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.
Investment, retails sales growth, as well as factory output missed economists' expectations during the first two months of the current year, underlining the necessity of more economic stimulus. Industrial output rose 6.8% during the January and February, showing the slowest expansion since the 2008 year' crisis. Retail sales, in turn, advanced 10.7% and did not reach the economists' forecasts of
According to the Office for National Statistics, UK manufacturing production unexpectedly dropped by 0.5% in January, after a 0.1% rise in the preceding month. The decrease in output was mostly affected by slowing electronic sector, which dived 9.5%, posting the biggest monthly fall since 2002. However, over the year, industrial production rose 1.3%.
Hedge funds cut their bets on climbing oil prices since December 2012, while inventories in the US grew to the strongest levels in three decades. WTI added 2.5%, or $1.24, to $50.52 a barrel during the New York Mercantile Exchange, while the US benchmark grade fell 12 cents to $49.49 a barrel in the electronic trade session.
The bond manager at Janus Capital Group Inc, Bill Gross, is concerned with the strong US Dollar, which could lower the Fed's expectations for inflation. According to Gross, the Federal Reserve is more likely to increase interest rates in June, though rates may be stuck below the historical mean for several years.
Japanese stocks slumped, when the US labour market data boosted speculation of an interest rate raise in the world's biggest economy. Real-estate stocks dropped along with Mitsubishi Estate Co. falling 2%. The Topix index declined 0.6% to 1,531.76, erasing last week's 1.1% advance. Moreover, The Nikkei 225 Stock Average lost 1% to 18,790.55.
The collapse in global crude prices puts at a risk the future investments into Colombia's ethanol industry, as reckoned by the Andean states' biofuels federation. Oil prices slumped as much as 51% previous year, reinforcing the view that foreign investors want more guarantees regarding a legal framework and the future demand that will support the industry.
Following the release on the US non-farm payrolls, EUR/USD plunged 94 pips in an instant, from 1.0981 down to 1.0887. The number of workers in the world's largest economy grew by 295K, while the consensus was for a 240K increase. At the same time, the unemployment rate in the United States was reported to fall from 5.7 down to 5.5%.
European stocks traded in a tight range near their strongest point since July 2007, while the investors are waiting for the US payrolls data. The Stoxx Europe 600 Index added 0.1% to 393.81 as of 8:08 a.m. London time, heading for its biggest gain in two days since January, amid the ECB's commitment to start purchasing bonds next week.
The US claims for jobless insurance climbed last week to their nine-month high, reinforcing the view that harsh winter weather could stall the labour market's development. US initial claims rose by 7,000 to 320,000 at February 28, building on a surprisingly large 31,000 increase to 313,000. The increase defied market expectations for claims to slid to 295,000.
The Euro zone economic recovery is gaining momentum, reinforcing the view the continuing economic improvement is likely to stir debate about the end of the massive government bond purchasing programme. Consumer prices in the Euro-area lost 0.3% in February, which is a half of the previous month change and less than economists estimated. Moreover, unemployment fell to 11.2% in January,
The UK natural gas prices, Europe's largest trading market, fell for a third day, when Ukraine and Russia reached an agreement on payment conditions of fuel supplies in March. Gas in the UK for April settlement fell 2.2%, touching the weakest level since February 24 during the London ICE Futures Europe exchange.
The Ruble closed its second day decline, while Russian bonds and stocks enjoyed stronger demand, since oil price returned up to $60 a barrel, thus enhancing the sentiment. In the meantime, Morgan Stanley lowered expectations on the rally. The Russian currency strengthened 1% to 62 versus the Dollar, while Brent oil recovered from the biggest drop in a month.
European stocks declined for a second day amid the drop in energy and Barclays Plc shares. The Stoxx Europe 600 Index slid 0.3% to 390.31 as of 1:32 p.m. London time, paring previous 0.3% gains. Meanwhile, Barclays Plc lost 2.7%, while Galp Energia SGPS and Royal Dutch Shell Plc dropped around 2%, pulling energy shares to the weakest productivity amid
Gas and oil companies are going to spend around $450 billion in order to buy each other in 2015, since poor valuations caused by oil price collapse encourage acquisitions and mergers, said A.T. Kearney's consultants. Brent crude dropped 48% previous year on a surge of North American oil supply and OPEC denial to cut its production.
European stocks declined from their strongest point since 2007, when a drop in chemical shares at the head with BASF SE outbalanced surprisingly strong financial results from businesses. The Stoxx Europe 600 Index fell 0.2% to 389.75 as of 11:33 a.m. London time, but it climbed 6.2% in February, heading to a 14% gain this year on Greece bailout deal
Sweden's Krona gained after a report was released indicating the largest Nordic economy developed much faster than it was expected within the last quarter. Data showed Swedish GDP expanded 1.1% in Q4, compared to a 0.5% estimate. The Krona appreciated 0.6% to be at 9.3566 versus the Euro at 11:07 a.m. in Stockholm, and gained 0.8% to 8.3391 against the
Japanese stocks advanced, spurring the Topix index to a seven-year record, after increase in energy extraction due to strong rise in fuel prices. Crude explorer Inpex Corporation added 3.3%, while Yamada Denki Co. soared 5.2%. Meanwhile, the Topix index slightly increased 0.9% to 1,521.68 level, posting its biggest gains since December 2007.
Gold rebounds from seven-week lows, since Chinese traders returned from the Lunar New Year holiday, while investors is assessing the possibility of Fed's rate hike before US inflation data. Precious metals added 0.7% to $1,213.23 per ounce. Gold slightly climbed 0.4% on Wednesday, showing gains from a seven-week deep of $1,190.52.
Currency volatility head for its sharpest weekly slide since 2010, as Federal Reserve Chair Janet Yellen announced on Wednesday, that the central bank is not going to raise rates in the near future. The Bloomberg Dollar Spot index, a currency gauge against 10 major peers, was slightly changed at 1,163.49 from 1,163.13 level. Meanwhile, before Yellen's speech, the gauge rose
The impact of the plunged crude prices on Japan is not as obvious as for the other countries, since the Yen dropped to seven-year lows. The prices for Brent crude oil decreased around 4% since June, while gasoline, in turn, dropped 11% in Japan. The Yen has lost more than 14% versus the Dollar, thereby accelerating rise of prices for
The Chinese government is going to decrease down-payment for a second real estate purchase and to remove the sales tax, if the home-owner held the estate for two years, compared to the previous five-year minimum. The decision comes after prices for new buildings posted a record drop in January.
Asian shares rose on Wednesday, prolonging five-month gains, as Federal Reserve Chair Janet Yellen announced that the Fed is not going to raise interest rates in the next three months. Therefore, the MSCI Asia index added 0.6% to trade at 146.20 level in Hong Kong showing its biggest gains since September 12. The Kospi index and Taiwan's Taiex index, in
The Euro depreciated, while Europe's stock benchmark reached the highest level in seven years before talks on Greek's funding. Europe's shared currency declined against all but one 16 major peers, weakening 0.2% to $1.1343 as of 10:16 a.m. London time.