobless rate of 8.3%.
The Federal Labor Office also revised down the drop in seasonally adjusted unemployed in August to 6,000 from an initial estimate of only 1,000.
In unadjusted terms, the number of jobless fell more sharply, by over 125,000 to 3.346 million, or 8.0% of the workforce.
"However, this is not a change in the trend," Labor Office chairman Frank-Juergen Weise said in a statement. "Overall, the effects of the economic crisis on the labor market remain palpable."
Unemployment has risen more slowly in the current recession than in previous ones in Germany, due largely to generous subsidies from the government to provide companies with incentives to put workers on shortened hours rather than lay them off. Even so, the unadjusted total is up 266,000 from a year ago.
Over 1.416 million workers were on shortened shifts in June, the last month for which data are available.
Even after seasonal adjustments, the number of jobless fell by 12,000, resulting in an unemployment rate of 8.2%. Economists polled earlier had predicted a rise of 25,000 in seasonally adjusted unemployed and a jobless rate of 8.3%.
The Federal Labor Office also revised down the drop in seasonally adjusted unemployed in August to 6,000 from an initial estimate of only 1,000.
In unadjusted terms, the number of jobless fell more sharply, by over 125,000 to 3.346 million, or 8.0% of the workforce.
"However, this is not a change in the trend," Labor Office chairman Frank-Juergen Weise said in a statement. "Overall, the effects of the economic crisis on the labor market remain palpable."
Unemployment has risen more slowly in the current recession than in previous ones in Germany, due largely to generous subsidies from the government to provide companies with incentives to put workers on shortened hours rather than lay them off. Even so, the unadjusted total is up 266,000 from a year ago.
Over 1.416 million workers were on shortened shifts in June, the last month for which data are available.
UK Index of Services down 0.2% in Jul
Posted in on byGBP/USD (Sep 30 at 09:11 GMT)
1.6083/84 (0.78%)
H 1.6097 L 1.5949
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.6001 | 1.6041 | 1.6081 | 1.6104 | 1.6144 | 1.6185 |
| [?]Trend Index | [?]OB/OS Index |
| Slightly Bullish | Neutral |
| Data updated on Sep 30 at 09:05 (15-minute timeframe) | |
GLOBAL MARKETS: European Stocks Perk Up Ahead Of Econ Data
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LONDON -- European stock markets were marginally higher Wednesday, benefiting from a late recovery in Asian markets on strong Australian retail sales, as investors bought back into the market following Tuesday's decline.
"Any weakness still seems well supported and while the next few weeks and months may not offer the fireworks we’ve had in the market recently, it seems that shares are still well placed to grind at least a little higher from their current levels," said David Jones, chief market strategist at IG Index.
At 0817 GMT, Stoxx 600 index was up 0.4% at 244.75, London's FTSE 100 index up 0.2% at 5169.36, Frankfurt's DAX index 0.2% higher at 5725.17, and the CAC-40 index in Paris up 0.4% at 3830.02.
Still, markets are seeking some fresh impetus for a concerted move in either direction, noted traders. "We are treading water at the minute, with investors appearing to be happy with the profits that have been banked thus far," said John Murphy, an analyst at ODL Securities.
Wednesday's raft of scheduled economic data during the session may well offer the market this direction. Investors will closely look at the euro-zone harmonized index of consumer prices at 0900 GMT, the U.S. Automatic Data Processing payroll survey at 1215 GMT, and the U.S. GDP figure at 1230 GMT.
"I would expect volumes to pick up later in the afternoon once U.S. GDP figures are published. Markets will be cautiously awaiting the figures given yesterday's weaker than expected U.S. consumer confidence numbers," said Arifa Sheikh-Usmani, equity trader at Spreadex.
On the stocks front, mining stocks recovered from Tuesday's losses, offering equities much needed support as commodity prices recovered from Tuesday's losses while the dollar weakened.
"After years of underperformance, mining shares outperformed the overall equity market from 2000 to mid-2007. We believe that over the longer term the secular trend outperformance of mining shares that began in 2000 will continue, driven by growth in the developing world," said H. Fraser Philips, analyst at RBC Capital Markets.
Shares in Xstrata PLC (XTA.LN) gained 1.2%, while Rio Tinto PLC (RIO.LN) added 0.4%. The pan-European Dow Jones Stoxx 600 basic resources index tacked on 0.7%.
Meanwhile, industrial conglomerate Smiths Group PLC (SMIN.LN) posted a 2% decline in full-year pretax profit due to weaker underlying sales, and said in the year ahead it would focus on delivering further cost savings and improving cash flow. Still, analysts applauded the management's increase in targeted cost savings to GBP50 million annually by 2011 from GBP47 million. Shares in Smiths Group gained 5.8%.
On Wall Street Tuesday, stocks closed lower on the disappointing reading for consumer confidence. The Industrial Average closed down 47.16 points, or 0.5%, to 9742.20, marking its fourth fall in five sessions, while the Standard & Poor's 500 lost 2.37, or 0.2%, to 1060.61. Going into the last day of September, the index remains up 3.9% for the month.
The negative tone on Wall Street put Asian stock markets under pressure earlier Wednesday, but a rise in Australian retail sales offset the weakness across the region and markets moved off their earlier lows as investor appetite for risk rose. Japan's Nikkei 225 closed up 0.3% but South Korea's Kospi Composite was off 1.0%. Hong Kong's Hang Seng Index was 0.2% lower but the Shanghai Composite was up 0.9%.
End-of-quarter window dressing may have helped some regional markets, traders said, even after the weaker-than-expected U.S. consumer confidence data. "Funds don't want to have too much cash on their books before the end of quarter," said Patersons client adviser Chris Blair in Sydney.
In the currency markets, the dollar fell back below the Y90 mark, weighed down by exporters' sales, while the euro was also lower against the yen but up against the dollar. Dealers said the dollar and the euro were supported by month-end demand from Japanese importers for account settlement, while some players were taking profit on the yen after its recent steep rise.
At 0840 GMT, the dollar was trading at Y89.46, down from Y90.09 late in New York Tuesday, while the euro was fetching Y130.76, down from Y131.38. The euro was slightly higher against the dollar at $1.4620, up from $1.4588.
Elsewhere, spot gold was at $998.15 per troy ounce, up around $7 from the New York close, while in the oil market the Nymex November crude oil futures contract was up 40 cents at $67.11 per barrel.
European government bonds were marginally weaker Wednesday, ahead of the European Central Bank's 12-month long-term refinancing operation.
Analysts at WestLB expect demand to reach EUR150 billion, below the EUR442 billion allocated at the previous tender on June 24. The results are due around 0920 GMT.
"Any weakness still seems well supported and while the next few weeks and months may not offer the fireworks we’ve had in the market recently, it seems that shares are still well placed to grind at least a little higher from their current levels," said David Jones, chief market strategist at IG Index.
At 0817 GMT, Stoxx 600 index was up 0.4% at 244.75, London's FTSE 100 index up 0.2% at 5169.36, Frankfurt's DAX index 0.2% higher at 5725.17, and the CAC-40 index in Paris up 0.4% at 3830.02.
Still, markets are seeking some fresh impetus for a concerted move in either direction, noted traders. "We are treading water at the minute, with investors appearing to be happy with the profits that have been banked thus far," said John Murphy, an analyst at ODL Securities.
Wednesday's raft of scheduled economic data during the session may well offer the market this direction. Investors will closely look at the euro-zone harmonized index of consumer prices at 0900 GMT, the U.S. Automatic Data Processing payroll survey at 1215 GMT, and the U.S. GDP figure at 1230 GMT.
"I would expect volumes to pick up later in the afternoon once U.S. GDP figures are published. Markets will be cautiously awaiting the figures given yesterday's weaker than expected U.S. consumer confidence numbers," said Arifa Sheikh-Usmani, equity trader at Spreadex.
On the stocks front, mining stocks recovered from Tuesday's losses, offering equities much needed support as commodity prices recovered from Tuesday's losses while the dollar weakened.
"After years of underperformance, mining shares outperformed the overall equity market from 2000 to mid-2007. We believe that over the longer term the secular trend outperformance of mining shares that began in 2000 will continue, driven by growth in the developing world," said H. Fraser Philips, analyst at RBC Capital Markets.
Shares in Xstrata PLC (XTA.LN) gained 1.2%, while Rio Tinto PLC (RIO.LN) added 0.4%. The pan-European Dow Jones Stoxx 600 basic resources index tacked on 0.7%.
Meanwhile, industrial conglomerate Smiths Group PLC (SMIN.LN) posted a 2% decline in full-year pretax profit due to weaker underlying sales, and said in the year ahead it would focus on delivering further cost savings and improving cash flow. Still, analysts applauded the management's increase in targeted cost savings to GBP50 million annually by 2011 from GBP47 million. Shares in Smiths Group gained 5.8%.
On Wall Street Tuesday, stocks closed lower on the disappointing reading for consumer confidence. The Industrial Average closed down 47.16 points, or 0.5%, to 9742.20, marking its fourth fall in five sessions, while the Standard & Poor's 500 lost 2.37, or 0.2%, to 1060.61. Going into the last day of September, the index remains up 3.9% for the month.
The negative tone on Wall Street put Asian stock markets under pressure earlier Wednesday, but a rise in Australian retail sales offset the weakness across the region and markets moved off their earlier lows as investor appetite for risk rose. Japan's Nikkei 225 closed up 0.3% but South Korea's Kospi Composite was off 1.0%. Hong Kong's Hang Seng Index was 0.2% lower but the Shanghai Composite was up 0.9%.
End-of-quarter window dressing may have helped some regional markets, traders said, even after the weaker-than-expected U.S. consumer confidence data. "Funds don't want to have too much cash on their books before the end of quarter," said Patersons client adviser Chris Blair in Sydney.
In the currency markets, the dollar fell back below the Y90 mark, weighed down by exporters' sales, while the euro was also lower against the yen but up against the dollar. Dealers said the dollar and the euro were supported by month-end demand from Japanese importers for account settlement, while some players were taking profit on the yen after its recent steep rise.
At 0840 GMT, the dollar was trading at Y89.46, down from Y90.09 late in New York Tuesday, while the euro was fetching Y130.76, down from Y131.38. The euro was slightly higher against the dollar at $1.4620, up from $1.4588.
Elsewhere, spot gold was at $998.15 per troy ounce, up around $7 from the New York close, while in the oil market the Nymex November crude oil futures contract was up 40 cents at $67.11 per barrel.
European government bonds were marginally weaker Wednesday, ahead of the European Central Bank's 12-month long-term refinancing operation.
Analysts at WestLB expect demand to reach EUR150 billion, below the EUR442 billion allocated at the previous tender on June 24. The results are due around 0920 GMT.
Forex: USD/JPY: Dollar dips below 89.50/60 area
Posted in on by Dollar retreat from 90.35 high has extended further as the pair broke below 89.50/60 (Sept 29 low/intra-day low) to levels around 89.38 at the time of writing.
Below 89.60, next support levels lie at 89.15 and below there, 88.25 (Sept 28 low) and 88.00. On the upside, resistance levels lie at 90.35/50 (Sept 24, intra-day lows), and above here, 90.85 and 91.30/35 (Sept 25 high).
According to Nicole Elliott, technical analyst at Mizuho Corporate Bank sees rallies to 90.40 as good selling opportunities: "Trapped between a massive ‘hammer’ low and capped by the 9-day moving average. Rallies towards trendline resistance and the 26-day moving average at 91.40 are seen as medium term selling opportunities for an eventual test of January’s low at 87.10."
USD/JPY (Sep 30 at 09:08 GMT)
89.45/45 (-0.75%)
H 90.41 L 89.35
| S3 | S2 | S1 | R1 | R2 | R3 |
| 88.8883 | 89.1117 | 89.3350 | 89.4850 | 89.7087 | 89.9324 |
| [?]Trend Index | [?]OB/OS Index |
| Neutral | Neutral |
| Data updated on Sep 30 at 09:05 (15-minute timeframe) | |
ECB Papademos: Monetary Policy Can Help Financial Stability
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GOTHENBURG, Sweden -- Monetary policy can be used to ensure financial stability, defusing asset-price bubbles and other risks, European Central Bank Vice President Lucas Papademos said Wednesday.
Interest rate decisions should be used in coordination with other regulatory tools, Papademos said during a panel discussion at a financial conference in Gothenburg.
ECB governing council member and head of the German central bank Axel Weber, another member of the panel, agreed. He said price stability, the ECB's main priority, and financial stability are intertwined.
Interest rate decisions should be used in coordination with other regulatory tools, Papademos said during a panel discussion at a financial conference in Gothenburg.
ECB governing council member and head of the German central bank Axel Weber, another member of the panel, agreed. He said price stability, the ECB's main priority, and financial stability are intertwined.
DATA SNAP: Euro-Zone Consumer Prices Fell More Than Expected
Posted in on by
LONDON -- Consumer prices across the 16 countries that use the euro fell more steeply than in August, in line with bigger-than-expected declines in Germany, Spain and Belgium, and indicating that inflation is currently not a risk to an economy emerging from recession.
The European Union's official statistics agency Eurostat Wednesday said the flash estimate of the annual consumer price index in the euro zone fell 0.3% on the year in September. In August the consumer price index declined 0.2%.
The steeper drop wasn't expected by economists surveyed by Dow Jones Newswires last week who had predicted a 0.2% decline.
However, the drop was in line with estimates from Germany on Monday and Spain and Belgium Tuesday which showed that CPI in each country fell by more than was expected. Germany's statistics agency said the decline was due to lower food and energy prices, but economists said Monday that this trend is not expected to last and we should see the CPI moving back into positive territory in the coming months.
The annual rate of euro-zone inflation remains well below the level of around 2% that the European Central Bank targets over the medium term.
However, the ECB has previously stated that it expects the CPI to remain negative for several months before returning to positive territory by the end of the year.
Other data reported earlier Wednesday suggest that the consumer price index could turn positive sooner rather than later. The forward-looking producer price indexes for August from both France and Italy posted monthly prices rises and smaller annual declines.
In France, the PPI rose 0.4% on the month and fell by 8.5% on the year, and French statistics office Insee noted there was an increase in the price of oil and chemicals in August.
In Italy, producer prices rose 0.6% on the month and fell 6.7%% on the year, compared with forecasts of a 0.5% monthly gain and a 7.3% annual fall.
The European Union's official statistics agency Eurostat Wednesday said the flash estimate of the annual consumer price index in the euro zone fell 0.3% on the year in September. In August the consumer price index declined 0.2%.
The steeper drop wasn't expected by economists surveyed by Dow Jones Newswires last week who had predicted a 0.2% decline.
However, the drop was in line with estimates from Germany on Monday and Spain and Belgium Tuesday which showed that CPI in each country fell by more than was expected. Germany's statistics agency said the decline was due to lower food and energy prices, but economists said Monday that this trend is not expected to last and we should see the CPI moving back into positive territory in the coming months.
The annual rate of euro-zone inflation remains well below the level of around 2% that the European Central Bank targets over the medium term.
However, the ECB has previously stated that it expects the CPI to remain negative for several months before returning to positive territory by the end of the year.
Other data reported earlier Wednesday suggest that the consumer price index could turn positive sooner rather than later. The forward-looking producer price indexes for August from both France and Italy posted monthly prices rises and smaller annual declines.
In France, the PPI rose 0.4% on the month and fell by 8.5% on the year, and French statistics office Insee noted there was an increase in the price of oil and chemicals in August.
In Italy, producer prices rose 0.6% on the month and fell 6.7%% on the year, compared with forecasts of a 0.5% monthly gain and a 7.3% annual fall.
Euro Zone CPI falls 0.3% in Sep
Posted in on byEUR/USD (Sep 30 at 09:04 GMT)
1.4633/33 (0.34%)
H 1.4645 L 1.4574
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.4550 | 1.4587 | 1.4624 | 1.4648 | 1.4684 | 1.4721 |
| [?]Trend Index | [?]OB/OS Index |
| Slightly Bullish | Neutral |
| Data updated on Sep 30 at 09:00 (15-minute timeframe) | |
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