Slow growth of the Chinese and American manufacturing sectors forced to worry about the global economy, despite the fact that European producers started well this year.The growth rate of China's factory sector slowed to a six-month low, while the service sector of the country grew at the slowest pace in five years. The weakening of the economic pillar of Asia portends trouble for the markets and the world economy. It concerns about growth in China were behind the recent sale of assets of emerging markets, as many countries depend on...
Fundamental indicator Non-Farm Payrolls is one of the most important indicators of the state of the economy for the financial markets. This employment indicator reflects the number of new jobs created in the U.S. for all industries, except the agricultural sector. The employment situation of the working population greatly affects the stability of the economic development and prosperity of any country. A comparison of its performance in different countries with each other does not bear practical sense, since each country has its own...
The German Federal Constitutional Court in Karlsruhe had a chance today to ensure the survival of the Eurozone. The judges, wearing their traditional red robes, rejected six calls to block Germany’s participation of the €500 billion European Stability Mechanism. The fund will be a permanent €500 billion facility and Germany will cough up €190 billion and the court limited Germany’s participation to that amount which was previously granted from parliament without approval of the Bundestag. The ECB announced its...
Italian Prime Minister Mario Monti announced his resignation after his budget is passed amid falling confidence as well as support while Silvio Berlusconi announced his plans to run for premiership. Italian markets collapsed over 3% Monday morning as this delivers a huge blow to socialist politicians who needed Monti to govern Italy and force through austerity measures. Italy is the world’s third biggest debtor country and the ECB as well as politicians out of Brussels have counted on Monti to continue their preferred approach of...
U.S. Dollar Index (USDX) was introduced in March 1973, when the Bretton Woods system ceased to exist.The index shows the ratio of U.S. dollar against a basket of six major world currencies - Euro (EUR),Yen (JPY), British Pound (GBP), Canadian Dollar (CAD), Swedish Krona (SEK) and Swiss Franc (CHF). As part of this basket each currency has its own weight: EUR - 57,6% JPY - 13,6% GBP - 11,9% CAD - 9,1% SEK - 4,2% CHF - 3,6% The composition of the basket since the year of 1973 changed only once - in 1999, when the euro was...
