On Thursday, Treasuries rose for the fourth consecutive day, as investors eyed the upcoming report on manufacturing activity in Philadelphia. Benchmark yields on 10-year government notes lost 4 basis points and were equal to 1.73% at 8:38 a.m. New York time. The four-day gain was the longest since August 23.
On Thursday, oil was traded near a 6-week low on U.S. supply data, which added the most since March, and slowdown in Chinese manufacturing activity. On the NYMEX, October delivery futures for crude were traded at USD90.66 per barrel, which was the lowest since August 6. November delivery contracts declined by 0.3% to trade at USD92.04.
On Thursday, futures for gold came off a session low, following the release of the data on the U.S. unemployment, which was more pessimistic than expected. On the NYMEX, October delivery contracts for gold were traded at USD1,765.75 per troy once, which was a 0.2% fall for the U.S. morning trading session. Earlier, the prices hit USD1,755.75 per troy once, which was a session low.
Japan's exports fell for a third straight month in August, as global demand slows. Nation's exports fell 5.8% from a year earlier, while analysts predicted Japan's exports to decline 7.3% last month. The trade deficit widened to 754.1 billion yen ($9.63 billion) in August, against an expected gap of 809.0 billion yen.
Markit reported on Thursday that the first estimate of its manufacturing PMI in Germany was 47.3 in September, which is an increase from the August's final reading of 44.7. Economists, however, expected the index would rise at a more modest pace, reaching only 45.3. The German manufacturing index in September was the highest since March.
The Office for National Statistics reported on Thursday that the retail sales in the U.K. declined in August, since Olympics distracted shoppers. Retail sales fell by 0.2% from the July's level, whereas economists predicted that the decline would be steeper and equal to 0.3%. Non-store retailing, which is predominantly online shopping, lost 6.7%.
The U.S. Department of Labor reported on Thursday that the amount of jobless claims increased more than expected. The number of Americans who filed for unemployment benefits in the week ended September 15, was equal to 382,000, unchanged from the previous week. Analysts, however, expected that the reading would decline to 375,000.
On Thursday, Spain sold its government debt worth 4.8 billion Euros, which is the biggest amount since January. The Treasury in Madrid managed to sell 3-year bonds for 3.94 billion Euros at the average yield of 3.845%, and 859 million benchmark 10-year government bonds at the average yield of 5.666%, compared to a 6.647% yield at a similar auction last month.
Germany's manufacturing sector fell further in September, however, posting the slowest rate of contraction in six month, Markit Economics said on Thursday. The seasonally adjusted manufacturing PMI advanced to 47.3, compared to 44.7 in August. Economists had forecast a reading of 45.2. Meanwhile, service PMI surged to 50.6 September, signing expansion, from 48.3 in previous month.
Gold futures tumbled in electronic trading on Thursday, corresponding to losses across commodities, as the greenback advanced and data showed China's manufacturing held weak in September. December-delivery gold declined 0.4% to $1,764.50 per ounce. Same month copper fell 1.69%. Platinum for October delivery dropped 2.4% and silver for the same month slipped 0.7%.
Swiss trade surplus contracted in August, Swiss Federal Customs Administration said on Thursday. The surplus dropped to CHF 1.733 billion from CHF 2.88 billion in July. The trade balance posted a surplus of CHF 16.2 billion for the first eight month of 2012. Exports surged 4.4% on year in August, after a 0.8% rise in previous month. Imports rose 0.9%
Japan's all industry output contracted more than estimated in July, lead by a 2% drop in construction and a 1% fall in industrial production, the Ministry of Economy, Trade and Industry reported on Thursday. All sector activity slipped 0.6% on month, after a 0.3% advance in June. Economists expected a decline of 0.5%.
Germany's Producer Price Inflation rose more than estimated in August, Destatis said on Thursday. The PPI accelerated 1.6% on year in August, slightly faster than the 0.9% surge in July. Economists expected an advance of 1.5%. Energy prices climbed 3.2% and capital goods' prices gained 1.1%. Consumer goods' prices surged 2.3%, while intermediate goods' prices slipped 0.2%.
New Zealand's economy rose 2.6% on year in the second quarter, exceeding economists' estimates and accelerating from the 2.3% advance in the previous quarter. New Zealand's agricultural sector activity climbed 4.7%, the sector hasn't been as strong since June 1987. Meanwhile, construction activity jumped 3.3%.
Agricultural commodities were mixed on Wednesday, with grains climbing and coffee and sugar slumping. Broadly weaker US Dollar and stimulus measures in Japan boosted market sentiment. Wheat rose as Morocco is likely to suspend all wheat taxes starting from October as commodity price on the international market remains high. However, news that Ukraine will not impose wheat export restrictions capped
Asian stocks declined on Thursday, failing to stick to preceding session's advance amid monetary-easing, as energy companies fell along with U.S. oil futures and as China's manufacturing PMI rise did little to fuel interest for the stocks. The Nikkei Stock Average slipped 1.6%, Australia's S&P 200 Index slid 0.5%, the Hang Seng Index fell 0.9%, and Shanghai Composite Index dropped
Energy commodities tumbled on Wednesday as BoJ stimulus measures failed to provide strong support for the commodity group. Elevated inventory levels in the US as well as potential increase in supplies form Libya, Russia and Saudi Arabia created heavy pressure on energy prices. Crude oil plunged after the EIA reported that US crude oil inventories climbed 8.5 million barrels last week
China's manufacturing activity slowed down for 11th consecutive month in September, however, at a slightly slower pace than in the previous month, preliminary report showed on Thursday. HSBC's "flash" PMI was at 47.8 points, from 47.6 in August, but still lower than July's reading. Analysts expect the official PMI reading on Oct. 1 to surge above 50-level showing expansion in
Industrial metals were mixed on Wednesday after the Bank of Japan announced easing program to stimulate faltering economy. Moreover, slightly better-than-expected HSBC China's PMI release lifted the base metals. Aluminum was the top-loser amid increased global output and elevated inventory levels at the LME warehouses. Meanwhile, traders remained cautious ahead of the US jobless claims data due on Thursday. Copper added 0.37%
Precious metals were mixed on Wednesday after the Bank of Japan announced that it will expand its assent and loan-purchasing program to boost economy. Weaker US Dollar coupled with rising holdings of the largest precious metals-backed funds created additional support for the commodity group. Gold was almost flat despite easing measures in Japan and weaker US Dollar. Positive data from the
German stocks are trading on the positive note, erasing early losses. German equities were boosted by easing measures in Japan and rally in Asian shares. Positive data from the US real estate market also lifted German stocks. US existing home sales grew more than expected this month. The German DAX Index added 0.27% to trade at 7,367.53. Four in nine
UK shares are trading slightly higher on Wednesday on positive news from Asia. The BoJ decided to expand its asset-buying program to boost economic activity in the country. However, uncertainty over Spain's next bailout continued to weight on market sentiment. The FTSE 100 Index lost 0.11% to trade at 5,861.93. Seven out of ten sectors within the index gained. The
Hong Kong equities surged on Wednesday after the BoJ announced stimulus measures to boost faltering economy. However, continuous uncertainty whether Spain will ask for financial aid capped the upswing of the Hong Kong blue chips. The Hang Seng Index rallied 1.17% to end the session at 20,841.91. Six out of nine business sectors included in the index surged. The largest
Japanese equities rallied on Wednesday after the Bank of Japan announced monetary easing to boost the national economy. The BoJ stated that it would expand the asset-purchasing and loan program by USD127.21 billion. The Nikkei 225 Index soared 1.19% to close at 9,232.21. All but one sectors within the index jumped. The top-performers were technology and consumer goods. Shares of