According to the British Retail Consortium, the U.K. retail sales increased in July as the Olympics boosted demand for drinks and food. Stores open at least a year experienced 0.1% rise in sales, while those open less than a year faced 2% increase in July from a year earlier. In three months through July, food sales rose 0.9% from the
As predicted, the Reserve Bank of Australia decided to keep its interest rate unchanged at 3.5% as reductions in May and June helped to support household demand and the Aussie's strong performance contains inflation. Officials lowered cash rates in June and July in order to protect the Australian economy from Eurozone's turmoil.
Oil almost reached two-week high as the Atlantic tropical storm Ernesto is expected to strengthen and become a hurricane, approaching the Bay of Campeche, where most of Mexico's crude production is placed. Oil for September settlement traded at $92.20 per barrel, the highest price since 19 July. Brent crude for September delivery was at $109.45 per barrel.
The U.S. Dollar dropped versus most of its major peers as risk appetite spurred after German Chancellor Angela Merkel supported the ECB's bond-buying plan to combat the region's debt crisis. The greenback lost 0.3% to 78.25 per Yen, while falling to $1.2401 per Euro, after declining earlier 0.5% to $1.2444, the month-weakest level, and jumping 0.4%.
Brazil's swap rates increased amid a report posted rising inflation, which reduced optimism the central bank will stabilize the pace of cutting borrowing costs. On Tuesday, swap rates due in January 2014 rose to 7.79%, the strongest close since July 31. The Real dropped 0.1% to 2.0311 per U.S. Dollar. Inflation climbed to 1.52% in July from 0.69 in June.
Japan's stocks rose for a second day, with the Nikkei 225 Stock Average having a four-week high close, on speculation Germany will participate in the ECB's bond-purchasing plan to cool the region's debt crisis. The Nikkei 225 gained 0.9% to 8,803.31, the strongest since July 11, with volume 7.6% less than 30-day average.
The Australian Dollar touched the four-month high against its U.S. counterpart amid expectations that the Reserve Bank will keep its cash rate unchanged at 3.5% at the central bank's meeting today. The Aussie rose 0.1% to $1.0581 from the previous day, when it jumped to $1.0593, which is the highest level since 20 March.
The Japanese Yen stayed stronger against most of major counterparts amid speculations that the Bank of Japan will refuse further monetary easing at its policy meeting, which starts tomorrow. The Yen rose 0.3% to 78.27per US Dollar, while against the Euro the Yen traded at 97.06 up from 97.03.
The Dow Jones Industrial Average posted the longest rally since October as U.S. stocks advanced for a fourth straight week amid jobs data exceeding forecasts. The S&P gained 0.4% for the week to 1,390.99. the Dow rose 0.2% to 13.096.17, the strongest since May 3. The benchmark index for U.S. equities increased its 2012 rise to 11%.
The Sterling tumbled versus the U.S. Dollar, after two reports posting slowdown in the real estate market showing fragility of U.K.'s economy. The U.K. currency fell to the weakest in four weeks versus the Euro as Rightmore Plc reported U.K. home sellers might seek lowering prices to retain buyers, and Halifax said house values fell in July. The Pound slipped
The Euro rose versus its major counterparts after the Eurozone Sentix investor confidence report posted a lower than expected decline. The Euro traded 1.2363 versus the U.S. Dollar, 1.2015 versus the Swiss Franc, 0.7942 against the Pound and 96.92 versus the Yen. The Eurozone Sentix investor confidence appeared at -30.3 in August after -29.6 in July, while economists awaited the
European markets, stuck for direction on Monday, failing to follow a global market rally. The Stoxx Europe 600 Index declined by 0.3% to 264.71, at the same time, French CAC 40 Index erased 0.4% to 3,359.21. The German DAX 30 Index gained 0.2% to 6,876.73, while U.K.'s FTSE 100 lost 0.2% to 5,772.99.
U.K. house values declined in July for the first time in three months, the mortgage unit of Lloyds banking Group Plc reported on Monday. Prices fell 0.6% from June, when they gained 0.8%. In the second quarter prices were stable compared to the previous quarter, now the average value is 161,094 pounds ($251,500). From the last year, average U.K. real
On Monday, August 6, gold futures turned lower as investors sold the bullions amid profit taking. Gold futures for October settlement tumbled 0.11% to $1605.35 per troy ounce, before hitting a high of $1607.55. September silver erased 0.44% to $27.78 per troy ounce, and, on the contrary, copper for September settlement rose 0.13% to $3.371 per pound.
South East Asia's largest economy picked up the pace in the second quarter, as domestic consumption jumped. The Indonesia's economy expanded by 6.4% in the three month period, boosted by low interest rates, strong business and consumer confidence, and stable growth in consumer price. However, the China's economy is slowing down, and may hurt demand for commodities, as a result, a fall in prices, which may
German 10-year notes advanced before an industry report that is expected to show European investor-confidence decreased to the lowest in three years. The German 10-year yields tumbled to 1.40%, after increasing to 1.44%, the strongest since July 5. The 1.75% bond due in July 2022 rose to 103.20 Euro.
Oil declined from the two-week highest close in New York on bets that its strongest rise in five weeks was unreasonable. Futures fell 0.5%, after touching 4.9%, the highest since June 29. September-delivery oil tumbled to $90.95 per barrel. Brent crude for September declined 0.2% to $108.76 per barrel.
On Sunday, Greece and ECB, IMF and European Commission agreed on the necessity of bolstering policy efforts to sustain the economy and meet its bailout requirements after more than a week-long meeting session in Athens. The talks will conclude whether Greece keeps receiving monies from its international creditors, 240 billion Euro of rescue funds.
Australia's Dollar was 0.2% from a four-month high and government note yields amid speculation the Reserve Bank will abandon diminishing the developed world's strongest interest rate tomorrow. The Aussie traded at $1.0563, after reaching $1.0580 last week, the highest since March 20. The South Pacific 10-year note yield gained 0.12 percentage points to 3.23%. The 15-year yield rose to 3.55%,
The U.S. stocks extended rally to a fourth consecutive week as the U.S. jobs data, which beat analysts' expectations, erased a 4-day decline amid investors' disappointments with world stimulus efforts. The S&P 500 gained 0.4% to 1,390.99 for the week, while the Dow Jones Industrial Average experienced the longest rally since last autumn.
Asian stocks advanced after release of better-than-expected U.S. employment data and services industry calmed investors' concern that the U.S. economic growth is slowing. Japan's Nikkei 225 Stock Average gained 2%, while Australia's S&P/ASX 200 Index rose 1.1%. The MSCI Asia Pacific Index increased 1.9% to 119.16, heading towards the highest close since 4 July.
The U.S. trade deficit possibly narrowed in June due to slowing demand for U.S.-made goods caused by weakening global growth and reduced import bill by cheaper oil prices. According to economists' forecast, the gap shrank from $48.7 billion in May to $47.5 billion, the smallest in 4 months.
The U.S. Dollar and Japanese Yen fell to 3-week low against the common currency as Asian shares advanced. The Yen extended depreciation against its major counterparts from the last week amid speculation that the BOJ will take steps to weaken the nation's currency at its 2-day policy meeting commencing 8 August. The Dollar Index declined to 1-month low before Bernanke's
During today's press conference, Spanish Prime Minister Mariano Rajoy announced that the possibility of asking a full-scaled bailout from the European Union is growing. He also added that the conditions and form of the bailout should be considered ahead of other issues. The announcement was made a day after the ECB claimed its readiness to resume bond-buying program.