Forex Free Download covering automatic forex robots, forex robots reviews, free automated forex, online trading software, brokers, forex trading ebooks. The purpose of this Blog is to provide you with sufficient information to make an informed decision before you come into live forex trading.

Gold Drops Modestly, Ends Month Notably Higher

Gold prices finished lower on Friday as traders turned futures into cash to compensate for stock market losses. A rebound for the U.S. dollar lowered the metal's hedge value.

December gold closed at $1,040.40, down $6.70 on the session. Prices hit as low as $1,035.40 earlier in the day.

The metal fell more than $15 on the week, but still finished October up nearly 4%. Earlier in the month, gold hit an unadjusted for inflation record $1,072 per ounce.

The dollar rebounded versus the euro and recovered most of yesterday's losses. The buck also moved mildly higher versus the pound.

In economic news, a Commerce Department report showed that personal spending fell by 0.5 percent in September following an upwardly revised 1.4 percent increase in August. The moderate pullback in personal spending came in line with the expectations of economists.

A separate Commerce Department report said personal income decreased by less than 0.1 percent in September after edging up by a revised 0.1 percent in the previous month. Economists had expected income to be unchanged.

A Institute for Supply Management - Chicago report showed that the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 49.0.

The Reuters and the University of Michigan report showed that the consumer sentiment index was revised up to 70.6 from the preliminary October reading of 69.4, although it remained below 73.5 in September. Economists had been expecting the index to be revised up to a reading of 70.0.

On Monday, ISM manufacturing data is due at 10 a.m. ET. A reading of 53.0 is expected for October, compared to a 52.6 for September.

Construction spending data is also coming at 10 a.m. ET. September spending is expected to come in down 0.4%, compared to a rise of 0.8% in August.

At the same time, pending home sales data is also on the calendar. A rise of 1% is expected for September, compared to a decline of 0.8% in August.

(Market News Provided by RTTNews)
READ MORE

White House Reports At Least 640,000 Stimulus Jobs, GOP Doubts Numbers

A White House report released Friday indicated that the $787 billion economic stimulus and recovery act has saved or created at least 640,000 jobs, with Vice President Joe Biden suggesting that the number could be as high as 1 million.

Biden, flanked by California Gov. Arnold Schwarzenegger and Maryland Gov. Martin O'Malley, said that reports from recipients of the federal funds indicated that the stimulus had directly saved or created 640,329 jobs.

He estimated that the indirect effect of those jobs, having those people participating in the economy buying goods and services, and the tax cuts and Social Security payments that were also part of the stimulus was responsible for roughly 400,000 more jobs, with just $160 billion of the total funds spent so far.

"Hundreds of thousands of men and women are receiving a paycheck now that would have not have otherwise," Biden said. "Folks, this is real stuff."

He added, "Based on those reports that we received today, the results have been quite positive."

Biden added that more jobs would continue to be created as the rest of the stimulus money is spent.

"We're only about a third of the way through," he said. "This is not the final report. This is the first detailed report."

He added, "I think this is helping put us back on track . to save or create at least 3.5 million jobs by the end of next [year]."

Biden added that the government is documenting all of the projects being funded and jobs created by the stimulus funds on a Web site dedicated to tracking the measure called recovery.gov.

"Folks, these are real results, real paychecks going to real American families in all of the 50 states and territories," he said. "These are not just statistics, not just reports that exist on nothing but paper."

He added, "This is what the recovery looks like for more than 1 million women and men in America."

Biden noted that among the jobs created, more than 80,000 were construction work positions, roughly 325,000 were in education and some 10,000 were police officers.

He also said that while the administration was pleased with reports showing that the economy and gross domestic product are growing, they recognize they have more yet to do.

"There's still plenty or work to do, plenty of families to help," he said. "But my message today is we're on track."

Schwarzenegger, a Republican, offered his own testimony about how the federal funds have helped California avoid making severe cuts to education.

"There are some people, some of my colleagues that are saying it hasn't done much or it was a waste of money," Schwarzenegger said. "I would dispute that."

He added, "We expect the federal report will show that this money has created or saved more than 100,000 jobs in California. . We also expect the report to show that stimulus dollars have created or saved more jobs in California than in any other state."

O'Malley thanked Biden for the numerous road and bridge improvement projects that the stimulus funds were buying in his state, crediting the measure with pulling the nation back from the brink of a second Great Depression.

"There is no doubt in my mind that it is working," he said.

Biden noted that through his weekly conference calls with governors around the country, he has found that what had once been a highly partisan issue of whether or not to accept the federal stimulus money has become an issue of bipartisan cooperation to see that the funds are spent in the best way.

He noted that he has yet to find a single governor on the calls saying they don't want the money, prompting Schwarzenegger to quip that he should double it for California.

However, that spirit did not hold true with Republicans in Washington. House Republican John Boehner, of Ohio, slammed the report, saying it was filled with "phony" statistics.

"The President and his economic team promised the 'stimulus' would create jobs 'immediately' and unemployment would stay below eight percent," Boehner said in a written statement. "But America has lost more than three million jobs since then, and the unemployment rate is nearing double digits."

He added, "While Washington keeps spending and piling more debt on the backs of our children and grandchildren, out-of-work families keep asking, 'where are the jobs?'"

A White House report released Friday indicated that the $787 billion economic stimulus and recovery act has saved or created at least 640,000 jobs, with Vice President Joe Biden suggesting that the number could be as high as 1 million. Biden, flanked by California Gov. Arnold Schwarzenegger and Maryland Gov. Martin O'Malley, said that reports from recipients of the federal funds indicated that the stimulus had directly saved or created 640,329 jobs. (Market News Provided by RTTNews)
READ MORE

Portugal Retail Sales Decline In September

Thursday, the Statistics Portugal said in a report that the retail sales decreased 1.3% year-on-year in September, compared to the 2.3% fall in the previous month.

Meanwhile, retail sales, excluding fuel dropped 0.8% in September, after falling 1.9% in August.

On a monthly basis, retail sales dropped 2% in September, compared to the 0.6% fall in the preceding month.

The wages and salaries increased 4% on an annual basis in September, compared to the 6.4% growth in the previous month. At the same time, employment and the number of hours worked declined by 1.9% and 1.5%, respectively.

Thursday, the Statistics Portugal said in a report that the retail sales decreased 1.3% year-on-year in September, compared to the 2.3% fall in the previous month. (Market News Provided by RTTNews)
READ MORE

New Zealand September M3 Money Supply Growth Slows

New Zealand's M3 money supply grew 2.7% on a yearly basis in September, slower than the 3.6% growth in the previous month, the Reserve Bank of New Zealand said Thursday. This marks the slowest yearly rate of M3 money supply growth recorded in almost five years.

In September, M2 money supply was up 0.7%, slower than the 3.7% rise in the preceding month. At the same time, M1 money supply grew 1.3%, rebounding from the 0.2% decline in August.

New Zealand's M3 money supply grew 2.7% on a yearly basis in September, slower than the 3.6% growth in the previous month, the Reserve Bank of New Zealand said Thursday. This marks the slowest yearly rate of M3 money supply growth recorded in almost five years. (Market News Provided by RTTNews)
READ MORE

Estonia Retail Sales Decline In September

Friday, Statistics Estonia said in a report that the retail sales of goods of retail trade dropped a seasonally adjusted 2% month-on-month in September, with the rate of decline holding steady at 2% in the past three months.

Year-on-year, retail sales dropped 17% to EEK 4.3 billion in September. Sales in stores selling manufacture goods recorded the most significant decline at 28%.

Revenues from sales of retail trade enterprises decreased 23% on an annual basis in September, and it was down 7% compared to the previous month to total EEK 5.2 billion.

Friday, Statistics Estonia said in a report that the retail sales of goods of retail trade dropped a seasonally adjusted 2% month-on-month in September, with the rate of decline holding steady at 2% in the past three months. (Market News Provided by RTTNews)
READ MORE

Portugal Consumer Confidence Improves Again In October

Thursday, the Statistics Portugal announced that the consumer confidence indicator stood at minus 27 in October, up from minus 29.5 in September. A year ago, the consumer confidence was minus 35.3.

The confidence indicator on manufacturing sector rose to minus 18.6 in October from minus 20.7 in September. A year earlier, the indicator was minus 13.6.

In October, services confidence increased to minus 4.7 from minus 5.8 in September, while the confidence indicator on trade rose to minus 10.6 from minus 12.4.

Meanwhile, the economic sentiment indicator stood at minus 0.4 in October, up from minus 0.8 in September. A year ago, the indicator was minus 0.3.

Thursday, the Statistics Portugal announced that the consumer confidence indicator stood at minus 27 in October, up from minus 29.5 in September. A year ago, the consumer confidence was minus 35.3. (Market News Provided by RTTNews)
READ MORE

Spanish HICP Drops For Eighth Straight Month

Spain's harmonized index of consumer prices declined for the eighth straight month in October, a flash estimate from the National Institute of Statistics showed Thursday.

The index slipped 0.6% year-on-year in October, slower than the 1% fall in the preceding month and the record 1.4% decline in July. Economists had expected the index to fall 0.7%.

In March, the HICP declined on an annual basis for the first time since the series began in January 1997. The index has maintained the declining trend afterwards. In September, the index dropped 0.2% from August.

The statistical office is scheduled to release the final HICP data on November 13.

Spain's harmonized index of consumer prices declined for the eighth straight month in October, a flash estimate from the National Institute of Statistics showed Thursday. (Market News Provided by RTTNews)
READ MORE

Chicago PMI Jumps To 54.2 In October

Activity in the Chicago-area manufacturing sector unexpectedly expanded in the month of October, according to a report released by the Institute for Supply Management - Chicago on Friday, with the index of activity in the sector rising to its highest level in over a year.

The report showed that the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 49.0.

Activity in the Chicago-area manufacturing sector unexpectedly expanded in the month of October, according to a report released by the Institute for Supply Management - Chicago on Friday, with the index of activity in the sector rising to its highest level in over a year. (Market News Provided by RTTNews)
READ MORE

Australia September New Home Sales Down 4.5% On Month - HIA

New home sales in Australia declined in number by 4.5 percent in September compared to august, according to survey results released Thursday by the Housing Industry Association (HIA).

The report said the number of sales of stand-alone houses fell 4.3 percent for the month, but were up 4.0 percent for the three months to September.

The number of apartment sales was down 6.5 percent on month but up 4.0 percent on quarter.

HIA Chief Economist Harley Dale noted a late burst of sales from first time home buyers in August, ahead of the end of the government's first home buyers' grant. The stimulus to new home sales from that policy is now "on the wane," he said, with a "very real risk" that recent gains in housing affordability could be reversed.

(Market News Provided by RTTNews)
READ MORE

IMF Approves US$167.5 Million Loan To Iceland

The International Monetary Fund on Wednesday approved a loan of US$167.5 million for immediate disbursement to Iceland, after the completion of its first review of the economy under the Stand-By Arrangement scheme. This brings the total amount disbursed under the scheme to US$ 1.06 billion.

The scheme was approved in November 19, 2008, and at the request of the Iceland's authorities, the program has been extended by six months to May 31, 2011, to compensate for the delay in implementation and review.

Iceland's economy which suffered badly due to the global crisis, showed some positive signs now, with inflation falling sharply and the krona stabilizing, in line with the IMF program's objectives. "With determined and timely policy implementation, the economy could begin to turn the corner in the middle of 2010 and a recovery should follow in the medium term", the lender added.

(Market News Provided by RTTNews)
READ MORE

Lithuania Consumer Confidence Declines Sharply In October

Thursday, Statistics Lithuania said the consumer confidence index declined to minus 47 in October from minus 40 in the previous month, reverting back to August's level. A year earlier, the index stood at minus 35.

In October, the index measuring household financial situation over the next 12 months plunged to minus 30 from minus 21, while the index measuring the country's economic situation over the next one year fell drastically to minus 39 from minus 28. Also, the index on probability of any savings in the next 12 months moved to minus 52 from minus 48.

On the other hand, the gauge measuring the number of unemployed in the next one year increased to 69 from 63 in October.

Thursday, Statistics Lithuania said the consumer confidence index declined to minus 47 in October from minus 40 in the previous month, reverting back to August's level. A year earlier, the index stood at minus 35. (Market News Provided by RTTNews)
READ MORE

Hungary July To Sept. Jobless Rate Rises

Thursday, the Hungarian Central Statistical Office announced that the jobless rate stood at 10.3% in the July to September period, up from 9.9% in the June to August period. Economists expected the jobless rate to be 10.1%. A year ago, unemployment rate was 7.7%.

In the July to September period, the number of unemployed totaled 436 thousand persons, larger than the 418 thousand persons in the June to August period.

During the period, the number of employed persons decreased to 3.78 million from 3.80 million in the June to August period.

Meanwhile, the employment participation rate remained unchanged at 54.9% in the July to September period.

Thursday, the Hungarian Central Statistical Office announced that the jobless rate stood at 10.3% in the July to September period, up from 9.9% in the June to August period. Economists expected the jobless rate to be 10.1%. A year ago, unemployment rate was 7.7%. (Market News Provided by RTTNews)
READ MORE

Cyprus Industrial Output Drops For Tenth Straight Month

Thursday, the Statistical Service of the Republic of Cyprus said in a report that the industrial production index decreased 5% year-on-year in August, slower than the revised 7.4% fall in the previous month. August marks the tenth straight month in which industrial output has recorded an annual decline.

Manufacturing production fell 11% on an annual basis in August, while mining and quarrying production was down 16%. These were partly offset by a rise in output in the water supply & materials recovery group by 48.6%.

In the January to August period, industrial production decreased 8.7% compared to the corresponding period of last year.

Thursday, the Statistical Service of the Republic of Cyprus said in a report that the industrial production index decreased 5% year-on-year in August, slower than the revised 7.4% fall in the previous month. August marks the tenth straight month in which industrial output has recorded an annual decline. (Market News Provided by RTTNews)
READ MORE

BoJ Upgrades GDP Forecast

Friday, the Bank of Japan upgraded the real GDP forecast for fiscal 2009 and 2010. The central bank also revised its forecast for consumer prices.

The central bank now expects the economy to shrink 3.2% in fiscal 2009 compared to 3.4% fall estimated in July. The economy is set to remain on a recovery trend in fiscal 2010, but the pace of improvement is likely to be moderate until around the middle of fiscal 2010, the BoJ said. In fiscal 2010, real GDP growth is seen at 1.2%, up from July's forecast of 1%. The growth rate is likely to reach a level clearly above the potential growth rate in the fiscal 2011.

The consumer price index, excluding fresh food, is estimated to fall 1.5% in fiscal 2009 versus 1.3% decline estimated previously. Meanwhile, the central bank forecast 0.8% fall in fiscal 2010 and 0.4% decline in fiscal 2011.

Friday, the Bank of Japan upgraded the real GDP forecast for fiscal 2009 and 2010. (Market News Provided by RTTNews)
READ MORE

Amendment: Bank Of Japan Keeps Interest Rates On Hold

Corrects the day to 'Friday'

Friday, the policy board of the Bank of Japan unanimously decided to retain the overnight call rate at 0.1%, in line with the expectations of economists. The last change in the rate was a 0.1% cut in interest rates at the December 2008 meeting.

In an accompanying statement, the bank said, "The Bank will maintain the extremely accommodative financial environment for some time by holding interest rates at their current low levels and providing ample funds sufficient to meet demand in financial markets."

The bank also said that special funding operations will remain in effect until the end of March 2010.

Friday, the policy board of the Bank of Japan unanimously decided to retain the overnight call rate at 0.1%, in line with the expectations of economists. The last change in the rate was a 0.1% cut in interest rates at the December 2008 meeting. (Market News Provided by RTTNews)
READ MORE

Singapore Q3 Jobless Rate Rises

Friday, Singapore's Ministry of Manpower said the jobless rate in the third quarter rose to a seasonally adjusted 3.4% from 3.3% in the previous quarter. During the same period of previous year, the unemployment rate was 2.3%. Among the resident labor force, the rate increased to 5% in September quarter from 4.6% in the previous quarter.

The ministry reported that the overall unemployment rate on a non-seasonally adjusted basis decreased to 2.9% in September from 4.1% in June quarter, as students who looked for work during the mid-year school vacation have returned to school and this year's tertiary graduates have started to secure employment.

Total employment increased 15,400 in the third quarter, ending losses in the first and second quarters of 2009. Services employment rose 13,400, while manufacturing shed workers for the fourth consecutive quarter.

Friday, Singapore's Ministry of Manpower said the jobless rate in the third quarter rose to a seasonally adjusted 3.4% from 3.3% in the previous quarter. (Market News Provided by RTTNews)
READ MORE

October Consumer Sentiment Revised Up But Still Down From September

While Reuters and the University of Michigan released a report on Friday showing an upward revision to their reading on consumer sentiment in the month of October, the index still came in below the final reading from September.

The report showed that the consumer sentiment index was revised up to 70.6 from the preliminary October reading of 69.4, although it remained below 73.5 in September. Economists had been expecting the index to be revised up to a reading of 70.0.

Both the index measuring current conditions and the index of consumer expectations were upwardly revised from their preliminary readings, contributing to the bigger than expected upward revision to the headline index.

The current conditions index for October was revised up to 73.7 from the preliminary reading of 72.1, coming in slightly above the September reading of 73.4.

While the expectations index was also revised up to 68.6 from the preliminary October reading of 67.6, it remained well below the reading of 73.5 recorded for September.

The decrease in the expectations index compared to the previous month came as most consumers don't expect an improvement in their own finances despite expectations of a turnaround by the general economy.

The report also showed that one-year inflation expectations in October were revised up to 2.9 percent from 2.8 percent, above 2.2 percent in September. Five-year inflation expectations were unrevised at 2.9 percent but up from 2.8 percent in the previous month.

While Reuters and the University of Michigan released a report on Friday showing an upward revision to their reading on consumer sentiment in the month of October, the index still came in below the final reading from September. (Market News Provided by RTTNews)
READ MORE

Chicago PMI Indicates Unexpected Expansion In Manufacturing Activity

Activity in the Chicago-area manufacturing sector unexpectedly expanded in the month of October, according to a report released by the Institute for Supply Management - Chicago on Friday, with the index of activity in the sector rising to its highest level in over a year.

The report showed that the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 49.0.

With the much bigger than expected increase, the index rose to its highest level since coming in at a reading of 55.9 in September of 2008.

The growth in the sector reflected significant turnarounds in production and new orders, with the production index surging up to 63.9 in October from 47.2 in September and the new orders index jumping to 61.4 from 46.3 in the previous month.

At the same time, the report showed that the employment index edged to down 38.3 in October from 38.8 in September, indicating continued weakness in the labor market.

The inventories index also fell to 32.2 in October from 38.9 in September, pointing to an acceleration in the pace of contraction in inventories.

Nonetheless, Peter Boockvar, equity strategist for Miller Tabak, said, "With the widening spread now between New Orders and Inventories, it should follow that inventories will start to increase in coming months."

On the inflation front, the ISM - Chicago said the prices paid index slipped to 48.6 in October from 51.3 in the previous month, suggesting a downturn in prices.

Next Monday, the Institute for Supply Management is scheduled to release its national report on manufacturing activity, with the index of activity in the sector expected to edge up to a reading of 53.0 in October from 52.6 in September.

Activity in the Chicago-area manufacturing sector unexpectedly expanded in the month of October, according to a report released by the Institute for Supply Management - Chicago on Friday, with the index of activity in the sector rising to its highest level in over a year. The report showed that the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. (Market News Provided by RTTNews)
READ MORE

Personal Savings Rate Increases In September As Spending Falls

With consumers saving more as a result of economic uncertainty, the Commerce Department released a report on Friday showing that personal spending decreased in September, while personal income came in nearly unchanged.

The report showed that personal spending fell by 0.5 percent in September following an upwardly revised 1.4 percent increase in August. The moderate pullback in personal spending came in line with the expectations of economists.

The drop in spending was partly due to the end of the government's cash for clunkers program, which contributed to a notable increase in auto sales in August.

Additionally, the Commerce Department said that personal income decreased by less than 0.1 percent in September after edging up by a revised 0.1 percent in the previous month. Economists had expected income to be unchanged.

Disposable personal income, or personal income excluding personal current taxes, also fell less than 0.1 percent in September after edging up by 0.1 percent in August.

With spending falling and income nearly unchanged, personal saving as a percentage of disposable personal income was 3.3 percent in September compared to 2.8 percent in August.

Peter Boockvar, equity strategist for Miller Tabak, noted that the savings rate has seen a notable upward since bottoming at 0.8 percent in April of 2005, but it remains well below its 30-year average of 5.7 percent.

"The transition of depending more on savings and less on credit and the wealth effect of asset prices is a healthy but long term process," Boockvar said. "The ideal way for the economy though of raising the Savings Rate is to rely more on income growth and less on spending cuts."

The Commerce Department also said that its reading on core consumer prices, which exclude food and energy prices, rose at an annual rate of 1.3 percent in September, unchanged from the previous month.

Boockvar said, "Today's September data was captured in yesterday's third quarter GDP report, but we can at least see how the quarter ended in terms of spending."

With consumers saving more as a result of economic uncertainty, the Commerce Department released a report on Friday showing that personal spending decreased in September, while personal income came in nearly unchanged. The report showed that personal spending fell by 0.5 percent in September following an upwardly revised 1.4 percent increase in August. The moderate pullback in personal spending came in line with the expectations of economists. (Market News Provided by RTTNews)
READ MORE

Dollar Gains On Euro, Slumps Versus Yen

The dollar was generally stronger on Friday, gaining ground on higher-yielding currencies after dismal personal spending data hinted that recent economic growth was a product of government spending rather than the once-dependable US consumer.

Stocks tumbled, fueling increased risk aversion, which helps the safe haven dollar against its riskier counterparts. However, the dollar hit the skids versus the yen as traders favored the Japanese currency as a safer play.

While Reuters and the University of Michigan released a report on Friday showing an upward revision to their reading on consumer sentiment in the month of October, the index still came in below the final reading from September.

In other economic news from the US, activity in the Chicago-area manufacturing sector unexpectedly expanded in the month of October, according to a report released by the Institute for Supply Management - Chicago on Friday, with the index of activity in the sector rising to its highest level in over a year.

The dollar improved to 1.4720 versus the euro, staying away from a 14-month low of 1.5059 set earlier this week. With stocks in correction mode and concerns about the sustainability of economic growth emerging, the dollar could move higher versus the euro next week.

Likewise, the buck moved higher versus the loonie, hitting a 3-week high of C$1.0837 before leveling off. The has been topsy turvy this week, with the loonie moving along with the price of oil.

Crude turned sharply lower again today, slipping toward $78 on demand concerns.

The dollar also firmed up against the sterling, rising to 1.6428. The pair has been unable to sustain any direction over the past few months, with traders unsure about the health of the UK economy.

The yen was the most fashionable currency today. The dollar slipped below 90 for the first time in two weeks, dropping back toward multi-month lows near 88.

The Bank of Japan announced its decision to maintain its key interest rate and to end the purchase of commercial paper and corporate bonds at the end of 2009 as scheduled, as it becomes necessary to conform to the changes in financial markets.

The Policy Board, led by Governor Masaaki Shirakawa, unanimously decided to leave the uncollateralized overnight call rate unchanged at 0.1% as expected.

The dollar was generally stronger on Friday, gaining ground on higher-yielding currencies after dismal personal spending data hinted that recent economic growth was a product of government spending rather than the once-dependable US consumer. (Market News Provided by RTTNews)
READ MORE

Euro Retreats Versus Lower-Yielding Rivals

The euro weakened against its lower-yielding counterparts as a drop in global stocks reduced risk appeal. With the drop, the euro gave back yesterday's gains against both the dollar and yen.

Eurozone annual inflation stayed negative for a fifth consecutive month in October, but the pace of decline in consumer prices slowed, preliminary data released by the Eurostat showed Friday. Separately, the statistical agency said the jobless rate rose to its highest level in more than a decade.

Meanwhile, separate data showed the Eurozone unemployment rate rose to the highest rate since January 1999.

The euro fell to 1.4720 against the dollar, giving back its gains from the previous session. Yesterday, the European currency reached 1.4858, approaching a 14-month high.

According to a report released by the Institute for Supply Management - Chicago, the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 49.0.

A Reuters and the University of Michigan report showed that the consumer sentiment index was revised up to 70.6 from the preliminary October reading of 69.4, although it remained below 73.5 in September. Economists had been expecting the index to be revised up to a reading of 70.0.

The euro was range-bound against the British pound, moving near 0.8950. The pair has been stuck in the mid for the last few days.

In the UK, the annual house price inflation turned positive in October for first time since March 2008, with an increase of 2% following zero growth in September. Economists had expected a 1.8% increase. Average asking price for a typical UK property stood at GBP 162,038 in the month, up from GBP 161,816 in the previous month.

The euro turned lower against the yen and tested a two-week low. The European currency fell to 132.96, compared to the low crossing of 132.79 earlier this week.

In economic news, Eurozone seasonally adjusted jobless rate stood at 9.7% in September, up from 9.6% in August, the Eurostat said on Friday. The jobless rate came in line with economists' expectations. A year ago, the jobless rate was 7.7%.

The Eurozone consumer price index dropped 0.1% year-on-year in October after falling 0.3% in September, in line with economists' expectations and extending the fall that started in June. The statistical agency is slated to release final report on November 16.

According to a report released by the Federal Statistical Office on Friday, retail turnover in real terms decreased by an unexpected 0.5% in September from the previous month, compared to a 1.8% fall in August. Consensus forecast was for an increase of 1%. The initial estimate for August was a 1.5% decrease.

(Market News Provided by RTTNews)
READ MORE

UK House Prices Continue To Rise In October - Nationwide

UK house prices continued to rise for a sixth month in October, data released by the Nationwide Building Society showed Friday.

The house price index climbed 0.4% month-on-month after an increase of 0.9% in September, while economists had forecast 0.6% growth. House prices have been rising since May on a monthly basis.

In October, annual house price inflation turned positive for first time since March 2008, with an increase of 2% following zero growth in September. Economists had expected 1.8% increase. Average asking price for a typical UK property stood at GBP 162,038 in the month, up from GBP 161,816 in the previous month.

"The strong upward momentum in property values seen over the summer is showing some signs of moderating as we head into the autumn months," Nationwide's Chief Economist Martin Gahbauer said.

UK house prices continued to rise for a sixth month in October, data released by the Nationwide Building Society showed Friday. (Market News Provided by RTTNews)
READ MORE

German Retail Sales Decline In September

Friday, Germany's Federal Statistical Office announced that the retail sales in real terms decreased 0.5% month-on-month in September, compared to a 1.8% fall in the previous month, revised from 2.6% drop estimated initially. Economists expected an increase of 1%.

On an annual basis, retail sales decreased 3.9% in September, after falling 2.9% in August, revised from 2.6% decline reported initially. Economists were looking for a decrease of 2.2%. A year ago, retail sales were up 3%.

For the January to September period, retail sales dropped 2.2% compared to the same period of the previous year.

In nominal terms, retail sales declined 4.8% year-on-year in September, following a 3.8% fall in August. Month-on-month, retail sales slipped 0.5% in September. In the first nine months of the year, retail sales dipped 2.6% over a year ago.

Friday, Germany's Federal Statistical Office announced that the retail sales in real terms decreased 0.5% month-on-month in September, compared to a 1.8% fall in the previous month, revised from 2.6% drop estimated initially. Economists expected an increase of 1%. (Market News Provided by RTTNews)
READ MORE

India's Exports Drop 13.8% In September: Commerce Secretary

India's exports dropped 13.8% in September, the lowest decline in this fiscal, reported the media quoting Commerce Secretary Rahul Khular. The reduced fall may be indicative of a rebound from the year-old negative trend.

Khular said that it is difficult to give a time-frame for exports to be in the positive zone. The exports were $13.6 billion in September compared to $15.8 billion a year ago.

Due to decline in demand across the globe, the exports began contracting since October 2008, with May 2009 witnessing the highest decline of 39.2%. But from June, the decline in exports began to fall.

Shipments contracted by 28.5% during April-September 2009-10. But the Commerce Ministry expects a smaller decline of 3%-6%, when the fiscal ends, as several sectors have shown recovery, including Jems and jewellery, pharmaceuticals, iron ore, petroleum products, marine products and man-made yarns.

A. Sakthivel, President of Federation of Indian Export Organizations (FIEO) also agreed with the government's view and opined that the scenario would improve by January 2010.

(Market News Provided by RTTNews)
READ MORE

Swiss KOF Leading Index Rises Again In October

Friday, the KOF economic institute said the Switzerland's economic barometer rose to 1.45 points in October from a revised 0.77 in September. Economists were expecting the index to climb to 1.16. According to the barometer, the annual growth rate of GDP should be about to return into positive territory.

"Business confidence indicators have recently turned bullish in Switzerland," ING economist Julien Manceaux said. "However, consumers may not follow this trend given the worsening labor market conditions and the drop in confidence registered in October."

If the third quarter turns out to be the best of this year, the economist said, the rebound may fade towards the end of the year before leaving space for a more gradual recovery from the first quarter of 2010 on. "The still fragile recovery combined with lingering deflation will ensure that the current expansionary monetary stance remains unchanged until the second half of next year."

Friday, the KOF economic institute said the Switzerland's economic barometer rose to 1.45 points in October from a revised 0.77 in September. (Market News Provided by RTTNews)
READ MORE

Singapore Manufacturers' Outlook For Next Six Months Improve: Survey

Singapore's manufacturers project a more positive outlook of business conditions for the next six months, a survey by the Economic Development Board said Friday.

The survey said that a net 9% of manufacturers anticipate a more favorable business situation in the next six months ending March 2010 as compared to the third quarter of 2009.

Most of the industrial clusters expect better business environments over the next six months, as the global economy shows signs of recovery. The electronics clusters is the most optimistic, while the chemicals chemicals remained concerned about business conditions.

Despite the optimism for the next six months, a net 3% of firms expect output to fall in the fourth quarter compared to the previous three months. Electronics and precision engineering clusters project higher output for the fourth quarter, as order intake increases. However, chemicals cluster projects lower production, due to intense competition and seasonal factors, among others.

Meanwhile, the employment outlook is expected to improve. A net 92% of firms expect similar or higher levels of employment in the fourth quarter.

(Market News Provided by RTTNews)
READ MORE

Dollar Holds Still Versus Euro Ahead Of Personal Spending Report

The dollar was on pause Friday morning in New York as traders continued to digest yesterday's stellar GDP data and looked ahead to figures on personal spending and income.

While the economy may be on the mend, much of the healing is likely due to government stimulus measures, and not the confident consumer, once the engine of the US economy.

The consumer will be in focus with this morning's personal spending data, set for release at 8:30 am ET.

Also on tap will be the final report on the consumer sentiment index for October from the Reuters/University of Michigan, which is scheduled to be released at 9.55 a.m. ET.

Yesterday, the Commerce Department said its advance estimate showed that GDP increased at an annual rate of 3.5 percent in the third quarter compared to a 0.7 percent decrease in the second quarter.

The dollar weakened the euro and sterling on the news, as traders flocked back to higher-yielding currencies on hopes the economic recovery has kicked in.

The buck managed to steady versus the euro Friday morning, holding near 1.4800. Its been a topsy turvy week for the dollar, which jumped more than 3 cents earlier in the week to move away from Monday's 14-month low of 1.5059.

German retail sales decreased for the second consecutive month in September amid weak domestic demand and private consumption.

According to a report released by the Federal Statistical Office on Friday, retail turnover in real terms decreased by an unexpected 0.5% in September from the previous month, compared to a 1.8% fall in August.

Meanwhile, UK house prices posted first annual increase in nineteen months in October, while rising for the sixth time on a monthly basis, the Nationwide Building Society said Friday.

With the data signaling the UK housing slump may have bottomed out, the dollar was unable to pare much of this week's losses versus the sterling. The dollar was near 1.6530 approaching 8 am ET, a modest improvement from yesterday's weekly low of 1.6603.

The buck continued this week's run of choppy trading versus the yen, bouncing back and forth around the 91 mark. Earlier in the month, the dollar tested a 1995 low of 87.08 before finding support.

The Bank of Japan announced its decision to maintain its key interest rate and to end the purchase of commercial paper and corporate bonds at the end of 2009 as scheduled, as it becomes necessary to conform to the changes in financial markets.

The Policy Board, led by Governor Masaaki Shirakawa, unanimously decided to leave the uncollateralized overnight call rate unchanged at 0.1% as expected.

(Market News Provided by RTTNews)
READ MORE

German Retail Sales Drop For Second Month In September

German retail sales decreased for the second consecutive month in September amid weak domestic demand and private consumption.

According to a report released by the Federal Statistical Office on Friday, retail turnover in real terms decreased by an unexpected 0.5% in September from the previous month, compared to a 1.8% fall in August. Consensus forecast was for an increase of 1%. The initial estimate for August was a 1.5% decrease.

On an annual basis, retail sales plunged 3.9% in September, after falling by a revised 2.9% in August. The decline was much worse than the expected 2.2% drop. A year ago, sales rose 3%. The statistical office revised the August figure from a 2.6% fall. Retail trade in food, beverages and tobacco were down 2.3% in September from last year and non-food product sales slipped 4.9%.

In nominal terms, retail sales were down 4.8% year-on-year in September, following a 3.8% fall in August. Month-on-month, retail sales slipped 0.5%. For the January to September period, retail sales dropped by a real 2.2% from the previous year and fell 2.6% in nominal terms.

Lower inflation in the medium term and the expected increase in non-incorporated business income and interest income in the first half of 2010 as well as government transfers under the stimulus packages are expected to support private consumption, said Commerzbank analyst Simon Junker, in a note.

Consumer price inflation is yet to enter positive territory. Consumer prices remained flat in October versus a 0.3% fall in September, according to preliminary data from Destatis. Compared to October 2008, food prices slipped 2.8% to 4.3%.

However, retail sector is likely to be hit by the anticipated deterioration on the labor market in the months ahead. Therefore, no positive impetus for the economy can be expected, Junker added. The labor market would probably deteriorate considerably in the winter half year, hitting private consumption. "As was the case recently, retail will probably continue to perform worse than private consumption and thus remain on a downtrend," the analyst said.

Unemployment has been falling since July after hitting its peak in March. The jobless rate fell to 8.1% in October from 8.2% in September, the Federal Labor Agency reported yesterday. And, the number of people without jobs fell a seasonally adjusted 26,000 to 3.43 million in October. However, economists expect unemployment to continue rising as employers remain cautious fearing more adverse effects from the recession and financial crisis.

The government had injected billions of euros to shore-up the recession hit economy. In the run up to the election, Chancellor Angela Merkel implemented several measures to save jobs, which later worked to turn votes on her favor. Earlier this week, Merkel's new government of Conservatives and Free Democrats took office.

German retail sales decreased for the second consecutive month in September amid weak domestic demand and private consumption. (Market News Provided by RTTNews)
READ MORE

French Producer Prices Decline As Expected In September

Friday, the French statistical office said in a report that the producer price index or PPI in the domestic market decreased 0.3% month-on-month in September, in contrast to a 0.4% growth in the previous month. Producer prices came in line with economists' expectations.

On an annual basis, producer prices dropped 8.1% in September, in line with economists expectations'. In August, the PPI was down 8.5%.

Similarly, producer prices in the non-domestic market declined 0.5% month-on-month in September, after rising 0.4% in August. Producer prices fell 6.2% compared to the preceding year.

The overall producer price index dropped 0.4% on a monthly basis in September, after a 0.5% increase in August. On an annual basis, the PPI slipped 7.5% in September.

Meanwhile, import price index decreased 0.7% in September compared to the preceding month, and it was down 7.5% over a year ago.

Friday, the French statistical office said in a report that the producer price index or PPI in the domestic market decreased 0.3% month-on-month in September, in contrast to a 0.4% growth in the previous month. Producer prices came in line with economists' expectations. (Market News Provided by RTTNews)
READ MORE

UK Consumer Confidence Highest Since Jan 2008: GfK NOP

British consumer confidence rose to the highest level in nearly two years in October, as most of its sub-indexes showed improvement, survey results released Friday by the GfK NOP showed Friday.

The GfK NOP consumer confidence index rose three points to minus 13, the highest score since January 2008. "While this is still in negative territory, we have now not seen a drop in the monthly confidence rating throughout 2009 - indicating a steady, if cautious, uplift in British confidence in our economic situation," said GfK NOP's Rachael Joy.

The survey, conducted by GfK NOP on behalf of the European Commission, showed that confidence in the general economy over the last twelve months jumped by ten points to minus 53, the highest reading since April 2008. However, a measure for confidence over the next twelve months declined. It fell one point to 3, but was in positive territory for only the second time since June 1999.

Further, an index that measures changes in personal finances during the last twelve months has improved by one point from September and six points from last year to a score of minus 12. The forecast for personal finances over the next twelve months increased one point from September to a score of 6. This is eighteen points higher than October 2008.

The major purchases measure has risen by three points to minus 12, up by thirty-one points on last year. The 'now is a good time to save' index, has dropped one point to minus 6, fifteen points lower than in October last year. Joy said consumers are still wary of the future and so the overall trend towards uplift is still fragile.

British consumer confidence rose to the highest level in nearly two years in October, as most of its sub-indexes showed improvement, survey results released Friday by the GfK NOP showed Friday. (Market News Provided by RTTNews)
READ MORE

BoJ Leaves Key Rate Unchanged; To End Corporate Debt Purchase By Year End

Thursday, the Bank of Japan announced its decision to maintain its key interest rate and to end the purchase of commercial paper and corporate bonds at the end of 2009 as scheduled, as it becomes necessary to conform to the changes in financial markets.

The Policy Board, led by Governor Masaaki Shirakawa, unanimously decided to leave the uncollateralized overnight call rate unchanged at 0.1% as expected. The BoJ said it would maintain the extremely accommodative financial environment for some time by holding interest rates at their current low levels.

Also, the board decided to stop outright purchases of commercial papers and corporate bonds at the end of 2009 as the central bank's assessment showed a marked improvement in conditions. The central bank said that the purpose of the purchases to restore market functioning has been achieved. Atsushi Mizuno was the only board member who voted against the expiration of the outright purchases of corporate bonds at the end of 2009.

At the same time, the special funds-supplying operations to facilitate corporate financing will remain in effect until the end of March 2010. Mizuno also opposed this move. From April 2010 onward, the bank will be prepared to provide ample liquidity mainly through funds-supplying operations against pooled collateral, which accept a wider range of collateral, the central bank said in Tokyo.

Today, the central bank also raised its economic outlook, and forecast deflation in coming fiscal years. The consumer price index, excluding fresh food, is estimated to fall 1.5% in fiscal 2009 versus 1.3% decline estimated previously.

Meanwhile, the central bank forecast a 0.8% drop in prices in fiscal 2010 and a 0.4% decline in fiscal 2011. The pace of decline in CPI would possibly slow down only modestly, given the recovery in the labor utilization level. The rate of decline in the CGPI is likely to gradually moderate from fiscal 2010 onward as the slack in the economy dissipates, said BoJ in its semi annual economic outlook.

An official report released earlier in the day showed that core consumer prices dropped 2.3% in September from a year earlier compared to the decline of 2.4% in August.

The central bank now expects the economy to shrink 3.2% in fiscal 2009 compared to a 3.4% fall estimated in July. The economy is set to remain on a recovery trend in fiscal 2010, but the pace of improvement is likely to be moderate until around the middle of fiscal 2010. In fiscal 2010, real GDP growth is seen at 1.2%, up from July's forecast of 1%. The growth rate is likely to reach a level clearly above the potential growth rate in the fiscal 2011.

The jobless rate fell to a seasonally adjusted 5.3% in September from 5.5% in August and the number of unemployed persons totaled 3.63 million, another report from the Ministry of Internal Affairs and Communications revealed today.

Thursday, the Bank of Japan announced its decision to maintain its key interest rate and to end the purchase of commercial paper and corporate bonds at the end of 2009 as scheduled, as it becomes necessary to conform to the changes in financial markets. (Market News Provided by RTTNews)
READ MORE

European Economics Preview: Eurozone Inflation, Unemployment Data Due

Friday, major statistical reports due for the day include house prices data from the United Kingdom, retail sales figures from Germany, producer prices data from France and inflation and labor market reports from Eurozone.

Retail sales data for September is expected from Germany's Federal Statistical Office at 3:00 am ET. Retail sales are tipped to rise 1% month-on-month, rebounding from the 2.4% decline in the previous month. On a yearly basis, sales are expected to drop 2.2%, slower than the 2.6% fall in August.

In the meantime, the U.K.'s Nationwide Building Society is scheduled to release house price figures for October. Economists expect house prices to grow a seasonally adjusted 0.6% on a monthly basis, slower than the 0.9% rise in the preceding month. The yearly rate of growth is seen at an unadjusted 1.8%.

Current account data for August is due from the Bank of Spain at 3:30 am ET. Last month, the current account balance logged a deficit of EUR 2.04 billion.

At 3:45 am ET, France's producer price data is due from the statistical office INSEE. In September, producer prices are tipped to fall 8.1% year-on-year, faster than the 8.5% drop in August. Compared to the previous month, prices are forecast to fall 0.3%, in contrast to the 0.4% increase last month.

A little later at 4:00 am ET, Hungary's Central Statistical Office is set to issue producer price inflation figures for September. Year-on-year, the producer price index is forecast to climb 3.7%, slower than the 4.6% rise in the previous month. Revised trade balance figures for August are also due from the statistical office. Preliminary estimates revealed a trade surplus of EUR 229.4 million.

Elsewhere, September's M2 money supply data is due from the Czech Republic. Last month, the annual money supply growth rate stood at 4%.

Half an hour later, the Statistical Office of the Republic of Slovenia is expected to issue consumer price inflation figures for October. Year-on-year, consumer prices were down 0.1% last month. Retail sales data for August is also due at the same time from the statistical office. In July, sales had dipped 13.2% annually.

At 5:00 am ET, the Italian statistical office ISTAT is set to release producer price data for September. The producer price index had declined 6.7% on a yearly basis but grew 0.6% on a monthly basis in the previous month.

At the same time, the Statistical Service of the Republic of Cyprus is expected to release producer price data for September. Producer prices had declined 3.8% on a yearly basis in August.

Iceland's trade balance figures for September are due at 5:00 am ET. A trade surplus of ISK 12.64 billion was seen last month. Producer prices figures for September are also due from Greece, with the annual inflation rate at minus 7.8% last month.

An hour later, the statistical office Eurostat is expected to issue October's harmonized consumer price figures for the Eurozone. Economists expect harmonized prices to fall 0.1% year-on-year, slower than the 0.3% decline in the preceding month. Simultaneously, unemployment data for September is released from the statistical office. The unemployment rate is tipped to edge up slightly to 9.7% from 9.6%.

In the meantime, consumer price inflation data for October is due from the Italian statistical office. The annual inflation rate is seen at 0.3%, up from 0.2% in September, while the monthly rate is seen at 0.1%. Further, harmonized consumer prices are expected to rise 0.4% on a yearly basis and 0.5% on a monthly basis.

At 6:30 am ET, Switzerland's KOF economic institute is expected to release its leading indicator for October, with the corresponding index forecast to rise to 1.16 from 0.85.

Afterwards at 10:00 am ET, trade balance figures for September are due from Turkey's statistical office. The trade deficit is expected to narrow to $4.6 billion from $4.9 billion.

Friday, major statistical reports due for the day include house prices data from the United Kingdom, retail sales figures from Germany, producer prices data from France and inflation and labor market reports from Eurozone. (Market News Provided by RTTNews)
READ MORE

Kazakhstan's Economic Recovery To Be Gradual: IMF

Kazakhstan's economy recovery could be gradual, the International Monetary Fund said Thursday. In the meantime, difficulties in the banking sector continued to affect the economy negatively.

The lender pointed out that the decline in economic activity appeared to have bottomed out, and an increase in oil production could help restor restore growth during the fourth quarter. However, it said credit expansion remained weak despite ample bank liquidity, and activity levels in the key construction and manufacturing sectors continued to be sluggish. Moreover, consumer income and demand is likely to pick up only with a lag, the IMF noted.

The lender expects the Kazakh economy to contract 2% this year, after it decreased 2.4% year-on-year in the first six months. But, the lender pointed out there were upside risks to the forecast. "The recent rebound in commodity prices, a record grain harvest in October, and the prospect of additional anti-crisis spending by year-end provide a more optimistic outlook for growth in 2010", it said.

Meanwhile, the IMF said Kazakhstan could face three policy challenges in the medium term. The first challenge was restoring confidence in the financial system, while withdrwaing public sector support. Secondly, gradually withdrawing stimulus-oriented spending and increasing saving of future oil revenues. The third challenge was allowing for greater flexibility of the exchange rate, the IMF added.

(Market News Provided by RTTNews)
READ MORE

Zimbabwe To Grow 3% This Year: IMF

The International Monetary Fund in a report Thursday said Zimbabwe's economy could grow by 3% this year, mainly due to its improved economic policies.

The IMF noted that since early 2009, the government broadly adhered to cash budgeting, achieved a significant improvement in budget revenue, established a multi-currency system, and largely liberalized prices and the exchange system. As a result, the economy began to recover in 2009, although from a low base, the lender pointed out. Meanwhile, credit expansion, post-hyperinflation remonetization, and capital inflows, were also supporting economic activity, the IMF said.

Zimbabwe's economy in recent months has suffered several problems including political unrest and surging inflation. Early in April, the government abandoned the usage of its local currency for atleast a year, after it became worthless, and decided to opt for alternate currencies including the U.S dollar, and the South African rand, among others.

"The key challenge going forward is to build the necessary support for policies that would ensure sustainability of the nascent economic recovery and improvements in living conditions for Zimbabweans", the IMF noted.

"Specifically, political consensus needs to be forged for continuing cash budgeting, exercising wage restraint while reorienting expenditures to developmental needs and priority social programs, resolving RBZ governance problems and restructuring its balance sheet, enforcing the property rights, and maintaining the rule of law", the lender added.

(Market News Provided by RTTNews)
READ MORE

Japan Unemployment Rate Eases To 5.3 Percent

The unemployment rate in Japan came in at a seasonally adjusted 5.3 percent in September, the Ministry of Internal Affairs and Communications said on Friday, down from 5.5 percent in August and better than forecasts for a 5.6 percent gain.

The number of unemployed persons was 3.63 million, an increase of 920 thousand or 33.9 percent from the previous year. The number of employed persons was 62.95 million, down 980 thousand or 1.5 percent from the previous year.

The participation rate was 60.2 percent, while the job-to-applicant ratio was up to 0.43 from the record low 0.42.

Also on Friday, the Ministry of Health, Labor and Welfare said that average household spending in Japan was up 1.0 percent on year in September, in line with expectations following the 2.6 annual increase in August.

Wage earner household spending was up 0.6 percent on year after adding an annual 1.2 percent in the previous month.

The propensity to consume, which measures the amount of disposable income spent, was 86.5 percent in September, up from 81.7 percent in August.

Finally, Japan's core inflation rate in September declined 2.3 percent on year. The Ministry of Internal Affairs and Communications reported Friday that the drop in the core Consumer Price Index compared to a decline of 2.4 percent in August.

Overall national CPI was down 2.4 percent in September, compared to a decline of 2.2 percent for August. The core CPI figure excludes fresh food items. When excluding both food and energy prices, consumer prices declined 1.0 percent on month.

In the Tokyo metropolitan area, considered a leading indicator for the national picture, core CPI was down 2.2 percent when excluding food, down 1.4 percent excluding food and energy and down 2.4 percent overall.

The Tokyo overall CPI was revised downward to 2.1 percent for August.

(Market News Provided by RTTNews)
READ MORE

Russia's Central Bank Again Cuts Key Rates

Thursday, Russia's central bank cut its key interest rates to record lows, the eighth rate cut since April, to pull the economy out of its worst recession and to boost lending.

Bank Rossii lowered the refinancing rate to 9.5% from 10% and reduced the repurchase rate charged on central bank loans to 8.5% from 9%, effective from Friday. The last change in interest rates was on September 29, when the central bank made half a percentage point reduction.

The central bank has also reduced other major rates by 50 basis points. The rates for overnight loans and single day currency swap operations were cut to 9.5% and the rates for Lombard loans and direct repo operations were cut to 8.5%.

Thursday, Russia's central bank cut its key interest rates to record lows, the eighth rate cut since April, to pull the economy out of its worst recession and to boost lending. (Market News Provided by RTTNews)
READ MORE

German Sept. ILO Jobless Rate Falls

Thursday, Germany's Federal Statistical Office announced that the ILO unemployment rate stood at a seasonally adjusted 7.6% in September, down from 7.7% in August. A year ago, the jobless rate was 7.1%.

Compared with September 2008, unemployment increased by a seasonally adjusted 200,000 persons or 6.6%. The number of unemployed increased by more than 10,000 persons or 0.6% in September compared to the previous month.

Further, the statistical office said, number of persons in employment dropped 0.5% year-on-year to 40.36 million in September from 40.56 million recorded a year ago. In August, the employment was 40.09 million.

In September, the number of persons in employment rose by 269,000 or 0.7% compared to the previous month. At the same time, the seasonally adjusted employment declined by 0.1% to 40.10 million from 40.13 million in August.

Thursday, Germany's Federal Statistical Office announced that the ILO unemployment rate stood at a seasonally adjusted 7.6% in September, down from 7.7% in August. A year ago, the jobless rate was 7.1%. (Market News Provided by RTTNews)
READ MORE

S. Africa Producer Prices Decline In September

Thursday, the Statistics South Africa announced that the producer price index or PPI dropped 3.7% year-on-year in September, compared to the 4% fall in the previous month. Economists expected a decline of 2.5%. A year ago, the PPI was up 19.1%.

On a monthly basis, the PPI decreased 3.2% in September, in contrast to a 0.3% increase in the previous month. Economists expected a decline of 2.2%.

Meanwhile, the exported commodities prices decreased 11.2% on an annual basis in September, after falling 9.2% in August. Month-on-month, prices for exported commodities dropped 0.7%.

Similarly, prices for imported commodities fell 16.2% year-on-year in September, compared to the 17.8% decline in August. Compared to August, imported commodities prices showed a flat reading in September.

Thursday, the Statistics South Africa announced that the producer price index or PPI dropped 3.7% year-on-year in September, compared to the 4% fall in the previous month. Economists expected a decline of 2.5%. A year ago, the PPI was up 19.1%. (Market News Provided by RTTNews)
READ MORE

Zambian Economy Could Grow More Than 5% In 2009:IMF

The International Monetary Fund in a report Wednesday said the Zambian economy showed considerable resilience in the face of the global economic crisis, and could grow more than 5% this year.

Inflation was moderating, due to softening of food prices and a limited reversal of the earlier depreciation of its currency, the Kwacha. Moreover, the lender said the revised inflation target of 12% by end-2009 was well within reach.

"While the overall performance of the economy has held up well, government revenue collections, particularly of import-related taxes, have fallen short of expectations", the IMF said.

"Looking ahead, Zambia faces a number of challenges that need to be addressed if robust economic growth is to be sustained over the medium term. Key among these is the need to increase fiscal space for infrastructure and social sector spending to support the diversification of the economy and poverty reduction, " the lender added.

(Market News Provided by RTTNews)
READ MORE

Crude Oil Rebounds, Challenges $80 Per Barrel

Crude oil surged on Friday but couldn't hold above $80 per barrel. Prices were boosted by a better-than-forecast gross domestic product report and some mixed jobs data.

Light sweet crude oil for December delivery rose to $79.87 per barrel, up $2.41 on the session. Prices reached as high as $80.46 earlier in the session.

A Commerce Department advance estimate showed gross domestic product increased 3.5% annually in the third quarter compared to a 0.7% decrease in the second quarter. Economists had been expecting GDP to increase by 3.2 percent.

Also, the U.S. Labor Department revealed that initial jobless claims slipped to 530,000 for the week ended October 24. This was down 1,000 from the previous week's revised total of 531,000.

A weaker dollar also added to crude's hedge value. The dollar fell back toward $1.48 against the euro after reaching a 2 1/2-week high yesterday. The buck fell to a six-day low against the pound.

Oil had dropped more than $2 on Wednesday as gasoline stockpiles unexpectedly rose 1.7 million barrels last week, according to the Energy Information Administration. crude oil inventories rose just 800,000 barrels in the week ending October 23. Economists were looking for a much bigger build of 1.8 million barrels.

(Market News Provided by RTTNews)
READ MORE

Jobless Claims Drop Less Than Forecast

The number of people filing for first-time unemployment help ticked down last week, holding steady after bouncing off a multi-month low the week before.

Meanwhile, the size of the government's unemployment role continued to shrink, raising hope that the labor market is starting to stabilize.

The U.S. Labor Department revealed that initial jobless claims slipped to 530,000 for the week ended October 24. This was down 1,000 from the previous week's revised total of 531,000.

Economists had expected claims to slip to 525,000.

Claims got as low as 520,000 a couple weeks ago, the lowest level since the first week of the year, before ticking up again. Still, the figure remains well below the recent peak of 674,000 seen in late March.

The 4-week moving average for initial claims, which flattens out week-to-week fluctuations in the data, declined to 526,250 from the prior week's number of 532,250. This represented the lowest reading this year.

Continuing claims, which measures the number of people receiving ongoing unemployment help, dropped 148,000 to 5.797 million. This was the sharpest weekly slide since early July.

This is the second week below the 6 million mark - a level continuing claims have hovered above since April.

In other economic data released on Thursday, the government said that Gross Domestic Product, a broad measure of economic strength, rose at a 3.5 percent pace in the third quarter. This was stronger than economists had expected.

(Market News Provided by RTTNews)
READ MORE

Dollar Back On Defense Versus The Euro Amid Recovery Hopes

The dollar sputtered on Thursday, moving back toward yearly lows against the euro after the government said that the US economy grew in the third quarter, signaling the end to the most brutal recession in decades.

With the risk trade back in play amid hopes that the recovery will take hold, the dollar hit the skids versus higher-yielding counterparts after seeing gains earlier this week.

The Commerce Department said its advance estimate showed that GDP increased at an annual rate of 3.5 percent in the third quarter compared to a 0.7 percent decrease in the second quarter. Economists had been expecting GDP to increase by 3.2 percent.

Still, questions remain about whether a recovery can be sustained once federal stimulus measures wind down.

The dollar turned lower versus the euro, dropping to 1.4840 from a 2-week high near 1.4700. With the loss, the dollar moved back toward a yearly low of 1.5059 from earlier this month.

The buck also fell sharply versus the sterling, losing almost two cents to 1.6600. While the buck has come under pressure of late versus the resurgent sterling, the pair remains near the middle of a multi-month range.

Rebounding commodity prices drove the dollar lower versus its resource-linked Canadian counterpart. After gaining significant ground over the past few sessions, the dollar turned back to C$1.0690.

Canadian raw materials prices and industrial prices fell unexpectedly in September, official data showed Thursday.

The dollar managed to push higher versus the yen as traders remained uncertain which low-yielding currency to carry. The buck rose to 91.60 after testing the 90 mark overnight. A few weeks ago, the dollar tested a 1995 low of 87.08.

(Market News Provided by RTTNews)
READ MORE

Euro Rebounds Versus Dollar Amid Higher Risk Appeal

The euro rebounded against the dollar and yen as improved stocks in the U.S. and Europe added to risk appeal. Encouraging economic data in the Eurozone and a better-than-forecast GDP report in the U.S. also provided spark.

German unemployment unexpectedly dropped in October as various measures to boost employment proved effective in curbing rising joblessness amid the global economic crisis.

Eurozone economic sentiment strengthened more than expected in October pointing toward a possible recovery in the third quarter.

The euro rebounded against the dollar and moved back toward its 14-month high above 1.5000 after coming under pressure earlier this week. The European currency reached as high as 1.4846 in mid-day trading after hitting as low as 1.4682 overnight.

The Commerce Department said its advance estimate showed that GDP increased at an annual rate of 3.5 percent in the third quarter compared to a 0.7 percent decrease in the second quarter. Economists had been expecting GDP to increase by 3.2 percent.

The euro fell to a six-week low against the sterling, touching 0.8910. The European currency has been trending lower for through most of the week.

The Bank of England reported that mortgages approved in September stood at 56,215, up from August's revised 52,970. Approvals stood above the expected the expected level of 53,600.

The European currency reached a two-day high of 135.70 against the sterling, rising away from a two-week low of 132.79 from late yesterday.

The Ministry of Economy, Trade and Industry said today that industrial output in Japan was up 1.4 percent on month in September, posting an index score of 85.1.The reading marked the seventh straight month of gain and also came in above expectations for a 1.0 percent increase following the 1.6 gain in August.

On the economic front, the number of unemployed people in Germany fell a seasonally adjusted 26,000 to 3.43 million in October, data released by the Federal Labor Agency showed Thursday. Economists had expected the number to rise by 15,000 in the month, following a revised fall of 15,000 in September.

Economic sentiment stood at 86.2 in October, up from 82.8 in September, a monthly survey from the European Commission revealed Thursday. The reading stood above the expected 84.4 and was the strongest since September 2008.

(Market News Provided by RTTNews)
READ MORE

Endo Pharma Holdings Q3 Profit Decreases; Raises FY09 Guidance - Update

Thursday, Endo Pharmaceuticals (ENDP) reported a decline in profits for the third quarter primarily on charges related to Indevus transaction and higher expenses, notwithstanding a 14% growth in revenue.

Net income for the quarter declined to $49 million or $0.42 per share from $66 million or $0.55 per share during the comparable period year-ago. The company noted that the GAAP net income includes charges of $20,206 related to Indevus transaction and separation costs of $2,484.

Adjusted net earnings for the quarter declined to $74 million or $0.63 per share, compared with $79 million or $0.66 per share in the year-ago period. On average, twenty three analysts polled by Thomson Reuters estimated earnings of $0.65 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased by 14% to $361 million from $317 million in the third quarter of 2008. Twenty two Wall Street analysts estimated revenues of $365.33 million for the quarter.

Product-wise revenues from all the brands put together increased by 14% to $335.41 million from $294.35 million year-ago. Total generics revenues increased by 2% to $22.93 million from $22.41 million year-ago. Total royalty and other revenue for the quarter was $2.68 million.

For the quarter, the company's cost of revenues increased to $97.30 million from $71.02 million and Selling, general and administrative expenses increased to $139.92 million from $116.24 million in the prior year period. Research and development costs for the quarter were significantly higher at $59.69 million compared with $22.16 million a year-ago. The company said that it is raising its guidance for the entire year 2009. Endo expects GAAP earnings per share to be between $1.41 and $1.47. The increased GAAP earnings per share is primarily due to changes in the fair value of contingent consideration associated with the Indevus transaction partially offset by the addition of milestone payments associated with the company's recent deal with ProStrakan to in-license Fortesta.

Adjusted diluted earnings per share are now estimated to be between $2.67 and $2.73. It now estimates total revenues for the year to be between $1.440 billion - $1.465 billion. Street estimates earnings of $2.71 per share on revenues of $1.45 billion for the current year.

Dave Holveck, president and CEO of Endo said, "We believe our third quarter performance, in conjunction with a solid outlook for the remainder of the year, warrants an increase in our revenue and earnings guidance. And we continue to actively pursue business development opportunities that will further diversify our top line in the years ahead."

Year-to-date net income declined to $118.48 million or $1.01 per share from $182.65 million or $1.45 per share in the year-ago period. Adjusted net income for the nine month period increased to $239.14 million or $2.04 per share from $219.63 million or $1.74 per share year-ago. Total revenues for the nine months were $1.07 billion, compared with $913 million in the comparable 2008 period.

ENDP is currently trading on the Nasdaq at $21.95, up $0.01 or 0.05%.

(Market News Provided by RTTNews)
READ MORE

German Unemployment Unexpectedly Drops In October

German unemployment unexpectedly dropped in October as various measures to boost employment proved effective in curbing rising joblessness amid the global economic crisis.

The number of people without jobs fell a seasonally adjusted 26,000 to 3.43 million in October, data released by the Federal Labor Agency showed Thursday. Economists had expected the number to rise by 15,000 in the month, following a revised fall of 15,000 in September.

"We still expect the recession and the financial-market crisis to have more of an adverse effect soon on the labor market than has so far been the case," Commerzbank analyst Eckart Tuchtfeld said. However, the analyst noted that unemployment will not experience a sudden drastic change as employers are evidently adopting a cautious approach. But, it would continue rising this winter and well into 2010.

Unemployment has been falling since July after hitting its peak in March. The jobless rate fell to 8.1% in October from 8.2% in September, while economists' had forecast the rate to rise to 8.3%.

"The fall in unemployment rate signals a slight rebound in activity since last summer," BNP Paribas economist Catherine Stephan said. The economist said Germany's recovery in the second quarter was a "technical" rebound mainly fueled by the end of the destocking process. This rebound should be temporary, and growth will be weak in 2010.

The figures came a day after Chancellor Angela Merkel's new government of Conservatives and Free Democrats took power. The coalition has already promised controversial tax cuts worth EUR 24 billion in an effort to boost growth and kick start the economy.

In the second quarter, the biggest Eurozone economy expanded 0.3% after contracting in past four quarters. The government has poured billions of euros to shore-up the recession hit economy. In the run up to the election, Merkel implemented several measures to save jobs, which later worked to turn votes on her favor.

Excluding the change implemented in the method of calculating unemployment, the jobless number fell 20,000, the labor agency said. The new rule, which came into force in May 2009, instructs the labor agency to exclude people attending training in a company as unemployed. The unadjusted total fell 118,000 to 3.229 million, its lowest level since December of last year.

However, there are lingering concerns regarding the labor market. Recently, the closely watched GfK survey revealed that German consumer confidence for November deteriorated unexpectedly as concern over the labor market problems weighed on the assessment of the personal economic situation and income expectations. Contrastingly, business confidence rose for the seventh consecutive month in October to reach a thirteen-month high in a key survey by the Ifo institute.

German unemployment unexpectedly dropped in October as various measures to boost employment proved effective in curbing rising joblessness amid the global economic crisis (Market News Provided by RTTNews)
READ MORE

Geithner Backs Bill For Tighter Regulation On Big Banks

Treasury Secretary Timothy Geithner told lawmakers Thursday that important progress has been made toward comprehensive regulatory reform.

Geithner said that work must now be done to ensure that the financial system will be able to allow large financial firms to fail without damaging the economy in future financial crises.

"No financial system can operate efficiently if financial institutions and investors assume that the government will protect them from the consequences of failure," he said in prepared remarks before the House Financial Services Committee.

Geithner said that recent legislation proposed by committee chairman Barney Frank (D-MA) lays a foundation to "better protect consumers from unfair and fraudulent lending practices, regulate the derivatives market, improve investor protection, reform credit rating agencies, and extend basic oversight to hedge funds and other unregulated financial entities."

The secretary's remarks come a day after Frank introduced a proposal aiming to prevent future taxpayer bailouts of "to-big-to-fail" financial institutions.

Geithner said that the government must be able to resolve failed financial institutions without allowing the taxpayer to absorb the losses, instead shifting them to equity holders, creditors, and, possibly, other institutions.

"The government should have the authority to recoup any such losses by assessing a fee on large financial firms," he said.

As he has in many other speeches, Geithner stressed that the government must have stronger supervisory and regulatory authority over large financial firms.

"Regulators must be empowered with explicit authority to force major financial firms to reduce their size or restrict the scope of their activities when necessary to limit risk to the system."

He did stress, however, that the Federal Reserve and FDIC's emergency authorities must be subject to a system of checks and balances.

"These authorities should only allow for temporary support, with an appropriate fee, that is designed to enable healthy institutions to continue operating and to prevent the disruption of credit flows during a severe economic downturn," he said.

Geithner added that regulators must be able to impose tougher capital rules and "more stringent" liquidity standards in order to reduce the probability that large financial firms will experience distress.

The secretary concluded his remarks by stressing the importance of reforming the regulatory system, calling the current regulatory rules "inadequate and outdated."

"We have all experienced what happens when, during a crisis, the government is left with limited tools and limited choices," he said. "That is the searing lesson of last fall."

Treasury Secretary Timothy Geithner told lawmakers Thursday that important progress has been made toward comprehensive regulatory reform. Geithner said that work must now be done to ensure that the financial system will be able to allow large financial firms to fail without damaging the economy in future financial crises. (Market News Provided by RTTNews)
READ MORE

Spanish Economy To Stay In Recession In Q3: Bank Of Spain

The Spanish economy remained in recession in the third quarter weighed down by a high unemployment and weak consumption.

In its quarterly report on the Spanish economy, the Bank of Spain said the economy likely contracted 0.4% sequentially in the third quarter after a sharp 1.1% shrinkage in the previous three months. In the first quarter, the economy had shrunk 1.6%. This would be the fifth straight quarter of contraction after a flat reading in second quarter of 2008.

The central bank noted that the contraction in the third quarter is the least pronounced since the recession began. However, this more favourable performance is linked in part to public measures with temporary effects, the bank added.

"The easing in the quarter-on-quarter path of decline was extensive to the main components of domestic expenditure, although more markedly so in household consumption, where the direct aid for car purchases was influential, and in public investment, where there was headway in the roll-out of Local Investment Fund projects," the report said.

Year-on-year, the gross domestic product dropped 4.1% in the third quarter after a 4.2% decline in the previous three months. The National Statistics Institute is set to release the preliminary third quarter GDP data on November 12.

The Spanish government had one of the largest stimulus packages. Despite this, economy was hit hard by a construction industry slump and high unemployment. The jobless rate stood at 17.9% in the third quarter, while employment declined by 7.3%.

Inflation has eased while the core inflation that excludes energy and unprocessed food prices stood at a record low of 0.1% at the end of the third quarter, the central bank noted. Data released by the statistical agency on Thursday showed that Spain's harmonized index of consumer prices declined for the eighth straight month in October.

The HICP slipped 0.6% year-on-year in October, slower than the 1% fall in the preceding month and the record 1.4% decline in July. Economists had expected the index to fall 0.7%.

In March, the HICP declined on an annual basis for the first time since the series began in January 1997. The index has maintained the declining trend afterwards. In September, the index dropped 0.2% from August. The statistical office is scheduled to release the final HICP data on November 13.

"Penalised by the sharp increase in the unemployment rate and the slump in lending, private consumption has continued to fall, resulting in a deceleration in core prices," Philippe Sabuco, an economist at BNP Paribas wrote in a note. "As no marked recovery is expected in the short term, this trend should continue in the coming quarters." All in all, Spanish inflation will underperform the eurozone, the economist wrote.

The Spanish central bank expects Eurozone to return to growth in the third quarter, "boosted by the improvement in international trade and the aggregate demand stimulus and financial system support policies that have helped stabilise markets". Further, the bank expects positive inflation rates to resume towards the end of the year and does not see inflationary pressures in the region. Most economists' expect the Eurozone to exit recession the third quarter.

(Market News Provided by RTTNews)
READ MORE

U.S. Economic Activity Increases More Than Expected In Third Quarter

Economic activity in the U.S. increased by more than expected in the third quarter, according to a report released by the Commerce Department on Thursday, with the report showing an increase in gross domestic product following four consecutive quarters of contraction.

The Commerce Department said its advance estimate showed that GDP increased at an annual rate of 3.5 percent in the third quarter compared to a 0.7 percent decrease in the second quarter. Economists had been expecting GDP to increase by 3.2 percent.

With the bigger than expected increase, GDP rose at its fastest rate since the 3.6 percent growth that was seen in the third quarter of 2007.

A jump in consumer spending contributed to the stronger than expected GDP growth, with spending increasing by 3.4 percent in the third quarter following a 0.9 percent decrease in spending in the second quarter.

Spending on durable goods showed a substantial increase, surging up by 22.3 percent in the third quarter due in part to higher auto sales as a result of the government's cash for clunkers program.

The Commerce Department said that the third quarter GDP growth also reflected positive contributions from exports, private inventory investment, federal government spending, and residential fixed investment.

Additionally, motor vehicle output added 1.66 percentage points to the third quarter change in real GDP after adding 0.19 percentage point to the second quarter change.

At the same time, imports, which are a subtraction in the calculation of GDP, increased by 16.4 percent in the third quarter following a 14.7 percent drop in the second quarter.

While third quarter GDP increased by more than anticipated, analysts generally seem unimpressed with the numbers, noting that the growth is due in large part to government stimulus such as the cash for clunkers program and the first-time homebuyers tax credit.

Rob Carnell, chief international economist at ING, said, "Suggestions that this figure marks the end of the recession in the U.S., although technically correct, ignore the relatively low quality of the growth registered in this release."

"Such suggestions also ignore the likely soft fourth quarter that is now in the pipeline," Carnell added. "The U.S. economy is not out of the woods yet."

With regard to inflation, the Commerce Department said its reading on core consumer prices, which exclude food and energy prices, rose 1.4 percent in the third quarter following a 2.0 percent increase in the second quarter.

In other economic news, the Labor Department said that initial jobless claims in the week ended October 24th edged down to 530,000 from the previous week's unrevised figure of 531,000. The drop was smaller than the decrease of about 6,000 expected by economists.

The less volatile four-week moving average fell to 526,250 from the previous week's unrevised average of 532,250. With the decrease, the four-week moving average fell to its lowest level since early January.

Economic activity in the U.S. increased by more than expected in the third quarter, according to a report released by the Commerce Department on Thursday, with the report showing an increase in gross domestic product following four consecutive quarters of contraction. The Commerce Department said its advance estimate showed that GDP increased at an annual rate of 3.5 percent in the third quarter compared to a 0.7 percent decrease in the second quarter. (Market News Provided by RTTNews)
READ MORE

Eurozone Economic Sentiment Continues To Improve In October

Eurozone economic sentiment rose for a seventh consecutive month in October after hitting the trough in March, results of the latest business and consumer survey by the European Commission showed Thursday.

The economic sentiment indicator rose to 86.2 in October from 82.8 in September, while economists had forecast a reading of 84.4. All the sub-indicators of the economic sentiment showed improvement in the month, except retail trade, where the sentiment stabilized.

The consumer confidence indicator rose to minus 18 in October from the previous month's minus 19, the industrial sentiment indicator moved to minus 21 from minus 24, the measure for service sector confidence increased to minus 7 from minus 9 and that for construction sector improved to minus 29 from minus 30. A gauge for the retail sector was steady at minus 15.

A separate survey revealed that the business climate index for the euro area rose to minus 1.78 in October from minus 2.07 in September. It was expected to log minus 1.9.

Eurozone economic sentiment rose for a seventh consecutive month in October after hitting the trough in March, results of the latest business and consumer survey by the European Commission showed Thursday. (Market News Provided by RTTNews)
READ MORE

IMF Raises Asia's Growth Outlook

Thursday, the International Monetary Fund raised Asia's economic outlook saying that the region is rapidly rebounding from the depth of the global crisis.

It now predicts Asia's gross domestic product or GDP to grow 2.8% this year and by 5.8% next year. In May, the IMF had predicted Asian growth will decelerate to 1.3% in 2009 before rebounding to 4.3% in 2010.

"The primary driver of Asia's recovery has been a progressive return towards normalcy following the abrupt collapse in global trade and finance at the end of 2008," the IMF said in its latest regional economic outlook. According to the report, the other key driver of Asia's recovery has been the region's rapid and forceful policy response.

The international lender also raised its outlook for Singapore to show a 4.3% expansion in 2010 after contracting by 1.7% this year. In its world economic outlook released on October 1, the IMF had said Singapore GDP would rise 4.1% in 2010 after falling 3.3% this year.

Moreover, it said output in the large G7 economies is forecast to grow by 1.3% next year, recouping only half the contraction estimated for 2009, because private demand in these countries remains constrained by the legacy of the crisis.

Thursday, the International Monetary Fund raised Asia's economic outlook saying that the region is rapidly rebounding from the depth of the global crisis. (Market News Provided by RTTNews)
READ MORE

Rise In Capital Inflows Not A Worry To India: Finance Secretary

The rise in capital inflows driven by low interest in advanced economies, into India is not a threat to the stability of financial system, reported the Economic Times quoting Finance Secretary Ashok Chawla.

Chawla said that the country is prepared for a surge in inflows and added that the current scenario is not as bad as it was in 2007, when the government and central bank had to intervene to restrict excess inflows then.

Chawla said that India received inflows of $14 billion in the first half of the fiscal as anticipated. He said more inflows are expected in the current fiscal year and added that it would not be a problem to the system.

C Rangarajan, the head of the Prime Minister's Economic Advisory Council, too opined that there are no concerns and, as such, no need for change in policies at present.

The government restricted external commercial borrowings and curbed usage of participatory notes used to invest in stock market to control inflow of foreign capital in 2007-08. The norms were later relaxed.

The finance ministry and RBI would decide in December whether to continue with the current norms. Overseas borrowings for development of integrated townships are also to be considered after December 31, 2009.

Chawla said that the credit off-take from banks are yet to return to normalcy. He said that it is at a 12-year low as banking system is flush with liquidity and are placing close to Rs.1.5-lakh crore with the apex bank overnight through reverse repo window.

(Market News Provided by RTTNews)
READ MORE

India's Inflation Rises Again

India's inflation rate remained positive for the seventh straight week, rising to 1.51% for the week ended October 17. In the preceding week, it was 1.21%.

The annual rate of inflation was 10.82% for the corresponding week of the preceding year, say data released Thursday by the Ministry of Commerce and Industry.

The build-up inflation during this fiscal year so far increased to 5.95% from 5.25% in the corresponding period last year. The 52-week average inflation for the week ended October 17 was 2.33%, the data showed.

Going by provisional figures, the wholesale price index or WPI for all-commodities remained unchanged at its previous week's level of 242.2.

The WPI-based inflation rose, due to the higher prices of tea, mutton, maize, arhar, condiments and spices, bitumen and some manufactured products.

The final estimate of inflation for the week ended August 22 was lowered to 0.17% from the preceding week's provisional figure of minus 0.21%.

The drop in the prices of fish-marine under the "Food Article" category pulled the growth rate of index for Primary Articles to 0.1% from the previous week's level. However, the prices of tea, mutton, maize, arhar, condiments and spices, as also moong, moved up.

The index for fuel, power, light and lubricants fell by 0.1% due to the lower prices of aviation turbine fuel, furnace oil, and light diesel oil. However, the price of bitumen increased.

The index for Manufactured Products rose by 0.1%, due to the higher prices of batteries, rice bran oil, calcium ammonium nitrate n-content, imported edible oil, gur, oilcakes, liquid chlorine and zinc ingots, whereas those of PVC resins, steel ingots MS bars and rounds, butter, groundnut oil, basic pig iron, as also foundry pig iron, declined.

Reserve Bank of India or RBI Governor Duvvuri Subba Rao, during the second quarter review of the monetary policy for the current fiscal on Tuesday, projected WPI inflation at 6.5% with an upside bias at the end-March next year, keeping in view the global trend in commodity prices and the domestic demand-supply balance. This is higher than the 5% WPI inflation projected in the First Quarter Review of July this year, as the upside risks have come about.

In its monetary review, the RBI kept all the key rates unchanged. However, it raised the statutory liquidity ratio or SLR, the minimum required investment by banks in government securities, to 25% from 24% of their NDTL effective November 8 last year.

The Governor said, the RBI, as always, would endeavor to ensure price-stability and anchor inflation-expectations. The conduct of monetary policy would continue to condition and contain the perception of inflation in the range of 4.0-4.5%. This would be in line with the medium-term objective of 3.0% inflation consistent with India's broader integration with the global economy.

The RBI said it would continue to monitor the price situation in its entirety and would take measures as warranted by the evolving macroeconomic conditions, swiftly and effectively.

Assuming a modest decline in agricultural production and a faster recovery in industrial production, the apex bank projected fiscal 2010 economic growth at 6% with an upside bias, in line with the projections made in the First Quarter Review of July 2009.

Finance Minister Pranab Mukherjee, while responding to the measures, said the government would continue with the stimulus packages till the economy was back on a firm recovery path. On economic growth, he said, he would prefer to go with the growth projection of 6.5% to 6.75% given by the Prime Minister's economic advisory council, headed by Rangarajan, a retired Governor of the RBI.

(Market News Provided by RTTNews)
READ MORE

IMF Upgrades Asia's Growth Outlook

Thursday, the International Monetary Fund raised Asia's economic outlook saying that the region is rapidly rebounding from the depth of the global crisis.

In its latest regional economic outlook, the Washington-based IMF said it expects Asia's gross domestic product to grow 2.8% this year and by 5.8% next year. In May, the lender had forecast Asia's growth to decelerate to 1.3% in 2009 before rebounding to 4.3% in 2010. The new forecasts are short of the 6.7% average growth recorded over the past decade.

"The primary driver of Asia's recovery has been a progressive return towards normalcy following the abrupt collapse in global trade and finance at the end of 2008," the IMF report said. According to the report, the other key driver of Asia's recovery has been the region's rapid and forceful policy response.

"The "green shoots" of recovery appear more firmly rooted in Asia than in other regions," the report said. "Now Asia is leading as the world pulls out of recession."

While raising its world economic outlook on October 1, the IMF said the world economy is expected to grow 3.1% next year, more than the 2.5% growth forecast in July. The lender expects the Japanese economy to contract 5.4% this year and to grow by 1.7% next year. Australia's growth is forecast to touch 0.7% this year and 2% next year. New Zealand's economy is predicted to shrink 2.2% in 2009 and to expand by 2.2% next year.

China is likely to log the fastest growth in the region, 8.5% this year and 9% in 2010. India is set to follow, with growth projected at 5.4% in 2009 and at 6.4% next year. Meanwhile, South Korea's economy is predicted to shrink 1% before expanding by 3.6% next year.

At the same time, the IMF today revised its outlook for Singapore to show a 4.3% expansion in 2010 after a 1.7%contraction this year. In its world economic outlook, the organization had forecast Singapore GDP to rise 4.1% in 2010 after falling 3.3% this year.

The IMF said Asian policymakers consequently face two major challenges - to maintain policy stimulus until the recovery becomes self-sustaining and to devise a way to return to sustained, rapid growth in a new global environment. It also said Asia will need to be willing to live with smaller current account surpluses and more flexible exchange rate management. Moreover, it said output in the large G7 economies is forecast to grow by 1.3% next year, recouping only half the contraction estimated for 2009, because private demand in these countries remains constrained by the legacy of the crisis.

Asia's V-shaped recovery may be the sharpest on record and may turn into a square-root-shaped recovery soon, DBS Bank economist David Carbon said in a note on Wednesday. "That is, a sharp drop, a sharp rise, and then a palpable turn sideways." The DBS economist expects growth to be back to "normal" for most of the countries in the region by the first quarter of 2010.

Carbon also expects key central banks in the region to hike rates in the first quarter. The bank forecasts India to hike rates as early as January and South Korea in the first quarter. China is expected to start pushing rates up in the second quarter as well as allow its currency to appreciate against the U. S. dollar.

Earlier in the month, Australia became the first G-20 central bank to raise key interest rate after the global financial crisis. India's central bank became the second in the group to start exiting from an easy monetary policy, though it retained key interest rates.

Thursday, the International Monetary Fund raised Asia's economic outlook saying that the region is rapidly rebounding from the depth of the global crisis. (Market News Provided by RTTNews)
READ MORE