The Swiss Franc declined versus the Euro to the lowest level in a month on speculation the Swiss National Bank will shift the cap to weaken the local currency. The Franc lost as much as 0.2% to 1.2058 per Euro, the lowest level since August, while being little changed at 95.65 centimes per Dollar.
The Euro hovered near a two-month high versus the U.S. Dollar on speculation the ECB will announce today bond purchases to tame the Eurozone's crisis. The Euro touched $1.2612 from the day before, when it climbed 0.3%. The common currency fetched $1.2638 on August 31, the highest level since July. The Euro also gained 0.1% to 98.91 Yen.
Farm commodities slumped on Wednesday amid improved weather in Brazil and India. Meanwhile, slowing demand for US grains exports weighted down on wheat and corn futures. However, broadly lower US Dollar provided slight support for rural commodities. Wheat plunged to almost three-week low on news that demand for the commodity will weaken as livestock producers are switching to cheaper corn for
Energy commodities except for crude oil moved lower ahead of the US inventory data release due on Thursday. Adding pressure on the commodity group, most of the refineries in Louisiana restarted production as tropical storm, Isaac, passed. Crude oil was almost flat, balancing between easing concerns over supply disruption from the Gulf of Mexico and potential fall in the US crude
Industrial metals rallied on Wednesday after news that the ECB is likely to announce an unlimited bond-purchasing program without capping the bond yields. Expectations of stimulus measures from the Fed and POBC also buoyed the base metals group. Aluminum remained well-supported by strong vehicle sales and mounting easing hopes. The light metal also found support on lower inventory levels at the
Precious metals were mixed ahead of the key ECB meeting due on Thursday. The ECB is expected to cut its benchmark interest rate by 25bps to 0.50%. Moreover, some analysts predict that the ECB may announce an unlimited bond-buying program at the policy meeting. Gold dropped at the early European session; however, the yellow metal managed to trim losses during US
European stocks rose as investors awaited the ECB President Mario Draghi to announce a plan to tame the Eurozone debt crisis. The Stoxx Europe 600 Index gained 0.3% to 266.28. Standard & Poor's 500 Index futures also rose 0.3% today. Draghi will convene a press conference at 14.30 in Frankfurt, after the ECB announces an interest-rate decision.
Economists said that the U.S service industry growth probably eased in August. The ISM's non-manufacturing index is estimated at 52.5 last month comparing to 52.6 in July. Three consecutive months of manufacturing contraction and limited momentum in service industries are the main reasons why the expansion struggles to advance and create more jobs.
The Bank of Canada announced on Wednesday, September 5, that it is maintaining its target for the benchmark interest rate at 1 per cent. Canadian central bank left its interest rate unchanged for a sixteenth consecutive month, as global economic outlook is getting more uncertain. Soon after the report, the Canadian Dollar depreciated versus its U.S. counterpart, with USD/CAD currency pair jumping 0.15 per cent.
German shares rallied on Wednesday despite weak Eurozone's data releases. German services PMI contracted at the fastest speed since August 2009 last month. Meanwhile, traders anticipate the ECB press conference due on Thursday. The German DAX Index soared 0.45% to trade at 6,959.25. Eight out of nine economic sectors included in the index jumped. The best-performers were health care and
UK shares are trading lower on Wednesday amid high risk-aversion in the markets ahead of the key ECB meeting due on Thursday. Adding to the negative mood of the UK stocks, Eurozone's retail sales contacted by 0.2% in July. The FTSE 100 Index lost 0.26% to trade at 5,657.38. Six out of ten sectors within the index posted gains. The
European stocks turned green, after the ECB's meeting, with Mario Draghi's bond-buying proposal involving unlimited purchases of government debt. The Stoxx Europe 600 Index added 0.3 per cent to 266.32; French CAC 40 Index jumped 0.7 per cent to 3,421.94, while German DAX 30 Index gained 0.6 per cent to 6,975.06.
Gold futures inched lower on Wednesday, as traders are taking profit after bullion reached five-month high during previous sessions. Gold for delivery in December lost 0.1 per cent, to $1,694.10 per ounce. Other precious metals were mixed, with December silver and October platinum both erasing 0.2 per cent. At the same time, December copper and palladium for the same month added 1.4 per cent and 0.34
Crude oil futures turned red on Wednesday, as investors worried about weak Eurozone's fundamentals and following the yesterday's U.S. manufacturing report. Crude oil for October settlement inched lower 0.75 per cent to $94.60 per barrel. In the meanwhile, Brent oil futures with October contract lost 0.8 per cent to trade at $113.28 per barrel.
Chinese stocks extended previous slump on Wednesday amid weak market confidence after negative headlines from the US. Anticipation of the ECB press conference also weighted down on the market sentiment. The Hang Seng Index lost 1.47% to close at 19,145.07. All sectors included in the index dropped. The top-losers were basic materials and consumer services. Aluminum Corp of China and
On Wednesday, the Bank of Canada announced that it left the benchmark interest rate unchanged for the sixteenth month in a row. The overnight rate is 1.00% , which is in line with expectations. Following the announcement, the U.S. Dollar trimmed gains versus the Canadian currency, losing 0.15% and being traded at 0.9873.
U.S. stock futures trimmed Wednesday losses as Bloomberg News announced the ECB bond proposal promise "unlimited, sterilized" purchasing but abandon putting public-yield caps. Dow Jones Industrial Average futures tumbled 19 points to 13,031. S&P 500 Index futures fell 4.8 points to 1,401.2. Nasdaq 100 futures slipped 12.5 points to 2,762.
On Wednesday's European afternoon trade, the Greenback was mixed versus its major counterparts, as traders eyed the upcoming ECB's policy meeting. The U.S. Dollar was modestly lower versus the Euro, losing 0.16%, with EUR/USD at 1.2586. The U.S. currency was also lower against the British Pound, with GBP/USD at 1.5916, which was a 0.29% increase. The Greenback gained 0.15% versus the Canadian Dollar, being traded at
U.S. Treasuries declined and the U.S. Dollar cut rise on Wednesday, increasing yields, as a media report added signs the ECB may create a further sovereign-debt buying program at this week's meeting. 10-year note rates moved 1 basis point up to 1.58%. The ICE Dollar Index slipped to 81.249 from 81.327 yesterday.
The U.S. Bureau of Labor Statistics reported that productivity in non-farm business sector increased by 2.2% on a seasonally adjusted basis in the second quarter, which is more than an estimate of 1.6%. Analysts expected that the revised figure would be 1.8%. Following the release of the data, the Greenback was lower versus the Euro, gaining 0.2% and was traded at 1.2592.
U.K. service sector expanded at a five-month high pace in August, Markit Economics and the CIPS reported on Wednesday. The seasonally adjusted service sector PMI increased to 53.7 in August from 51 in previous month. Economists had estimated a reading of 51.2. August reading posted the twentieth straight month of expansion.
Markit Financial Information Services reported on Wednesday that services PMI in Spain increased to 44.0 in August on a seasonally adjusted basis from the July's figure of 43.7. Analysts, however, expected that the index would fall to 43.3. The rate of contraction of the service sector in Spain was the lowest since March, but the sector contracted for the fourteenth month in a row.
Markit reported on Wednesday that German service activity in August fell to its lowest since July 2009. The German services PMI remained unchanged from a first estimate at 48.3 on a seasonally adjusted basis. Following the release of the data, the Euro dipped 0.32% versus the U.S. dollar and was traded at 1.2527.
Hong Kong private sector PMI advanced a five-month fast pace in August, Markit Economics reported on Wednesday. The benchmark HSBC PMI climbed to 50.5, the strongest level since March 2012, in August from 50.3 in preceding month. Meanwhile, the number of incoming new businesses was unchanged from July and firms decreased their workforce for a fourth straight month.