The Japanese Yen offset gains versus its major peers on Tuesday after the IMF fuelled speculation global leaders will support Japanese policy makers' attempt to depreciate the local currency. Yen sank 0.3% against the Euro to JPY 99.44 and slippped 0.1% versus the greenback to JPY 79.55. Currently EUR/JPY is trading at JPY 99.32 and USD/JPY is trading at JPY 79.49
The 17-nation currency fell on Tuesday versus most of its counterparts as Spanish rescue boosted worries that European debt woe is worsening. Euro dropped 0.3% against the greenback to USD 1.2482 after an early rally of 1.2%. Currently EUR/USD is trading at USD 1.2493.
Canadian currency declined from a nearly three-week record high versus its US peer on worries Italy may face same banking system problems as Spain. Loonie gained after Spain requested bailout but retreated when Italian and Spanish yields surged. Canadian Dollar dropped 0.5% to CAD 1.0317. Currently USD/CAD is trading at CAD 1.0299.
The price of crude oil diminished for a fourth consecutive day as Ali-al-Naimi, Oil Minister of Saudi Arabian announced OPEC needs a larger output quota. Moreover US allowed more exemptions from oil embargo from Iran. July crude fell by USD 1.63 to USD 81.07 a barrel. Brent Oil to be delivered in July dropped USD 0.25 to USD 97.75 a
The New Zealand and Australian Dollars rebounded from previous losses on speculation recent drop was excessive. Moreover private research showed Australian home value accelerated last month. Aussie soared 0.4% versus its US peer to USD 0.9900 while Kiwi gained 0.3% to USD 0.7714. Currently AUD/USD is trading at USD 0.9899 and NZD/USD is trading at USD 0.7715.
Spanish borrowing costs climbed close to monthly-record on Monday on worries the country's call for aid will not be sufficient to stop debt turmoil. Spain's benchmark 10-year yields surged by 30b.p. to 6.52%, the largest advance since May 14. 2-year borrowing costs soared to 4.55% and long term 30-year yields reached 6.76%.
Futures for copper gained 2% in the European Monday morning trading session, as investors were more confident after the EU agreed to bailout Spain up to EUR100 billion. On the NYMEX, July delivery futures for copper were traded at USD3.354 per pound. It earlier peaked at USD3.400, gaining 3.5% from the beginning of the trading session.
The British Pound gained versus the U.S. dollar during European afternoon trading session, as Spanish bailout news supported demand for risky assets. However, investors remained concerned about the handling of the Eurozone debt crisis. Cable peaked at 1.5582, and later consolidated at 1.5526, which was a gain of 0.35% in the European afternoon trade.
On Monday, the Euro grew versus the Japanese Yen, as Spanish bailout news increased demand for the European currency. EUR/JPY peaked at 100.92 in the European afternoon trading session, and later the pair consolidated at 99.88, which was a 0.42% increase from the beginning of the session. The support was prone to be found at 99.83, and resistance was prone to be at 101.46.
The U.S. dollar decreased versus the Canadian currency on Monday, as Spanish bailout news continued to sustain high demand for risky assets. USD/CAD peaked at 1.0201 in the early U.S. trade, and later consolidated at 1.0241, which was a 0.17% drop from the beginning of the session. The pair's support was likely to be found at 1.0137, and resistance was prone to be at 1.0258.
On Monday, the Euro pulled back from a three-week high versus the U.S. dollar, as logistic concerns of the Spanish bailout and uncertainty over Greek elections came into investors' focus. EUR/USD retreaded from 1.2669, which was a record high since may 23, and later consolidated at 1.2541, gaining 0.20% in the U.S. morning trading session.
Oil futures gained during electronic training on Monday, after news of a rescue plan for Spanish banks decreased investor concerns about the European crisis. Petroleum for July delivery ticked higher $1.38, a 1.6 per cent increase, to $85.43 a barrel .
Singapore's exports benefited from a boost as electronics' as well as pharmaceuticals' shipments grew in May. Country's NODX grew by 3.2% in the month of May following April's upturn by 1.7%. Electronics sales increased by 3.9% from the previous year; whereas, the pharmaceuticals exports augmented by 0.3% after experiencing a slump by 7.1% in the month of April also from the year before.
Asian markets inched higher this Monday on news of Spanish bailout plan for the country's banks. Hong Kong's Hang Seng Index jumped 2.4 per cent and Japan's Nikkei Stock Average grew 2 per cent. South Korea's Kospi, as well as Taiwan's Taiex both increased by 1.7 per cent.
Futures for natural gas dropped significantly in the U.S. Monday morning trading session, as the last week's report renewed concerns over the excess supply, and investors mostly did not pay attention to warm weather forecasts. On the NYMEX, July delivery futures for natural gas were traded at USD2.241 a MMBtu, which was a 2.5% fall since the beginning of the session.
U.S. markets slumped on Monday ahead of Greek elections. The Dow Jones Industrial Average retreated 4.73 points to 12,549.47. The Standard & Poor 500 Index gained 0.5 points to 1,326.23.The Nasdaq Composite dropped 2.88 points, a 0.1 per cent decline, to 2,855.54.
Canadian markets edged higher on news about Spanish aid request from the EU. The Standard & Poor TSX jumped 0.1 per cent. The country's currency weakened versus the USD, with the greenback buying C$1.0271, comparing to C$1.0224 in the previous session.
UK FTSE 100 index rose sharply in the morning trade adding 1% as investors prized Spanish bailout. Banks rallied with Lloyds Banking adding 2.4% and Barclays surging 1.1%. On the downside Tesco shed 0.9% after retailer reported a 1.5% fall in same-store sales. The index retreated during afternoon trade on news the anti-austerity party in Greece is gaining strength 6
German DAX index soared rapidly on Monday after Spain over the weekend called European Union to provide help for the nation's struggling banking sector. Euro opened at two week high but retreated during session. German banks and car makers recovered on hopes Spain's turmoil will be resolved at least for short-term period. Deutsche Bank surged 1.5% and Commerzbank advanced 1.1%.
On Monday, Ministry of Finance reported that Japanese Business Survey Index of manufacturing conditions grew less than it was expected in the first three months of the year. BSI of large manufacturing conditions reached the seasonally adjusted level of −5.7, rising from an annual rate of −7.3 in the previous quarter. Analysts, however, had expected that the index would rise to −2.4.
George Osborne told the Sunday Telegraph that he believes that the turmoil of the 17-nation euro currency bloc prevents the U.K.'s economic revival. The Chancellor of the Exchequer said that Britain's economy is already being impacted by costly oil prices; whereas, the debt crisis does not ease the current situation. Osborne also added that whilst a resolution will be determined for the Spanish banking system,
Gold value accelerated on Monday after Spanish officials asked for a USD 126 billion aid from European governments to rescue country's banking system. Gold to be delivered in August advanced 0.4% or USD 7.2 to USD 1,598.60 an ounce during European session. July silver futures gained 1% or USD 0.28 to USD 28.75 an ounce.
After the Euro zone governments agreed to the countries banking sector, demand for Spains 2 year notes increased pushing the yield below 4% for the first time in a month. The yield decreased by 33 basis points to 3.95% around 10 a.m. GMT. Spanish 10 year bond yield remained above 6% after speculations that bond holders will be ranked behind official creditors of the bailout. The yield decreased by
Tension grows around China's stimulus plan as inflation slows and the production output does not meet the forecasts. According to the National Bureau of Statistics, the inflation rate dropped by 3% from the previous year, production grew by 9.6% and the retail sales increased by 13.8%. In contrast, the projected figures by Bloomberg were 3.2% with regards to the inflation and 9.8% - manufacturing output.