The Australian Dollar encountered the deepest plunge since March 2 on Friday, following speculation on further rate cuts by the RBA. The Aussie traded 0.7% cheaper against the US Dollar and showed $0.7278 at 7:30 GMT. The currency has already plummeted by 6% over the last month, prompted by the aggravated inflation outlook.
Investors prepared for negative trading session in New York on Friday, as most expect fall in US retail sales in April. Futures of equity in New York fell before weekend. Standard & Poor's 500 index decreased 0.4% and moved to 2,050.40 points before market opening. Asian stocks finished days trading lower and European markets moved in the same direction.
Growth in Euro Zone in 2016 first quarter was better than previous quarter, but still lower than estimated previously. On a quarter-to-quarter basis the European economy strengthened by 0.5% and 1.5% compared on a year-to-year basis to same period in 2015. Annual growth was also a 0.1% less than expected.
On Thursday, the Sterling appreciated against the Greenback and rallied above the 1.45 dollar level, but fell soon afterwards around 100 pips on Friday. The UK currency lost 0.3% against the Buck and was trading at 1.4413 dollars by 8:45 GMT. Important US data on retail sales, producers' prices and consumer sentiment is due to be released on Friday that
Italian Gross Domestic Product data for last quarter was published on Friday, and the report shows another quarter of steady and slow growth. Last quarter GDP growth was 0.3%, as predicted by analysts, but previous quarter data has been revised and set to 0.2% instead of 0.1% published initially. Italy had 0.3% growth to no growth for past two years.
Treasury prices reached a one-month high, as foreigners enhanced their 10-year bond investments, pushing the yields down by 3.5 bps to show 1.729%. Accepted bid amounts were topped 2.68 times, which lined up with the latest trends. However, extraordinarily high activity in the treasury market was made up by foreign investors.
Stocks in Asia traded lower, because Japanese exchanges were affected by a rising yen. In the meantime, commodities dragged down Australian markets. Nikkei 225 index ended trading 1.4% down at 16,412.21 and Topix fell 1.3% at 1,320.19 on close of trading. Main movers were Pioneer and Tokuyama, which fell by 12% and 31% of their value, respectively.
Markets opened low on Friday, taking over the negative sentiment from Asian bourses, where focus was directed towards data on earnings and economics. The DAX 30 index took a 0.76% plunge to show 9,784.80 points, whilst the UK's FTSE 100 dropped 0.35% and opened at 6,083.30 points.
The Euro traded cheaper against the dollar during the session on Friday, sliding by 0.25% to show $1.1350, and volatility is anticipated during the rest of the session, as EU GDP data comes out. The initial price drop was evoked by the data release on German inflation and GDP figures, conveying mixed signals about the economic health of Eurozone's largest
Crude fell from its 2016 heights reached on Thursday because of a huge inventory build-up in Cushing, Oklahoma where bases itself one of the top delivery hubs. Stockpiles there grew by nearly 550,000 barrels and it offset positive outlook given by International Energy Agency. WTI Futures fell 0.8% to $46.33 per barrel and Brent slipped 0.7% to $47.76 per barrel.
Euro zone's country with strongest economy grew at the start of 2016 more than forecasted by analysts. German quarterly gross domestic product seasonally adjusted grew 0.7%, while predictions were at 0.6% increase of GDP. European Commission's Spring Economic Forecast shows future growth in Germany at 1.6% in 2016 and 2017.
BoJ governor Haruhiko Kuroda claimed to be ready to use additional quantitative easing measures in order to reach the targeted 2% inflation level during fiscal 2017. The negative interest rates along with QQE measures will presumably increase yearly inflation expectations to the targeted 2%. It is expected that the CPI will amount to 0.5% in fiscal year 2016, showing a
Destatis published latest CPI report on Friday, indicating at deflation in Germany on year-to-year basis for the past month. Consumer prices decreased 0.1% in April, but 0.1% increase was forecasted by surveyed Analysts, and previously in March CPI rose by 0.3%. Germany has not had deflation since January 2015.
Inflation report released today revealed another month of falling prices in France. Living expenses in the Euro zone's second biggest economy, measured by the Consumers Price Index and compared to same period last year, decreased by 0.2%. Meanwhile, on a month-to-month basis CPI rose 0.1%.
After a surge of Japanese exports this March, Japan's current account surplus increased to the highest levels in 9 years. Surplus moved from 2.43 trillion yen in February to 2.98 trillion yen in March. It is the largest positive value since March 2007, but still on par with forecast issued by the Ministry of Finance. Exports rose from 5.64 trillion
Europe's largest stock markets closed Thursday's trading session in red. Germany's DAX 30 Index lost around 1.2%, finishing at 9,857.38, while Britain's FTSE 200 Index dropped almost 1.0%, closing at 6,101.46 points. Meanwhile, France's CAC 40 Index fell 0.5% to 4,293.99, and the Euro Stoxx 50 Index declined 0.8%, closing today's trading session at 2,934.54 points.
On Thursday, the Greenback traded higher against the Euro despite the higher-than-expected rise in the number of initial jobless claims reported earlier. The Euro dropped 0.15% to $1.1408, whereas the US Dollar Index added 0.09% to 93.89 points by 14:00 GMT on the NYSE, but below its two-week high of 94.22 seen at the beginning of the week.
The major US stock markets traded mixed during Thursday's session amid the release of disappointing jobless claims data and Apple's losses. The Standard & Poor's 500 Index traded flat at 2,064.50, whereas the Dow Jones Index added 0.02%, trading at 17,714.80, and the Nasdaq Composite Index lost 0.26%, trading at 4,748.50 points by 14:25 GMT.
The price index for US imports grew less-than-expected in the fourth month of the year, according to the latest data released on Thursday by the Department of Labor. In seasonally adjusted terms, the country's Import Price Index grew 0.3%, whereas the March index was revised up from 0.2% to 0.3%. Analysts expected US imports to grow 0.5% in April.
Last official data on Thursday showed an unexpected decline in EU monthly and year-to-year industrial production in March. Industrial production fell 0.8% monthly from a revised drop of 1.2% in February. On a year-to-year basis it was expected to grow by 0.9%, but production grew only by 0.2%, a lot lower than a revised growth of 1% in February.
Latest data on Norway published on Thursday indicates at steady growth in the first quarter of 2016. After a rate review Norges Bank, as expected by analysts, decided not to change its discount rate and left it at 0.5%. The Scandinavian oil producing country's GDP increased by 1% on a quarterly basis, but analysts forecasted a 0.1% growth after a
According to the latest data released on Thursday, Canada's House Price Index grew more than analysts expected. Statistics Canada reported that the New Housing Price Index increased 0.2% in the third month of the year, following the previous month's 0.2% reading and surpassing the 0.1% forecast.
At start of New York Stock Exchange Thursday session major indices opened in a bit positive territory. Standard & Poor's 500 increased 0.3% and opened at 2,7079.80 points. In the meantime, Dow Jones gained 0.3% to open at 17,770.00 points and NASDAQ started day's session up 0.3 opening at 4.775.00 points.
On Thursday, the Bank of England left its benchmark interest rate unchanged at a record-low 0.5% and revised down its growth outlook for the Q2 from 0.5% to 0.3%. Moreover, the BoE lowered its annual growth forecast for the UK from 2.2% to 2.0%, and highlighted that the country's inflation rate remained below the 2% target level.