New Zealand's GDP grew 3.5% during the final three months of 2014, outperforming the median expectation of 3.4%. An unexpected acceleration took place due to a boost in tourist spending, as well as last week Bank of New Zealand's decision, to maintain interest rates unchanged. Governor Graeme Wheeler reckons that robust GDP growth will eventually translate into higher levels of
Japanese export rose more than expected in the preceding month, eliminating the effect of the previous year's recession. The total amount of overseas shipments advanced 2.4%, compared to the median estimate of a 0.3% increase. Imports dropped 3.6%, but there is still a 424.6 billion yen trade deficit.
The UK unemployment rate remained unchanged at 5.7%, the lowest level since October 2008. At the same time, the number of people seeking jobless benefits fell 31K, which is a smaller change after a 39.4K decline a month earlier. Average earnings grew less than expected, 1.8% instead of 2.2%.
According to the Monetary Policy Committee led by Governor Mark Carney, continued strength of the UK economy may stimulate the Pound to grow and thus lead to deflation. Meanwhile, the Cable, which touched a seven-year high versus the Euro this month, depreciated after weak wage growth.
The biggest iron ore producer and exporter in the world, Australia, lowered its forecasts for the ore prices, as an increase in shipments contributes to a global glut. According to the Department of Industry and Science, prices will reach $60 per ton this year, compared to the $63 in December and $88 in the preceding year. Meanwhile, the price for
Japanese stocks climbed as the central bank supported record monetary stimulus, meanwhile investors are weighing the US interest rates raise timing after poor economic data. The Topix index advanced 0.8% to 1,570.50 during the close in Tokyo, along with around 10 shares climbing for every seven which dropped.
Asian stocks climbed after the US equities rebound, while poor economic data weakened speculation the Fed will raise interest rates as soon as estimated. Tokyo Gas Co. rose 2.3%, along with Hitachi Ltd and Mitsubishi Heavy Industries Ltd that added 1.8%. Moreover, the MSCI Asian Pacific Index climbed 0.7% to 144.87 at 4:08 p.m. in Hong Kong.
Currencies and emerging-market stocks climbed, as the common currency appreciated amid speculation that as a result of poor US economic data the Fed may not raise interest rate as soon as estimated before. The Euro strengthened 0.4% to $1.0608 and a proxy to expected inflation in the United States derived from the debt markets touched the weakest level in six
European stocks fell after the German confidence grew less than it was estimated. The Stoxx Europe 600 Index lost 0.3% to 399.08 as of 10:01 a.m. London time, after the earlier 0.2% gain and the gauge closed at its strongest point since June 2007 yesterday. German investor confidence climbed from 53 to 54.8 in February, compared to the economists' forecast
The Standard & Poor's 500 Index reached its five-week high, while Treasuries advanced and the US Dollar fell, when weaker than expected economic data reinforced the view the Fed may not hike interest rates as previously anticipated. The S&P 500 rose 1.4% as of 4 p.m. in New York, touching to the highest level since February 3.
Government bonds in the UK set for their weekly gain, with 10 yields falling the most within this year, since the ECB's plan to start 1.1 trillion-euro bond purchasing programme pulled down rates in Europe. UK 10-year bonds dropped on Friday, enhancing the yield by 0.04%, or 4 bps, to 1.78% at 9:42 a.m. in London.
The Pacific Investment Management Co., announced its gloomy forecasts on the future demand for Chinese steel, since the real-estate market is slowing, thus affecting on the iron ore prices. Meanwhile, China is producing around half of a global steel production and is the major consumer of iron ore, which plunged to its record lows, since 2008 during this week.
European shares traded in a tight range, with the Stoxx Europe 600 Index setting for a weekly gain, while drops in energy stocks offset advances in industrial companies. The Stoxx 600 lost 0.1% to 395.01 as of 10:08 a.m. London time, while the equity gauge is setting to its weekly rise of 0.2%, since the weaker Euro currency spurred exporters.
The total amount of carbon dioxide, in China, decreased by 2% in the preceding year, showing the first decline since 2001, and giving hopes, that air pollution preventing measures are working. Moreover, the demand for coal is decreasing, while other fuels are consumed more, these reasons, also help to curb level of pollution.
A record glut in US oil inventories may stretch the world's largest economy's storage capacity, enhancing a drop in prices and curbing its output, the International Energy Agency reported. West Texas Intermediate oil, the US benchmark, erased earlier gains falling 0.8%, or 38 cents, to $46.67 a barrel during the New York Mercantile exchange as of 9:53 a.m. in London.
The US Dollar is experiencing its best gains in six and a half years, since investors have time to speculate, before the possible Fed's interest rate hike in June. The Dollar managed to rebound on Friday, before Fed policy makers meeting, which is scheduled for the next week. Meanwhile, the US currency climbed 0.5% to trade at $1.0577 per Euro;
The Nikkei 225 added 1.4% to 19,254.25 level, showing the record highs, since April 2000, as the stocks of leading Japanese supplier of robotic automation, Fanuc Corporation, soared 13%. Meanwhile, the Topix climbed 0.9% to trade at 1,560.33 level, also demonstrating the highest gains, since December 2007.
Asian currencies depreciated about for a second week, led by the Indonesia's Rupiah and South Korea's Won, on speculation the Fed is likely to increase its interest rates in late June. The Won fell 2.7% this week, setting the biggest drop since 2011, along with the Rupiah that slumped 1.7%, touching to its seven-month low.
An unexpected rate cut by South Korea's central bank pushed Asian stocks to the new highs. Therefore, the Korean Kospi rebounded, but then dropped 0.5%. Japan's Nikkei 225 soared 1.4% showing a new 15-year record. Meanwhile, the Euro plunged to new 12-year record lows, on the ECB decision to start bond-buying programme.
The single European currency has fallen to its lowest level versus the Dollar in 12 years, after the ECB announced the start of the new government bond buying programme. The Euro dropped around $1.0505, posting the lowest level since March 2003. Moreover, a continues slide, could heat up a possible equality to the Greenback. The last similar scenario was noted
Australia's unemployment rate fell almost in line with expectations in February, with smaller number of people looking for a job in a gradually strengthening economy. The unemployment rate slipped to 6.3%, compared to 6.4% in January. Meanwhile, the total number of jobs advanced by 15,600 to 11.65 million, rebounding from a 14,600 decrease in January.
US stocks started to appreciate after the biggest drop due to a surging Dollar. The Standard & Poor's 500 Index rose 0.3% to the 2,048.30 level, while the Dow Jones Industrial Average futures added 39 points, or 0.2%, to trade at 17,705. Meanwhile, equities were also affected by the Fed's intentions to raise interest rates this summer.
The European stocks soared, as the Euro slipped 0.8% to the $1.0611 level, falling to the weakest level in 12 years, making European goods more competitive. As a result, automakers and other exporters pushed the Stoxx Europe 600 Index 1.2% higher. Meanwhile, the BMW AG, rose 3.2%, while Daimler AG added 2.5%.
The Cable continues its bullish tendency versus the Euro, showing the highest gains in eight years. The Pound soared 0.8% to 70.45 pence per Euro, while the single European currency dropped on the ECB decision to start its 1.1 trillion-euro bond-buying programme.