Wednesday, June 1, 2011

Global Market Weekly Review, 23 - 28 May 2011

The European Union is selling EUR4.75 billion (US$6.7 billion) of 10-year bonds to help fund the bailouts of Ireland and Portugal. The EU is offering the bonds through its European Financial Stabilisation Mechanism, or EFSM, according to three people with knowledge of the transaction, who declined to be identified before it’s completed. The deal is the third from the fund and follows Portugal’s request for rescue loans on 7 April.

The U.S. and Japan must set out plans to reduce their budget deficits as the global economy expands, the Organization for Economic Cooperation and Development said. The budgetary efforts needed to “merely stabilize debt are substantial for many countries,” OECD Chief Economist Pier Carlo Padoan said. “The United States and Japan, for which such requirements are the largest, have yet to produce credible medium term plans” and other countries need to specify how they’ll achieve their goals.

Japan's economic forecast for the month of May remains pessimistic, according to the Bank of Japan. The 11 March earthquake has shaken family as well as business confidence in the country. That's led to a significant reduction in production, and as well as in private sector demand.

European industrial orders declined more than economists forecast in March, led by a drop in demand for durable consumer goods, such as appliances and furniture. Orders in the euro area slipped 1.8% month on month in March (+0.5% in Feb), the European Union’s statistics office said. Economists had forecast a drop of 1.1%. On a year on year basis, orders jumped 14.1%.

Source: ING Funds Berhad

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...