Consumer expectations deteriorated for a third consecutive time, and consumer sentiment in the U.S. slipped. The preliminary July report based on Reuters and University of Michigan's research stated consumes sentiment index is at 81.3, a reading below expectations. Consumer confidence declined due to negative GDP growth in the first quarter and shallow employment gains.
June provided a 2.4% increase, following a 2.3% rise in May. Prices surged in all main components over the whole year. Respectively, shelter costs jumped 2.9%, electricity prices added 4.2%, food prices +2.9%, transportation index +2.2% and gasoline advanced 5.4%, clothing and footwear +1.6%, whereas the index for alcohol and tobacco advanced 4.1% during 12 months to June.
Sales grew by 2.2% to $52.6 billion in May, which is a second increase in a row. The gains were led by the motor vehicle subsector that expanded 9.3% to $9.3 billion. At the same time, the sales in tobacco, beverage and food subsector went up by 1.9% to $10.3 billion, making it the 8th positive score within the last 12
Trading patterns point at a possibility of the Pound strengthening against the 18-nation currency and predict around a 2% increase to 77.55 pence per Euro. The Sterling has risen 5% against the common currency this year so far and could potentially show strongest annual growth since 2009. Economists project more than 1% appreciation against the Euro until the end of the fiscal year.
China's Prime Minister Li Keqiang argued today the economic growth slightly beneath or above 7.5% will be satisfactory, whilst it increases the employment and drives up the salary levels. Accordingly to the official, China's economy is expected to rise at least 7.5% this year, despite an unconvincing start of the fiscal year.
U.S. debt obligations fell for the first time in the last three days, as safe investments assets lost demand after 10-year yields went down to a new low in seven weeks. The 2.5% note due in May 2024 dropped $3.75 per $1000. The yield went down to 2.44% yesterday, the lowest since since May 29. The five year yield also went up 4 basis
BoC Governor Stephen Poloz stated today the central bank is up for negotiating the interest rate that would allow the economy to function at the full output. The interest rate is being kept unchanged since September 2010 at 1 percent. The Bank of Canada is investigating the neutral interest rate and will raise the topic in the next economic report due in October.
West Texas Intermediate rose for the first time this week in a month's time after the Malaysian passenger aircraft incident in Ukraine. A general strategist at CMC Markets expects investors could sell Western Texas Intermediate contracts if prices go up to $105.20 per barrel. WTI futures went up 0.7% after a 2% increase yesterday, the largest since June 12.
The Yen touched its strongest level since February against the Euro, as investors searched for haven assets after the Malaysian Airlines incident. Japanese currency advanced for a second week against the Euro, as shares went down in Asia. The Yen fell 0.1% from yesterday's 136.71, but it has gained 0.7% this week overall.
China's home prices dropped in a large amount of cities, as developers decreased prices in order to boost sales. Prices decreased in 55 of 70 cities during the previous month, the most since January in 2011. In Shanghai and the southern city of Guangzhou the prices went down 0.6%, while declines of 0.4% and 1.7% took place in Shenzhen and Hangzhou
Despite a successful return to debt markets earlier this year, Greece may receive a third bailout loan from EU/IMF as soon as the next year. Such a view is supported to 60% of analysts. IMF forecasts the Greek budget to have a 12.6 billion euro gap next year, while such amount of money cannot be raised with a small yield,
Volvo AB, the biggest car manufacturer in Sweden, released its quarterly report for the work in the April-June quarter of this year. The report showed a 0.2% decline in sales, while profit of $521 million missed analysts' forecasts. The result was influenced by sales' drop in China and Brazil. Today, Volvo AB equities are losing as much as 4.1% to
Microsoft Corp. has finally announced a long-awaited job cuts program, which will include the elimination of 18,000 positions by the middle of the next year. As expected, the vast majority of lay-offs will come from the Nokia unit, which has been recently bought by American company. Yesterday, Microsoft Corp. shares jumped 1% to $44.53 per share during the trading session
Stock markets in Europe show a negative tendency for a second consecutive day, already being able to erase the weekly rise. Conflict between Russia and Ukraine continues to escalate, especially after yesterday's shot down of the Malaysia Airlines plane near the border between two countries. Today in the morning, the Europe Stoxx 600 Index is losing 0.6% to 337.6 points.
Japan's consumer price inflation is estimated to slacken slightly in June after the rise the inbound shipments costs from the weak Yen vanishes. The imports are unlikely to climb rapidly as a vast array of the Japanese companies outsourced much of their production. The inflation is surmised to keep on decreasing to about 1 percent, but will rise again in line
The Sterling dropped from its highest level in approximately two years against the Euro as Scotland's independence referendum draws near. The U.K. currency has risen the most last year amid the 10-developed country currencies. Experts believe the risk and the potential vagueness around the vote can increase the Pound volatility in the future.
After the revealed sanctions against Russia, the Rouble fell to a 34.39 low against the Dollar; however, the currency gained 0.5% to 34.83 later. A 0.6% decline was noticed in comparison with the Euro, trading at 47.15. Meanwhile, Sberbank Russia stock price slid down 2.8%, Gazprom OAO lost 2% and VTB Bank retreated 3%.
Japan's government raised the economy's growth projections as the negative effects of the sales tax on consumer spending are coming to naught. With personal consumption accounting for 60% of the economy the tight labor market and improving consumer sentiment were seen as good news. Further growth in the economy is expected, but a contraction in Q2 is unlikely to be
The Euro traded at 137.30 against the Yen from 137.51 Wednesday, while the analysts from Bank of Tokyo-Mitsubishi forecast a dip to 137 Yen. They also added the Euro could test an important level at 1.35, but is likely to have difficulties passing it. During the Asian trading session the spot changed from $1.3525 to $1.3528. Meanwhile, the WSJ Dollar Index
Anglo American platinum production slipped 40% in the second quarter year-over-year due to five-month strikes in South Africa. Iron ore production, on the other hand, increased 2% from the same period and rose up to 11.5 million metric tons. The output of copper expanded 6% to 194.000 tons due to improved productivity in Chile.
The Canadian Dollar reached the weakest point in less than a month after the nation's Central Bank said that inactivity in the country's economy will create a temporary boost for inflation. The Loonie depreciated 0.3% to C$1.0794, which is the lowest level since June 20. The currency got back up after Stephen Poloz refrained from commenting on the strength of the Canadian Dollar.
Libya's National Oil Corp is now offering crude for the end of July loading. After almost a year of being closed, the Ras Lanuf facilities are ready to export 1 million barrels of both Amna and Sirtica crude oil. However, traders have been hesitant to buy the Libyan crude due to high prices and quality concerns.
The Pound reached its 22-month high against the Euro as the U.K. jobless rate fell to the lowest since 2008, indicating the economy is ready for higher interest rates. The Sterling rose 0.2% to 78.98 pence per Euro. The rally followed the BoE Governor Mark Carney's extensive plans to increase the borrowing costs.
China's state-owned companies experienced an increase in profits in the first six months of 2014. The state-owned and non-financial firms generated combined profits of 1.22 trillion yuan, adding 8.9% to the previous year's figures. China's officials believe the economy is on the right track, as the government incentives kick in.