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Sales of foreign currency in China increased

China CurrencyIn June, the Chinese central bank and financial institutions in the Celestial Empire sold foreign currency worth 88.28 billion CNY (14.2 billion USD). For comparison in May they bought currency net 38.657 billion, according to Dow Jones calculations based on data from the Central Bank of China.
June is the first month of net sales after ten months of net purchases – a signal that perhaps started outflows from Asian countries. As of June purchases of foreign currency made by the banking system amounted to 29.45 trillion CNY. The amount is slightly lower purchases of 29.54 trillion CNY made in May, revealed data of the Central Bank of China. The data include purchases and sales of commercial banks and other financial institutions, but mainly concern transactions of the central bank.
The analysts receive data as an indicator for the presence of inflow or outflow of capital from abroad, as most of the foreign currency that comes into China, is sold to the central bank.
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Asian markets closed with mixed results

Asian MarketsOn Wednesday, the leading stock index in Asia closed in different directions. Investors opted to collect profits despite positive boost to Wall Street. The Japanese Nikkei 225 index erased initial gains and closed with a decline of 0.10% to 15,328.56 points. The Chinese Shanghai Composite rose with 0.14% to 2,078.49 points and was one of the peak for a second day. The South Korean KOSPI also erased initial gains and closed with a slight decrease of 0.03% to 2,028.32 points. The Hong Kong’s Hang Seng rose 0.80% to 23,971.87 points – the highest figure since December 2013. The Australian shares and the local AUD rose after the inflation data. The leading index S&P/ASX 200 rose with 0.60% to 5,576.75 points. The main stock measure in Indonesia JCI rose 0.48% to 5,107.68 points and the rupee appreciated by 1% against the USD. The market participants welcomed the victory of Djoko Uidodo presidential elections in the country with 53% of votes.
In Japan, the shares of Nidec fell 0.1% before the publication of the financial results of the company. After the end of the trading session the company reported a growth of 25.5% in operating profit for the first quarter.
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Worst days of the gold are at their end

goldAmid loss of 2.1%, which achieved gold last week and news that hedge funds may not achieve their annual targets, analysts Bank of America Merrill Lynch believe that the worst days of the precious metal are already history. In a note to clients strategist in charge of raw materials in the bank Michael Widmaier tracks how the gold price has stabilized since the beginning of the year. According to him, it happened thanks to sustained demand for physical gold from developing countries – especially China and India, which in turn offset investor sales. Widmaier believes that in the future this balance will be broken in favor of gold.
“We believe that demand for physical gold from emerging markets will gain momentum in the medium term, as countries become more affluent. Therefore we assume that the worst of the gold market may be passed”, said the analyst.
Of course, he warns not to expect smooth sailing from here onwards. At this point investors in developed markets remain the main buyers. Gold should buy and sell in the presence of macroeconomic topics. In 2013 rising nominal interest rates and falling inflation expectations led many managers to make corrections in their portfolios to gold.
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Saudi Arabia opens its capital market to foreigners

Saudi Arabia capital marketSaudi Arabia opens stock market to foreign investors, giving foreigners more access to the biggest Arab bourse. The move reflects the efforts of the oil-rich kingdom to diversify its economy. The country’s government has allowed foreign financial institutions to trade in securities of companies in the index Tadawul All Share Index, it is given the power of the local capital market regulator CMA to determine when to do so. The market value of 531 billion USD currently have access only local investors and citizens of the six countries of the Cooperation Council in the Persian Gulf.
Saudi Arabia removes barriers to one of the most limited major stock exchanges in the world against the government plans to invest 130 billion USD in support of industries other than oil. The 90-year-old King Abdullah sustained economic growth by an average of 6.4% over the past four years, although neighbors in the Middle East – from Egypt to Iraq and Dubai – were shaken by political and financial turmoil.
Over a year ago by the regulator CMA suggested rules that must meet international investors, including requirements for assets under management amounting to at least 5 billion USD and at least five activities. The rules are designed to limit speculative flows. At least three banks, including HSBC Holdings Plc and Deutsche Bank AG, were tested transactions say three sources anonymity.
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Manufacturers prices in Germany continue to decline

Manufacture Price GermanyThe manufacturers prices in Germany continue to decline. In June they fell for a 11th consecutive month on an annual basis, although the rate of decline was slower than that reported a month ago. On a monthly basis, the index remains unchanged, reveals the latest data of the Federal Statistical Office Destatis. In June, the index of producer prices in Germany fell 0.7% yoy in May after the reported fall of 0.8%. The market forecasts were that the index will decline by 0.7% from June 2013
On a monthly basis, the index of producer prices remained unchanged. In May, the index was 0.2% lower. The analysts also expect a change. The index measures the average change in prices of goods and services sold by producers in the market during a period. Meanwhile in June the inflation in Germany rose 0.3% MoM and by 1% yoy. Furthermore, in July German investors confidence fell for the seventh consecutive month amid slower growth and geopolitical risks that undermine prospects for the largest economy in Europe.
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Optimism returned on Asian markets

Asian marketsThe leading indexes of Asian markets ended trading on Tuesday with increases after geopolitical tensions in Israel and Ukraine fell. After Monday exchanges in Japan were closed due to the celebration of the national holiday, the leading Nikkei 225 index today rose 0.84% to 15,343.28 points. In China, the Shanghai Composite registered a growth of 1.02% to 2,075.48 points marked its highest value since June 16th. The Hong Kong’s Hang Seng added 1.68% to its value to 23,780.35 points and reported nearly 7-month high. Australia’s S&P/ASX 200 rose 0.06% minimum to 5,543.29 points, but stuck a new 6-year high. The South Korean KOSPI finished with a growth of 0.52% to 2,028.93 points and ended at 8-month high. The Indonesian stocks fell 1.42 percent. JCI leading index fell 054.65 points to 5 in the wake of the announcement of presidential election results. The main benchmark in India – SENSEX, rose 0.89 percent to 25,945 points, marking the sixth straight day of increases.
Progress on the investigation of the causes of the accident airplane Malaysian Airlines has helped to stabilize the market mood. The leaders of the pro-Russian soldiers delivered the two black boxes of Malaysian experts in Donetsk, who confirmed that the devices are in good condition.
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2.5 million Greeks are indebted

Greece debtThe Greeks are desperate, as over 2.5 million people have outstanding debts totaling at 67.25 billion EUR. The constant increases in taxes, drastic cuts in wages and pensions, unemployment and closure of companies over the past four years have brought millions of households and businesses to economic deadlock, the inability not only to pay their obligations on time, but also to find ways to repay their debts monthly installments, said the publication. Since the beginning of 2010, the outstanding debt increased by 33.75 billion EUR. Noted that their growth in the midst of crisis “stifling” the real economy and undermines serious efforts for growth.
Many people even live in fear that they may be seized properties. A day in the banks acted in four thousand writ of impounded property. By the end of the year must be paid debts amounting to 11 billion euros. Settlement of the problem of overdue debt is among the conditions of international lenders for continued funding of Greece.
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Brent oil reported its strongest weekly decline in last 6 months

Crude oil BrentThe Brent crude oil fell the strongest weekly rate of early January amid concerns about declining block in the Middle East. The price of Brent with August delivery fell to a daily low of 106.27 USD per barrel on Friday, which is the lowest since April 8th, before settling at 106.66 USD with a daily decline of 1.85%.
The raw materials fell 3.59 percent for the week, or 3.98 USD per barrel, the biggest weekly decline since early January. Meanwhile the WTI light sweet crude for August delivery fell to a daily low of 100.44 USD per barrel on Friday, which is the lowest since May 13th, before closing at 100.83 USD per barrel. For the week trading at the New York raw materials fell with 2.83%, achieving a fourth consecutive weekly loss. Thus the spread between Brent and WTI reached 5.83 USD per barrel compared to 6.87 USD in the previous week.
The investors continued to monitor the situation in the Middle East against the possibility of major supply disruptions stemming from the violence in Libya and Iraq.
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Fishing can carry 50 billion USD per year to the world economy

Fishing economyThe world Ocean can carry a further 50 billion USD annually to the global economy if fish stocks are managed sustainably, according to a British study. The fishing brings more than 270 billion USD of the world’s gross domestic product and provides thousands of jobs in the world. Additionally in global GDP flowing another 160 billion USDof industries related to fisheries – from the processing of fish to the construction of ships. Environmentalists, however, indicate that fish stocks are not operated properly and it will cost billions to the industry. The report states for example schools of cod off the coast of Canada. They were mercilessly exploited and this has led to the disappearance of the fish. Therefore, the fund of the Prince of Wales indicate that the sustainable development of fisheries will ensure larger stocks, which in turn will lead to income for fishermen longer.
The danger of reducing stocks last month warned the World Commission on the Oceans.
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CO2 emissions price will increase in the end of 2014

CO2 EmissionsThe CO2 emissions traded under the European scheme ETS, going up to the end of the year, experts predict, quoted by Bloomberg. According to UBS price will rise by 71% by the end of 2014 and Societe Generale analysts expect prices to rise by 11%. The price of emissions reached its lowest level in 2013 of 2.46 EUR per tonne. Since then, however, European authorities have taken a number of restrictive measures in respect of the allocation of allowances free of emissions and so the price went up. According to average estimates in December 2014 the CO2 emissions will reach a price of 7.50 EUR per tonne. During today’s trading emissions in London in December traded at a price of 5.75 EUR per tonne, an increase of 0.9% compared to yesterday.
The European trading scheme carbon dioxide emissions allocating free allowances to nearly 13 thousand companies in the community. If these quantities are not sufficient to them, they have to buy them. The aim is to stimulate investment in systems that reduce emissions that harm the environment. Because of the crisis, however, emissions trading scheme stalled and does not fulfill its purpose because the price is no longer an incentive to reduce pollution.
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