Japanese stocks rallied on Tuesday on speculation that central banks around the world will provide additional monetary stimulus to boost economy. Investors also continued to await an outcome of the Bank of Japan's meeting due on Thursday. Nikkei 225 soared by 0.88% to 8,803.31. All sectors included in Nikkei 225 advanced. The strongest gains posted utilities and oil and gas
Energy commodities climbed as turmoil in West Asia created a supply-risk premium for the commodity group. From the demand side, energy prices were supported by speculation that the Fed may ease its monetary policy in view of weak job market. Crude oil rallied for the second session, approaching 11-week high as investors focused on potential supply disruptions from West Asia. Brent
Dow Jones Industrial Average added 0.16% to end Monday session at 13,117.51. Mixed data from the US job market on Friday as well as speculation that the ECB will restart its bond-purchasing program pushed US blue chips higher. Seven out of nine sectors included in the index posted gains. Base materials and telecommunications were the strongest sectors in the index.
Industrial metals rose on Monday on improved risk-sentiment after Angela Merkel agreed on the ECB bond-buying program. Moreover, recent PBOC pledge to fine-tune monetary policy in H2 pushed base metals higher. Aluminum gained amid optimism over the Eurozone. However, elevating inventories and weakening spot market activity restricted the upswing. Copper moved higher on speculation that the Fed may provide additional stimulus for
US stocks extended previous gains on Monday amid absence of major fundamentals. Hopes for easing from the ECB and BoJ bolstered US equities. Meanwhile, larger than expected increase in the US non-farms payrolls continued to lend support for US stocks. S&P 500 closed 0.23% higher at 1,394.23 on Monday. Technology and base metals were the strongest industries in the index.
Precious metals were mixed on Monday, with gold and silver moving higher and platinum and palladium retreating. Weaker US Dollar coupled with easing concerns over the Eurozone's crisis supported the commodity group. Gold advanced by 0.44% on softer greenback. Meanwhile, hopes for decisive action from the ECB and Fed also bolstered the yellow metal. Silver followed gold's suit, rising by 0.34%. Stronger
The Euro increased versus most of its major peers as German government supported the ECB's proposal on bond buying to stabilize borrowing costs in Italy and Spain. On Tuesday, the Euro gained 0.3% to 97.35 Yen after touching 97.80 yesterday, the highest since July 12. The Euro also rose 0.1% to $1.2417.
Italy's industrial output dropped more than estimated in June, showing recession expanding to the second quarter. Industrial production fell 1.4% from May, reported by national statistics office ISTAT on Tuesday. Production dropped 8.2% workday-adjusted from 2011.
Italy's economy dropped 0.7% in the second quarter, as reported on Tuesday. ISTAT said that GDP fell 2.5% year-on-year after a drop of 1.4% in the first quarter, showing the deepest decline since the end of 2009. The data creates struggle for Mario Monti, who is targeting to diminish the budget deficit to 0.1% of GDP through 2014, to fulfill
U.K. industrial production dropped less than expected in June, showing the crisis may have been less intensive in the second quarter than reported before. Industrial output slipped 2.5% from May amid the impact from additional public holiday on queen's Jubilee, reported by the Office for National Statistics on Tuesday. The fall was the highest since November 2008, however, it was
While corn and soybeans are driven by the drought to record highs, farmers are ready to collect an all-time high rice output and Thailand is building the biggest inventory in five decades, trying to relief the world from a food crisis. Benchmark 5% Thai white rice is expected to fall 14% to $480 per ton by Dec. 31. Rough-rice futures
Switzerland's consumer price index posted a drop of 0.5% from a month earlier in July, according to the Federal Statistical Office data released on Tuesday. The CPI reached 99.0 points. Year-on-year inflation showed 0.7% decline, compared with annually-adjusted rates of -1.1% in June 2012 and +0.5% in July 2011.
Swiss National Bank's and Swiss monetary authorities' deposits and bonds denominated in foreign currency expanded to CHF406.5 billion in July, from CHF364.9 billion in previous month, as reported by the National Bank on Tuesday.
According to the British Retail Consortium, the U.K. retail sales increased in July as the Olympics boosted demand for drinks and food. Stores open at least a year experienced 0.1% rise in sales, while those open less than a year faced 2% increase in July from a year earlier. In three months through July, food sales rose 0.9% from the
As predicted, the Reserve Bank of Australia decided to keep its interest rate unchanged at 3.5% as reductions in May and June helped to support household demand and the Aussie's strong performance contains inflation. Officials lowered cash rates in June and July in order to protect the Australian economy from Eurozone's turmoil.
Oil almost reached two-week high as the Atlantic tropical storm Ernesto is expected to strengthen and become a hurricane, approaching the Bay of Campeche, where most of Mexico's crude production is placed. Oil for September settlement traded at $92.20 per barrel, the highest price since 19 July. Brent crude for September delivery was at $109.45 per barrel.
The U.S. Dollar dropped versus most of its major peers as risk appetite spurred after German Chancellor Angela Merkel supported the ECB's bond-buying plan to combat the region's debt crisis. The greenback lost 0.3% to 78.25 per Yen, while falling to $1.2401 per Euro, after declining earlier 0.5% to $1.2444, the month-weakest level, and jumping 0.4%.
Brazil's swap rates increased amid a report posted rising inflation, which reduced optimism the central bank will stabilize the pace of cutting borrowing costs. On Tuesday, swap rates due in January 2014 rose to 7.79%, the strongest close since July 31. The Real dropped 0.1% to 2.0311 per U.S. Dollar. Inflation climbed to 1.52% in July from 0.69 in June.
Japan's stocks rose for a second day, with the Nikkei 225 Stock Average having a four-week high close, on speculation Germany will participate in the ECB's bond-purchasing plan to cool the region's debt crisis. The Nikkei 225 gained 0.9% to 8,803.31, the strongest since July 11, with volume 7.6% less than 30-day average.
The Australian Dollar touched the four-month high against its U.S. counterpart amid expectations that the Reserve Bank will keep its cash rate unchanged at 3.5% at the central bank's meeting today. The Aussie rose 0.1% to $1.0581 from the previous day, when it jumped to $1.0593, which is the highest level since 20 March.
The Japanese Yen stayed stronger against most of major counterparts amid speculations that the Bank of Japan will refuse further monetary easing at its policy meeting, which starts tomorrow. The Yen rose 0.3% to 78.27per US Dollar, while against the Euro the Yen traded at 97.06 up from 97.03.
The Dow Jones Industrial Average posted the longest rally since October as U.S. stocks advanced for a fourth straight week amid jobs data exceeding forecasts. The S&P gained 0.4% for the week to 1,390.99. the Dow rose 0.2% to 13.096.17, the strongest since May 3. The benchmark index for U.S. equities increased its 2012 rise to 11%.
The Sterling tumbled versus the U.S. Dollar, after two reports posting slowdown in the real estate market showing fragility of U.K.'s economy. The U.K. currency fell to the weakest in four weeks versus the Euro as Rightmore Plc reported U.K. home sellers might seek lowering prices to retain buyers, and Halifax said house values fell in July. The Pound slipped
The Euro rose versus its major counterparts after the Eurozone Sentix investor confidence report posted a lower than expected decline. The Euro traded 1.2363 versus the U.S. Dollar, 1.2015 versus the Swiss Franc, 0.7942 against the Pound and 96.92 versus the Yen. The Eurozone Sentix investor confidence appeared at -30.3 in August after -29.6 in July, while economists awaited the