Wednesday, October 1, 2014

Eurozone Inflation Slips Again in September

Consumer price growth in the euro zone slipped again in September, according to official data released on Tuesday, piling yet more pressure on policymakers at the European Central Bank (ECB).

The flash figure for the 18 nations that share the single currency came in at 0.3 percent this month compared to the same period the year before, meeting estimates in a Reuters poll but falling below August’s reading of 0.4 percent. It marked the worst reading since October 2009 when – after the global financial crash of 2008 – consumer prices in the euro zone posted negative growth.

The euro fell sharply against the dollar on the news, hitting 1.2627 after closing at 1.2684 in Monday’s session. The euro hit a new two-year low against the greenback and a 26-month low against sterling.

CNBC

Asian Equities Fall on U.S. Confidence and HK Concerns

Asian stocks fell, with the benchmark index heading for a fourth day of losses, after consumer confidence in the U.S. unexpectedly declined and Hong Kong braced for bigger protests as Chinese holidays started.

The MSCI Asia Pacific Index (MXAP) slid 0.1 percent to 140.20 as of 9:02 a.m. in Japan after retreating to a four-month low yesterday. The measure capped its biggest monthly decline in more than two years in September amid concern Chinese economic growth is slowing and that the Federal Reserve may increase U.S. borrowing costs sooner as it ends asset purchases.

“There are a lot of worries about when the U.S. will start raising rates,” Nader Naeimi, who helps manage about $125 billion as head of dynamic asset allocation at Sydney-based AMP Capital Investors Ltd., said by phone. “There’s growing concern about the Hong Kong situation. If the protests continue, there’s a risk some businesses may pull out.”

Bloomberg

India Cuts Import Tariff Value on Gold and Silver

The government today cut the import tariff value on gold and silver to USD 396 per 10 gram and USD 575 per kg, taking into account weak global trends.

For the second fortnight of September, the tariff value on imported gold was fixed at USD 420 per 10 gram, while that for silver at USD 645 per kg.

The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis considering volatile global prices.

The slash in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.

Besides, the government has also reduced the tariff value on imported both crude and soft palm oils to USD 725-764 per tonne, while it stood in the range of USD 743-773 per tonne in the second fortnight of September.

Taking weak global cues, the import tariff value on crude soyabean oil has also been cut to USD 838 per tonne from USD 890 per tonne, while the tariff value on imported poppy seed has been kept unchanged at USD 3,429 per tonne in the review period.

In Singapore market, gold prices fell by about 5.5 per cent for the month after hitting 9-month low of USD 1,206.85 last week as Asian equities remained unsettled by political unrest in Hong Kong.

Gold is the second largest import item for India after petroleum. The government has imposed several restriction to curb imports to contain current account deficit (CAD).

After registering decline, gold imports surged to USD 2.03 billion in August this year from USD 738.7 million in the same month last year, according to official data.

via Business Standard

Tuesday, September 30, 2014

Australian Home Prices Flat in Welcome News for RBA

Home prices in Australia’s capitals rose only marginally in September, slowing after three straight months of strong gains, with five of eight cities recording falls in the month.  The slowdown should actually be welcomed by the Reserve Bank of Australia (RBA)which recently has become concerned that a surge in borrowing to buy investment properties could lift prices to unsustainable levels.

The central bank is even considering whether banks should face tougher lending standards on some types of mortgages in an attempt to restrain investors.  Top RBA officials are due to appear before lawmakers on Thursday to answer questions on what measures might be proposed, and how to ensure they do not harm housing affordability or the supply of new homes.

Figures from property consultant RPData-Rismark showed dwelling prices in Australia’s major cities rose just 0.1 percent in September, from August when they climbed 1.1 percent.  Prices were up 9.3 percent on September last year, again pulling back from August’s 10.9 percent pace.

Reuters

Markets Deserting Commodities

Investors are betting that the worst isn’t over for commodity prices that already are the lowest in five years.

About $907 million was pulled from U.S. exchange-traded products backed by raw materials this month, the most since April, data compiled by Bloomberg show. Expanding surpluses, a surging dollar and slowing growth in China helped send the Bloomberg Commodity Index to the lowest since 2009, reversing first-half gains fueled by a polar vortex and dead pigs in the U.S., and escalating tensions in Ukraine and the Middle East.

Banks from Societe Generale SA to Citigroup Inc. expect the losses for many raw material to continue. U.S. farmers are collecting the biggest corn and soybean crops ever, and global stockpiles of nickel are at an all-time high. Americans are producing the most oil since 1986, compounding a global surplus. China, the largest consumer of grains, energy and metals, is poised for its slowest expansion in two decades.

Bloomberg

Canada is ‘Very Close’ to Eliminating Budget Gap

Canadian Finance Minister Joe Oliver said his government is getting “very close” to eliminating its deficit and is preparing to give a budget update that will stress fiscal prudence.

The budget update will send the message that Canada is “in good shape, relatively,” Oliver said in an interview with Erik Schatzker at the Bloomberg Canadian Fixed Income conference in New York today, adding the update usually comes in late October or early November.

“We’d like to grow faster,” he said. “We’re going to focus on creating more jobs, but the international financial environment is fragile. There are risks, particularly outside North America, and we have to remain fiscally responsible.”

Bloomberg