US stocks decline on higher European borrowing costs
US STOCKS fell on Friday after worries about Europe returned, erasing almost half of the market's gain from the previous day.Shortly after midday the Dow Jones industrial average was down 84 points at 12,902.
It had jumped 181 points the day before.
|Rupee gains 28 paise to 51.30/31 against dollar |
|THE Indian rupee on Friday rose by 28 paise to 51.30/31 against the American currency on fresh dollar selling by exporters and renewed capital inflows even as stock markets witnessed hectic selling.
At the Interbank Foreign Exchange (Forex) market, the local currency resumed higher at 51.36/37 a dollar, but later fell to a low of 51.52 on sluggish local stocks. However, it bounced back at the fag end to 51.29 on heavy dollar selling by exporters. Finally, it concluded at 51.30/31, up 0.54 per cent from previous close.
Meanwhile, the BSE benchmark Sensex plunged by 238 points on weak growth outlook by IT bellwether Infosys.
The rupee premium for the forward dollar ended further slightly lower on sustained stray receivings by exporters.
The benchmark six-month forward dollar premium payable in September ended a bit lower at 163-165 paise from 164-166 paise on Thursday and far-forward contracts maturing in March also finished weak at 297-299 paise from 301-303 paise.
The RBI fixed the reference rate for the US dollar at 51.4175 and for euro at 67.6685.
The rupee recovered against the pound sterling to end at 81.82/84 from overnight close of 82.30/32 and also rebounded against the euro to 67.54/56 from 67.86/88 previously.
It, too recouped against the Japanese yen to 63.35/37 per 100 yen from last close of 63.69/71.
|Qantas launches first commercial biofuel flight |
|AUSTRALIA'S Qantas on Friday launched the nation's first commercial flight using a mixture of refined cooking oil, saying it would not survive if it relied solely on traditional jet fuel.
The Airbus A330 left Sydney for Adelaide using a 50-50 blend derived from recycled cooking oil and regular jet fuel in what the airline hopes will be the first step towards a sustainable aviation fuel industry in Australia.
"We need to get ready for a future that is not based on traditional jet fuel or frankly we don't have a future," Qantas chief executive Alan Joyce said.
"And it's not just the price of oil that's the issue — it's also the price of carbon." "From July, Qantas will be the only airline in the world to face liabilities in three jurisdictions, so our sense of urgency is justified." Europe already imposes a controversial carbon tax on airlines, while New Zealand has a carbon tax that applies to flights within that country by Qantas' budget carrier Jetstar.
Australia's tax on carbon emissions comes into force on July 1|
Qantas said the biofuel, which has been certified for use in commercial aviation, has a 'life cycle' carbon footprint about 60 percent smaller than that of conventional jet fuel.
|China's Q1 growth slowest in nearly three years |
|BEIJING CHINAsaid on Friday its economy grew by 8.1 percent in the first three months of 2012, its slowest pace in nearly three years, but analysts forecast a pick-up in the second half of 2012.
The figure was well below the 8.9 percent growth recorded in the last quarter of 2011 and marked the fifth consecutive quarterly slowdown, piling further pressure on Beijing to loosen its monetary policy.
However, analysts predicted the world's second-largest economy would avoid a hard landing, with growth expected to rebound towards the end of the year as Europe's economic outlook brightens and existing loosening measures kick in.
"Green shoots have sprung up in many sectors, convincing us that the current slowdown looks more and more like a slow consolidation, rather than a precipitous downturn like we saw in 2008-09," said Xianfang Ren, economist with IHS Global Insight.
The first quarter "might turn out to be the weakest quarter for China in the current down cycle, as signs of stabilisation have already emerged on both domestic and external demand sides".
Further evidence of a slowdown in China's export-driven economy came with data showing output from its millions of factories and workshops rose at a much slower pace in the first three months of this year. Industrial output was up 11.6 percent in the first quarter, compared with growth of 15.7 percent a year earlier, the National Bureau of Statistics (NBS) said.