Tag Archives: European summit

Wall Street shakes off factory data; S&P, Nasdaq rise

(Reuters) – Stocks edged higher on Monday, shaking off a surprise contraction in manufacturing, which some investors took as a signal the Federal Reserve will take more forceful actions to boost the economy.

The Institute for Supply Management’s manufacturing index came in at a lower reading than expected in June, registering a contraction in the sector for the first time since July 2009.

The S&P was lower for much of the session but closed slightly higher in late gains. Still, industrial shares were under pressure after the data, the latest in a string of indicators pointing to deteriorating economic conditions around the globe. Boeing Co (BA.N) lost 1.5 percent to $73.18 and Caterpillar Inc (CAT.N) was off 1.4 percent at $83.68.

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Barclays boss under pressure as bank inquiry launched

(Reuters) – Pressure grew on Barclays Plc Chief Executive Bob Diamond to quit as Britain launched an inquiry on Monday into a market-rigging scandal, saying a “culture that flourished in the age of irresponsibility” among bankers had to end.

Barclays Chairman Marcus Agius resigned on Monday, saying “the buck stops with me” as the scandal over manipulating Libor interest rates claimed its first major scalp.

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Euro Leaders Turn To Central Bank For Help To Tackle Crisis

European leaders turn to the European Central Bank this week, seeking assistance from monetary policy makers to reinforce gains following euro-area leaders’ moves to calm markets and accelerate the currency bloc’s integration.

The Frankfurt-based ECB may offer help on July 5, with economists expecting an interest rate cut. The bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three- year loans on the heels of pledges supporting fiscal discipline.

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Euro-Area Unemployment Climbs To Record On Spanish Cuts

Euro-area unemployment reached the highest on record as a deepening economic slump and budget cuts prompted companies from Spain to Italy to reduce their workforces.

The jobless rate in the 17-nation euro area rose to 11.1 percent in May from 11 percent in April, the European Union’s statistics office in Luxembourg said today. That’s the highest since the data series started in 1995.

Europe’s companies are under pressure to lower costs to protect earnings as the worsening fiscal crisis erodes exports and consumer spending. Companies including Deutsche Lufthansa AG, PSA Peugeot Citroen and Spanish news agency Efe are seeking to eliminate jobs to cope with flagging demand.

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Manufacturing In U.S. Unexpectedly Contracted In June

Manufacturing in the U.S. unexpectedly shrank in June for the first time since the economy emerged from the recession three years ago, indicating a mainstay of the expansion may be faltering.

The Institute for Supply Management’index fell to 49.7, worse than the most-pessimistic forecast in a Bloomberg News survey, from 53.5 in May, the Tempe, Arizona-based group’s report showed today. Figures less than 50 signal contraction. Measures of orders, production and export demand dropped to three-year lows.

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Frances lowers 2012 growth forecast ahead of budget revision

(Reuters) – France will lower its economic growth forecasts for this year as part of a revised budget the government will present later this week to meet its public deficit targets, Finance Minister Pierre Moscovici said on Sunday.

The country’s national audit office is expected to reveal a shortfall of about 8 billion euros ($10.15 billion) on Monday when it publishes the results of an official review of public finances that new President Francois Hollande ordered, the Journal du Dimanche (JDD) newspaper earlier said.

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Wall Street Week Ahead: Can EU deal lift stocks for more than a day?

(Reuters) – Stocks finished the first half of the year with a bang as investors welcomed news that the euro zone is a step closer to solving its 30-month-long debt crisis. Now for the question: Is this rally strong enough to last for more than a day?

The S&P 500 and the Nasdaq posted their best daily percentage gains since December on Friday after an agreement by European leaders to stabilize the region’s troubled banks, a pact that helped remove some of the uncertainty that has plagued markets.

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