US stocks climbed on Wednesday on progress in talks to avert US fiscal cliff. US President Barack Obama reassured investors that the deal on US budget will be done in the next four weeks. Moreover, mounting hopes that the Fed will expand its bond purchasing program at its next-month meeting boosted market sentiment. At the same time, an unexpected drop
Farm commodities were mixed on Wednesday amid weaker US Dollar and concerns over weather conditions in Brazil and Argentina. Moreover, hopes that demand for US supplies will continue to strengthen lifted farm commodities.Wheat moved higher, attaining two-week high as only about 33% of wheat was in good or excellent condition last week, the lowest level in 27 years. However the
Energy futures plunged on Wednesday despite broadly weaker US Dollar and an unexpected decline in the US crude oil inventories. The commodity group was pressurized by easing supply concerns in the Middle East and lingering worries over looming fiscal cliff in the US. Crude oil sank despite an unexpected drop in the US crude oil stockpiles last week. US crude
Precious metals except for palladium declined amid lingering concerns over the US fiscal cliff and lack of details about recently agreed Greek bailout plan. Moreover, expiration of December contract that expired on Wednesday also added to losses of the commodity group. However, slightly weaker US Dollar prevented further decline in precious metals prices.Gold slumped on heavy selling volume ahead of
Gold recovered from the biggest decline in more than 3 weeks as investors holdings increased to a record and on optimism the fiscal cliff in the U.S. will be prevented. Gold spot gained 0.2% to $1,723.70 an ounce and traded at $1,720.38 at 1:52 p.m. Singapore time. The price fell 1.3% a day earlier, the biggest decline since November 2.
Asian stocks gained on optimism the U.S. will be able to avoid the fiscal cliff and as Japan's opposition party urged unlimited monetary easing. The MSCI Asia Pacific Index rose 0.8% to 124.05, with more than 3 shares gaining for each that declined. Japan's Nikkei 225 Stock Average climbed 0.8%, while the broader Topix Index gained 0.9% .
The Australian Dollar approached the highest level in two months as equities recovered globally amid speculation the U.S. will prevent the fiscal cliff, spurring demand for risky assets. The Aussie traded at $1.0472 at 4:52 p.m. in Sydney from yesterday, when the currency rose 0.3%. It fetched $1.0490 on November 27, the strongest level since September 21. The Aussie was
The South Korean Won strengthened, while government bonds declined on increasing speculation the U.S. economy will prevent the fiscal cliff. The Won gained 0.1% to 1,084.80 per greenback at 10:05 a.m. in Seoul, after losing 0.2% yesterday. One-month volatility fell 8 basis points, or 0.08 percentage point, to 5.25%.
The greenback traded 0.5% from the lowest level this month against the Euro ahead of Treasury Secretary Timothy F. Geithner's meeting with congressional leaders to discuss the fiscal cliff. The U.S. Dollar was at $1.2946 per Euro at 6.33 a.m. in London from $1.2953 in New York yesterday. It fetched $1.3009 on November 27, the lowest level since October 31.
German shares dropped on Wednesday amid worries that US lawmakers will fail to reach a consensus on looming tax hikes and spending cuts till the end of December. Meanwhile, traders were also cautious ahead of the key US data due on Thursday. The DAX Index tanked 0.39% and is currently trading at 7,304.00. All but one sector included in the
UK shares dipped on Wednesday on concerns over upcoming US fiscal cliff. Moreover, weakness in the US and Asian stocks pushed European shares lower. However, upbeat US data coupled with recent positive UK GDP reading restricted the downward trend. The FTSE 100 Index sagged 0.19% to trade at 5,788.63. Four in ten sectors climbed. On the upside, United Utilities Group
Hong Kong equities moved lower on Wednesday amid lingering concerns over looming US fiscal cliff and expectations for increase in share supply. About 10 billion yuan of new shares will be eligible for sale next month in the mainland. Moreover, a sharp drop in real estate projects in Shanghai dragged property developer lower. The Hang Seng Index lost 0.62% to
Japan's stocks were mostly lower on Wednesday as investors have become increasingly concerned about lack of progress in the US fiscal talks. Meanwhile, stronger national currency and profit taking hit exporters that witnessed a sharp increase during last sessions. However, mounting hopes that BoJ will ease its monetary policy after December's election and positive news from the Eurozone limited the
US stocks slipped on Tuesday, as Harry Reid, Senate Majority leader, announced that little progress has been made in averting the fiscal cliff. However, the decline in equities was capped by consumer confidence data, reaching the highest level in four years. Dow Jones fell to 12,878.13 on Tuesday, down 89.24 points or 0.7%. All but one sector tumbled. The only
US stocks tumbled for the second consecutive day as concerns on the U.S. budged talks in Washington rose, curtaining better-than-expected data on core durable goods, which surged 1.7% last month. Moreover, Eurozone's finance ministers finally reached agreement on the Greek debt-aid package, thus boosting market sentiment. The S&P 500 index dropped 0.5% to 1,398.94. The index has slid 2.1% since
On Wednesday, treasuries were traded higher, extending a 3-day long streak of gains, on speculations that fiscal cliff talks are making little progress, which increased demand for safer assets. The yield on benchmark 10-year government bonds declined by 2 basis points a reached a level of 1.62% by 6:24 a.m. New York time.
On Wednesday, copper was decreasing during European morning trading hours, as the market sentiment was determined by an upcoming fiscal cliff concerns. On the Comex, March delivery futures for the metal were traded at $3.543 per pound, which was a 0.2% daily gain. Earlier, prices hit a session low of $3.552.
The statistical office of Spain revealed on Wednesday that the country's retail sales continued to decrease last month. Year over year, Spanish retail sales declined by 9.7% compared to a 11% fall in the preceding month. Economists' forecast, however, was that sales would experience a 9.4% decrease.
On Wednesday, futures for gold were traded lower, extending a three-day long streak of losses, on stronger U.S. Dollar, which is known to be negatively correlated with the commodity. On the Comex, February delivery futures for the precious metal were traded at $1,742.25 per troy ounce, which was a 0.15% daily fall.
The European Central Bank reported on Wednesday that the amount of broad money increased at a faster speed in October. Broad money M3 grew at a rate of 3.9%, while the figure for the preceding month was 2.6%. Analysts, however, expected that the October's figure will show a more moderate growth of 2.8%.
Oil traded close to a one-week low in New York as an industry-funded report indicated increasing stockpiles in the U.S., with inventories gaining 1.96 million barrels last week, according to the American Petroleum Institute. Crude for January settlement traded down 20 cents at $86.98 a barrel, while Brent January delivery slipped 9 cents to $109.78 a barrel.
Asian stocks dropped as the OECD said failure to avoid the fiscal cliff would increase risks of global recession. The MSCI Asia Pacific Index lost 0.5% to 123.12. Japan's Nikkei 225 Stock Average declined 0.8% and South Korea's Kospi Index slid 0.9%. Australia's S&P/ASX 200 Index fell 0.8%, the Shanghai Composite Index slipped 0.7% and Hong Kong's Hang Seng dropped
Farm commodities climbed on Tuesday on concerns over South American crop conditions. Telvent DTN, weather services provider, reported that storms are expected later this week that may delay corn harvesting in Argentina and Brazil. However, solid greenback capped gains of the commodity group.Wheat soared the most in eight weeks after the USDA announced that conditions of winter varieties deteriorated further
Energy futures apart from natural gas slumped ahead of the US inventory report due on Wednesday. Broadly stronger US Dollar and mounting worries over forthcoming fiscal battles in the US weighted on the commodity group. However, better-than-expected figures from the US and Eurozone limited the downward trend.Crude oil tanked as long-waited Greek bailout deal was outweighed by renewed concerns over