Some secondary market selling occurred as prices rallied….
Comments »Daily Archives: March 29, 2012
German Unemployment Falls More Than Expected
“German unemployment fell more than forecast in March, adding to evidence that growth inEurope’s biggest economy is gaining traction as the debt crisis recedes.
The number of people out of work fell a seasonally adjusted 18,000 to 2.84 million, the Nuremberg-based Federal Labor Agency said today. Economists forecast a decline of 10,000, the median of 36 estimates in a Bloomberg News survey showed. The adjusted jobless rateslipped to 6.7 percent, a two-decade low…”
Comments »Investors Bet on Palladium Over Gold as Global Car Sales Rise
“Investors are buying palladium at the fastest pace in more than a year as analysts predict rising demand and declining supply will turn this quarter’s worst- performing precious metal into the best by December.
Holdings in palladium-backed exchange-traded products rose 14 percent this year, poised for the best quarter since the end of 2010, data compiled by Bloomberg show. The metal will average $850 an ounce in the final three months of 2012, 31 percent more than now, according to the median estimate of 11 analysts surveyed by Bloomberg. They expect a gain of 15 percent for gold, 13 percent for silver and 10 percent for platinum.
Palladium lagged behind other metals this year on concern about slowing growth in vehicle sales in China, the world’s largest car market. Autocatalysts account for 65 percent of demand, according to Barclays Capital. Prices are poised to rise because carmakers are still using the most metal ever, with the prospect of shortages because of less supply from state reserves in Russia, the biggest producer, the bank estimates.
“I like palladium the best among precious metals, it’s relatively cheap compared to the others,” said Bart Melek, the head of commodity strategy at TD Securities Inc. in Toronto and the most accurate price forecaster tracked by Bloomberg Rankings in the eight quarters through the end of 2011. “Autocatalyst demand for palladium should grow. Russian government stocks will limit supply growth.”
Comments »Oil Remains Weak on Supply and Growth Concerns
Europe Sells Off as the S&P Says Greece Will Have to Restructure its Debt
“European stocks declined for a third day, extending a three-week low, as Standard & Poor’ssaid Greece may have to restructure its debt again. Asian shares and U.S. index futures retreated.
Hennes & Mauritz AB (HMB), Europe’s second-largest clothing retailer, dropped the most in six months after earnings missed estimates. Inditex SA (ITX), the owner of the Zara brand, fell 1.9 percent. FirstGroup Plc (FGP), Britain’s biggest train operator, sank 14 percent. Nobel Biocare AG rose 4.1 percent after Chairman Rolf Watter told Handelszeitung the dental-implant maker would reject a takeover bid if it was too low….”
Comments »The Yen Rallies Nearly 1% as Investors Seek Safety in Asia
Rates Stay in Czech As Inflation is Tame and Recession is Running
“The Czech central bank kept its main interest rate at a record low for a 15th meeting as risks of an extended economic recession overshadowed an inflation spike fueled by an increase in sales taxes.
Czech central bankers left the benchmark two-week repurchase rate at 0.75 percent, a quarter-point less than the European Central Bank’s main rate, which was in line with the forecasts of all 22 analysts in a Bloomberg survey. The bank, which has refrained from changing policy since May 2010, will hold a news conference at 2:30 p.m. in Prague.
The economy, exporting about 80 percent of its output, slid into a recession last year as government spending cuts outweighed demand abroad for Czech-made vehicles, car parts and electronics goods. Inflation (CZCPYOY) accelerated to the fastest pace in more than three years in February, driven by an increase in the value-added tax rate at the start of the year….”
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