|  |  |  | | | | | FXOpen - Forex Live News | | | | | | | | | | | | | | | | | |  The dollar wobbled on Friday, unable to build upon recent gains against the struggling euro as concerns about the U.S. economy offset Greece's sovereign debt woes. An eventful week in the currency markets ended with no resolution to the Greek crisis. The sudden fall of IMF head Dominique Strauss-Kahn overshadowed a growing disagreement between European politicians and the the European Central Bank about how to best to approach the Greek problem. Responding to voters resentful of Greece's lack of fiscal discipline, German and French leaders have reportedly opened the door to a "soft restructuring of Greek debt. The ECB, on the other hand, has warned Athens that it will stop accepting Greek bonds as collateral if Greece restructures. Meanwhile, a series of disappointing economic figures raised doubts that the U.S. economy is picking up steam after a dreadful first quarter. Manufacturing has tailed off, housing remains depressed, and the Fed is facing inflationary pressures leading some policy members to call for hiking ultra-accommodative interest rates. The dollar was slightly higher against the euro today, improving to $1.4138 before settling near $1.42. The buck began the week at $1.4050, its highest since late March. Early gains against Canada's loonie evaporated, leaving the dollar about three cents below par. Canadian consumer prices rose at a slower than expected pace in April compared to the previous month, official data showed Friday. Overall consumer prices rose 3.3 percent in the twelve months to April, matching the increase recorded in March. The buck was stuck near Y81.60 versus the yen, with little attention paid to the latest interest rate announcement from the Bank of Japan. The Japanese central bank on Friday retained its near zero interest rate and refrained from introducing more monetary easing measures. In economic news from Europe, German producer price inflation accelerated in April, after slowing in the previous month, data released by the Federal Statistical Office showed Friday. The producer price index (PPI) for industrial products rose 6.4 percent year-on-year, following a 6.2 percent gain in the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  In a sign of the continued problems that Greece is facing, Fitch Ratings lowered its credit ratings on the debt-plagued country to B+ from BB+. Fitch downgraded Greece's long-term foreign and local currency Issuer Default Ratings, while the short-term IDR remains at B. The agency said all three ratings have been placed on Rating Watch Negative. "The rating downgrade reflects the scale of the challenge facing Greece in implementing a radical fiscal and structural reform programme necessary to secure solvency of the state and the foundations for sustained economic recovery," Fitch said. The agency noted that Greece will need to undertake further fiscal austerity measures in order to reach the goal of reducing the 2011 budget deficit to 7.5 percent of GDP as a result of the under-performance of tax receipts and higher deficit outturn for 2010 than originally targeted.. Fitch said, "Moreover, the greater emphasis on privatisation has heightened the risk that the policy conditional funding under the EU-IMF programme will be delayed given the political and technical obstacles to the realisation of EUR50bn of asset sales." "Nonetheless, Fitch does expect some assets sales by year-end, albeit relatively modest, and continues to believe that the Greek government remains committed to the programme and to honouring its sovereign debt obligations," the agency added. In a sign of the continued problems that Greece is facing, Fitch Ratings lowered its credit ratings on the debt-plagued country to B+ from BB+. Fitch downgraded Greece's long-term foreign and local currency Issuer Default Ratings, while the short-term IDR remains at B. The agency said all three ratings have been placed on Rating Watch Negative. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  Consumer sentiment in Eurozone unexpectedly improved in May to its highest level in six months as growth gained momentum in the first quarter despite rising inflationary pressures. The flash consumer confidence indicator rose to minus 9.7 from April's minus 11.6, the European Commission's Directorate-General for Economic and Financial Affairs said Friday. Economists had expected the index to fall to minus 12, following declines in the previous two months. The latest reading is the highest since last November, when it was minus 9.4. Sentiment in the whole of European Union also improved in May. The index rose to minus 10.6 from minus 13.9. Final data is set to be released on May 27. Survey data released by the Belgian central bank earlier today showed that the country's consumer confidence also improved for the second consecutive month in May as the expectations on the economy for the next twelve months increased. The indicator rose to its highest level for the last four years. The 17-nation currency bloc expanded 0.8 percent sequentially in the first quarter after expanding 0.3 percent in the fourth quarter. The European Commission maintained its 2011 growth forecast of 1.6 percent for the euro area this month. However, there is rising concern that the growth momentum may be difficult to sustain amid austerity measures put in place by the region's governments and increasing price pressures. Further, the peripheral debt crisis and related events are likely to dampen demand in coming months. Such concerns were evident in the results of the ZEW economic sentiment survey for Germany released earlier in the week. Economic sentiment in the biggest Eurozone economy fell for the third consecutive month in May on expectations that any further improvement in activity is unlikely. Eurozone inflation increased in April to 2.8 percent, the highest since October 2008, and continued to stay above the central bank's threshold limit. The European Central Bank targets inflation "below, but close to 2 percent." Inflation has been hovering above 2 percent since December. On April 7, the central bank had delivered its first rate hike in nearly three years. The interest rate was raised by 25 basis points to 1.25 percent. The bank has signaled that interest rates will be left unchanged in June. Expectations are now pegged on a July hike. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Eurozone consumer confidence unexpectedly increased in May to a six-month high, after weakening in the previous two months, preliminary data released by the European Commission revealed Friday. The flash consumer confidence indicator rose to minus 9.7 from April's minus 11.6. Economists had expected the index to fall to minus 12. The latest reading is the highest since last November, when it was minus 9.4. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  The euro was under renewed pressure on Friday, as a lack of clarity regarding Greece's sovereign debt problems discouraged interest in the single currency. It seemed earlier in the week that a resolution to the Greek sovereign debt crisis was imminent despite the arrest of International Monetary Fund head Dominique Strauss-Kahn, but a clash of ideals between northern and southern European cousins could stand in the way of a package. German chancellor Angela Merkel recently chided Greeks for their low retirement age and generous vacation benefits, suggesting that Athens would only get help if they "help themselves" by adopting more competitive practices. Divisions have also emerged between European political officials and the European Central Bank over whether restructuring is a possibility for Greece. Responding to political pressure from voters resentful of Greece's lack of fiscal discipline, German and French leaders have opened the door to a "soft restructuring." The ECB, on the other hand, has warned Athens that it will stop accepting Greek bonds as collateral if Greece restructures. The euro slipped to $1.4220 versus the dollar, giving back its gains from the previous session. Still, the euro is up a bit from where its began the week at a 7-week low near $1.4050. The euro also weakened against the sterling today, slipping to GBP 0.8760 from 0.8840. Modest early losses took the euro to Y116.30 versus the yen, compared to a weekly high of 117.22. The Japanese central bank on Friday retained its near zero interest rate and refrained from introducing more monetary easing measures. In economic news from Europe, German producer price inflation accelerated in April, after slowing in the previous month, data released by the Federal Statistical Office showed Friday. The producer price index (PPI) for industrial products rose 6.4 percent year-on-year, following a 6.2 percent gain in the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Taiwanese export order growth slowed unexpectedly in April, data from the Ministry of Economic Affairs showed Friday. Export orders climbed 10.14 percent from the previous year, down from March's 13.37 percent growth and the consensus forecast of 14.65 percent. On a monthly basis, export orders were down 4.06 percent. Orders from the U.S. grew 17.41 percent year-on-year in April and the increase in orders from Europe was 23.3 percent. Orders from China grew only 2.3 percent from a year ago. Elsewhere, the central bank said the current account surplus rose to $10.75 billion from $9.25 billion in the fourth quarter of 2010. The surplus in services fell to $1.11 billion from $1.75 billion in the previous quarter. The merchandise trade showed a surplus of $5.6 billion compared to $5.7 billion surplus in the fourth quarter. Meanwhile, the income account surplus grew sharply to $5.12 billion from $2.39 billion. The current transfers deficit increased to $1.07 billion from $0.59 billion. Taiwanese export order growth unexpectedly slowed in April, data from the Ministry of Economic Affairs showed Friday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Belgium's consumer confidence improved for the second consecutive month in May as the expectations on the economy for the next twelve months increased, survey data from the central bank revealed Friday. The consumer confidence indicator rose to 1 from minus 1 in April. In February, the reading was 1. "The decline seen in March has been canceled out by this increase and the indicator is thus back at its highest level for the last four years," the central bank said. Consumers' expectations regarding the country's economic situation in the next 12 months rose strongly. The corresponding index climbed to 5 from minus 1. Expectations on the unemployment situation improved, with the index falling to 5 from 6. The outlook on the financial situation of households also increase. The measure rose to 1 from zero. The indicator reflecting expectations on saving capacity held steady at 2 for the second straight month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Poland's industrial production for April increased at a slower pace than forecast by economists, data released by the Central Statistical Office showed Friday. Industrial output increased 6.6 percent year-on-year in April, slower than the 6.9 percent rise forecast by economists. In March, production increased 7 percent annually. Manufacturing production climbed 7.2 percent, while mining and quarrying output grew 3.4 percent annually. There was a 1.4 percent in the production of electricity, gas, steam and air conditioning supply in April. On a monthly basis, industrial production declined 9.4 percent in April, while economists expected production to decline 9.1 percent. Production had increased 15.3 percent month-on-month in March. In the January-April period, industrial production increased 8.1 percent from the same period last year. At the same time, construction production advanced 15.6 percent year-on-year in April, while on a monthly basis it grew 9.7 percent. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Canadian retail sales were basically flat in March, as consumers put off spending on clothes and furniture in order to fill their gas tanks, official data showed Friday. Retail sales were flat in March, holding steady at C$37.3 billion, according to Statistics Canada. Economists expected retail sales to rise 0.9 percent, following the 0.4 percent gains recorded in February. Stripping out higher food and gasoline prices, retail sales in volume terms decreased 0.8 percent in March. Receipts from gas stations rose 1.4 percent in dollar terms, the eighth increase in nine months. Gas prices rose almost 40 percent in the two years since March 2009. Furniture and home furnishings stores registered the largest decline in March, falling 2.2 percent. This reflects a 4.4 percent decrease at furniture stores, where sales have been trending down since early 2010. Clothing and clothing accessories retailers registered a 0.9 percent decline, with lower sales reported by all store types. Overall sales were up slightly in most provinces, but down in the population centers of Ontario. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Poland's producer prices increased at a slower pace in April, data released by the Central Statistical Office showed Friday. The inflation figure exceeded economists' expectations. The producer price index increased 8.9 percent year-on-year in April, slower than the 9.5 percent growth recorded in March, which was revised from 9.3 percent. Economists had called for an annual increase of 8.6 percent. Mining and quarrying prices jumped 23 percent during the month, following March's 22.4 percent rise. Prices in the manufacturing industry moved up 8.7 percent annually, after increasing 9.5 percent in March. Prices of energy products, comprising electricity, gas, steam and air conditioning supply, increased 3.7 percent, unchanged from the March level. On a monthly-basis, producer prices grew 0.8 percent in April, after rising the upwardly revised 1.6 percent in the previous month. Economists had expected a 0.6 percent month-on-month increase. In the January-April period, producer prices advanced 8 percent from the corresponding period last year. At the same time, construction and assembly production prices increased 0.6 percent year-on-year in April, flat with the growth rate recorded in March. Month-on-month, prices in the construction sector rose 0.1 percent, after increasing 0.2 percent in March. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Germany's economic growth is likely to slow somewhat in the foreseeable future following the 'explosive' start to 2011, the Bundesbank said in its Monthly Report on Friday. The largest eurozone economy had expanded at a faster pace of 1.5 percent in the first quarter, underpinned by the robustness of domestic demand. The central bank today said the quarterly expansion considerably overstates the underlying economic momentum. Consumer spending is set to benefit from the good state of the labor market. The upturn could support economic activity for some time to come. The central bank sees risks to growth from worsening price climate. Germany's economic growth is likely to slow somewhat in the foreseeable future following the 'explosive' start to 2011, the Bundesbank said in its Monthly Report on Friday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  The dollar rebounded against the euro Friday morning, as European officials stepped up the pressure on Greece to take painful austerity measure in exchange for a second rescue package. The Greek sovereign debt crisis was expected to be resolved at meetings of European officials earlier this week, but the shocking arrest of International Monetary Fund President Dominique Strauss-Kahn and a lack of concrete austerity measures from Athens has delayed the process. Divisions have emerged between European political officials and the European Central Bank over whether restructuring is a possibility for Greece. Responding to political pressure from voters resentful of Greece's lack of fiscal discipline, German and French leaders have opened the door to a "soft restructuring." The ECB, on the other hand, has warned Athens that it will stop accepting Greek bonds as collateral if Greece restructures. Even with U.S. economic data signaling the first quarter malaise may be carrying into the second quarter, the dollar has steadied against the euro. The buck rose to $1.4220 versus the euro this morning, taking back its losses from the previous session. The buck started the week at $1.4047, its best since late March. The buck was up a bit versus its Canadian rival after data showed consumer prices were in check in Canada last month. The dollar improved to three cents below par. Overall consumer prices rose 3.3 percent in the twelve months to April, matching the increase recorded in March. However, on a seasonally adjusted monthly basis, consumer prices rose 0.3 percent in April, according to Statistics Canada. Economists expected an increase of 0.5. The dollar was little changed at Y81.60 versus the yen, and held at $1.6235 versus the sterling. With no first-tier economic data on tap from the U.S., traders paid attention to remarks from New York Federal Reserve President William Dudley, who said that economic growth will pick up after the slow down in the first quarter. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Canadian consumer prices rose at a slower than expected pace in April compared to the previous month, official data showed Friday. Overall consumer prices rose 3.3 percent in the twelve months to April, matching the increase recorded in March. The Bank of Canada targets 2 percent inflation. However, on a seasonally adjusted monthly basis, consumer prices rose 0.3 percent in April, according to Statistics Canada. Economists expected an increase of 0.5, following the 0.8 percent advance seen in March. A monthly drop in food prices helped keep overall inflation in check. "We suspect that 3.3 percent will be the peak in (annual) inflation this year, said James Knightly, analyst at ING Bank. Knightly maintains his call for the Bank of Canada will raise interest rates at its July meeting, even though the BoC's closely-watched core Consumer Price Index, which strips out volatile food and energy prices, was up only 0.2 percent from March. "The Bank of Canada will be pleased with this reading, as it suggests the outsized jump in inflation in March was a one-off clothing price shock," said Knightly. Gasoline prices increased 26.4 percent on a yearly basis, bringing prices at the pump near their record highs of July 2008. This increase followed an 18.9 percent gain in the months to March. "We suspect annual fuel price increases will start to fall from now onwards, given developments in wholesale markets," said ING's Knightly. The food index was down 0.2 percent following a 1.6 percent advance in March. Still, food costs are up 3.3 percent from a year earlier. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Macau's retail sales continued to increase in the first quarter, data released by the Statistics and Census service revealed Friday. Retail sales increased 12.94 percent from the previous quarter to MOP 9.60 billion in the first quarter. In the fourth quarter sales rose 12.84 sequentially. Sales of watches, clocks and Jewelry grew 25 percent quarter-on-quarter, contributing significantly to the latest sales growth, while sales of communication equipment as well as goods sold in supermarkets advanced 19 percent during the quarter. Year-on-year, retail sales jumped 37.81 percent during the quarter, following a 29.78 percent increase in the preceding quarter. Excluding the effect of price variations, sales climbed 27 percent annually in the first quarter. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | The European Bank for Reconstruction and Development on Friday upgraded 2011 growth outlook for Eastern Europe and central Asia. But the bank sees risks rising from inflationary pressures and the possible fallout from sovereign debt crisis in some euro area nations. In its latest Regional Economic Prospects, the EBRD raised 2011 economic growth estimate for the 29 economies in which it invests, to 4.6 percent from 4.2 percent. The average growth for next year is seen at 4.4 percent. The bank said the recovery is becoming more widespread amid narrowing growth differentials, despite nations remaining at different stages in the recovery process. In many economies, the weakening of the labor markets is bottoming out. Still unemployment remains stubbornly high in economies like Poland and Slovakia. Further, for nations with financial systems deeply integrated with the eurozone, the EBRD points to possible financial turmoil as a contagion risk. The report warned that the recovery in central and south eastern Europe would stall if the turmoil in debt markets hamper financial markets more broadly. Another challenge to policy makers are rising prices of commodities. Moreover, pressures from nominal wage growth may feed into core inflation and conversely, rising inflation may increase political pressures for wage increases, the EBRD added. The growth outlook for Central Europe and Baltic nations was upwardly revised to 3.5 percent from 3.2 percent. But the growth rate is forecast to slow next year to 3.3 percent. The bank noted that recovery is gaining speed in Russia and Kazakhstan on higher oil prices and major fiscal stimulus packages. In Russia, growth is seen at 4.6 percent this year after 4 percent expansion in 2010. The overall economic growth projection for Central Asia was raised to 7.6 percent from 6.6 percent for this year. The Turkish economy continues to boom. However, the EBRD forecasts economic expansion for 2011 to slow to 6 percent and then to 4.5 percent next year. The European Bank for Reconstruction and Development on Friday upgraded 2011 growth outlook for Eastern Europe and central Asia. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Ireland's trade surplus increased in March, data released by the Central Statistical Office showed Friday. The trade surplus increased a seasonally-adjusted 3 percent month-month to EUR 3.93 billion in March. On an unadjusted basis, the trade surplus increased to EUR 4.36 billion from EUR 3.60 billion a year earlier. Exports declined a seasonally adjusted 6 percent month-on-month to EUR 7.58 billion in March, while imports dropped 14 percent to EUR 3.65 billion. On an unadjusted basis, exports grew 8 percent annually to EUR 8.46 billion, while imports declined 3 percent to EUR 4.1 billion. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Latvia's unemployment rate dropped for the fourth quarter in a row in the first three months of the year, data released by the Central Statistical Bureau showed Friday. The jobless rate fell to 16.6 percent from 16.9 percent in the previous quarter. The rate has fallen steadily since reaching a record high 20.5 percent in the first quarter of last year. The unemployment rate for youth aged between 15-24 slid to 29.8 percent from 30.7 percent in the previous quarter. A year ago, the figure was 39.8 percent. The number of persons without work was 188,300 in the first quarter, down from 193,400 in the previous three months. In the first quarter of 2010, there were 235,800 unemployed. In the first quarter, the number of employed also dropped to 944,300 from 951,000 in the previous three months. In the same period last year, the figure was 916,100. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | The European Bank for Reconstruction and Development on Friday lifted growth outlook for Eastern Europe and central Asia. But the bank expressed concerns over the possible fallout from sovereign debt problems in some euro area nations. The EBRD raised the region's economic growth estimate for 2011 to 4.6 percent from 4.2 percent. The average growth for next year is seen at 4.4 percent. In its latest Regional Economic Prospects, the bank said the recovery is becoming more widespread amid narrowing growth differentials. But nations remain at different stages in the recovery process. The European Bank for Reconstruction and Development on Friday lifted growth outlook for Eastern Europe and central Asia. But the bank expressed concerns over the possible fallout from sovereign debt problems in some euro area nations. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Investor confidence in Central and Eastern Europe improved slightly in May, a monthly survey conducted by the Center for European Economic Research (ZEW) and Vienna-based Erste Group Bank showed Friday. The ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe (CEE) including Turkey (CEE) rose 2.2 points to 20.9 in May. Meanwhile, the indicator that reflects the assessment of the current economic conditions fell 1.3 points to 21.2. Further, inflation concerns weakened in May, logging the first drop this year and the largest decrease among all economies included in the survey. The indicator for the inflation concern dropped mainly due to a sharp 22 points fall in Poland. For the euro area, economic expectations improved by 5.4 points to 3.6, while the evaluation of the current economic situation deteriorated in May. The current situation index fell by 7.6 points. Investor confidence in Central and Eastern Europe improved slightly in May, a monthly survey conducted by the Center for European Economic Research (ZEW) and Vienna-based Erste Group Bank showed Friday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Slovenia's producer price inflation slowed in April, data released by the Statistical Office of the Republic of Slovenia showed Friday. The producer price index grew 5.7 percent year-on-year in April, slower than March's upwardly revised 6 percent increase. Prices in the non-domestic market advanced 6.4 for percent, while prices of goods meant for the local market grew 5 percent during the month. Manufacturing prices moved up 5.9 percent annually, while prices in the mining and quarrying sector rose 1.3 percent in April. There was a 9.1 percent growth in intermediate goods prices, and a 4 percent increase in energy prices during the month.. Prices of capital goods and consumer goods advanced 2.6 percent and 3.6 percent, respectively. Month-on-month, producer prices increased 0.4 percent in April, unchanged from the pace of growth recorded in the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Lithuania's unemployment rate slightly rose in the first quarter, after sharply falling in the previous three months, data released by the Department of Statistics showed Friday. The jobless rate rose to 17.2 percent from 17.1 percent in the fourth quarter, when it fell from 18.3 percent. The unemployment rate for the youth aged between 15 to 24 climbed to 34.1 percent from 32.4 percent. A year ago, the corresponding figures were 18.1 percent and 35.9 percent, respectively. The total number of unemployed in the first quarter was 277,600, down from 281,900 in the previous three months. In the same period last year, the figure was 293,400. The number of unemployed youth dropped to 48,000 from 51,700 in the previous quarter and 53,100 a year ago. The labor force total fell to 1.618 million in the first quarter from 1.649 million in the fourth quarter. The number of employed dropped to 1.340 million from 1.367 million. The labor force participation rate was 71.6 percent, unchanged from the previous three months. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | French leading economic index increased sharply in Mach, signaling moderate expansion in economic activity in the near term, data from a survey conducted by Conference Board revealed Friday. The leading economic index (LEI) increased 0.9 percent month-on-month in March, supported by improvement in industrial new orders, yield spread and production expectations. In February, the indicator grew 0.5 percent. In the six moths ended March, the LEI advanced 2.9 percent. In the August-February period, the index had increased 2.6 percent. Meanwhile, the coincident economic index (CEI), which measures the current economic activity, remained unchanged during the month. The index, which increased 0.2 percent in February, has been on a rising trend since August 2009. In the six-month period ending March, the CEI increased 1 percent, after growing 1.2 percent in the August-February period. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Italian industrial orders increased for a second straight month in March, after a decline at the start of the year, data released by the statistical office ISTAT showed Friday. Orders grew a seasonally adjusted 8.1 percent month-on-month, following a 2.1 percent gain in the previous month, upwardly revised from 1.9 percent. Economists had forecast a modest 0.5 percent increase. Domestic orders rose 3.7 percent, faster than the 1.9 percent gain in February. Overseas bookings rose 15.5 percent, much greater than February's 2.7 percent increase. Year-on-year, orders rose 21.2 percent in March, after February's 16.2 percent growth. Economists were looking for 15.7 percent gain. Home market orders were up 16.3 percent, following 17.4 percent in the previous month. Foreign orders grew 29.6 percent, more than doubling February's 14.3 percent increase. Industrial turnover grew for a third straight month, Turnover rose 2 percent monthly, after increasing 1.6 percent in the previous month. Domestic market turnover increased at a steady pace of 1.8 percent, while growth in export market turnover rose to 2.3 percent from 0.9 percent. The annual growth in industrial turnover slowed to 12.2 percent in March from 12.9 percent in February. The corresponding figure for the domestic market edged up to 11 percent from 10.9 percent. The growth figure for foreign market dropped to 15.3 percent from 17.6 percent. In the first quarter, industrial orders rose 6.3 percent from the previous three months, ISTAT said. Turnover grew 3 percent. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | The euro area current account deficit narrowed in March, data from the European Central Bank revealed Friday. The current account deficit totaled a seasonally adjusted EUR 4.7 billion, smaller than the last month's EUR 6.5 billion shortfall recorded in February. In March, trade in goods showed a surplus of EUR 0.8 billion compared to a deficit of EUR 1.9 billion in the previous month. At the same time, the surplus in services increased to EUR 3.8 billion from EUR 3.6 billion in the prior month. On the other hand, deficits in income account and current transfers widened to EUR 0.3 billion and EUR 8.9 billion, respectively. For the first quarter, the current account deficit came in at EUR 16.8 billion on a seasonally adjusted basis. The euro area current account deficit narrowed in March, data from the European Central Bank said on Friday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Dutch consumer confidence remained weak in May, a monthly survey from Statistics Netherlands showed Friday. The corresponding indicator remained unchanged at minus 10 in May. At the same time, the economic sentiment indicator fell by 3 points to minus 9 in May. While assessment of past economic conditions fell to minus 18 from minus 14 in April, confidence over the coming twelve months fell to zero from 1. On the other hand, willingness to buy durables improved slightly to minus 11 from minus 12. The modest improvement in May was entirely due to consumers' assessment that the time was more favorable to buy expensive items than in the preceding month. In a separate report, the statistical office said household spending rose 0.2 percent in March from the previous year. Consumption of goods fell 1.3 percent, while spending on services rose by 1.5 percent. Dutch consumer confidence remained weak in May, a monthly survey from Statistics Netherlands showed Friday. The corresponding indicator remained unchanged at minus 10 in May. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Macau's consumer price inflation slowed in April, data released by the Statistics and Census Service showed Friday. The consumer price index increased 4.88 percent year-on-year in April, slower than March's 5.46 percent growth. Prices of food and non-alcoholic beverages climbed 6.52 percent annually, while prices in the transport sector grew 8.73 percent in April. On a monthly basis, consumer prices advanced 0.10 percent in April, after increasing 0.47 percent in the previous month. In the 12 months ended April, the average composite consumer price index increased 3.88 percent from the same period last year. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Austria's producer price inflation increased to a record high in March, data released by Statistics Austria showed Friday. The producer price index increased 5.4 percent year-on-year March, faster than the 5.3 percent increase recorded in February. The latest growth is the biggest since the series started. Prices of intermediate goods climbed 8.2 percent year-on-year in March, while energy prices moved up by 10 percent. On a monthly basis, producer prices grew 0.7 percent in March, after increasing 0.4 percent in February. In the first quarter of 2011, producer prices increased 5.3 percent from last year, and rose 1.5 percent compared to the fourth quarter. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | A high savings rate in China would lead to overheating and asset bubbles, Zhou Xiaochuan, governor of the People's Bank of China said Friday. Accordingly, the systemically important banks should raise their capital, he added. China will "cautiously" promote cross-border yuan investment, Zhou said at the Lujiazui Forum in Shanghai. The yuan will move towards full convertibility, but the process will be gradual, he noted. Further, Zhou said China needs to find a policy balance between economic growth and inflation. Although the level of uncertainty in the global economy remains high, the recovery trend is clearer. A high savings rate in China would lead to overheating and asset bubbles, Zhou Xiaochuan, governor of the People's Bank of China said Friday. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Thailand's trade balance swung to a deficit in April, after recording surplus in March, data released by the Ministry of Commerce showed Friday. The country recorded a trade deficit of $0.80 billion in April, after registering a surplus balance in March. Exports increased 24.6 percent year-on-year to in April, while imports grew 27.9 percent from last year. In the January-April period, the trade balance was a surplus of $1.9 billion. Exports for the three-month period advanced 27.4 percent, while imports grew 27.9 percent annually. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | |  The Japanese central bank on Friday retained its near zero interest rate and refrained from introducing more monetary easing measures. The nine-member Policy Board of the Bank of Japan decided to leave the uncollateralized overnight call rate unchanged at around 0 to 0.1 percent by a unanimous vote. The central bank also maintained its 10-trillion yen asset purchase program. Deputy Governor Kiyohiko Nishimura, who called for an increase in the asset purchase program by 5 trillion yen in April, dropped his proposal today. BoJ Governor Masaaki Shirakawa is set to hold a press conference on Friday afternoon. The central bank retained its economic assessment and warned that the economy faces strong downward pressure, mainly on the production side. The economy is expected to experience downward pressure for the time being. The government data showed yesterday that the economy slipped into recession in the first quarter. The economy shrank 3.7 percent on an annual basis in the first quarter. Shipments were down sharply as the supply-side constraints driven by the disaster in March dampened production. Moreover, weakening business and household sentiment pulled down domestic demand. The bank expects the economy to return to a moderate recovery path from the second half of fiscal 2011 as supply-side constraints ease and production regains traction. Although consumer price annual inflation continued to slow, it is expected to turn positive. In the longer term, the economy is projected to return to a sustainable growth path with price stability. The Bank of Japan vowed to make contributions as the central bank so as to help the economy to overcome deflation and return to a sustainable growth path with price stability. The Japanese central bank on Friday retained its near zero interest rate and refrained from introducing more monetary easing measures. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | German producer price inflation accelerated in April, after slowing in the previous month, data released by the Federal Statistical Office showed Friday. The producer price index (PPI) for industrial products rose 6.4 percent year-on-year, following a 6.2 percent gain in the previous month. In February, pipeline inflation was 6.4 percent. Economists had expected the inflation figure to fall further to 6 percent in April. Energy prices jumped 11.8 percent in April. Excluding energy, producer prices were 4.2 percent higher than a year ago. Prices of petroleum products rose 17.6 percent from last year, while gas prices moved up 15 percent. Electricity prices were up 8.5 percent. Among product groups, producer prices for intermediate goods rose 6.9 percent, a new high. The PPI for consumer goods climbed 4 percent annually. The index for durable goods rose 1.6 percent, while that for capital goods was up 1.2 percent. Month-on-month, producer prices increased 1 percent, after rising 0.4 percent in March. The monthly gain was bigger than the 0.6 percent expected by economists'. The latest monthly increase is the fastest in three months. Stripping off energy prices, producer prices rose 0.4 percent from the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Estonia's producer price inflation remained unchanged in April, data released by Statistics Estonia showed Friday. The producer price index increased 5.2 percent year-on-year in April, unchanged from the growth recorded in March. Prices in the manufacturing sector rose 5.9 percent, while energy prices moved up 1.1 percent during the month. Meanwhile, there was a 0.7 percent annual decline in prices in the mining sector. Month-on-month, producer prices increased 0.9 percent in April. At the same time, export prices climbed 10.5 percent annually in April, and rose 0.2 percent on a monthly basis. Import prices grew 12.4 percent year-on-year in April, and advanced 1.1 percent from the previous month. (Market News Provided by RTTNews) | | | | | | | | | | | | | | | | | | | | | | | | | Japan's all industry activity declined more than expected after the earthquake and tsunami hit the nation on March 11, data from the Ministry of Economy, Trade and Industry showed Friday. All industry activity declined 6.3 percent month-on-month in March, reversing last month's 0.7 percent growth. Economists were expecting a monthly fall of 6.1 percent. Within overall industry activity, construction activity dipped sharply by 8.6 percent after rising 1.4 percent in February. Industrial production recorded 15.5 percent drop after increasing 1.8 percent in the previous month. Tertiary industry activity fell 6 percent compared to previous month's 1 percent growth. Meanwhile, government services activity remained flat, following a 0.1 percent rise seen in February. On an annual comparison, all industry activity dipped 4.5 percent after rising 1.8 percent in the previous month. Japan's all industry activity declined more than expected in March, data from the Ministry of Economy, Trade and Industry said Friday. (Market News Provided by RTTNews) | | | | | | | | | |  | |  | |  |
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