The manufacturing index rebounded in January, as implemented stimulus measures managed to support stabilisation of the Chinese economy. The PMI was at the 49.8 level, outperforming the mean forecast of 49.5. Meanwhile, China's GDP strengthened 7.4% in 2014, the slowest yearly rate in 24 years.
US shares extended their gains for a fourth consecutive day, erasing the yearly losses, since the ECB confirmed an enlarged stimulus programme, while banks and transportation companies mainly soared on better-than-expected earnings. The equity gauge added 1.5% to 2,063.15, and the Dow Jones Industrial Average climbed 1.5% as well.
Crude traded below $48 a barrel for a third day in London as investors are waiting the ECB's decision to start a QE programme. Another depressing factor is an expectation the crude oil inventories will continue to expand. Brent dropped 1.1% and futures for March delivery was at $48.93 a barrel at 9:45 a.m. in London. Meanwhile, WTI for March
The Euro edged higher versus the US Dollar on Thursday, amid expectations of the ECB announcing QE. The European currency added 0.08% and settled at $1.1616, rebounding from a previous day's 11-year low. Rumour has it that the ECB is considering a programme for sovereign bond-buying of €50 billion per month, beginning from March and through 2016. However, the ECB Chief
European stocks stayed almost the same, erasing earlier gains, on investor expectations of the ECB's announcement regarding the possible QE measures today. The Stoxx Europe 600 Index fell 0.1% to 357.69 as of 9:48 a.m. London time, and the benchmark gauge ended at its strongest point since January 2008 yesterday, as the ECB is expected to announce a QE programme.
Mario Draghi, ECB President, will most likely turn to 50 billion euros a month quantitative-easing programme. The steps of sovereign bond-buying programme may need to be taken in order to fight the threat of deflation within the Euro zone countries. However, investors are weighting whether the ECB will do enough to stoke Europe's fragile economy.
Prices for copper slid on Thursday amid traders awaiting for the ECB meeting outcome, where a bond-buying programmed is expected to be revealed. In the US copper futures for March delivery lost 2.5 cents and traded at $2.587 per pound, compared to $2.612 previous day. Global growth forecast has been cut to 3.5% from 3.8%, causing copper to fall in
The Sterling advanced versus the US Dollar on Thursday amid improved sentiment before the ECB's meeting. The Cable hit 1.5173, the highest level during the morning trading session. One of the reasons for stronger Pound was the UK public sector net borrowing, which increased to £12.47 billion in the preceding month, beating expectations of a £9.7 billion decline. The Pound also gained
On Thursday gold in the US declined due to investors booking profits ahead of the ECB meeting. Over the night from Wednesday gold remained above $1,300 level amid weak data on the US building permits, whereas housing starts met expectations and rose. Futures for February delivery dropped $7.60 and traded at $1,286.10 per troy ounce, compared to Wednesday's weekly high
On Thursday crude oil futures slumped ahead of the conclusion of the ECB's meeting. WTI oil for March delivery lost 53 cents and traded at $47.25 per barrel, compared to $47.78 per barrel on the previous day. Brent crude futures for March delivery also declined, losing 29 cents and settling at $48.74 per barrel. According to expectation's, the US report
The Cable weakened after no MPC members were reported to vote in favour of an interest rate hike. The committee members Martin Weale and Ian McCafferty changed their mind regarding the suitable interest rate level due unstable and weak oil prices that in turn may lead to low inflation. In a different report, the UK wage growth came out below
Oil commenced a recovery after a strong weekly decline, being that historically low prices are slowing oil drilling activities in the United States. BHP Billiton Ltd., the largest diversified natural resources company in the US, announced it is going to reduce the amount of active oil rigs by approximately 40%.
The Yen added versus the Dollar since the Bank of Japan did not enhance the asset-purchasing plan.The Aussie rose and New Zealand's Dollar gained, as Asian shares increased, fueling demand for high-yielding assets. Australia's Dollar rose 0.7% to 82.26 cents, while the kiwi went up by 0.4% to 76.67 cents. At the same time, the Euro appreciated ahead of the
The US currency trade-weighted index climbed to its 10-year high due to the Fed's willingness to raise interest rates, while the European and Japanese policy makers are thinking about measures to revive their economies. Meanwhile, the New Zealand Dollar dropped to a 1.5-year low, as the cost of living declined by 0.2%.
The Yen fell for a third day against the Dollar due to the significant growth of Chinese economy that exceeded analysts' forecasts. The Yen dropped almost against all 16 of its major peers and weakened 0.7% to 118.37 versus the Dollar at 10:10 a.m. in London. However, the Euro strengthened 0.5% to 137.16 against the Japan's currency.
The International Monetary Fund cut its global economic growth outlook the most in three years, with reduced anticipation almost everywhere, but the US, which expanded the drop in oil prices. The global economy will add only 3.5%, compared with anticipated 3.8% growth in 2015, the IMF reported yesterday.
Oil fell for a second day since the IMF downgraded its global economy growth forecast by the most in three years. Oil futures declined 1.3% in London after the biggest weekly drop. The global growth will add 3.5% in 2015, compared with 3.8% growth anticipated in October, the IMF informed in its quarterly report yesterday.
European stocks gained for a fourth day, heading to their strongest level since 2008, on speculations the ECB will start QE program this week. The Stock Europe 600 Index advanced 0.5% to 355.03 as of 10:04 a.m. London time, and the equity benchmark rose 4.5% during the fourth day after the SNB's actions.
On Tuesday prices for copper declined after China GDP data was released. China is the largest copper consumer in the world, accounting for approximately 40% of global consumption. During 2014 Chinese economy expanded at the slowest rate for the last 24 years, pushing down copper futures by 4.9 cents to $2.568 per pound, rebounding from the low of $2.563 during
In Asia prices for gold slightly gained on Tuesday amid higher demand and ignoring China's data released. China's data beat all expectations, with GDP for the fourth quarter rising 7.3%, last month's industrial production adding 7.9% and retail sales edging up 11.9%. Futures for February gained 0.09% to $1,278.10 per troy ounce, after a slight decline on Monday, but with
On Tuesday prices for oil slumped due to China's GDP growing at the slowest rate in 24 years, along with concerns over weaker demand and supply glut. China, the world's second biggest economy, rose by 7.4% in 2014, slightly less than the expectation of 7.5%. Fourth quarter growth rate was at 7.3%, better than anticipated, but at its slowest in
David Cameron, UK Prime Minister, promised to deliver the strongest employment rate in the G-7. He believes his Conservative Party has the best chance of rebuilding the economy following the May's general elections. Cameron promised to battle bureaucracy and to invest in infrastructure in order to support small businesses.
The Swiss National Bank's unexpected decision to abandon its minimal exchange rate for the pair CHF/EUR, due to which Franc advanced 41% against the Euro, negatively influenced the world's leading banks, as they received $400 million of cumulative losses. Citigroup, the world leading bank, faced $150 million losses, while Deutsche Bank lost around $150 million. Barclays, in turn, lost around
Hedge funds increased their net-long position in WTI oil by 12% in the previous week, thus cutting oil bets, the CFTC reported. WTI lost 4.3%, or $2.04, to $45.89 a barrel during the trading session, in the period of CFTC report, reaching to $44.20 on January 13, the weakest level since 2009. Futures climbed to $48.69 on Friday, heading to