On Tuesday, futures for gold erased losses and were traded steady during Asian trading session, as investors were focused on Spanish debt problem rather than on market-friendly elections in Greece. On the NYMEX, August delivery futures for gold were traded at USD1,627.45 per troy once, adding 0.03%. Earlier, contracts peaked at USD1,629.75 and hit the bottom at USD1,626.95.
During their meeting in Mexico the leaders of the Group of 20 countries put emphasis on stabilizing European banking system adding pressure on German leader Merkel to boost rescue tools as Spain's crisis worsen. Merkel, however, keeps rejecting the ideas of boosting deficit spending or pooling Eurozone debt.
European markets traded mostly higher on Monday as the initial results of Greek elections signalled the new coalition is likely to be pro-austerity oriented. Nevertheless gains were limited as Spanish 10-year borrowing costs reached all time record high of 7.13%. Stoxx Europe 600 traded flat. French CAC gave up 0.7% while German DAX added 0.3%. British FTSE 100 gained 0.2%
US shares faced a choppy, low volume trade on Monday with blue chip companies giving up the gains while S&P 500 climbed for a third straight day. S&P 500 index added 0.14% or 1.94 points and closed at 1,344.78, Dow Jones Industrial Jones slipped 0.20% or 25.35 points and finished at 12,741.82 and Nasdaq Composite soared 0.78% or 22.53 points
Canadian currency fell versus its US peer on Monday amid anxiety data to be released this week that may indicate the country's economy is struggling. Loonie dropped 0.3% against greenback to CAD 1.0243 while 10-year bills remained flat at 1.71%. Currently USD/CAD is trading at 1.0225.
The US Dollar slipped versus the Yen and Euro on Tuesday ahead of Fed meeting later in the day. Investors are betting the US central bank will consider introducing further stimulus to support US economy.The greenback shed 0.3% versus Euro to USD 1.2611 and depreciated 0.2% against Yen to JPY 78.98. Currently EUR/USD is trading at 1.2611.
The winner of Greek parliamentary elections Antonis Samaras continues talks with Socialist Pasok party for a second day to create a coalition that would keep rescue funding flowing. Samaras had secured an initial agreement with Evangelos Venizelos, the leader of Pasok party. Today Samaras is going to discuss the possible strengthening of coalition with Fotis Kouvelis from Democratic Left party. In case all three forces manage to
Emerging market countries including Brazil and China affirmed financing pledges to the IMF, almost doubling its lending power in order to rescue world economy from European debt woe. With pledges from South Africa, India and Russia the total commitment will amount to USD 456 billion a slightly more than USD 430 billion package promised in April.
On Monday, the Greenback was traded higher versus other major currencies, as concerns over Spanish debt situation overshadowed good news from Greece. In the U.S. morning trading session, EUR/USD went down by 0.53%, hitting 1.2572; Cable fall 0.35%, reaching 1.5660; the Yen grew up 0.25% and USD/JPY was traded at 78.89.
On Monday, futures for natural gas found support during U.S. morning trading hours, amid warm weather forecasts in the key regions of the U.S. On the NYMEX, July delivery futures for natural gas were traded at USD2.517 a MMBtu, rallying 2% during the morning trade. It earlier peaked at USD2.534 a MMBtu, rising by 2.7%.
On Monday, the Euro continued its fall versus the U.S. Dollar and reached a new session low, as Spain witnessed record high borrowing costs and Greek concerns over the ability to create a coalition also weighed. The EUR/USD pair hit the bottom at 1.2850, a 3-day low, and later consolidated at 1.2610, witnessing a 0.30% drop during the U.S. morning trading session.
On Monday, the Greenback continued to gain versus the Canadian dollar, after the optimism about Greek elections started to fizzle and Spain witnessed the highest borrowing costs since it adopted the Euro. USD/CAD peaked at 1.0279 in the early U.S. trading session, and later consolidated at 1.0264, which was a 0.49% gain for that session.
On Monday, the Euro pulled away from a week high versus the Japanese Yen, as investors were focused on Spanish financial woes and worries about the formation of the Greek government. EUR/JPY retreated from 100.85, which was a one-week high, and consolidated at 99.60, gaining 0.08% in the European afternoon trading session.
On Monday, copper futures went off the highs, after optimism about Greek elections started to fade, and Spain witnessed an increase in borrowing costs. On the NYMEX, July delivery futures were traded at USD3.397 per pound, gaining 0.4% during European morning trading session. However, it earlier peaked at USD3.475 per pound during that trade.
Agricultural commodities balanced between gains and losses on Friday amid broadly lower greenback and better weather conditions in the EU.Wheat dropped as demand for US crops deteriorated. Harvest conditions in France improved after recent rains while Iraq bought about 250,000 MT of wheat primarily from Russia, Australia and Canada.Corn posted the largest weekly fall on speculation that strong demand for
Energy commodities except for natural gas moved higher on Friday as investors anticipated elections in Greece. Moreover, results from the recent OPEC meeting continued to affect traders' mood.Crude oil was marginally higher amid hopes for the third round of quantitative easing in the US. OPEC's decision to keep output level unchanged for the second half of 2012 also supported the
Industry metals apart from aluminum rose despite weak industry data from the US. US factory production shank last month and consumer confidence data missed expectations.Aluminum was the only loser as global economic instability and weak demand continued to force aluminum producers to reduce output capacity.Copper rose despite more negative outlook on the metal's prices as money managers increased bearish cooper
Precious metals were mixed on Friday ahead of Greek elections. The commodity group was also exposed to broadly weaker US Dollar and stronger global equities.Gold was the top-gainer as negative US industry data raised hopes for the next round of quantitative easing in the country. Silver followed gold's suit, rising by 0.17% on speculation that the Fed and ECB will
On Monday, crude was advancing in the European morning trading session, but it went off the highs, since investors remained cautious about the ability of winning party to form a coalition and increasing borrowing costs for Spain and Italy. On the NYMEX, July delivery futures for crude were traded at USD84.41 per barrel, which was a loss of 0.4% during the morning session.
Statistics Canada reported on Monday that the amount of acquisitions made by foreign investors in Canada increased to CAD10.16 billion on a seasonally adjusted basis, exceeding expectations of a significantly lower CAD5.0 billion increase. The figure for March was revised up to CAD2.40 billion of net investment from initially reported CAD2.08 billion.
German DAX index fell back from sharp gains on morning as the investors turned their attention from Greek election to surging borrowing costs in Spain which hit 7.13% on Monday, an Eurozone all time record high. Meanwhile Euro fell again back to USD 1.26. Car makers still supported the index on the upside. BMW AG and Daimler AG each surged
UK FTSE 100 accelerated in the Monday morning session boosted by initial Greek election results. However, index retreated during session the victory of pro-austerity forces failed to provide sustainable rally in the European markets. Banks posted losses after Spanish yields surpassed 7% level. Lloyds Banking Group fell 2.8% and Royal Bank of Scotland Group tumbled 4%. Rolls-Royce Holdings climbed 1.5%
Spanish 10 year yield has reached 7.13% - the euro era record. Spanish sovereign debt securities are the worst performing amongst 26 markets after June 9, when Spain asked for around EUR 100b loan for a banking sector bailout. Such loan would increase Spains debt to around 90% of it's GDP. Specialists state that after such developments Spain most likely will be the
Gold futures dropped in Asian trade on Monday after Greek elections that resulted in pro-bailout party victory, meaning that Greece is likely to keep the Euro. COMEX gold August contract traded at 1,627.65 US Dollars per troy ounce on the New York Mercantile Exchange, falling by 0.03%. Meanwhile, COMEX silver for delivery in July traded at 28.745 US Dollars per