German shares rallied on Tuesday on larger than expected increase in German economic sentiment. German ZEW economic sentiment index improved to minus 11.5 this month, beating expectations of a reading of minus 15.0. Moreover, two German officials announced that the country is open for Spain searching for precautionary credit line. The DAX Index soared 1.31% and is currently trading at
UK equities climbed on Tuesday as market mood was improved after German economic sentiment index beat expectations this month. Meanwhile, UK inflation stood at 2.2% in September, the lowest level in almost three years. Currently, market players are anticipating the EU summit due on Thursday. The FTSE 100 Index jumped 0.98% to trade at 5,862.40. All sectors within the index
Hong Kong shares extended their gains on speculation the POBC may ease its policy amid lower inflation. Positive data from the US coupled with stronger US and Asian equities also sent China's stocks higher. The Hang Seng Index gained 0.28% to close at 21,207.07. Seven out of nine sectors included in the index advanced. The top-performers were oil and gas
Japanese equities advanced on Tuesday on weaker Yen and upbeat retail sales numbers from the US. Moreover, mounting hopes that the POBC will launch more growth-boosting measures lifted equities. However, recent downward revision of Japanese industrial output continued to limit shares' rally. The Nikkei 225 Index surged 1.44% to end the session at 8,701.31. All but one sector within the
The Dow Jones Industrial Average Index gained 0.72% to close at 13,424.23. Market sentiment was boosted by encouraging retail sales data and mounting hopes that China will embark on easing measures. However, on-going uncertainty whether Spain will apply for a bailout continued to weight down on the US blue chips. Eight out of nine sectors included in the jumped. The
US shares surged on Monday on upbeat US retail sales data. US retail sales soared 1.2% in September while experts predicted the retail sales to rise by 0.8% last month. Adding to the positive mood of the US equities, China's inflation rate decelerated to 1.9% last month, suggesting that the POBC has a room for monetary easing. The S&P 500
On Tuesday, the British Pound advanced versus the U.S. counterpart on speculation about a 'soft' Spanish bailout, but gains seemed to be capped by concerns over further monetary stimulus by the Bank of England. GBP/USD was traded at 1.6123, which was a 0.33% gain for the European afternoon trading session. Earlier, it hit a session high if 1.6132.
The U.S. Federal Reserve reported on Tuesday that industrial output in the U.S. gained more than expected last month, following a sharp fall in the preceding month. Industrial production gained 0.4% in September after a 1.4% decline in August, which was revised downwards from an initially reported reading of 1.2%. Analysts expected that the September's reading would be an increase of 0.2%.
On Tuesday, the Euro was traded higher versus the U.S. Dollar, rising above $1.30, amid improvements in German investor sentiment and speculation that the Spanish government would soon request for bailout. The 17-nation currency added 0.8% to trade at $1.3055 by 8:31 a.m. in New York. Earlier in the day, the European currency reached the level of $1.3059, which was the highest since October 5.
Statistics Canada reported on Tuesday that manufacturing sales in Canada gained more than expected in August, ending a 5-month streak of losses. Canadian manufacturing sales rose by 1.5% on a seasonally adjusted basis in August, following a drop of 0.8% in the month before. Economists, however, expected that the August's reading would be equal to a 1% increase.
On Tuesday, treasuries were traded lower, following the report that showed that the cost of living increased in September, which supported speculations about an acceleration in inflation amid record stimulus by the Federal Reserve. The yield on benchmark 10-year notes added 4 basis points, reaching 1.70%, at 8:34 a.m. New York time.
On Tuesday, copper was traded higher, following stronger equities and the Euro and retreating from a 1-month low. Moreover, investor sentiment was also positively influenced by an upcoming European leaders meeting, which may reduce uncertainty over Spanish and Greek bailout. On the London Metal Exchange, three-month copper was traded at $8,145 per metric tonne.
Eurostat reported on Tuesday that Eurozone's consumer price inflation was revised down, declining unexpectedly last month. Year-on-year CPI fell to 2.6%, whereas economists expected that the revised reading of the index would be unchanged from the initial estimate, which was equal to 2.7%. Following the release of the data, the Euro added 0.34% versus the greenback to trade at $1.2991.
The Labor Department reported on Tuesday that consumer prices in the U.S. were advancing in September, following an increase the month before, which was a reflection of a growth in energy expenses. September's consumer prices were growing at a rate of 0.6% for the second consecutive month, while economists expected that it would by only 0.5%. Core CPI added 0.1%, which was lower than a 0.2%
The ZEW Center for European Economic Research in Mannheim reported on Tuesday that its index of investor confidence in Germany was growing in September for the second consecutive month, as ECB bond buying program supported speculations that European debt crisis can be resolved soon. German ZEW index of investor confidence increased to minus 11.5 last month, compared to a reading of minus 18.2 in August. Economists,
The Office for National Statistics reported on Tuesday that British inflation declined to an almost-three-year low last month. The slowdown of inflation was mainly driven by surging electricity and gas prices during the year prior to September 2011. Annual CPI in the United Kingdom added 2.2% the last month, compared to a reading of 2.5% in the preceding month. Economists, however, predicted that inflation would be
Gold futures for December settlement gained $3, or 0.2%, to $1740.70 in the beginning of London trading session. Metal price retreated first time in last three days, therefore some investors purchased it after price dropped the most in last few months yesterday. Although analysts say that gold price experiences pressure to move down due to a weak inflation data from
Standard & Poor's trimmed its credit ratings on Banco Santander SA (SAN) and Banco Bilbao Vizcaya Argentaria SA (BBVA), Spain's major lenders, together with nine other banks after decreasing country's sovereign rating to BBB-/A-3 last week, S&P reported on Tuesday. The agency downgraded Santander's long-term counterparty credit rating from A- to BBB-.
European stock futures inched higher ahead of a report expected to show German investor sentiment increased for a second consecutive month. The Euro Stoxx 50 Index futures advanced 0.9%, while those on S&P 500 Index rose 0.1% in London. Copper surged 0.8% in London, while wheat gained 0.6% in Chicago.
Brent oil premium against WTI has reached one-year peak, as the difference has climbed to $24.28 a barrel during New York trading session. Oil premium rises as investors are concerned about possible supply disruptions from the North Sea region and the Middle East. Also, markets stay cautious as the European Union tightens up Iran's energy exports sanctions. Investors of oil
Reserve Bank of Australia's policy makers decided that the central bank's monetary policy needs to become more accommodative, RBA's October meeting minutes showed on Tuesday. The bank mentioned that the pace of domestic expansion may be slower than original estimates, adding signs to global growth slowdown. At the meeting, the monetary policy board cut the cash rate by 25 basis
Farm commodities plunged on Monday as favorable weather conditions accelerated harvesting in the US and Brazil. Slightly lower US Dollar despite encouraging national data restricted losses of rural commodities. Wheat lost almost 1% after US numbers showed that farmers sold only 14,200 tons of grain last week, the lowest level since June.Corn was the top-loser as US harvesting is accelerating.
Energy futures except for Brent oil were bearish on Monday amid strong US data releases and persistent worries over Spain. The commodity group continued to face pressure after the EIA reduced its global demand estimate, citing lower consumption in Europe, US and China.Crude oil was almost flat, balancing between escalated tensions in the Middle East and concerns that global demand
Asian currencies advanced as U.S. retail sales data surpassed economists' expectations, thus supporting demand for higher-yielding currencies. Advanced retail sales in the U.S. increased 1.1% last month, while economists anticipated a 0.8% gain. South Korea's Won rose 0.3% to 1,107.13 per U.S. Dollar and the Philippine Peso gained 0.2% to 41.397. India's Rupee advanced 0.2% to 52.9126 and Malaysia's Ringgit