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News and Review of European Economic

Europe UK Veto Rights Question

Tuesday, December 13, 2011

Friction between the European and British officials increasingly tapered post-European high-level meeting last week. Britain's decision to veto a plan to amend the European Pact condemnation of the region's political actors.

Combined high-ranking European countries are now called for the British rights to the EU budget rules repealed. "If the UK does not appear solidarity, why 26 other countries are not showing something similar to the British?" said Joseph Daul, leader of the European People's Party. The statement that he expressed during the legislative debate in Strasbourg, France, to discuss the economic situation of the blue continent.

Daul reminded that the statement is not a 'declaration of resistance' against the British. "Solidarity move in both directions, not just one," said Daul. He saw that the taxpayers' money should be used for a good thing, not to appreciate the selfish and nationalistic attitudes.

A similar attitude shown by the leaders of the European Socialist Party, the Liberal Party and the Greens. Prime Minister David Cameron had requested the concession of financial rules as barter for amendment of Europe in Brussels Pact. Liberal Party leader, Guy Verhofstadt called Cameron's decision as a 'blunder' While Rebecca Harms of the attitude of the British Green Party cursed as 'evil ways'.

Amidst all the debate, both reformist and conservative parties of Europe, agreed that Britain could not scapegoats. Although the British described as the passenger who grabbed life jackets on the Titanic when the ship carrying European countries are sinking. EU President and the President of the European Commissioner agreed that 27 countries could not reach an agreement as required under the provisions. However, Herman van Rompuy and Jose Manuel Barroso did not see any fundamental difference between the 17 countries using the euro and 10 other European countries. British veto is a dynamic that does not infringe on constitutional law.

England was unfortunate attitude of many, given the non-euro nine other members were ready to consider participating in the Euro Pact. "It's not a deal 17 plus, but rather to deal minus 27," said Barroso. Barroso was unanimously wanted the matter of new European regulations, rather than a difference of opinion. There has been no response from state officials and European officials about the discourse of the British veto repeal of any regulation of the European budgetary policy.

News and Economic Review Europe (UK)

UK inflation slows in November

Tuesday, December 13, 2011

The annual inflation rate in the UK slowed in November, official data showed on Tuesday afternoon, helped by better harvests and a decrease in gasoline prices.

UK Office for National Statistics said the consumer price index rose 4.8% in the 12 months to November, compared with a rise of 5.0% in October. The index rose 0.2% monthly.

In the alternative measure, the retail price index, annual inflation rate slowed to 5.2% from 5.4% in October.

UK Office for National Statistics said food prices rose by a much slower pace between October and November than a year ago, helped by good harvests for vegetables. Prices for fuel and clothing are also increasing at a slower pace, although the price of alcohol rose by a record pace this year. Price increases by utility companies encourage household bills, he added.

Slowing inflation will convince policy makers at the Bank of England, which predicts inflation will slow sharply in 2012 as the influence of temporary factors than price decreases. However, the annual rate is still more than twice the BOE target at 2%.

News and Economic Review Europe (Germany)

German ZEW Economic Sentiment Improved in December

Tuesday, December 13, 2011

ZEW economic sentiment indicator for Germany rose by 1.4 points in December, marking the end of the nine-month downward trend. The indicator rose to the level of minus 53.8 in December from minus 55.2 in November, according to the Center for European Economic Research in Mannheim-based, or ZEW, on Tuesday afternoon.

"Economic Sentiment for Germany seems to have found its lowest point," said ZEW President Wolfgang Franz said in a statement. "Apparently, the financial market experts expect economic activity slowed, but not to plunge during the next six months."

Franz also says that the decision taken at the EU summit last week "may have improved expectations of the experts."

"In accordance with the consensus on important details, this decision is an important step towards an efficient institutional framework for currency union," said Franz.

Gold: Free Fall Due Sentiment

Monday, December 12, 2011

Gold prices tumbled again on Monday (12/12). Market participants are pessimistic about the effectiveness of the European agreement last Friday that investors away from commodities and buying dollars.

February gold futures fell $ 25.30, or 1.5% to as low as $ 1.692 per ounce in electronic trading session of the European time. Gold fell to below the psychological level of $ 1.700 in Asian trade. However, investors can hunt for loopholes to get current prices tend to oversold.

Price correction this time the gain denying that obtains from the regular trading session on Friday on the Nymex. Tracked the dollar index rose to 79.02 from the level recorded in North American trading session on Friday (78 622). Positive performance of the dollar price of gold weighed.

European stock markets also fell on Monday after Moody's Investors Service stated that the resolution of Europe last week did not have a major impact for efforts to solving the crisis. Thus, credit rating in many European countries still betting. Sentiment is bad for gold increasingly strong after an analyst doubted the prospects of demand from developing countries. Given China's inflation data last week showed a sharp decline and India cut its growth target countries for the financial year ended March 2012. Gold is currently monitored at the level of $ 1,679 per ounce (Reuters charts).

News and Economic Review Asia (Japan)

Japanese Stock Gains, Stocks Back Sustained Exporters

Monday, December 12, 2011

Japanese stocks on trading today (12/12) recorded an increase. Unfavorable global trade and rising sentiment against the economic recovery of Europe provided the impetus for exporters stocks. Positive sentiment also obtained from the strengthening of U.S. consumer sentiment report, released late last week.

The Nikkei index rose by 1.4% to 8653.82 basis points. While index futures have dropped 7 points to 8620 basis points with the support level of 8614 points and resistant level of 8674 points. The broader Topix index rose by 1.2% to 746.69 basis points.

The shares which increased the stock of which is Olympus which rose 7.8% to 1300 yen, Mitsui OSK shares rose 6.4% to 299 yen and Nippon Yusen shares rose 4.3% to 195 yen.

News and Review of European Economic

Moody's will review the European rating

Monday, December 12, 2011

Moody's credit ratings will reconsider all EU member states in the first quarter of 2012 due to the actions taken at least Europe to solve the debt crisis. Twenty-six of the 27 EU leaders agreed Tighten the euro-zone budget rules and will provide bilateral loans of up to € 200 billion to the IMF to help overcome the crisis.

"The meeting gave only slightly change the policy and does not increase the risk outlook in the euro zone," wrote Moody's weekly report. "Unless the credit market is stable then the credit ratings of all EU member states need to be revisited. Do not change the outlook for European meetings and we will announce the reviews ranked in the first quarter of 2012."

"European Meeting disagreement over the need to show more support for members who have weakened fiscal condition," said Moody's. "The longer the debt crisis lasts, the greater the risk of economic conditions that must be faced and it certainly will be a challenge for efforts to cut debt."

Meanwhile, the euro weakened in the London session. EUR / USD is now trading 1.3262, 1.3381 daily stay away from high-level

News and Economic Review Europe (UK)

Cameron Should Settle UK Coalition

Monday, December 12, 2011

Prime Minister David Cameron will get support from party conservatives but faced criticism of its ally the Liberal Democrats when given an explanation for the veto power that is now increasingly isolated Britain from its European Union partners. Cameron has decided not to take part in the constitutional changes to make sure the exercise of EU fiscal rules. Camero will give an explanation for this decision in front of the British parliament at 22:00 pm.

Deputy Prime Minister, Nick Clegg, disappointed with the results of the European meeting that will be bad for Britain. Clegg is the Liberal Democrat party leaders are pro-European. Liberal Democrats had previously pledged to support the coalition government until elections in 2015. Although angry with Europe, Clegg saw the coalition government threatened by economic disaster, especially if Britain plunged into recession.

Meanwhile, sterling weakened in the London session. GBP / USD has traded away from the level 1.5555 1.5658 daily high

News and Economic Review Europe (Italy)

Millions of Italian Workers Ready to Go Down to the Road

Monday, December 12, 2011

Millions of workers in Italy today will hold a massive demonstration. The union agreed to oppose cuts in government programs, which they value as an 'injustice'.

Large amounts of mass action is the aftermath of the deadlocked talks between Prime Minister Mario Monti and leaders of the three major unions, CGIL, CISL and UIL. Monti has committed to launch the program cuts worth 24 billion euros, as mandated by the Italian government technocrats. This trimming is part of the decree 'Save Italy "that proclaimed the government to save the country from the threat of bankruptcy.

Monti targeting to raise more than 10 billion euros. This includes a new property tax, VAT rise 2% in the first half of 2012, increase the retirement age, taxation of luxury goods (such as cruise ships) and efforts to prevent tax evasion.

The union government's decision to assess very inhumane. Workers and retirees are forced to bear the brunt of the previous government's negligence. All three organizations threaten further demonstrations if the government does not revise the clauses in the program's trimming. Efficiency of the budget package presented itself ready in front of parliament this week.

Brent was under $ 108 following a dubious EU Summit

Friday, December 9, 2011

Brent dropped today to 108 dollars per barrel among European policy makers concerns will not reach an agreement in the response to the crisis and will create market demand decreases.

Hopes for a solution of the debt crisis is lost after the European Union failed to assist 27 countries are experiencing difficulties and create a new policy by tightening budgets.

This occurred a day after the European Central Bank dashed hopes of cutting the ratio that has been previously expected, very lame when compared to economic data indicated an increase by the state's biggest oil consumer, the U.S. and China

Brent fell 39 cents to 107.72 dollars a barrel after falling along with the dollar before. The contract approved here at 1:42 the dollar fell to 108.11 dollars per barrel. U.S. oil fell 30 cents to 98.04 dollars after falling more than 2 dollars yesterday due to news from the European Central Bank.

For this week, Brent contract fell about 3 percent, to stop the rise last week.

Oil futures and other commodities fell, while the euro also came under pressure as the news spread outside Europe.

News and Economic Review Asia (Japan)

Nikkei down 1.5 percent, the market is wary of the eurozone debt crisis

Friday, December 9, 2011

Japan's Nikkei stock index declined in session Friday and tried to penetrate the main support level at the moving average 25 days after an agreement with European leaders for fiscal integration failed to improve investor confidence about the euro-zone debt crisis.

Trading volume surged in the first session of the Tokyo exchange rose 77 percent to 2.57 billion shares, from an average of six-day trade toward the end of December futures contracts and options in the main scrutiny. Osaka Securities Exchange said after the closing Nikkei futures ended at 8,478.46 level.

In Europe, the leaders endorsed a new fiscal pact for strict budgetary discipline in a meeting that lasted 10-hours in Brussels on Friday but failed to persuade all 27 member states to agree to change the agreement. European Central Bank, which lowered interest rates as expected, stop doing it to buy bonds.

Market players said investors were mostly focused on the ECB, and the failure to commit to buying bonds tear down the hopes and pushed global stocks weakened.

Nikkei down 1.5 percent to a level of 8,536.46, down 1.2 percent over one week after a record weekly gain in almost 6 percent in the last week. The broader Topix index fell 0.9 percent to a level of 738.12.

News and Economic Review Europe (Germany)

German Bundesbank Crop Growth Projections 2012

Friday, December 9, 2011

Germany's central bank on Friday cut its forecast for German growth next year, as he warned that if the pressure on the country's economy has been growing over the worsening debt crisis Eurozone.

German economic growth expected to slow to 0.6% in 2012, down from 1.8% growth expected in June. While the German growth this year expected to reach 3%, plus the Bundesbank.

"Uncertainty over future economic development is still very high for this time," according to a statement the central bank. "The burden is greater that comes from the region's debt crisis has presented the downside risk."

Slowdown may hit emerging markets may also be weighing the German economy. As for the medium term, the German Bundesbank that the growth rate can be increased provided that the crisis can be resolved quickly and reforms launched by running well.

News and Review of European Economic

European Markets Recover From Commencement Over EU summit

Friday, December 9, 2011

Shares in major European markets turned positive in the midst of choppy trading on Friday following the achievement of consensus among the majority of regional leaders attending the EU summit, to continue the integration and enforce strict budget rules.

German DAX and French CAC is able to turn strengthened with each collecting 0.4% and 0.7%. In the UK, the FTSE moved 0.2% higher in the first 2 hours of trading.

EU leaders reached an agreement concerning the application of strict budget rules for the euro zone, despite failing to obtain the support of several countries related to EU treaty change discourse. In a statement, some European officials say if the 17 countries using the euro currency plus 6 nggota other EU countries have expressed willingness to participate in the new inter-state agreement, which includes fiscal discipline. While England with Hungary, Sweden and the Czech Republic still seems reluctant to join in the new treaty.

"Progress is happening is minimal and may not really solve the fundamental problem," said Justin Urquhart Stewart, director at Seven Investment Management. "If the position you have posted a rise in the stock, it may be time to realize a profit."

News and Economic Review Europe (UK)

Prevent British EU Treaty

Friday, December 9, 2011

Prime Minister David Cameron will face criticism because of the isolation Britain after the express will not approve changes to the EU constitution. British Prime Minister also point out the UK will never adopt the euro as currency. Cameron does not support the proposal put forward by French President Nicolas Sarkozy and German Chancellor Angela Merkel to amend the constitution to make sure Europe is run fiscal discipline.

England even use its veto to prevent the occurrence of changes in Europe after failing to reach konstisusi support for European financial services regulation. Cameron requested that English be excluded from European financial regulation as a price for supporting the constitutional amendments. Cameron worried if the UK will have to pass off the financial transaction tax that would be ragged role of London as a global financial center.

Meanwhile, sterling weakened against the euro seen in the London session. EUR / GBP 0.8542 is now trading near 0.8544 daily high level

Gold fell on concern investors will be the European crisis

Thursday, December 08, 2011

Gold fell today on concern whether European leaders can handle a crisis or not on Friday. Hope for a better plan in crisis management thinning, especially Germany issued pessimistic comments add to tensions in European banks.

Disappointing results may occur and weaken the financial markets but also to make gold as a commodity is cheap and risky.

Gold prices fell 0.3 percent to 1739.09 per ounce after narrowly won in the previous session. While the U.S. gold corrected at the level of 1743.50 dollars.

Investors are waiting for the policy of the European Central Bank held a meeting today with the hope of the Bank Setral purchasing power will intensify assistance to countries in trouble. European Central Bank expected to cut the ratio and providing assistance to distressed banks there.

Purchasing power in Asia sluggish as most market participants are still awaiting decisions on Europe to get a clearer direction again.

With three weeks left this year, many stores are closing early, leaving the market with low volume and volatile.

Ownership SDPR Gold Trust, the biggest gold bourse in the world, fell 2.117 tonnes to 1295.811 tonnes on 7 December after stable and unchanged for the last three sessions.

Palladium rose to 686 dollars per ounce in the previous session, its highest level since last September. Prices rose to 674.50 dollars, up 0.2 percent from the previous close.

In other markets, Asian stocks fell due to the debt situation of Europe and uero who also fell ahead of a meeting of the European Central Bank expected to cut the ratio by 25 basis points.

Asia News and Economic Review (Hong Kong)

Slipped 0.7 percent, Hong Kong's stock down from an increase in 3 weeks

Thursday, December 8, 2011

Exchange of Hong Kong slipped 0.7 percent in the session Thursday, dragged down by large stocks in weak trading volumes ahead of key meeting to be held in European and Chinese economic data in the next two days.

European debt crisis more worrying for investors who expect a better year ahead of the front of the Chinese exchange traded weaker than historical value.

Hang Seng Index closed down 0.7 percent at the level of 19,107.8 points, after reaching the third increase in town the day before. China Enterprises Index down 0.86 percent at 10,395.37 level.

Shanghai Composite Index ended down 0:12 percent at 2329.82 levels, even though up from intraday decline in 30 months.

Shares of the worst in the Hang Seng today, Li & Fung Ltd. shares down 5 percent after the announcement by the shareholders of Temasek Holdings Pte Ltd Thursday.

Singapore's Temasek says investors will increase to $ 600 million worth of Singapore or $ 468 million from the sale of zero coupon bonds can be converted into shares of Li & Fung with a 40 percent premium. Temasek owns shares 3 percent of Li & Fung.

News and Review of European Economic

Predicted the ECB announces European banking rescue policy

Thursday, December 8, 2011

After lowering its benchmark interest rate by 25 basis points to 1%, the European Central Bank (ECB) predicted would announce further measures to help banks in the euro zone.

"Cutting interest rates will not help the government, but will turn the wheel of the European economy almost stopped," said Carsten Brzeski from ING.

Some banks are increasingly relying on emergency loans from ECB because of lack of confidence among banks which led to difficulties in obtaining bank liquidity assistance.

Stronger banks choose to save their funds at the central bank rather than helping other banks liquidity drought.

Last week, the ECB joined the Federal Reserve, the Bank of England (BoE) and the three major central bank to lower borrowing costs in the form of U.S. dollar by 50 bps. That is, the policy became an emergency room for banks to become prisoners.

Step six central banks are considered to be very shocking and sparking speculation that one or more major banks in Europe are at the point of destruction because of his inability to get U.S. dollars.

Meanwhile, banks in Greece facing redemption massive deposits because customers worried that the country's exit from the euro zone membership.

Governor of Central Bank of Greece, Georgios Provolopoulos, the magazine Der Spiegel complained about the withdrawal of banks made it difficult to turn the Greek economy was a dead faint.

ECB finally agreed to help the banking gods Affairs provided funding for a fresh face on a large-scale withdrawal. It is actually very risky because it means exposure of the ECB in an unhealthy banking increases.

The decision will backfire if the Greeks left for the ECB of the euro zone.

News and Economic Review Europe (Italy)

Fitch: Italian Steps Relieve Pressure Short-Term

Thursday, December 8, 2011

Plan the implementation of new austerity measures in Italy are thrown PM Mario Monti on this week to relieve pressure on short-term credit rating of 'A +' belonging to the country, according to Fitch Ratings statement on Thursday.

Nevertheless, Fitch said that if Italy's credit rating outlook remains negative. This reflects that the country still must do the structural reforms to spur economic growth, and to show that Italy is still able to raise their own funds to pay off debts that will mature next year.

Earlier this week Italian Prime, Mario Monti, has outlined a government plan that includes austerity measures worth about € 20 billion ($ 26.7 billion) and the provision of funds amounting to € 10 billion to boost growth. "Overall, the savings package presented Monti indicate if the Italian government is struggling to present a credible program of fiscal consolidation and better than the program that was launched last summer," said Fitch.

News and Economic Review Europe (UK)

BoE keep interest rates and purchase programs

Thursday, December 8, 2011

Bank of England, as had been expected, keep the key lending rate at a record low and not make changes to the program of quantitative easing on Thursday, after policy makers grappling with the economy back into recession threatening.

The nine-member Monetary Policy Committee's central banks keep interest rates at 0.5 percent of the bank, which has been at that level since March 2009.

Revitalization of an asset purchase program MPC Bank of England, the core strategy of creating money from quantitative easing, in October. That's when the central bank opened an additional 75 billion-pound purchase of securities, the majority of UK government bonds, or gold.

This step produces a number of programs of up to 275 billion pounds, with the purchase of a set to be completed in February. Many economists expect the central bank to pursue QE further in coming months in the current slowdown continues.

In a brief statement, the central bank confirms the purchase of assets will spend two months to complete and said the scale of the program "will continue to be assessed."

Attention is now directed to the European Central Bank, which is expected to announce a major decline in lending rates by a quarter point to 1 percent. However, the main event, will be at a press conference ECB President Mario Draghi, who is expected to focus on new measures to assist the European banking sector continues to struggle and various indications of the central bank is ready to increase its purchases of government bonds.

Gold Soar After Two Days Consolidated

Wednesday, December 7, 2011

Gold futures continued consolidation in a relatively narrow trading range, after two days of soaring gold prices fell again today due to anticipation of investors ahead of a European central bank meeting tomorrow.

The weakening of the previous Gold rating downgrade was triggered by a threat of some core European countries which have triple-A credit rating, which resulted in tensions and trigger the market actors weakening commodity prices such as gold.

The prospect of ECB interest rate cuts and strong purchasing gold reserves by central banks to date makes it difficult to experience the Golden major correction.

Technically monthly stochastic Gold gives a short term buy signal on the trigger by the success of to stay above the psychological level of $ 1,600 for three months so that the potential for short-term rally for this December.

News and Economic Review Asia (Japan)

Expectations at European level Nikkei deliver over 4 weeks

Wednesday, December 7, 2011

The Nikkei reached an increase in the past four weeks in session Wednesday as investors re-excited to the view that European policy makers will come up with convincing steps this week to help resolve the debt crisis in the region.

Cyclical stocks such as shipping and steel producers also sustains a large increase after the new credit easing by the major developing countries like China and Brazil ease fears about a sharp global economic slowdown.

The benchmark Nikkei rose 1.7 percent to as low as 8,722.17, its highest close in four weeks and ended on pergerakn average of 75 days for the first time since late October. The broader Topix index rose 1.6 percent to 749.63.

Many market participants expect the European Central Bank cut interest rates tomorrow and Thursday with European leaders to continue toward tighter integration of fiscal policy in the European region on Friday their summit this week.

Sharp decline in government bond yields this week, which occurred despite a warning from Standard and Poor's downgraded credit ratings on a large scale in the single currency bloc, also fueled optimism over Europe.

Shipping company Mitsui OSK Lines jumped 11.2 percent to 288 yen after it announced it would form a supertanker services along with Denmark and Singapore tanker to better compete in the delivery market.

News and Review of European Economic

U.S. dollar demand skyrocketed after six central banks cut interest rates

Wednesday, December 7, 2011

Decision of the world's six central banks including the Federal Reserve and the Bank of Japan (BoJ) cut the cost of borrowing U.S. dollars by 50 basis points (bps) coming to fruition.

European Central Bank (ECB) notes, in the form of dollar loans by European banks with a tenor of three months jumped almost half of the loans ever awarded.

Frankfurt-based bank said the loan will be poured in 34 banks in the euro area worth U.S. $ 50.7 billion. The loan will be liquid tomorrow (8 / 12) with a fixed interest rate 0.59%. This figure is much higher than position 9 November with 1.09% interest is U.S. $ 395 million.

The ECB also boosted spending on the five banks with a value of U.S. $ 1.6 billion in operating a weekly routine. The figure rose from U.S. $ 352 million distributed last week. Unfortunately the ECB did not disclose the name of the proposed bank loan.

Yesterday, the demand for loans in U.S. dollars are tenured seven days from the Bank of Japan surged to U.S. $ 25 million from U.S. $ 1 million. This data is expected to be a breath of fresh air for Europe's economic growth. Moreover, the European banking liquidity drought.

News and Economic Review Europe (Germany)

Germans reject joint bailout, European stocks fell

Wednesday, December 7, 2011

European markets slumped after Germany refused to rescue the European region funds merger at this time and permanent and expressed pessimism over the results of the EU summit this week.

Metro AG, Germany's biggest retailer, fell. Airline stocks fell after the International Air Transport Association estimates that 49 percent decline in industry profits in 2012. Randgold Resources Ltd. are leading gold mining company stocks. Verbund AG, Austria's largest utility, rose 3.6 percent after Morgan Stanley raised its recommendation on the stock.

Stoxx Europe 600 Index fell 0.9 percent to a level of 239.65 was observed at 02:40 noon in London, after earlier rising as much as 1.2 percent.

Index last week recorded the biggest rise since November 2008 after the central bank lowered interest rates on dollar funding and China to reduce the required reserve ratio for banks. The Stoxx 600 slipped 0.3 percent yesterday after Standard & Poor's put the 15-nation euro member ratings for possible downgrade.

Germany said it opposes any change in the agreed order in which the bailout funds will be used. Germany survive the current agreement that a permanent European Stability Mechanism will take over from the European Financial Stability Facility at the middle of next year, a German government official who requested anonymity told reporters in Berlin today for closed-door negotiations.

News and Economic Review Europe (France)

France Promises Solid On the eve of the European Agreement

Wednesday, December 7, 2011

Quite a contrast with German officials earlier comments, that the European Pact change agreement will be difficult to achieve, the French Minister said that the leaders of France and Germany will not leave before the European summit achieved a strong agreement to prevent debt crises more protracted.

U.S. Treasury Secretary, Timothy Geithner who was visiting France to convey the message from Washington that the damage to the debt crisis will spread to the U.S. economy, and fully supports the French-German plan to give a penalty in the European member states that exceed the deficit target and provide a permanent rescue package.

Board of Governors of the ECB will hold its monetary policy meeting next Thursday the day before the European summit, which is expected to cut interest rates to 1% from the previous 1.25%. President, ECB Mario Draghi who had met with Geithner yesterday in Frankfurt has given a signal that the euro-zone fiscal discipline will become the foundation for the ECB to act more aggressively.

Separately, Director of S & P reiterated that if the ammunition for the eurozone bailout does not add up to at least 900 billion euros then the agency can quickly cut the credit rating of some European countries.

Reuters poll a while, there are 11 of the 13 economists surveyed expect that France would lose the AAA credit rating within three months.

Gold Still Depressed Over Europe Progress Reduce Demand

Tuesday, December 6, 2011

Gold futures weakened on Monday as optimism toward resolution of the European sovereign debt crisis spurred the strengthening of global stock markets, thereby reducing the demand for investment in precious metals.

Some ideas to improve the situation in Europe is still shrinking investment potential of gold as a safe haven, but there are still some factors that reduce optimism, which is likely to downgrade agency Standard & Poor's in 6 European countries which have triple-A ratings, including Germany.

Technically, gold intraday bias remains neutral because we get a signal on the MACD indicator and stochastic conflict. MACD crosses up has indicated an intermediate trend has turned upward, but the slow stochastic indicates short-term gold still has the potential to decline before rebounding, at least after short-term area in 1705.

On the upside, resistance appears in the area nearest 1725, through the above areas should be added to pressure test the area of ​​strong resistance bullish 1740.

News and Economic Review Asia (Hong Kong)

Hang Seng Index fell sharply triggered losses of banking and property shares

Tuesday, December 6, 2011

Hong Kong shares fell early Tuesday trading session, with weakness in financial and property stocks dragged the Hang Seng index fell 0.8% to 19,032.39. Hang Seng China Enterprises Index lost 0.9% while the Shanghai Composite fell 0.1%.

After Standard & Poor's threatened to cut the rating 15 countries in the euro zone, financial stocks fell with Bank of Communications Co.. loss 1.7%, Agricultural Bank of China Ltd. fell 1.4% and Ping An Insurance Group Co. down 2.2%.

Shares of HSBC Holdings PLC fell 0.7% after the company received the sanction of the British regulators to issue the sale of some securities to small investors.

Company real-estate developer China Vanke Co.. reported a sales decline of 36% during the month of November. Currently shares are still traded on the Shenzhen Composite. This news also hit property companies in Hong Kong, with Agile Property Holdings Ltd fell 1% and China Overseas Land & Investment Ltd.. fell 2.3%.

Esprit Holdings Ltd. shares. dropped 7% after chief financial resigned for personal reasons while the company is in the process of restructuring.