Rural commodities tumbled after USDA global supplies report. Better weather conditions in Brazil and US also sent farm commodities lower. From the demand side, high grain prices threaten to cap consumption. Wheat was the top-loser as USDA upgraded US domestic production forecast, citing brighter production prospects in northern states. At the same time, global output is set to fall 4.7% as
Japanese stocks moved lower as the nation's economy grew less than expected in Q2 amid weak consumer spending. Meanwhile, traders continued to anticipate key economic data releases from the US due this week. Nikkei 225 Index lost 0.07% to close at 8,885.15. Sectors included in the index were mixed; six sectors followed downward trend while four industries managed to climb.
Energy commodities followed bearish trend on Friday amid dismal China's trade data as well as bleak economic outlook on the single currency union. At the same time, supply uncertainties from the Middle East supported the commodity group. Crude oil slumped on weak demand from China. Beijing's General Administration of Customs stated that net crude oil imports attained seven-month low in July. Brent
US equities closed slightly higher on Friday amid mixed quarterly reports and disappointing news from the Eurozone and China. Building expectations that the Fed will loosen its monetary policy also boosted US stocks. The S&P 500 traded 0.22% higher at 1,405.87. Eight out of nine industries advanced. The top-gainers were telecommunications and health care sectors. CenturyLink and Sprint Nextel rose
Base metals tumbled on Friday on global growth fears. Disappointing China's trade data as well as deteriorating situation in the Eurozone weighted down on potential demand for industrial metals. Aluminum dropped on demand uncertainty from China. Meanwhile, medium-term supply concerns from Indonesia limited the downswing. Copper sank on elevating inventory levels. Inventories rose by 4% at Shanghai and by 2% at
Dow Jones Industrial Average balanced between gains and losses on Friday but managed to close with moderate increase of 0.33%. Negative news from the Eurozone and China weighted on the US stock market. However, speculation that global and domestic economic weakness will force the Fed to provide additional monetary stimulus sent US blue chips higher. Seven out of nine sectors
Precious metals except for gold retreated on Friday despite speculation that the ECB and POBC are preparing to ease their monetary policies after weak economic data. China's exports slowed last month while Eurozone's growth outlook for 2013 was cut by the ECB. Gold was the only gainer on global monetary stimulus hopes. However, stronger US Dollar and weak physical demand prospects
The Australian Dollar declined versus almost all of its major peers as global economic downturn curtailed demand for high interest currencies. The Aussie Dollar fell 0.2% to $1.0556 and dropped to 82.63 Yen. The New Zealand Dollar lost 0.2% to 81.17 U.S. cents and 0.2% to 63.53 Yen.
Norway's retail sales declined in June, after climbing most of the months in 2012, reported by Statistics Norway on Monday. Retail sales turnover, excluding automobiles, fell a seasonally adjusted 1.4% on month in June. The drop was lead by 1.8% decline in grocery sales and 4.5% fall in petrol stations' sales.
Greece's economy shrank for the ninth consecutive time in the second quarter and tumbled deep in the recession, Hellenic Statistical Authority said on Monday. GDP dropped 6.2% on year, compared to a 6.5% fall in preceding quarter and economists' estimate of 7%. GDP, calculated in current prices, declined at increased pace of 6.6% year-on-year in the second quarter after
Netherlands' retail price growth pace weakened in June, reported by the Central Bureau of Statistics on Monday. Retail trade turnover rose 1% on year in June, compared to 1.6% gain in preceding month. Food sales increased 4% year-on-year, while non-food sales posted a modest slid. Dutch retail trade posted a 2% drop on year in the second quarter of 2012.
Finland's wage growth pace increased notably in June, after a slower growth in preceding month, Statistics Finland reported on Monday. Salaries and wages in the overall economy rose 6.5% on year in June, compared to a 3.6% gain in May. In the first six month of the year overall wages advanced 5.2% from the first half of 2011.
France's current account deficit expanded in June after dropping marginally in preceding month, Bank of France reported on Moday. The deficit was EUR 6.3 billion in June up from EUR 4 billion in May. Goods account showed a EUR 6.3 billion deficit, while service account posted a EUR 1.5 billion surplus. Income account stayed steady from preceding month at EUR
U.S. homebuilder shares rose at a record-high rate in 2012, showing confidence the property rebound may expand with new-home sales still 50% below a 40-year average. The S&P Supercomposite Homebuilder Index surged 53% in 2012 through Aug. 10. Stocks climbed as new-home sales showed a seasonally-adjusted annual rate of 350,000 in June, from 304,000 a year earlier.
The Canadian Dollar rallied on speculation global growth will uphold demand for commodities such as oil, Canada's biggest export. The Loonie appreciated for more than a month against the U.S. counterpart, the longest strengthening period since October 2010. The Canadian Dollar gained 1% this week appreciating to 99.11 cents per greenback.
Retail sales in the U.S. probably increased in July for the first time in 4 months as employment grew, calming market concerns the recovery is faltering. Sales are expected to increase 0.3%, following a 0.5% decline in June. Other reports might indicate factory production rose and cost of living picked up last month.
The Kiwi and Aussie Dollars are cutting their links with commodities and global stocks as investors look for higher interest rates and faster growth. The correlation between the dollars and stocks has declined from record high. The currencies are weakening their links with traditional risky assets as both currencies advance at more than double average pace of G10 nations.
The U.S. Dollar rose against most of its major peers amid the Eurozone debt crisis pressure on global economy, spurring demand for safety of the greenback. The Euro bloc's economy probably contracted 0.2% in Q2 from the previous quarter, according to analysts' estimation. The U.S. Dollar gained 0.1% to 78.33 yen, while trading at $1.2295 per Euro.
On Monday, the Kiwi declined versus the U.S. Dollar as risk sentiment decreased on growing worries over global economic slowdown amid Japan's diminishing GDP. NZD/USD touched 0.8099, and traded at 0.8105, falling 0.33%. Elsewhere, the New Zealand Dollar was steady, gaining 0.05% to 1.3013 versus the Aussie.
Germany's Wholesale Price Index advanced unexpectedly rose to 0.3% in July from -1.1% in June, Destatis reported on Monday. Germany's WPI posted a 2.0% year-on-year rise, leading by 1.5% increase in oil products and solid fuels and 0.5% gain in fruits, vegetables, grains and seeds. In meantime, iron, steel, non-ferrous metals, data processing and household electrical items declined for less
U.S. treasuries gained second straight day as economic growth cooled in Japan and economists expected Europe to report a contraction, boosting demand for safer assets. Benchmark 10-year yields dropped 2 basis points to 1.64%. The price of the 1.625% note due in August 2022 rose to 99 28/32. Japan's 10-year yield slipped 1.5 basis points to 0.78%, falling from a
China's stocks posted the biggest drop in two weeks as Bank of America Corp. pared its economic growth estimates for China and amid belief the government will not alleviate monetary policy as housing prices rebound. The Shanghai Composite Index fell 0.6% to 2,156.25. The CSI 300 Index dropped 0.8% to 2,381.23. The Hang Seng China Enterprise Index declined 0.4%.
Gold and oil rose as Japan's GDP widened less than expected, adding signs to speculation central banks will create additional stimulus to support global growth. Oil gained 0.4% to $93.28 per barrel in New York on Friday. Gold for immediate delivery advanced 0.2% to $1,623.75 per ounce. While corn fell 0.3% in Chicago and wheat lost 0.8%.
Import prices in the U.S. unexpectedly dropped in July for a fourth month in a row, as costs for industrial supplies, consumer goods and imported oil tumbled. In general, import prices erased 0.6 per cent. Meanwhile, export prices added 0.5 per cent in the same month, pushed higher by the more expensive agricultural goods.