Precious metals were mixed on Friday amid persistent hopes for easing in the Eurozone, US and China. Stronger greenback coupled with positive US data releases weighted down on the commodity group. Meanwhile, market participants were cautious ahead of FOMC member, Sandra Pianalto, speech due on Monday. Gold was unchanged as hopes for QE3 in the US were weakened by an unexpected
Asian stocks dropped as Chinese industrial companies' profits declined in July. The MSCI Asia Pacific Index fell 0.1% to 120.22. Hong Kong's Hang Seng Index declined 0.2% and Taiwan's Taiex Index fell 0.1%. Australia's S&P/ASX 200 Index gained 0.2% and Japan's Nikkei 225 Stock Average added 0.5%. South Korea's Kospi Index increased 0.2%.
German 10-year bond yields dropped 0.14 percentage point, the most since the start of July, as concerns over Eurozone growth has weakened and the sovereign debt is escalating increased demand for safer assets. Benchmark yields declined to a 3-week low after PMI indicated the Euro area's service sector contracted in August and German manufacturing declined for a sixth consecutive month.
The Aussie Dollar touched one-month low, extending a 2-week decline, as concern the global economic growth is fading curtailed demand for riskier assets. The Australian Dollar weakened against most of 16 major peers after data showed Chinese industrial companies' profits declined 5.4% in July from the previous year. The Aussie declined 0.1% to $1.0394, after trading at $1.0372, the lowest
Profits of industrial companies in China declined most this year in July, the government reported, adding concern the country's economic slowdown is worsening. Income fell 5.4% to 366.8 billion Yuan ($57.7 billion) in July from a year earlier, the fourth consecutive decline, National Bureau of Statistics said. The data increases pressure on the nation's government to add stimulus measures to
Moody's Investors Service raised South Korea's sovereign debt rating to Aa3, the fourth-highest ranking, as the nation's resilience to external shocks has been strengthened and the collapse risk in South Korea during a transition to a new leadership is receding. South Korea's banks' strength has been increased by improved regulation and reduction in dependence on short-term external financing.
As reported by the Instituto Nacional de Estadistica, Spanish Producer price inflation increased less than expected in July. An Index measuring the change in the price of goods sold by manufacturers rose by 0.8% from -0.5% in the preceding month, and jumped to a seasonally adjusted 2.6 per cent, from 2.5 per cent in June. Meanwhile, analysts had expected a 2.9% increase.
According to the Insituto Nacional de Estadistica Y Geografia, Mexico ran a significant trade deficit in July after five months of surpluses. The nation's trade gap fell to minus $427 million, after a trade surplus of $602 million in the preceding month. The data came less-than-expected, as analysts had predicted a $550 million decline.
The Pound depreciated versus its major counterparts after U.K. GDP posted a less-than-expected decline in the second quarter. On Friday, Sterling traded at 0.7925 versus the Euro, 124.55 versus the Swiss Franc and 1.5830 versus the U.S. Dollar.
Orders for durable goods in the world's biggest economy advanced more than expected in July, as demand for civilian aircraft rose. The Commerce Department's report showed that manufacturers' orders for durable goods added 4.2 per cent to a seasonally adjusted $230.7 billion, from 2.4 per cent increase in the previous month.
Poland's unemployment rate fell to 12.3 per cent in July, down from 12.4 per cent in the previous month, the nation's main statistical office said on Friday, August 24. The results met analysts' expectations. Meanwhile, 1.95 million people registered as unemployed, slightly less than 1.96 million in the preceding month.
Fitch rating agency joined Standard & Poor's rating agency in saying that Spanish credit rating remains stable for now, even despite the fact nation may request for a bailout to help it through the Eurozone's sovereign debt crisis. In the meantime, Madrid has already asked for up to €100 billion ($125.5 billion) as aid for its troubled banks.
The single currency depreciated versus its major peers, as Angela Merkel claimed Germany's unwillingness to give Greece more time for implementation of cuts and necessary reforms. The EUR/USD currency pair lost 0.4 per cent to $1.2512, down from yesterday's $1.2564. The ICE Dollar Index added 0.34 per cent to 81.65, up from 81.368.
Business investment in the British economy slipped in the second quarter, mostly led by a 3.3% drop in private area non-manufacturing, the Office for National Statistics showed in preliminary data on Friday. Investment declined 1.5% on quarter to GBP 30 billion. Investment in private area manufacturing rose 5.5% on quarter. Business investment surged 1.7% on year-on-year basis.
Number of tourists visiting Hong Kong rose 13.8% on year to about 4.37 million in July, the Hong Kong Tourism Board said on Friday. Before August a total of 26.69 million tourists arrived in Hong Kong in 2012, posting a 15.2% climb from the same period of the prior year.
Belgium's business sentiment declined this month after a short-term rebound in July, the National Bank of Belgium reported on Friday. The index tumbled to -11.8 in August, compared to -11.3 in July. Analysts forecast a reading of -12. Except for production industry all other sectors posted fall in confidence. Sentiment deteriorated most in the trade sector.
Oil increased as German Chancellor Angela Merkel announced the country is ready to support Greece's government as it undertakes essential steps to deal with its economic woes, discouraging critics who claim Greece's exit from Eurozone. October-delivery crude surged 0.4% to $96.61 per barrel in New York. October-settlement Brent oil gained 4 cents to $115.05 per barrel in London.
U.S. Treasuries advanced for a sixth straight day amid belief the Fed will step up efforts to cut borrowing costs just as its meeting in September to boost the U.S. economy. The benchmark 10-year note rate slipped to 1.66%. The 1.625% note maturing in August 2022 increased 7/32 to 99 22/32.
German stocks tumbled for a third day amid investors awaiting the result of meeting between French, German and Greek leaders to review second bailout program for Greece. The DAX Index declined 0.3% to 6,931.14. The gauge still advanced 16% from the year's lowest level on June 5.
Asia's stocks dropped amid signs of weaker growth in the U.S. and China and on worries Europe's leaders are not improving the situation over the euro-debt crisis. Japan's Nikkei 225 stock average tumbled 1.2%, while Australia's S&P/ASX 200 Index dropped 0.8%. Hong Kong's Hang Seng Index declined 1.3%.
The Euro cut a four-day rally versus the U.S. Dollar as the ECB bond purchasing plan was announced to be postponed until Germany's ruling on Eurozone bailout fund. On Friday, the Euro tumbled 0.4% to $1.2516, after reaching $1.2590 yesterday, the highest since July 4. It fell 0.3% to 98.28 Yen.
Austria's production index surged in June amid a rise in industrial output offsetting a drop in construction output, Statistics Austria reported on Friday. The index increased a working-day adjusted 0.3% on year. Industrial production advanced 0.8%, while construction output fell 2.7%. However the production index declined 1.6% on monthly basis.
The U.K. economy shrank 0.5% in Q2, upwardly revised from a preliminary 0.7% decline, the Office for National Statistics said on Friday. The first quarter posted a fall of 0.3%. Production output slid 0.9%, from 1.3% fall estimated previously. Construction output slipped 3.9% instead of 5.2%.
German shares declined on Friday amid escalated risk-aversion in the market during meetings between EU leaders to discuss second bailout program of Greece. Mixed Eurozone's data coupled with rising uncertainty over the US stimulus measures created additional pressure on the German's stocks. The German DAX Index retreated by 0.44% to trade at 6,915.91. On the upside were utility and health