Japanese shares dropped sharply on Friday after weak manufacturing data from China added to worries about global economic slowdown. Moreover, rising uncertainty over stimulus measures in the US and China also weighted down on Japan's equities. The Nikkei 225 Index ended the week in red territory, sinking by 1.17% to 9,070.76. Only one industry included in the index managed to
US blue chips sank on Thursday on speculation that the FOMC minutes were out-of-date and the US economic recovery sped up since then. However, slightly better-than-expected PMI releases from the Eurozone limited the downswing of the US blue chips. The Dow Jones Industrial Average Index lost 0.88% to close at 13,057.46. All sectors included in the index tumbled. Basic materials
US stocks plunged on Thursday as hopes for QE3 started to fade amid positive economic data from the US. Flash US PMI rose more than expected in August while new home sales beat forecasts in July. Moreover, upcoming meetings between EU officials regarding anti-crisis measures increased cautiousness among market participants. The S&P 500 Index tumbled 0.81% to end the session
Aussie declined to a month low as the RBA Governor Glenn Stevens mentioned the currency would most likely decline if the nation's mining boom was to faint. Australia's Dollar dropped 0.5% to $1.0392, after reaching $1.0388, the least since July 27. It fell to NZ$1.2819, the lowest since July 12. The Kiwi slipped 0.3% to 81.02 U.S. cents.
Farm commodities tumbled on Thursday despite weaker US Dollar. Market participants awaited data from Pro Famer Midwest Crop Tour and USDA export sales report due on Friday. Wheat dropped ahead of the key crop reports due on Friday. Limiting the downswing, SovEcon cut its forecast for Russia's crops to 39 million tonnes. Corn plunged the most in more than two months
Energy commodities were mixed, with heating and Brent oil rising and natural gas and crude oil falling. Pushing the commodity group lower, China's PMI dropped to nine-month low in August. At the same time, speculation that the Fed will ease its monetary policy supported energy prices. Crude oil was the top-loser on global growth concerns after China released dismal PMI data.
Industrial metals soared on Thursday amid better-than-expected manufacturing data releases from the US and Eurozone. US Markit's flash PMI rose to 51.9 while Eurozone's PMI advanced from 44 to 45.1 in August. Broadly weaker greenback also spurred rally of the base metals. Aluminum extended previous gains on hopes for monetary stimulus in the US. Moreover, upbeat US manufacturing data provided additional
Precious metals prolonged rally on Thursday amid hopes for QE3 in the US. However, the upswing was capped after the Fed official, James Bullard, reported that recent FOMC minutes were out of date and the economic situation in the US since improved. Gold rose by almost 1% on speculation that the US and China will loosen their monetary policies soon.
Brazil's foreign direct investment rose to the highest level in July since 2010 and is likely to exceed the nation's central bank's $50 billion forecast this year as investors expect economic growth will pick up. Though economists anticipated FDI of $7 billion, FDI increased from $5.8 billion in June to $8.4 billion in July, the central bank reported.
The RBA Governor Glenn Stevens said that officials are ready to take steps if the nation's economy slows, auguring Australia's mining investment boom will peak within the next two years. The Aussie Dollar declined to a 1-month low versus the New Zealand Dollar as Stevens said the Australian currency is likely to depreciate if the mining boom ends.
The Brazilian Real dropped to a 1-week low on speculation the nation's central bank will intervene to weaken the Real outweighed bets officials will take steps to support the global economy. The Real lost 0.4% to 2.0238, the lowest level since August 14.
The Japanese Yen appreciated against most of 16 major counterparts this week due to Asian stocks' decline and discouraging global economic data that increased demand for safe haven assets. The Yen set for its biggest 5-day strengthening versus the U.S. Dollar in three months as reports showed U.S. unemployment claims rose while the latest reading of manufacturing in Europe and
The RBA Governor Glenn Stevens was surprised by the Swiss National Bank's decision to purchase the Australian Dollar, which is usually sold when prices of commodity fall. The SNB has been buying the Aussie since May, reflecting the severity of the Eurozone debt turmoil. The Australian Dollar is increasingly considered as a safe haven for some private and official investors.
Crude oil edged higher on Thursday, August 23, as China's manufacturing sector is contracting at a faster pace than earlier believed, leaving more space for new stimulus actions from Beijing. Crude oil for October settlement jumped 0.5 per cent, to $97.72 per barrel. In the meanwhile, natural gas futures tanked Thursday as government's weekly report showed a larger-than-expected increase in supplies. Natural gas with September
The Spanish government is in talks with its Eurozone partners over conditions for financial help in order to lower nation's borrowing costs, or to request a full bailout. Earlier this month Mario Draghi vowed to do all necessary to defend the Eurozone. The ECB is likely to resume its massive bond-buying program and purchase Spanish government bonds at primary auctions.
Eurozone's manufacturing activity improved in August, while still remained in the contraction zone for a twelfth month in a row. According to Markit's report, region's PMI Index rose to 46.6 from 46.5 in July. Any reading below 50 indicates contraction. As the overall output declined, the further drop in new orders can be expected.
Swedish unemployment rate fell to 7.0 per cent in July, from 8.80 per cent in the previous month, the statistics office said on Thursday, August 23. Meanwhile, analysts had expected nation's jobless rate to fall to 7.2 per cent. Total employment stood at 4.859 million people in July.
Europe's biggest economy added 0.3 per cent in the second quarter, following a 0.5% increase in the previous quarter, according to data released by Destatis on August 23. The results met analysts' expectations. Year-over-year German economy increased 0.5% in the second quarter, after growing 1.7% in the previous.
The U.S. Fed is likely to announce another round of quantitative easing soon unless the world's biggest economy starts to recover considerably, the latest minutes released by the Federal Reserve on August 22 showed. Meanwhile, the U.S. economy grew only by 1.5 per cent in the second quarter.
The manufacturing activity in the world's second largest economy tumbled to a nine-month in August. An index measuring factory output fell to 47.8 from 49.3 in July. Any reading under 50 indicates a contracting manufacturing sector in the country. The deterioration of data may show that firms' confidence wasn't boosted enough by the government's efforts to spur Chinese economy.
Wall Street futures fell Thursday as the number of claims for unemployment benefits rose more-than-expected. The Dow Jones Industrial Average fell 0.68%, to 13,067.00; the Standard & Poor 500 Index erased 0.23%, to 1,409.10, while Nasdaq 100 futures lost 0.66%, to 2,763.00. Initial claims for jobless benefits jumped 4,000 to 372,000 in the week ended August 18.
European stocks fell for a second day after German Finance Minister Wolfgang Schaeubble cut optimism Greece will have more time for meeting its debt obligations and after Spain's bond rates advanced. The Stoxx Europe 600 Index declined 0.5% to 268.04. Meanwhile, the equity benchmark climbed 14% from the year's lowest on June 4.
Treasuries surged, moving 10-year rate to the weakest in more than a week after first-time claims for unemployment benefits increased to the highest in one month, posting little rebound in the U.S. labor force. The 10-year yields fell to 1.67%, after reaching 1.66%, the least since Aug. 14. 30-year note yields slid to 2.78%.
U.S. new home sales surged more-than-expected in July, the Commerce Department said on Thursday. New home sales posted a 3.6% rise to a seasonally-adjusted annual rate of 372,000, from an upwardly-revised 359,000 in June. Economists expected an increase to 362,000.