The RBA Governor Glenn Stevens said that officials are ready to take steps if the nation's economy slows, auguring Australia's mining investment boom will peak within the next two years. The Aussie Dollar declined to a 1-month low versus the New Zealand Dollar as Stevens said the Australian currency is likely to depreciate if the mining boom ends.
The Brazilian Real dropped to a 1-week low on speculation the nation's central bank will intervene to weaken the Real outweighed bets officials will take steps to support the global economy. The Real lost 0.4% to 2.0238, the lowest level since August 14.
The Japanese Yen appreciated against most of 16 major counterparts this week due to Asian stocks' decline and discouraging global economic data that increased demand for safe haven assets. The Yen set for its biggest 5-day strengthening versus the U.S. Dollar in three months as reports showed U.S. unemployment claims rose while the latest reading of manufacturing in Europe and
The RBA Governor Glenn Stevens was surprised by the Swiss National Bank's decision to purchase the Australian Dollar, which is usually sold when prices of commodity fall. The SNB has been buying the Aussie since May, reflecting the severity of the Eurozone debt turmoil. The Australian Dollar is increasingly considered as a safe haven for some private and official investors.
Crude oil edged higher on Thursday, August 23, as China's manufacturing sector is contracting at a faster pace than earlier believed, leaving more space for new stimulus actions from Beijing. Crude oil for October settlement jumped 0.5 per cent, to $97.72 per barrel. In the meanwhile, natural gas futures tanked Thursday as government's weekly report showed a larger-than-expected increase in supplies. Natural gas with September
The Spanish government is in talks with its Eurozone partners over conditions for financial help in order to lower nation's borrowing costs, or to request a full bailout. Earlier this month Mario Draghi vowed to do all necessary to defend the Eurozone. The ECB is likely to resume its massive bond-buying program and purchase Spanish government bonds at primary auctions.
Eurozone's manufacturing activity improved in August, while still remained in the contraction zone for a twelfth month in a row. According to Markit's report, region's PMI Index rose to 46.6 from 46.5 in July. Any reading below 50 indicates contraction. As the overall output declined, the further drop in new orders can be expected.
Swedish unemployment rate fell to 7.0 per cent in July, from 8.80 per cent in the previous month, the statistics office said on Thursday, August 23. Meanwhile, analysts had expected nation's jobless rate to fall to 7.2 per cent. Total employment stood at 4.859 million people in July.
Europe's biggest economy added 0.3 per cent in the second quarter, following a 0.5% increase in the previous quarter, according to data released by Destatis on August 23. The results met analysts' expectations. Year-over-year German economy increased 0.5% in the second quarter, after growing 1.7% in the previous.
The U.S. Fed is likely to announce another round of quantitative easing soon unless the world's biggest economy starts to recover considerably, the latest minutes released by the Federal Reserve on August 22 showed. Meanwhile, the U.S. economy grew only by 1.5 per cent in the second quarter.
The manufacturing activity in the world's second largest economy tumbled to a nine-month in August. An index measuring factory output fell to 47.8 from 49.3 in July. Any reading under 50 indicates a contracting manufacturing sector in the country. The deterioration of data may show that firms' confidence wasn't boosted enough by the government's efforts to spur Chinese economy.
Wall Street futures fell Thursday as the number of claims for unemployment benefits rose more-than-expected. The Dow Jones Industrial Average fell 0.68%, to 13,067.00; the Standard & Poor 500 Index erased 0.23%, to 1,409.10, while Nasdaq 100 futures lost 0.66%, to 2,763.00. Initial claims for jobless benefits jumped 4,000 to 372,000 in the week ended August 18.
European stocks fell for a second day after German Finance Minister Wolfgang Schaeubble cut optimism Greece will have more time for meeting its debt obligations and after Spain's bond rates advanced. The Stoxx Europe 600 Index declined 0.5% to 268.04. Meanwhile, the equity benchmark climbed 14% from the year's lowest on June 4.
Treasuries surged, moving 10-year rate to the weakest in more than a week after first-time claims for unemployment benefits increased to the highest in one month, posting little rebound in the U.S. labor force. The 10-year yields fell to 1.67%, after reaching 1.66%, the least since Aug. 14. 30-year note yields slid to 2.78%.
U.S. new home sales surged more-than-expected in July, the Commerce Department said on Thursday. New home sales posted a 3.6% rise to a seasonally-adjusted annual rate of 372,000, from an upwardly-revised 359,000 in June. Economists expected an increase to 362,000.
U.S. initial claims for jobless benefits unexpectedly posted a slight rise in the week through Aug. 18., the Labor Department said on Thursday. First-time unemployment claims advanced to 372,000, compared to 368,000 in preceding week. Analysts forecast a decline to 365,000. The four-week average rose to 368,000 from 364,250.
The Ruble advanced to a two-week high after oil rose amid speculation China and U.S. central banks will add stimulus. The Ruble gained 0.6% against the U.S. Dollar to 31.6828 and fell less than 0.1% versus the Euro to 39.75275, staying 0.3% above the central bank's currency basket.
Oil climbed to the highest in three month in New York on belief that U.S. and China central banks may ease monetary policy to boost growth and after U.S. crude stockpiles fell 5.4 million barrels. October-settlement oil rose $1.03 to $98.29 per barrel, the most since May 4, and it traded at $97.74. Brent crude for October delivery surged 1.1%
The inflation in South Africa slowed more-than-expected in July, and speculations grew that nation's policy makers may cut the benchmark interest rate already for a second time in this year. The South African inflation rate reached a fourteen-month low, at a 4.9 per cent level, down from 5.5 per cent in the previous month.
Japan' trade balance fell less-than-expected in July, official data showed on Tuesday. The nation's trade gap came in at $6.53 billion (¥517.4 billion) last month, after a surplus of ¥60.3 billion in the previous month. In the meanwhile, Japanese exports to the world's second biggest economy shrank by 11.9% in July, the sharpest downfall since February.
German stocks moved higher on Thursday as hopes for easing in the US and China spurred European equities. Moreover, upbeat Germany's manufacturing data supported the country's shares. German flash PMI rose to 45.1 in August from 43.0 in July. The German DAX Index gained 0.22% to trade at 7,035.09. Five out of nine industries included in the index went up.
UK stocks jumped on speculation that the US and China are preparing to loosen their monetary policies after negative economic data releases earlier this month. The Fed announced that monetary easing is highly possible soon while bleak outlook on China's PMI may force the POBC to follow the Fed's suit. The FTSE 100 Index added 0.46% to trade at 5,800.81
Gold rallied to a 16-week high, after exceeding the 200-day average, as the Fed said it may create additional stimulus and investment stockpiles surged to a record. On Thursday, bullion for December delivery rose 1.5% to $1,665 per ounce in New York. Futures increased to $1,669.50 earlier today, the highest since May 1. The metal climbed 0.5% to $1,662.95 in
The Euro surged to an almost seven-week high after belief China and the U.S. will post monetary easing fueled demand for better-performing currencies. The 17-nation currency advanced versus the Yen before Germany and France meeting today. On Thursday, the Euro rose 0.2% to $1.2549, after touching $1.2572, the highest since July 4. The Euro surged 0.2% to 98.66 Yen.