The Dollar remained above the Euro after its strongest soar in a week prior to U.S. data that might indicate the economy advanced faster than estimated, giving more reason for the Fed to reduce stimulus. The greenback added 0.2% to $1.3315 per Euro at 6:38 a.m. London time, following a 0.4% appreciation yesterday, while the Yen lost 0.2% to 97.79
The Pound appreciated from a three-week low as BoE Governor could not convince investors that interest rates will be kept very low. The sterling added 0.4% to 85.82 pence per Euro as of 3:18 p.m. in London, while the Pound lost 0.1% to $1.5530, following a drop to $1.5429 on August 14. The two-year gilt yield soared 0.05 percentage points
U.S. Stocks were stable, following the S&P's 500 Index plunge to the lowest in eight weeks yesterday, as data indicated pending sales of ready-to-live homes reduced by 1.3% in July and concerns over Syria keep investors cautious. The S&P 500 added almost 0.1% to 1,680.87 as of 10:07 a.m. New York time, while the Dow Jones Industrial Average gained 0.1%
BoE Governor Mark Carney reassured in his speech that interest rates will not rise before jobless rate hits 7%. The jobless rate is predicted to hit 7% not before late 2016, implying that the key rate will remain at ultra low 0.5% until then.
The British currency recovered from the lowest level in two weeks versus the U.S. Dollar, as the BoE's chief Mark Carney spoke about the central bank's future plans. The Sterling dropped 0.32% to $1.5498 against the greenback and dropped 0.17% to £0.8654 versus the Euro, and declined 0.19% to 150.25 versus the Japanese Yen.
Emerging-market shares decreased to the lowest level, driven by Turkey, Egypt and the Philippines,amid worries the U.S. plans to take military action against Syria. The Turkish and Indian currencies depreciated to record low levels. The MSCI Emerging Markets Index retreated 0.8% to 908.32.
Treasuries declined, with five-year bonds snapping a three-day increase, ahead of the U.S. auctions $35 billion of the bonds today. The U.S. five-year bond yield advanced two basis points to 1.55% and the 1.375% security expiring in July 2018 retreated 3/32 to 99 7/32. The 10-year note yield gained to 2.73%.
The Indian currency decreased to a record low, falling 3.6% in one session, slipping 2.9% in the last trading session, and posting the biggest decline since 1991. The Indian rupee touched an all-time low of 68.74 versus the greenback, adding to signs the currency has plummeted 26.3% since May. Indian benchmark index Sensex has retreated 14.26% since July 23.
West Texas Intermediate crude oil inched up to the highest level since May 2011 amid worries that unrest in Syria may expand and threaten oil inventories from the Middle East. Brent increased to the highest level in six months. WTI for October settlement jumped to $112.24 per barrel, while Brent for October delivery rallied 2.6% to $117.34 per barrel.
The Sterling declined for the second day versus the U.S. Dollar as Syria's unrest situation weighs on the markets and investors are expecting the Nottingham speech from the Bank of England chief Mark Carney. The Sterling decreased 0.47% to $1.5475 against the greenback and was steady at 150.93 against the Yen, while falling 0.21% to £0.8632 versus the Euro.
European shares decreased to almost the lowest level in six weeks as worries expanded the U.S. plans to undertake military action in Syria. The Stoxx Europe 600 Index declined 0.4% to 297.78, the lowest level since July 18. Accor SA retreated 2.8% after releasing first-half profit against analysts' expectations.
German 10-year government bunds advanced for the third day as data indicated the index of consumer sentiment in Germany will decrease for the first time in eight months next month. German 10-year note yield retreated two basis points to 1.83% and the 1.75% bund maturing in May 2023 inched up 0.16 to 97.10.
The U.S. Dollar appreciated versus most of its 16 major peers after unrest situation in Syria intensified and pushed developing-country currencies lower. The U.S. Dollar Index appreciated 0.3% to 1,027.54, while the greenback rallied 0.6% to 97.57 against the Yen and inched up 0.1% to $1.3380 versus the Euro.
Canadian Dollar increased from almost the weakest level in seven weeks as crude oil, Canada's largest export, gained to the highest point since July amid speculation tension in Syria will stop Middle East supplies. The Canadian currency inched up 0.3% to C$1.0474, while West Texas Intermediate futures rallied 3.2% to $109.32 per barrel.
Gold futures advanced to their highest level in over three months as unrest in Syria intensified and spurred safe-haven buying across the world. The December gold contract increased 0.53% to $1,427.00 per ounce, while silver futures inched up 1.09% to $24.925. The SPDR Gold Trust assets hit the highest level since August 1, climbing 0.1% to 921.03 metric tons.
The Australian currency has dropped to the lowest level in three weeks versus the U.S. Dollar and to over three-year low against the 17-nation currency as traders seek for safer assets amid growing outlook of military decision against Syria. The Aussie declined 0.56% to $0.8935 against the greenback. The Oz dollar retreated 0.78% to $1.5011 versus the Euro.
Asian shares declined as tension around Syria boosted massive sell-offs, which fueled the save haven Japanese Yen and hurt Japanese overseas sellers. Japanese Nikkei 225 decreased 1.49% to 13,341.83, continuing to decline since August 23, while Australian S&P/ASX 200 index plummeted 1.00% to 5,089.70 and Hong Kong's Han Seng index slipped 1.48% to 21,557.00.
The Australian currency declined against all 16 major peers as volatility headed towards the highest level in six weeks, curbing demand for the currency. The Australian Dollar plummeted 0.8% to 89.58 versus the U.S. Dollar and New Zealand's Dollar retreated 0.6% to 78.02 against the greenback. One-month volatility for the Australian currency increased to 13.03%.
Copper futures recovered as unrest in Syria intensified, damping investors' risk appetite, while the Federal Reserve tapering uncertainty still weighs. The December copper contract advanced 1.34% to $3.364 per pound. The U.S. Dollar index rallied 0.09% to 81.481 and gold gained 1.85% to $1,419.00 per ounce.
The U.S. Consumer Confidence Index advanced from 80.3 in July to 81.5 points in August. The number of consumers who expected business conditions to worsen decreased from 11.3% in July to 11.2% in August, while those expecting more jobs in future climbed from 16.7% to 17.6% and those expecting fewer jobs declined from 17.7%to 17.3%.
The Canada's currency declined for the second day after John Kerry announced the U.S. will hold Syria's government to account for using deadly chemical-weapons boosted demand for the safer assets in the U.S. The Canadian Dollar plummeted 0.3% to C$1.0528 versus the greenback, touching the weakest level in seven weeks.
U.S. stock-index futures fell, indicating the S&P's 500 Index will decline for a second day, while tension over possible military activity in Syria increased and investors awaited data showing reduction in consumer confidence. September futures on S&P 500 lost 1% to 1,637.50 as of 8:45 a.m. New York time, while contracts on the Dow Jones Industrial Average slid 0.8% to
European shares declined the most in nine weeks as John Kerry announced the U.S. will hold Syria's government to account for deadly chemical-weapons attacks on its people, damping investors' risk appetite. The Stoxx 600 dropped 1.8% to 299.15 in London, adding to signs the index has still jumped 8.5% from the lowest level this year on June 24.
Corn fluctuated between gains and losses following the biggest increase in over a year while investors weighed the prospects for hot, dry weather in the Midwest against outlook of an all-time high U.S. crop. Soybeans swung. The corn for December settlement advanced 0.8% to $5.0425 per bushel, adding to signs corn has declined 28% this year.