Economic growth in the largest economy of the Eurozone has been in line with preliminary estimations in the first quarter of this year and reached 0.8% on a quarterly basis. Year-on-year, German economy surged 2.3%. Among growth contributors, private consumption in the country advanced 1.9% during January-March, while construction sector increased 3.6%.
According to the minutes of the Federal Reserve meeting on April 29-30, the inflation level in the country will not exceed the key level of 2%, despite quantitative easing policy. Moreover, monetary officials pointed out that stimulus will continue to influence employment in a positive way. The Fed is going to track changes in the economy in order to estimate
European equities show an advance on Thursday for the second consecutive day, while positive news come for China and the U.S. Chinese manufacturing expanded more than expected, while the Fed announced the inflation level to remain under the target of 2%. The benchmark European stock index Europe Stoxx 600 jumps 0.2% to 341.11 points by 8:35 GMT in London.
Public sector borrowing in the United Kingdom surprisingly climbed in April of the current year, considerably exceeding analysts' forecasts. In total, the government borrowed 9.6 billion pounds last month, up from 6.1 billion pounds in March, while experts awaited the indicator to fall to 3.5 billion pounds. Meanwhile, the central government debt reached 1,270.8 billion pounds or 75.6% of GDP.
Economic growth in the United Kingdom climbed to 0.8% in the first quarter of this year, in line with the preliminary estimations. Consumer spending increased 0.8% and added 0.5% to the overall GDP advance. Thefore, country's economy surges for the 10th consecutive quarter. At the same time, exports decreased 1% in Q1, while imports shrank 1.1%. Government spending added 0.1%.
West Texas Intermediate crude was little changed on Thursday trading session as it traded near the strongest level in over four weeks after the world's second largest economy showed in a report that its manufacturing sector improved. WTI for settlement in July slipped 21 cents to $103.86 per barrel on the NYMEX as of 3:55 p.m. in Seoul.
Private sector in the euro-area grew at a stable pace in May recording its best three-month period in three years, a report published by the Markit Economics showed on Thursday. According to the report, the Eurozone's purchasing managers' index for both service and manufacturing sector posted 53.9 points in May, slightly down from April's score of 54 points.
Consumer sentiment in the euro-area improved in May rising by more than economists originally expected and hitting the highest level in a seven-year period, the latest report unveiled by the European Commission showed yesterday. The Eurozone's consumer confidence index jumped from -8.6 points in April to a level of -7.1 in May.
New Zealand's inflation expectations increased marginally, according to a survey released by the Reserve Bank of New Zealand, with the index measuring expectations rising from 2.03% to a level of 2.08%. The survey also showed that respondents forecast the country's growth to post 0.9% in the Q2, staying unchanged from the prior quarter.
Inflation expectations in Australia increased in May with the index measuring expected consumer prices gained from a level of 4.2% recorded in April to 4.4% in the following month, the latest survey published by the Melbourne Institute unveiled on Thursday. Another survey showed that about 72.8% respondents expect the inflation gauge to drop in May.
Manufacturing activity in the Asia's second largest economy advanced in May, however the score stayed below a level signalling expansion in the sector, the latest report revealed by the Markit Economics showed on Thursday. The Japanese factory sector activity index posted a score of 49.9 in May after recording 49.4 points in the prior month.
Business confidence in France weakened surprisingly in May falling slightly from the month before, a report published by the statistical office Insee showed on Thursday. According to the report, the nation's business sentiment slipped from April's level of 100 points to 99 recorded in May, while it was originally seen to stay at 100 points.
Manufacturing activity in the world's second largest economy slightly advanced in May, however the index stayed below a level of 50.0 suggesting expansion in the sector, a report published by the HSBC Bank and Markit Economics showed on Thursday. The country's manufacturing gauge recorded 49.7 points in May compared to a forecast of 48.3 points.
Private sector in the Europe's largest economy accelerated in May rising at a stronger pace than in the previous months, a report unveiled by the Markit Economics showed on Thursday. According to the report, the German composite output index recorded 56.1 points in May, staying comfortably in the positive zone suggesting expansion.
Private sector in France deteriorated in May falling for the first time in a three-month period, the latest data released by the Markit Economics unveiled on Thursday. According to the report, the country's composite private sector index dropped from April's level of 50.6 points to 49.3 points recorded in the following month.
The British Sterling advanced notably on Thursday rising against the European currency and the U.S. Dollar after the Bank of England released its minutes from the last policy meeting signaling that the bank may hike rates soon. The Pound surged to the strongest level in 17 months versus the Euro at 80.83 pence, while it gained to the highest level
The U.S. Dollar strengthened on Thursday rising against the Japanese Yen and the euro-area currency after the Bank of Japan Governor Kuroda signaled that the bank may implement further stimulus measures soon as the economy struggles. The Greenback added 0.4% to 101.73 yen, up from its lowest level in 3 ½ month, while it last traded at $1.3675.
The Australian Dollar slightly increased on Thursday trading session reacting sensitively to developments in the local economy as it rebounded from the weakest level in three weeks hit on Wednesday after China reported an improvement in factory sector. The so-called Aussie added as much as 0.1% to $0.9260, up from Wednesday's 3-week trough of $0.9208.
The majority of Asian shares increased on Thursday trading session with the Japanese benchmark stock index leading gains rising towards the highest level in a year after a factory report from China showed an improvement in the sector. The MSCI Asia-Pacific gauge outside Japan surged 1.1% to 188.20 points and the Shanghai Composite index jumped 0.5%.
Wall Street shares closed higher on Wednesday trading session erasing previous day's loss as the U.S. Federal Reserve released minutes from the last policy meeting showing that the bank may tighten its stimulus measures soon. The Dow Jones industrial average gained 0.97% to 16,533.06 points, the S&P 500 added 0.81% to 1,888.03 and the Nasdaq Composite index rose 0.85% to
Current account surplus in the Eurozone dropped further in March of this year, as trade surplus of both goods and services slipped consierably, while other indicators improved. The surplus reached 18.8 billion euro versus 21.8 billion euro in February. Trade surplus plummeted from 15.5 billion euro to 13.8 billion euro, while positive balance of services decline to 8.5 billion euro
After the Wednesday meeting, the Bank of Japan decided to implement no changes to the monetary policy in the country, leaving the pace of increase of monetary base on the annual 60-70 trillion yen level. As expected, the inflation will move closer to 2%, however some analysts say that is not achievable without more stimulus, as they expect the extra
According to the minutes of the Bank of England meeting on May 7-8, all the members of MPC voted for continuation of the current monetary policy stance, with the key rate and QE remaining at 0.5% and 375 billion pounds levels, respectively. However, some of members point on strong economic recovery and rising housing market, which can be the reason
Retail sales in the U.K. climbed much more than forecasted in April of this year, while food sales during the Easter increased considerably. The indicator showed an advance of 1.3% on a monthly basis, while year-on-year is added as much as 6.9%, the largest rise since May 2004. Service sector accounts for more than 70% of the economy and may