06292016Wed
Last update: Wed, 29 Jun 2016 12pm

Global Business & Economy

World - Global Business & Economy

Gold investors wrestle with Brexit vote in wild options dealings NEW YORK: Gold investors piled on near-term bullish and bearish options bets on Wednesday, racing to protect against whipsawing prices as Britons head to the polls to decide on the future of their European Union membership on Thursday, data showed. Implied volatility, a measure of options activity, in Comex July gold calls and puts with strike prices that are as much as $50 higher or lower than current prices soared to record highs on Wednesday.A vote for Brexit is expected to spur a rush to safe haven assets like bullion.The frenzied dealmaking and diverging strike prices suggested dueling forces as investors grew nervous about the potential impact of the vote on the market - prices could fall or rise by as much as 5 percent.It was most evident in bullish bets. COMEX July gold calls that give the holder the option to buy at $1,300 per ounce and $1,325 were ...

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French business activity slows as strikes add to demand woes: PMI PARIS: French business activity unexpectedly slowed in June for the first time in four months as waves of strikes added to the trouble of companies already struggling with weak demand, a survey showed on Thursday. Data compiler Markit said a preliminary reading of its monthly purchasing managers index fell to 49.4 from 50.9 in May, well below economists' average forecast for a reading of 51.0.That brought the index below the 50-point threshold separating an expansion ...

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Russian Central bank cuts inflation forecast for end-2016 to 5-6pc MOSCOW: Russia's Central Bank said on Thursday it had decreased its inflation forecast for the end of 2016 to between 5 and 6 percent. "Considering positive pricing dynamics, the Bank of Russia decreased its inflation forecast to 5-6 percent," the regulator said in a statement.Copyright Reuters, 2016 ...

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China's debt defaults will not post systemic risk BEIJING: China's debt defaults will not pose a systemic risk as long as economic growth remains within a reasonable range, according to a government document on Thursday. The country's overall debt risk is generally controllable, and corporate leverage ratios even have room to rise if economic growth is not stable, said the document, distributed prior to a news briefing.Representatives of the central bank, finance ministry and the main economic planning agency are speaking at the ...

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ECB to readmit Greek banks to regular refinancing operations from June 29 BERLIN: The European Central Bank on Wednesday offered cash-strapped Greek banks a helping hand by announcing it would readmit them to its regular refinancing operations from which they have been barred for more than a year.The ECB's governing council voted to reinstate a special waiver mechanism from June 29, allowing Greek sovereign debt to be used by the country's banks as collateral for central bank funding, even though Athens' debt carries a "junk" rating.Copyright AFP ...

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German power grid bottlenecks hamper imports from Nordics FRANKFURT/BRUSSELS: German consumers are losing out as delays in installing cross-country wind power lines are curbing Germany's ability to import cheaper electricity from Nordic countries, Danish producers say. Germany's biggest grid operator TenneT has delayed major power lines, to bring wind power from the north to the industrialised south - where nuclear plants are being shut down - by three years to 2025. More time is needed for legislation to put lines underground to quell ...

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Low mortgage rates boost US home sales to nine-year high WASHINGTON: US home resales rose in May to a more than nine-year high amid low mortgage rates, pointing to sustained housing market strength that should keep the economy on solid ground. The fairly strong existing home sales report on Wednesday added to retail sales and international trade data in painting an upbeat picture of the economy in the second quarter. A sharp slowdown in job growth in May had cast doubts on whether growth was ...