Economic News

LONDON (AFX) - The dozen eurozone countries are reaping the rewards of past economic reforms but should not slow the pace of economic reform, EU Monetary Affairs Commissioner Joaquin Almunia said in an interview published in The Financial Times. "We are starting a recovery and we have a list of structural reforms that are paying off," he told the newspaper. Almunia added that member st ...

SHANGHAI (XFN-ASIA) - China's gross domestic product is expected to rise by 10.5 pct in 2006 with the consumer price index seen up by 1.5 pct, the research bureau of the People's Bank of China said in a report published on the official China Securities Journal. The bureau forecasts GDP will expand by 9.5 pct in the first half of 2007 with inflation at around 1.8 pct with China still facing price  ...

SYDNEY (XFN-ASIA) - The US dollar was trading mixed but in a narrow range ahead on tonight's release of a key inflation report, dealers said. Nevertheless, they said support for the dollar appears to be broad-based as the market cuts back expectations of the Federal Reserve reducing interest rates by May next year. Dealers said despite a 0.03 pct downward revision in the second quarter gross dom ...

LONDON (AFX) - The UK looks set to benefit from its open immigration policy, with economic growth likely to beat the government's projections, a leading think-tank said. The ITEM Club, an independent economic forecasting group sponsored by Ernst & Young LLP, believes the UK economy is on track to achieve GDP growth of 3 pct over the next few years. Current Treasury forecasts assume UK econom ...

U.S. stocks on Thursday racked up their fourth straight session of gains by the major market gauges, though the Dow Jones Industrial Average stopped a bit short of posting a fresh closing high. The Dow (DJI) rose 29.21 points to end at 11,718.45. Earlier the blue-chip index briefly touched a session high of 11,728.46, surpassing its record-high close of 11,722.98 from Jan. 14, 2000. The Dow' ...

NEW YORK (AFX) - Federal Reserve Bank of Kansas City President Thomas Hoenig said he expects inflation trends to cool over time, and added that he believes growth will cool through the rest of the year. "The outlook for the U.S. economy is for some slowing as we move through the fourth quarter" amid "adjustments" in a housing sector that's clearly been cooling off, Hoenig told ...

PHILADELPHIA (AFX) - While headline inflation is likely to be low in September due to declines in oil prices, "it would be dangerous" to extrapolate a trend, Federal Reserve Bank of Philadelphia President Charles Plosser said Thursday. Speaking to journalists at an educational seminar, Plosser said "almost anyone" can predict a low headline consumer price index number because  ...

WASHINGTON (AFX) - Rates on 30-year mortgages dipped this week to the lowest level in more than six months. Mortgage giant Freddie Mac said Thursday that 30-year, fixed-rate mortgages fell to 6.31 percent this week, down from 6.40 percent last week. The latest drop puts the 30-year mortgage at the lowest level since it stood at 6.24 percent in early March. After hitting a four-year high of 6.80 ...

NEW YORK (AFX) - U.S. Treasury bond prices fell by midday Thursday after data showing slower economic growth failed to inspire a rally in the market. The price of the Treasury's 10-year note was down 5/32 point, or $1.563 per $1,000 in face value, around midday Thursday, while its yield rose to 4.62 percent from 4.60 percent late Wednesday. Prices and yields move in opposite directions. The 30-y ...

LONDON (AFX) - European government bonds were lower, tracking falls in US Treasuries as the DJIA index of major US equities topped its record-high close, prompting gains in equity markets across Europe. Lifted by growing optimism about stable US interest rates and a soft landing for the economy, the Dow Jones industrial average topped the previous high close of 11,722.98 set way back on January 1 ...