Gold futures edged higher on Thursday, trading $912 an ounce, on speculation that central banks will mimic the U.S. by cut borrowing rates which boosted the appeal of the precious metal.
The European Central Bank kept its key interest rate steady on Thursday but the Bank of England reduced rates for the second straight month, citing inflation pressure in line with analyst expectations.
European shares slipped 1.5 percent by midday on Wednesday as the afterglow of a hefty U.S. rate cut faded rapidly, replaced by concerns over bank writedowns and earnings downgrades.
Inflation causes ECB to move interest rates if necessary
The European Central Bank is worried about inflation in the eurozone and ready 'to do whatever necessary' to avoid second-round effects, said ECB on Wednesday.
In a bid to ease the effects of the credit crunch and high borrowing costs, the Bank of England has lent £10 billion to financial institutions and banks. Different borrowers bid for the cash in an auction.Those who bid at the minimum rate of 5.36% received 75% of the amount they requested. The total amount of money bid was £850 million over the £10 billion promised by the Bank.The average i...
Top European central bankers expressed concern on Friday about the success of a concerted action plan to grease the wheels of seized-up money markets, as U.S. banking giant Citigroup faced fresh strife. One official said he was disappointed money market rates remained at 4.8 to 4.9 percent despite a planned liquidity injection by the world's major central banks.
The European Central Bank's policymakers will act in a firm and timely manner to ensure that knock-on effects from higher oil prices do not appear, the ECB said in the editorial of its December bulletin.
Several top central banks including the Federal Reserve and European Central bank announced the launch of a temporary auction facility to relieve pressures in short-term funding markets.
The euro rose against the yen and dollar on Thursday after the head of the European Central Bank, Jean Claude Trichet, reduced speculation of a rate cut, warning about inflationary pressure.
Financial market turbulence should have only a limited impact on euro-zone growth, European Central Bank policymakers said at weekend meetings of global financial officials in Washington.
The dollar rose Monday on investor speculation that the U.S. economy may continue to show signs of strength and escape recession.
European Union finance ministers and central bankers agreed on Saturday to step up co-operation among themselves to improve their handling of cross-border financial crises.
British banks have been borrowing unusually large amounts from the European Central Bank due to the Bank of England's reluctance to make extra funds available, a German newspaper reported on Friday.
The dollar fell to a one-month low on Thursday as rising mortgage delinquencies and ongoing credit concerns stoked fear of slower U.S. economic growth ahead of a keenly awaited employment report.
U.S. stocks and Treasury bond prices fell on Thursday after a stronger-than-expected reading of the U.S. services sector and a lower jobless claims number suggested the U.S. economy may not warrant a Federal Reserve interest-rate cut.
European Central Bank kept options open on a future rate move on Thursday, stressing his anti-inflation commitment but saying volatile markets meant the ECB needed more time to think.
China said on Monday none of its massive foreign exchange stockpile was invested in the teetering U.S. subprime mortgage sector, while a top EU official predicted the crisis would not choke off economic recovery.
European share indexes rose on Monday as remarks by executives of Barclays and Deutsche Bank eased fears of losses from the recent credit market turmoil, but utilities fell after news of a big French merger.
New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro zone money market auction.
Global financial turmoil prompted the Bank of Japan to hold rates on Thursday and warn the tremors would take time to settle, as stock markets climbed in spite of fresh strife stemming from the ravaged U.S. home loan market.
Policymakers and investors breathed a sigh of relief on Monday as Federal Reserve action brought calm to shaken financial markets, but experts said it was too soon to discount a global credit crisis.
Central banks in the world's leading economies pumped money for a third day into the financial system on Monday, but in smaller amounts as investor nerves steadied over the dangers of a credit squeeze.
