Oil futures edged lower during electronic training on Tuesday, due to increased concerns regarding upcoming Greek elections. Petroleum for July delivery retreated 61 cents, a 0.7 per cent decline, to $82.09 a barrel.
On Tuesday, the Euro was growing against the U.S. dollar, but gains seemed to be capped by cautiousness over mechanics of Spanish bank bailout, and the outcome of the weekend's elections in Greece. EUR/USD peaked at 1.2529, and later consolidated at 1.2506, which was a 0.20% gain during European afternoon trading session. The pair's initial support was prone to be at 1.2409, while an interim resistance
On Tuesday, the British Pound erased losses versus the U.S. dollar, recovering from a 2-day low, as market sentiment was determined by Spanish bailout hopes. However cautiousness over Greek elections this weekend capped gains. GBP/USD retreated from 1.5455, which was a 2-day low, and consolidated at 1.5538, gaining 0.34% in the European afternoon trade.
China's recent loans surpassed forecasts in the month of May and as additional funding was invested into the long-term lending, hopes have been raised that China may avoid a further slowdown. According to the People's Bank of China, the lending totaled at CNY 793.2 billion (USD 125 billion), which exceeds some analysts' projections by CNY 93.2 billion. Wen Jiabao attempts to revive China's economy, which
Futures for copper came under pressure in the European Monday morning trade, as Spanish euphoria fizzled, and worries over Greek elections came into focus. Moreover, investors are afraid that the debt crisis could spill over to the neighboring Italy. On the NYMEX, July delivery futures were traded at USD3.330 per pound, losing 0.4% since the beginning of the European morning trading session.
On Monday, industry data showed that the British house price balance by RICS increased in May more than it was forecasted. Royal Institution of Chartered Surveyors reported that the index rose to -16%, from a seasonally adjusted -19% in April. Analysts had predicted that the index would witness a modest increase, reaching -18%.
On Monday, official data showed that the index of Japanese tertiary activity dropped unexpectedly in April. Ministry of Economy, Trade and Industry reported that the index decreased to -0.3%, from March's seasonally adjusted -0.6%. However, the economists had expected that the index would rise to 0.4%.
The U.K. manufacturing production gauge dropped significantly more than it was expected. The U.K. Office for National Statistics reported that the index tumbled 0.7% in April, whereas analysts had expected a slight decline of 0.2%. In March manufacturing production index grew by 0.9%, however, this figure is unrevised yet.
Japan's Nikkei Stock Average erased part of yesterday's gains as initial optimism about Spain's bailout request turned into anxiety over deal details. Nikkei 225 dropped 1.02% or 88.18 points and closed at 8,536.72. A slump in oil prices weighed on Japanese oil companies. JX Holdings slipped 3.1% and Inpex Corp ended 0.7% down. Europe concerns pushed the Yen above 100
Dow Jones Industrial Average declined on Monday as scepticism over the outcome of upcoming Greek elections returned. Blue chip index shed 1.14% or 142.97 points and closed at 12,411.23. 26 out of 30 companies finished red, driven mainly by financials and growth linked heavy manufacturers. Hewlett Packard and Bank of America led the fall, giving up 4% and 3.7% respectively.
S&P 500 index fell sharply on Monday after optimism over Spain's bailout was offset by anxiety whether the country will be able to tackle its debt woe. The leading US index lost 1.26% or 16.73 points settling at 1,308.93. Alpha Natural Resources made the biggest losses for the index giving up 9.2%. Apple shares diminished 1.6%. after renewing its MacBook
Having taken the needed bailout for Spain's recovery, Mariano Rajoy's political credibility could be at jeopardy. Two weeks after affirming that Spain does not require a bailout, on 9 June Rajoy asked for a EUR 100 billion in order to revive the country's banking system. As a result, the Prime Minister's actions could potentially raise uncertainty whether he can realize his deficit cutting goals. However,
European stocks erased gains on Monday after Italian and Spanish borrowing costs surged. Investors expressed doubts if Spank debt aid will be sufficient to tackle the nation's debt trouble. Moreover upcoming Greek elections created additional uncertainty. Stoxx Europe 600 traded flat, Spanish IBEX 35 declined 0.5% and Italian FTSE MIB index fell 2.8%. UK FTSE 100 ended marginally lower while
US stock indices posted a sharp losses as concerns over the outcome of upcoming Greek elections returned. Moreover Spanish bailout request added to worries the European debt turmoil actually keeps broadening. S&P 500 index fell 1.26% or 16.73 points to 1,308.93. Dow Jones Industrial Average shed 1.14% or 142.97 points and closed at 12,411.23. Nasdaq Composite gave up 1.70% or
The Japanese Yen offset gains versus its major peers on Tuesday after the IMF fuelled speculation global leaders will support Japanese policy makers' attempt to depreciate the local currency. Yen sank 0.3% against the Euro to JPY 99.44 and slippped 0.1% versus the greenback to JPY 79.55. Currently EUR/JPY is trading at JPY 99.32 and USD/JPY is trading at JPY 79.49
The 17-nation currency fell on Tuesday versus most of its counterparts as Spanish rescue boosted worries that European debt woe is worsening. Euro dropped 0.3% against the greenback to USD 1.2482 after an early rally of 1.2%. Currently EUR/USD is trading at USD 1.2493.
Canadian currency declined from a nearly three-week record high versus its US peer on worries Italy may face same banking system problems as Spain. Loonie gained after Spain requested bailout but retreated when Italian and Spanish yields surged. Canadian Dollar dropped 0.5% to CAD 1.0317. Currently USD/CAD is trading at CAD 1.0299.
The price of crude oil diminished for a fourth consecutive day as Ali-al-Naimi, Oil Minister of Saudi Arabian announced OPEC needs a larger output quota. Moreover US allowed more exemptions from oil embargo from Iran. July crude fell by USD 1.63 to USD 81.07 a barrel. Brent Oil to be delivered in July dropped USD 0.25 to USD 97.75 a
The New Zealand and Australian Dollars rebounded from previous losses on speculation recent drop was excessive. Moreover private research showed Australian home value accelerated last month. Aussie soared 0.4% versus its US peer to USD 0.9900 while Kiwi gained 0.3% to USD 0.7714. Currently AUD/USD is trading at USD 0.9899 and NZD/USD is trading at USD 0.7715.
Spanish borrowing costs climbed close to monthly-record on Monday on worries the country's call for aid will not be sufficient to stop debt turmoil. Spain's benchmark 10-year yields surged by 30b.p. to 6.52%, the largest advance since May 14. 2-year borrowing costs soared to 4.55% and long term 30-year yields reached 6.76%.
Futures for copper gained 2% in the European Monday morning trading session, as investors were more confident after the EU agreed to bailout Spain up to EUR100 billion. On the NYMEX, July delivery futures for copper were traded at USD3.354 per pound. It earlier peaked at USD3.400, gaining 3.5% from the beginning of the trading session.
The British Pound gained versus the U.S. dollar during European afternoon trading session, as Spanish bailout news supported demand for risky assets. However, investors remained concerned about the handling of the Eurozone debt crisis. Cable peaked at 1.5582, and later consolidated at 1.5526, which was a gain of 0.35% in the European afternoon trade.
On Monday, the Euro grew versus the Japanese Yen, as Spanish bailout news increased demand for the European currency. EUR/JPY peaked at 100.92 in the European afternoon trading session, and later the pair consolidated at 99.88, which was a 0.42% increase from the beginning of the session. The support was prone to be found at 99.83, and resistance was prone to be at 101.46.
The U.S. dollar decreased versus the Canadian currency on Monday, as Spanish bailout news continued to sustain high demand for risky assets. USD/CAD peaked at 1.0201 in the early U.S. trade, and later consolidated at 1.0241, which was a 0.17% drop from the beginning of the session. The pair's support was likely to be found at 1.0137, and resistance was prone to be at 1.0258.