Fitch Ratings on Tuesday confirmed New Zealand's major ratings despite significant external indebtedness and worldwide economic slowdown. The long-term foreign currency Issuer Default Ratings was affirmed at "AA", while local currency rating was at "AA+", with stable outlook.
The Sterling climbed to a four-month high against the U.S. counterpart after a report posted the U.K. trade gap narrowed in July amid surge in exports, adding signs the economy is coming out of recession. On Tuesday, the Pound rose 0.2% to $1.6021, after reaching $1.6037, the highest since May 15, and was little changed versus the common currency at
On Tuesday, futures for oil were traded close to 3-week high on expectations of further monetary stimulus in U.S. and concerns over Europe's bailout plan. On the NYMEX, October delivery futures for crude were traded at USD96.50 per barrel at 12:12 London time, which was a USD0.04 decline. Yesterday, the contracts grew to USD96.54, which was a 3-week high.
Gold advanced as investors await Fed's meeting at Sept. 12-13 and Ben Bernanke signaled a possibility of an additional round of quantitative easing. On Tuesday, gold for December delivery gained 0.1% to $1,734.10 per ounce in New York, while immediate-delivery metal surged 0.3% to $1,371.82 per ounce in London.
The Shanghai Composite Index lost 0.7% and closed at 2,120.55 points. Today's performance was the worst in a week, after the index rallied by 4.8%, when China's government approved huge domestic infrastructure projects. Asian stocks fell after auto sales data was below estimations and Macquarie Group Ltd cut China's growth outlook from 8.1% to 7.7%.
The German Federal Statistical Office reported on Tuesday that the wholesale price index in Germany grew to 1.1%, compared to the August's figure of 0.3%. This was a higher than expected growth, since analysts expected that the index would held steady and be equal to the previous month's reading of 0.3%.
The Office for National Statistics reported on Tuesday that the U.K.'s trade deficit decreased in July to GBP7.2 billion from the June's figure of GBP10.1 billion. Economists, however, expected that the trade deficit would witness a more modest decline and would be equal to 9 billion pounds. Britain's export grew by 9.3%, while imports decreased by 2.1%.
The South Pacific currencies, namely the Australian and New Zealand Dollar, stayed lower amid weak demand for commodity currencies on escalating concern about China's economic slowdown. The Aussie Dollar was little changed at $1.0330 following a 0.5% decline yesterday, the biggest decrease since September 3. The Aussie touched 80.80 Yen from 80.91. The Kiwi fetched 80.95 U.S. cents from 80.88.
Consumer credit in the U.S. unexpectedly fell in July for the 1st time in a year. According to the Fed, a $3.28 billion decline followed a revised $9.8 billion increase in a month earlier, beating economists' expectations of $9.2 billion jump. Revolving credit including credit card spending dropped $4.2 billion, the most since 2011.
The Canadian Dollar reached 1-month high against the U.S Dollar and outperformed all of the major counterparts as investors await the Fed will introduce more stimulus measures to prop up growth. The Loonie gained 0.1% to 97.76 cents per U.S. Dollar, following an earlier rise to 97.55 cents, the highest level since September 2011. One Canada's Dollar buys $1.02291.
The U.S. Dollar weakened versus most of the 16 major counterparts before the FOMC's 2-day meeting tomorrow. The Dollar Index fell 0.1% to 80.361, 4-month low, on speculation the Fed will launch third round of QE, which usually debases the Dollar. The USD lost 0.1% to 78.22 Yen and 0.1% to $1.2765 per 17-nation currency.
The U.S. trade deficit probably expanded in July after narrowing to almost 2-year low as a global slowdown curbed demand for US-made goods. The gap increased from $42.9 billion in June to $44 billion in July. Weakening economies in emerging markets like China and debt-stricken Europe may start curtailing demand for American goods, a source of the expansion in the Q2.
European stock slightly decreased as the Stoxx Europe 600 index lost 0.3% to 271.01 points on the very beginning of London trading session. Investors pay attention to German court decision on suspension of €500 billion permanent bailout fund on September 12. Moreover, inbound shipments of China, Europe's trading partner, decreased by 2.6% in August comparing with one year earlier,indicating a weak domestic demand.
Oil futures for October settlement dropped 28 cents to $96.26 a barrel on Tuesday trading hours in Asia. Investors keep their positions on hold ahead of this week's U.S. oil inventory data and the FED's meeting on Thursday, where decision on further monetary easing programme might be announced. According to analysts, market's expectations are very high on the stimulus programme, therefore any
Asian stock markets edge lower on Tuesday trading session as the MSCI Asia Pacific index declined by 0.6% and reached 118.5 points. This is the first contraction of regional index in four days rally. Investors take profits as news from Europe raise concerns on Greece's debt situation. Also, markets wait the FED's announcement on further economic stimulus on September 13.
On Monday, the Canadian dollar rallied to a 1-year high versus the U.S. Dollar, amid expectations that Fed will launch another round of quantitative easing, while the Bank of Canada announced recently that its monetary policy could be tightened soon. USD/CAD hit 0.9790, a 1-year high, and later consolidated at 0.9782.
On Monday, the 17-nation currency was lower versus the Greenback, but remained supported as disappointing U.S. data fueled expectations of further Fed stimulus. EUR/USD hit a session's low of 1.2700, and subsequently consolidated at 1.2778, losing 0.29% in European afternoon trading session. The pair's support was likely to be at 1.2625, while resistance could be at 1.2816.
The Greenback rebounded on Monday, lead by the Euro easing after rising to nearly three-month high versus the U.S. Dollar last week after the ECB specified its bond-buying plan. The ICE Dollar Index increased to 80.314, from 80.182 on Friday. The EUR/USD dropped to $1.2780, from $1.2810. The GBP/USD fell to $1.5976, while AUD/USD slipped to $1.0346.
European stocks fell as traders were cautious before U.S. policy decisions and German constitutional court ruling on ESM. On Monday, the Stoxx Europe 600 Index declined 0.2% to 271.76, after climbing 2.3% last week. The CAC 40 Index slid 0.1% to 3,516.66, while the DAX 30 Index rose 0.1% to 7,221.07.
U.S. Treasuries tumble on Monday, as investors await the week's big events: the Fed's policy meeting, expected to result in further monetary easing, and the German court's managing on Europe's permanent rescue fund. 10-year bond yields advanced 2 basis points to 1.68%.
German stocks were flat on Monday ahead of the Federal Constitutional Court decision on ESM due on Wednesday. Dismal economic data releases from the US, China and Japan weighted down on growth-sensitive assets. At the same time, speculation that the Fed and POBC will announce easing measures to revive economy boosted German shares. The German DAX Index gained 0.01% to
UK shares slide on Monday despite speculation that the Fed and POBC will loosen their monetary policies. Meanwhile, market participants remained cautious ahead of the decision of the Federal Constitutional Court regarding suspension of EUR500 billion fund. The court is due to report its decision on Wednesday. The FTSE 100 Index dropped by 0.03% to trade at 5,797.38. Five sectors
China's stocks eased up on Monday as weak national data forced the government to approve industrial projects worth more than USD157 billion to boost economic activity in the country. Chinese industrial production climbed less than expected in August. The Hang Seng Index gained 0.13% to trade at 19,827.17. Seven out of nine sectors included in the index rose. The strongest
Japanese equities retreated on Monday after ending the previous week with sharp gains. Dismal national economic data created heavy pressure on Japan's stocks. The country's GDP expanded less than expected in Q2 while current account balance missed forecast in August. Additionally, exporters were hit by stronger Yen against the US Dollar amid speculation that the Fed will loosen its monetary