Most Asian stocks advanced on Friday amid Spain's budget decisions and belief Chinese policy makers will use additional stimulus measures to boost the economy. The Shanghai Composite Index rose 1.5%, while the Hang Seng Index, the Kospi and Taiex each increased 0.4%. Australia's S&P 200 Index added 0.1%, but Japan's Nikkei dropped 0.9% on low monthly industrial output.
U.S. stock futures were little changed on Friday, as investors were cautious on Spain's budget and ahead of reports on U.S. consumer income, spending and confidence. Dow Jones futures were steady at 13,414. Futures on the S&P 500 rose 0.04% to 1,442, while those on the Nasdaq Composite added 0.11% to 2,817.50.
European stocks inched up on Friday, after Spain announced spending cuts and tax rise costing 13 billion Euro, while traders awaited the Spanish bank stress test results later today. The Stoxx Europe 600 Index added 0.3% to 272.51. The IBEX 35 Index outperformed other Spanish indexes and rose 1%. The CAC 40 and DAX 30 indexes each advanced 0.4%, while
German equities advanced on Thursday after encouraging export prices data. German export prices climbed 1.3% in September compared to a forecast of 0.9% increase. However, persistent uncertainty over Spain's austerity measures capped the upswing of the index. The DAX Index added 0.14% and is currently trading at 7,286.94. All but one sectors included in the index surged. The top-gainers were
UK stocks erased previous losses on Thursday as the country's GDP contracted less than expected in August due to upward revisions to industrial output and construction. Moreover, speculation that China will announce easing measures to stimulate slowing economy provided additional support for UK shares. The FTSE 100 Index gained 0.16% to trade at 5,777.34. Seven out of ten sectors within
Hong Kong equities rallied on Thursday after the POBC injected CNY365 billion into the national banking system to ease liquidity conditions before the end of the quarter. However, dismal data from Europe capped gains of the Hong Kong blue chips index. The Hang Seng Index soared 1.14% to end Thursday's session at 20,762.29. All nine sectors included in the index
Japan's shares moved higher on Thursday amid improved market sentiment as PBOC pumped the record amount of capital into China's economy. However, Japanese equities remained under pressure as instability in Eurozone persisted. Meanwhile, market players anticipated key data releases from the US due later in the day. The Nikkei 225 Index advanced 0.49% to close at 8,949.87. Seven out of
US blue chips dropped further on Wednesday as pessimism over the QE3 weighted down on market sentiment. Negative headlines from Eurozone also pressurized US equities. However, the downswing was limited by the US new home sales data. US home sales missed expectations in August but remained close to two-year high. The Dow Jones Industrial Average Index slid 0.33% to close
US equities extended previous losses on rising pessimism over the QE3. On Wednesday, Federal Reserve Bank of Chicago president Charles Evans hinted that the Fed has to put more efforts to boost national economy. Dismal news from Eurozone also sent US stocks lower. Massive protests over fresh austerity measures lifted Spanish 10-year bond yield above 6%. The S&P 500 dropped
On Thursday, the British Pound pushed higher versus the U.S. dollar on disappointing U.S. and optimistic U.K. data. GBP/USD hit 1.6236 and subsequently consolidated at 1.6224, which was a 0.37% increase for the European afternoon session. The pair's support was likely to be found at 1.6138, while the resistance was prone to be at 1.6310.
The world's biggest economy grew less than predicted during the second quarter of 2012, as consumer spending and business investment declined, the Bureau of Economic Analysis said on Thursday. Nation's gross domestic product increased at a seasonally adjusted annual rate of 1.3%, down from a previous estimate of 1.7%.
The number of Americans who filed jobless benefits claims fell more than expected and reached a two-month low in the week ending September 22, the U.S. Department of Labor reported. Initial jobless claims dropped by 26,000 to a seasonally adjusted 359,000, compared to expectations for a fall of 7,000 to 378,000, while down from 385,000 in the previous week.
The U.S. Census Bureau reported on Thursday that the number of orders for durable goods, which are goods that have a lifespan of more than 3 years, plunged in August. Durable goods orders fell by 13.2% on a seasonally adjusted basis, compared to an increase of 3.3% in the preceding month. Analysts, however, expected that August's reading would be minus 5.0%.
On Thursday, the Euro was traded near a 2-week low versus the U.S. Dollar, as traders awaited a draft of the Spanish budget, which can possibly provide an insight into whether Spain will seek a bailout. The 17-nation currency was traded close to $1.2862, which was just above a 2-week low. Earlier, it hit a session high of $1.2900, and a session low of
On Thursday, futures for copper rebounded from a 2-week low, after the central bank of China injected a vast amount of money into the economy. On the NYMEX, December delivery futures were traded at $3.732 per pound, which was a 0.6% gain in the European morning trading session. Earlier, prices hit a session high of $3.7401 a pound.
On Thursday, gold was higher on speculations that investors will increase purchases after a three-day drop. On the NYMEX, November delivery futures advanced 0.3%, being traded at the level of $1,758.10 per troy once, while spot prices for gold added 0.2% to trade at $1,755.80 per troy once at 10:23 a.m. London time.
On Thursday, Italy witnessed a decrease in its borrowing costs, as its Treasury was selling 5 and 10-year government debt. Italy's Treasury managed to sell 5-year government bonds worth EUR2.71 billion, having a 4.09% average yield, compared to a 4.73% yield in August. The average yield for 10-year bonds worth EUR2.97 billion was 5.24%, down from a previous month's figure of 5.82%.
Farm commodities tumbled on Wednesday on broadly stronger US Dollar and bleak demand prospects amid global economic slowdown. Weakening demand for US supplies also pressurized agricultural commodities. Wheat slumped after Egypt, the world's top importer, bought supplies from France and Romania, rejecting US shipments. Corn was the top-loser as South Africa raised its production forecast by 2.7% this year. Accelerated US harvesting
The U.K.'s Office for National Statistics reported on Thursday that British current account deficit increased unexpectedly in Q2, U.K's current account deficit grew to GBP20.8 billion in the three months from April to June, compared to a reading of 15.4 billion in the preceding quarter, which figure was revised upwards from an initial estimation of GBP11.2 billion.
Energy commodities apart from natural gas plunged on Wednesday amid QE3 fears and concerns over Spain and Greece. Capping the downswing of the commodity group, US crude oil inventories fell more than expected last week. Crude oil was the top-loser on global demand concerns. Worries that QE3 may not provide sufficient stimulus for the US economy created notable pressure on the
The U.K.'s Office for National Statistics reported on Thursday that British GDP decreased in the second quarter less than it was initially estimated. U.K.'s GDP lost 0.4% on a seasonally adjusted basis, whereas initial forecast was that it declined by 0.5%. Despite the data, showing modest recovery, it is still widely expected that the central bank will continue its quantitative easing.
Base metals swung to losses on Wednesday on mixed news from the US and escalated worries over instability in Eurozone. US purchases of new homes attained almost two-year high last month; however, the Fed officials expressed concern that QE3 may be insufficient to boost economy. At the same time, massive protests in Spain sent the yield on 10-year sovereign bonds
Precious metals were mixed on Wednesday, with silver and platinum advancing and gold and palladium slumping. Broadly stronger US Dollar and pessimistic Fed officials' comments on QE3 created heavy selling pressure on the commodity group. Gold hovered near two-week low after some of the Fed officials doubted the success of the QE3. However, the downswing was capped by strong demand from
Treasuries declined on Thursday, paring an almost four-year longest rally, as belief the Chinese government will create further stimulus to boost its economy decreased demand for haven assets. The 10-year yield advanced two basis points to 1.63%. The 1.625 note maturing in August 2022 lost 6/32 to 99 30/32. The U.S. Treasury will sell $29 billion of seven-year bonds during