The EU finance ministers are expected to approve today a second bailout for Greece.
London, 20. February 2012
Monday, 14:45pm GMT- The IMF chopped its 2012 forecast for global growth to 3.3 percent from 4 percent just three months ago, saying the outlook had deteriorated in most regions. It projected world growth would strengthen to 3.9 percent in 2013. For the first time since the debt turmoil erupted two years ago, the IMF said the 17-nation euro zone would likely slip into a mild recession in 2012, with output contracting by about 0.5 percent.
- Crude-oil futures edged higher in Asian trading Tuesday, tracking gains in some regional shares in thin volumes due to Lunar New Year holidays in the region.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $99.82 a barrel at 0747 GMT, up $0.24 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.09 to $110.67 a barrel. The European Union's decision Monday to ban Iranian crude imports for new contracts, allowing existing contracts to be fulfilled up to July 1, pushed prices higher overnight, but the impact appears to be short-lived.
- Gold Prices slipped back to where they began the week during Tuesday morning's London trading, falling 1% from yesterday's 6-week high to $1665 per ounce.Silver Prices fell to $31.91 per ounce – a 1% drop on Friday's close – as stocks and commodities also fell following news that Greek debt agreement remains elusive after yesterday's Brussels finance ministers meeting.
- Britain could send military back-up to the Strait of Hormuz to block any Iranian attempt to close the waterway which is the conduit for a fifth of the world's crude oil.
Defence Secretary Philip Hammond said the UK has a "contingent capability" to reinforce the military presence it already has in the Persian Gulf "at any time it be considered necessary to do so".
- Copper may gain in London after India’s central bank joined BRIC nations in aiding growth by unexpectedly cutting the cash reserve ratio and signaling future interest-rate cuts, boosting demand outlook for the metal.
- European stock markets have lost ground as eurozone finance ministers continue to put pressure on Greece's private creditors to accept a lower interest rate on their loans to Athens. UK, French and German share indexes had fallen 1% by mid-afternoon trading. Late on Monday, ministers said creditors must accept a lower rate than the 4% they had offered and called on both parties to reach a deal this week.
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