Today Italy participates in the first debt auction since Spain's bailout. Italian Treasury prepares to sell three-year, seven-year and eight-year bonds of total value at EUR 4.5 billion. Italy's central bank aims to persuade traders that the nation won't follow Spain's footsteps and require a rescue.
European stock indices ended mostly into red on Wednesday on disappointing US retail sales data. Stoxx Europe 600 fell 0.4%, German DAX slipped 0.1% and French CAC 40 index gave up 0.6%. Spanish IBEX 35 breached the negative trend and surged 1.4% after heavyweight retail company Inditex posted better than predicted earnings. UK FTSE 100 index managed to gain 0.2%.
US main stock indices after previous rally traded lower on Wednesday as investors awaited for the outcome of Greek elections while Moody's and Egan-Jones downgraded Spanish sovereign debt. S&P 500 lost 0.7% or 9.3 points and closed at 1,314.88. Dow Jones Industrial Average fell 0.62% or 77.42 points and finished at 12,496.38. Nasdaq Composite ended 0.86% or 24.46 points down
The central bank of New Zealand today kept its benchmark interest rate at 2.5% and reduced its economic outlook for upcoming three years, basing its decision on weaker commodity prices. The Reserve Bank of New Zealand suggested it may maintain the low rates also in 2013 as slower economic growth weighs on inflation.
US Dollar traded modestly lower versus common currency on Thursday as nation's May retail sales declined and investors awaited for CPI report which is predicted to show that consumer prices also fell in May boosting the case for Fed to consider further stimulus. The greenback traded versus Euro at USD 1.2571 in Asian trade. Currently EUR/USD is trading at USD
Canadian currency weakened versus its major peers on Wednesday boosted by concerns over the future expansion of its main trading partner's US economy. Loonie fell 0.4% versus greenback to CAD 1.0303 after data showed US retail sales contracted in May, a second straight month.
Credit Suisse Group lowered its outlook for China's economic growth for 2012 to 7.7% citing diminishing corporate net income and slowing investments. Credit Suisse predicted also further years for world's second biggest economy to be weaker in terms of growth. China's equities traded lower as Deutsche Bank also reduced forecast for the country's economy.
European outlook worsened on Wednesday when Moody's Investors Service downgraded Spain and Cyprus. Moody's reduced Spanish rating by 3 notches from A3 to Baa3 citing country's surging debt. Ratings agency also cut ratings of Cyprus from Ba1 to Ba3 claiming the impact of Greek exit on the neighbour country.
U.S. wholesale prices dropped in May, as food and energy costs declined, decreasing companies' expenses. The producer price index slipped 1 per cent, 0.4 per cent steeper fall than economists expected. The food costs edged lower 0.6 per cent, while pharmaceutical costs ticked higher 0.7 per cent.
The greenback lost ground versus euro this Wednesday after U.S. retail sales data, which indicated more weaknesses in the country's economy. The single European currency ticked higher from $1.2510 to $1.2539.The ICE dollar's index, which shows currency's relation to its six major counterparts, fell from 82.386 to 82.268.
U.S. markets slumped on Wednesday after the Commerce Department data, which indicated a 0.2 per cent decline in retail sales for May, due to a decrease in gas consumption. The Dow Jones Industrial Average dropped 42 points, a 0.3 per cent decrease, to 12,472. The Standard & Poor 500 Index retreated 6.40 points, a 0.5 per cent decline, to 1,313.70 and Nasdaq-100 index gave up 9.75
European markets edged lower this Wednesday, after United States data release, which indicated a decline in the country's retail sales for the last two months. The Stoxx Europe 600 index lost 0.7 per cent to 241.71. Germany's DAX 30 index dropped 0.5 per cent to 6,132.85 and the French CAC 40 index slipped 0.3 per cent to 3,036.73.
Oil futures rose on Wednesday ahead of U.S. report release regarding weekly data of petroleum supplies. Crude oil for July delivery ticked higher 16 cents, a 0.2 per cent increase, to $83.48 a barrel in trading session of the New York Mercantile Exchange's Comex division.
Change in retail sales sales in US in May matched the expectations and decreased by 0.2% for the second consecutive month. Specialist state that such developments are mainly influenced by decreasing advances in payrolls and 8% unemployment, although decreasing gasoline prices counterweight the effects.
On Wednesday, futures for crude oil erased losses during the U.S. morning trading session, after a report by the U.S. government showed that oil supplies decreased last week. On the NYMEX, July delivery futures for light sweet crude oil were traded at USD83.73 per barrel, gaining 0.5% since the beginning of the session.
On Thursday, futures for natural gas slightly declined, as investors were focused on upcoming U.S. government report about natural gas supplies. On the NYMEX, July delivery futures for natural gas were traded an USD2.219 a MMBtu, which was a 0.6% drop during the U.S. morning trading session. Earlier, natural gas prices fell by 1.5%, touching the level of USD2.219.
On Wednesday, the U.S. Dollar pared gains versus the Yen, as the weak economic U.S. data weigh. The Commerce Department reported that sales in the U.S. fell by 0.2%. USD/JPY peaked at 79.74, 3-day high, and then pulled back reaching 79.48, which was a 0.04% decline, during the European afternoon trading session. The pair's support was prone to be at 79.10, and the resistance may
Despite the European sovereign debt turmoil, it appears that Asia is standing still on solid ground. According to the Cabinet Office located in Tokyo, bookings (JNMOCHNG), capital spending's indicator, increased 5.7% in the month of April. In addition, South Korea's unemployment rate in May in dropped to 3.2% in comparison to the previous month's 3.4%. Further, Sri Lanka continued to postpone the interest rates due
On Wednesday, the British Pound held steady versus the American Dollar, as investors were focusing on Spanish financial crisis and growing borrowing costs for Italy. GBP/USD peaked at 1.5540, and later the pair consolidated at 1.5561, which was a minor 0.05% increase since the beginning of the European afternoon trading session.
On Wednesday, the Euro was gaining versus the American Dollar, but growth seemed to be limited, as investors focused on Spanish banks and upcoming elections in Greece this weekend. EUR/USD peaked at 1.2553, and later consolidated at 1.2533, which was a 0.24% gain since the beginning of the European afternoon trading session.
South Korea's jobless rate reached its bottom in four months due to the continued recruitment boost in the service segment. According to Statistics Korea, the country's unemployment in May fell to 3.2% in contrast to the previous month's 3.4%. However, Ronald Man, HSBC Holding PLC's analyst, stated that as Korean manufactures are becoming more restrained, this could negatively impact the production output, and, consequently, weaken
On Wednesday, the Euro was higher versus the British Pound, but the pair seemed to stay within a narrow range, as concerns over Spanish bank bailout and Greek election weighed. The Euro peaked at 0.8052 against the Pound, and consolidated at 0.8043, which was a 0.17% growth since the beginning of the European morning trading session.
On Wednesday, the Mortgage Bankers Association reported that its mortgage application activity index added 18% on a seasonally adjusted basis during the last week. The MBA's refinancing applications index surged by a seasonally adjusted 19.2%, while the index that measures requests of loans for home purchases grew by 12.8%. The refinancing activity climbed to 79% as a share of total mortgage applications from 78% the week
On Wednesday, futures for copper were surging in the European morning trading session, as Italy witnessed an increase of the borrowing costs. On the NYMEX, July delivery futures for copper were traded at USD3.364 per pound, which was a gain of 0.85% since the beginning of the European morning trading session.