The Canadian Dollar dropped after the nations released disappointing economic data on GDP growth in May, boosting speculation that the Bank of Canada will not stop monetary stimulus anytime soon. The loonie declined 0.27% to C$1.0333 per U.S. Dollar as of 8:31 a.m. Toronto time. Canada's economy expanded 0.2% in May, while analysts expected a 0.3% increase.
Canada's economy continued expansion in May, yet at lower rate than economists predicted. The GDP advanced 0.2% in May, while on year -to-year basis it rose 1.6%. Analysts projected a 0.3% increase. The main drivers behind the growth was retail and wholesale industries, while resource extraction sector plummeted 1.7%. Energy sector production fell 2% in May.
The U.S. Dollar appreciated versus the 17-nation currency as reports suggested that the nations economy expansion exceeded estimates. The Department of Commerce reported that the economy grew 1.7% in the second quarter, beating a 1% estimate of analysts. The greenback added 0.31% to $1.3223 versus the Euro at 12:32 p.m. GMT.
Eurozone's inflation remained steady this month after climbing for two straight months, providing some freedom for the European Central Bank to pursue a stimulus policy as the Euro bloc's recovery is slow. The annual CPI was 1.6%, the same as it was in June, which is in line with economist's predictions. Economists believe that the benchmark interest rate will remain
The Swiss currency inched up to the strongest level in over a month versus the U.S. Dollar as investors await the FOMC statement to indicate the proper direction for the greenback later on Wednesday. The Swiss franc advanced 0.11% to ₣0.9286 versus the greenback and climbed 0.18% to ₣1.2307 against the 17-nation currency.
Yield on 30-year German government bonds decreased after EUR 1.63 billion debt auction. The yield dropped 3 basis points to 2.45%, while 10-year bund yield slid 3 basis points to 1.64% after reaching 1.71% earlier today. Germany's bonds lost 1.3% of its value this year so far, compared to gains of 2.9% in Italian bonds and 6.2% in Spanish government
Treasuries headed for another monthly loss, which would be the third consecutive monthly fall, on speculation the Federal Reserve will reduce its bond buying programme this year. Policymakers may comment on the programme after today's meeting. U.S. bonds declined 0.2% this month through yesterday. The yield on ten-year treasuries remained flat at 2.62% today as of 10:39 a.m. London time.
Stock prices in Malaysia dropped after Fitch Ratings decreased the outlook for country's credit rating as country's public finance situation deteriorated. The FTSE Malaysia's KLCI Index plummeted 1.3% to 1,772.62, the biggest decline since June 13. The Ringgit dropped 0.6% to 3.2440 per U.S. Dollar, the weakest point in 3 years.
Jobless rate in euro-zone remained the same in June as the economy is starting to recover due to expanding manufacturing and increasing business confidence. The unemployment rate stood at 12.1%, matching the highest point in history. The inflation was reported to be at 1.6%. Economists expect the joblessness to increase to 12.4% in Q4 and drop to an average of
Yield on 10-year German government bonds jumped to the highest level in 3 weeks as investors speculated that the ECB will not announce additional stimulus in a meeting tomorrow. The yield rose 2 basis points to 1.69% after touching the level of 1.71% earlier today. Bunds slid after better-than-expected unemployment data, increasing appetite for riskier assets.
West Texas Intermediate headed towards its best month since last August ahead of the report that is expected to indicate that crude stockpiles declined in the U.S. The September WTI contract inched up to $103.73 per barrel. Brent for September delivery decreased to $106.25 per barrel. U.S. fuel stockpiles jumped by 1.8 million barrels previous week.
Stock prices in Europe rose together with U.S. equity futures before the Fed announces its decision on monetary policy. The Stoxx Europe 600 Index jumped 0.2% after falling 0.5% earlier today. S&P 500 future contracts gained 0.2%. The Fed might start tampering its stimulus program if the country's economy meets expectations.
The Euro inched up versus the U.S. Dollar on unemployment report from the Euro block, as investors await the conclusion of the Federal Reserve meeting. The common currency advanced 0.18% to $1.3286 versus the greenback and jumped 0.35% to 0.8734 against the Sterling. Euro area's unemployment rate remained flat at 12.1% in June.
Swiss shares were little changed, with the regional benchmark SMI set for the biggest one-month advance since March, as U.S. economic-growth report and the Fed's statement are awaited by investors. The SMI fell 0.1% to 7,803.73 as of 10:21 a.m. Zurich time, after dropping 0.6% earlier, while the Swiss Performance Index slid 0.1% today.
U.K. shares climbed, with the regional benchmark FTSE 100 Index set for its biggest one-month advance since January, as companies as Centrica Plc. and Diageo Plc. posted their results. The FTSE 100 rose 0.5% to 6,602.02 as of 9:17 a.m. London time and the equity-benchmark has gained 6.2% monthly. The FTSE All-Share Index increased 0.4% today, while Ireland's ISEQ Index
The British currency weakened to the lowest level in approximately four months versus the Eurozone's currency after U.K. shop prices dropped for a third month in a row. The Sterling slipped 0.2% to 87.20 pence per Euro as of 8:23 a.m. in London after reaching 87.26, the lowest since March 13. The Pound slid 0.2% to $1.5205 and it is
Italy has published a first drop in its unemployment rate in about a year. The rate declined from 12.2% in June to 12.1% this month, against analysts expectations of 12.3%. The Business Confidence Index advanced to 79.6 this month and the industrial output increased 0.1% in May. Italy's Purchasing Managers Index for manufacturing expanded to the highest level in four
German jobless claims declined for a second straight month in July, suggesting that nation's economy is recovering and the government most likely is gaining support ahead of the election in September. The number of unemployed people fell by 7,000 touching 2.93 million, according to Federal Labor Agency. It was previously predicted that German unemployment will stay flat.
The common currency fell moderately versus the U.S. Dollar before key data releases that may indicate that the Euro area's unemployment rate remains high, while investors expect the outcome of the Federal Reserve's policy meeting. The 17-nation currency added 0.03% to $1.3266 versus the greenback and jumped 0.11% to 129.86 against the Japanese Yen.
German retail sales fell surprisingly in June, underlining the worries that about Europe's recovery depended on consumer spending. It was expected that retail sales will rise 0.2%; however, they declined 1.5% from May, when sales climbed 0.7%, according to Federal Statistics Office. For comparison, they fall 2.8% compared to previous year.
European shares declined, snapping their biggest monthly gains in almost two years, as major companies reported their financial results. The Stoxx Europe 600 Index slipped 0.2% to 298.89 as of 8:08 a.m. London time; however, the gauge rose 4.9% in July after Fed's remarks. Standard & Poor's 500 Index futures slid 0.1% today, while the MSCI Asia Pacific Index retreated
German government bunds remained steady as Germany prepared to auction 30-year notes worth 2 billion euros. German 10-year bond yield remained flat at 1.68% and the price of the 1.5% bund maturing in May 2023 was 98.385. The 30-year security yield was also unchanged at 2.49%. Germany last auctioned 30-year notes in April at an all-time low average yield of
Asian shares declined, with the regional benchmark index cutting its first monthly gain since April, ahead of U.S. economic growth report and the outcome of the Federal Reserve policy meeting. The MSCI Asia Pacific Index decreased 0.9% to 132.59. Japanese Topix index and the benchmark Nikkei 225 Stock Average both declined 1.5%.
Gold prices increased as investors expect the outcome from the Federal Reserve's two-day policy meeting, seeking for signs on when the bank may begin to reduce its bond purchases. Gold futures climbed 0.64% to $1,333.40 per ounce, adding to signs bullion has decreased over 20% this year. At the same time silver added 0.86% to $19.850 per ounce