Futures for natural gas slumped more than 3% in the U.S. morning trading session on Thursday, after the U.S. Energy Administration reported that U.S. gas supplies increased more than expected during the previous week. On the NYMEX, July delivery futures were traded at the level of USD2.333 per MMBtu, shedding 3.65% since the beginning of the session.
The greenback edged lower on Thursday, while the euro rose above $1.26, after Chinese reserve bank unexpectedly decreased its deposit and interest rates by 25 basis points. The ICE dollar's index, which shows currency's relation to its six major counterparts, tumbled to 81.963. The euro ticked higher from $1.2561 to $1.2617.
U.S. stock futures slipped this Thursday as Ben Bernanke, U.S. Federal Reserve Chairman, stated that European debt crisis, as well as probable U.S. spending cuts put at risk the country's economy. The Dow Jones Industrial Average ticked higher 70.39 points, a 0.6 per cent increase, to 12,484.87. The Standard & Poor 500 Index jumped 3.5 points, a 0.3 per cent increase, to 1,318.63, while
USD pushed higher versus other main currencies on Thursday, as the Chairman of the Federal Reserve claimed that Fed is ready to implement economic stimulus measures. EUR/USD hit 1.2560, tumbling 0.17% since the beginning of the U.S. morning trading session; an cable gained 0.37%, consolidating at 1.5553. However, USD grew against JPY, hitting 79.47, and increased versus CHF, reaching 0.9561.
The Euro climbed versus the Yen, reaching 2-week high on China rate cut and successful auction of Spanish government debt. EUR/JPY reached 100.47, which is a two-week high, and consolidated at 100.43, gaining 0.80% in the European afternoon trading session. The pair's support was likely to be found at 99.35, and resistance was prone to be at 101.46.
China has taken the decision to decrease borrowing costs to manage the current recession as Europe's current slowdown jeopardizes global development. According to the People's Bank of China, the lending percentage for one year will be lowered from 6.56% to 6.31% effective 7 June. In addition, the deposit percentage for one year will drop from 3.5% to 3.25%.
Cable trimmed gains on Thursday, as the Chairman of the Federal Reserve disappointed expectations of the market for further stimulus. GBP/USD peaked at 1.5600, a one week-high, and consolidated at 1.5553, which is still a 0.37% gain in the U.S. morning trading session. The support was likely to be at 1.5428, and resistance was prone to be found at 1.5643.
U.S. markets gained this Thursday after Chinese reserve bank unexpectedly decreased its deposit and interest rates by 25 basis points. The Dow Jones Industrial Average rallied 72 points to 12,491. The Standard & Poor 500 Index advanced 10.50 points to 1,319.40 and Nasdaq-100 index climbed 16.50 points to 2,566.50. Petroleum futures ticked higher, while gold and the Greenback retreated.
European markets advanced on Thursday ahead of a Spanish bond auction, as well as Ben Bernanke's, U.S. Federal Reserve Chairman, testimony to the Congress. The Stoxx Europe 600 index rose 0.2 per cent to 240.40. Swedish Nordea Bank AB and Swedbank AB gained 4.3 per cent and 3 per cent, respectively. The CAC 40 index climbed 0.8 per cent to 3,082.91.
The Bank of England has not changed benchmark interest rate for 39 months in a row, leaving it at 0.50%, which is in line with expectations. The central bank also announced that it will maintain purchases of assets at the same level of GBP325 billion, after a GBP50 billion expansion back in February.
Oil futures gained on Thursday as Chinese reserve bank decreased its interest and deposit rates by 25 basis points. Petroleum for July delivery inched higher by $1.31, a 1.6 per cent increase, to $86.34 a barrel.
UK FTSE 100 index traded substantially higher on Thursday helped by Burberry Group and Tullow Oil. Bank of England kept interest rate unchanged. Investors also awaited Fed chairman's speech. Burberry rallied 6% after Credit Suisse upgraded its share from neutral to outperform. Tullow Oil accelerated 4.2% after company said it has discovered oil in deep-water well in Côte d'Ivoire. Chemicals
German DAX index extended rally on Thursday after China reduced interest rates by 25 basis points. Moreover Spain managed to sold all the planned amount of its benchmark 10-year yields. Euro traded close to USD 1.26. Local banks and carmakers recovered on the news. It was also supported by weaker than expected jobless claims data in US. BMW AG gained
European stocks climbed this Thursday after Chinese reserve bank decreased its interest rates, as well as deposit rates by 25 basis points. The Stoxx Europe 600 index ticked higher1.2 per cent to 242. 85. The U.K. FTSE 100 index jumped 1.5 per cent to 5,462.90 and French CAC 40 index gained 1.1 per cent to 3,093.10. Germany's DAX 30 index rose 1.3 per
On Thursday, the U.S. Department of Labor reported that the amount of initial jobless claims during the week that ended June 2 decreased by 12,000 and reached 377,000, meeting expectations. The figure for the previous week was revised from 383,000 up to 389,000. Jobless claims were above 400,000 only in 2 of the last 32 weeks.
Service sector activity in May was growing at the same pace as in April. Markit reported that the seasonally adjusted SPI remained at the level of 53.3. Economists, however, expected that the index would decrease by 0.6, reaching 52.7. David Noble, CEO at the CIPS, argued that this growth became possible on account of decreased input price inflation.
During an auction of Spanish long-term government debt on Thursday, Spain's Treasury managed to sell bonds for EUR638 million, which mature in October 2014. An average yield for the government debt was 4.335%, compared to 3.463% in the previous month. Demand was strong, and the bids exceeded supply 4.26 times, which is more than 3.28 bid-to-cover ratio last month.
Farm commodities apart from coffee moved higher on Wednesday on the improved demand prospects after the US and China hinted that more accommodative monetary policy may be introduced.Wheat surged after Russia reported that about 15% of its crops in southern regions were curbed by dry weather in May.Corn soared by more than 6% as persistent dry weather in the US
Energy markets rocketed on Wednesday as concerns over Spain's financial system's instability decreased. Additionally, easing hints from the Fed boosted demand prospects of the commodity pack.Crude oil rose as expectations for monetary easing in the top-consumers, the US and China, increased demand potential for energy.Brent oil advanced, returning above 100 US Dollars per barrel after Iran announced it will be
Industry metals were mixed on Wednesday, being buoyed by mounting optimism regarding more growth-stimulating monetary measures from the Fed. Aluminum climbed despite indications of poor demand. Rio Tinto Alcan does not plan to increase output after cutting its production at Alma smelter by two-thirds over the last six months.Copper faced strengthening demand in North America due to tight supplies. Moreover,
Precious metals rallied on Wednesday after Fed officials announced that impact of the Eurozone's debt crisis on the US economy mounts and there is a room for additional monetary stimulus. However, inaction of the ECB pared gains of the commodity group.Gold lost momentum after the ECB announced it will stick to the current monetary policy despite deteriorating situation in the
In order to combat economic downturn in China as well back up the credit growth, the government has taken the decision to delay the implementation of stringent bank capital regulations to 2013. The China Banking Regulatory Commission has compiled preliminary rules that would allow the banks to achieve their capital objectives whilst at the same time ensuring sufficient loan growth. Chen Xingyu, Phillip Securities' analysts,
Japan's Nikkei Stock Average maintained sharp upward trend on Thursday on expectations for global monetary easing. Japanese Yen kept weakening versus Euro and greenback, improving competitiveness for Japanese exporters. Nikkei 225 index rose 1.24% or 106.19 points and finished at 8,639.72. Almost 11 shares soared for each that declined on the index. Car makers and financials rallied. Mazda Motors and
Dow Jones Industrial Average climbed rapidly on Wednesday as investors looked forward Fed Chairman Bernanke's signals for additional monetary stimulus in summer. Blue chip gauge surged 2.37% or 286.84 points to 12,414.79 with all 30 stocks ending session in the positive territory. Bank of America rallied 7.6% on speculation for monetary accommodation. Home Depot gained 3.4% after increasing its share