The Sterling advanced for a fifth straight day versus the U.S. Dollar after the U.K. Prime Minister David Cameron revealed that economic recovery might allow tax reduction. The Pound increased against major counterparts before this week's report that is expected to show the economy's acceleration in the second quarter. The currency climbed 0.4% to $1.5334.
West Texas Intermediate climbed for a fourth consecutive day as hedge funds rose bullish bets on the WTI crude on decreasing inventories. WTI for August settlement added 65 cents to $108.7 a barrel on New York Mercantile Exchange, while Brent crude for September delivery rose 0.6%, or 59 cents, to $108.66 a barrel on the ICE Futures Europe exchange.
U.S. stock futures were trading higher, signaling high market opening, as several large companies are going to report second quarter earnings. The S&P 500 index futures climbed 0.07% to 1.690.65 at 12:10 p.m. GMT. McDonald's reported quarterly increase in earnings per share from $1.32 to $1.38. Company's revenue rose from $6.92 to $7.08 billion in a year.
The Canadian currency traded near a one month high as oil, the country's biggest export, jumped and the Federal Reserve curbed bets of an imminent end to bond purchases. The Canada's Dollar advanced 0.2% to C$1.0344 against the U.S. currency, after touching C$1.0326 on the second week of July, the highest level since June 20.
Swiss National Bank President Thomas Jordan revealed that he is not going to change a the Switzerland's currency ceiling of 1.2 against the common currency. The Swiss Franc was slightly changed at 1.2370 versus the Euro as of 2:07 p.m. in Zurich, while against the greenback the Franc was at 93.98 centimes. The Swiss Franc has declined 2.4% versus the
Asians stocks climbed after the Prime Minister of Japan Shinzo Abe won in upper-house election, giving him opportunities to make economic reforms. Abe's victory is considered as bullish for the country's economy and equities since nothing prevents the government's growth strategy. The MSCI Asia pacific gauge added 0.5% to 135.65 at 6:31 p.m. Tokyo time.
The greenback depreciated versus most of its trading partners as the the Federal Reserve's idea of pulling back quantitative easing faded away as better economic data needed for such an action. Versus the Euro, the Dollar fell 0.33% to $1.3178 at 11:31 a.m. GMT. Against the Japanese Yen, it lost 0.68% to 99.92. The Sterling added 0.51% to $1.5339 versus
Copper advanced for a third consecutive day before reports on house sales projected to show an increase in sales in the U.S., the second-largest metal consumer country. Copper settlement in three months gained 1% to $6,986 a metric ton at 10:53 a.m. on the London Metal Exchange. September's delivery advanced 0.9% to$3.1695 a pound on the Comex in New York.
Prime Minister of Portugal Pedro Passsos Coelho got the support from the President Cavaco Silva to continue government's work till 2015, the end of the government's term. Cavaco Silva believes that early elections would prevent successful attainment of a bailout programme. The yield on 10-year bonds declined 40 basis points to 6.4% as of 10:39 a.m. in London.
European stocks advanced after some major companies and two Swiss banks reported better-that-estimated earnings. The Euro Stoxx 50 gauge rose 0.46% to 2,728.79. Germany's DAX reached 8.356.23, up 0.3%. The French CAC 40 gained 0.34% to 3.356.23, while Britain's FTSE 100 index declined 0.05% to 6,627.30 as EVRAZ, steel and mining company, lost 2.16%.
Gold increased for a third straight day, touching the highest level in a month of $1,322.70. Demand for the gold recovered following the Federal Reserve Chairman Ben Bernanke's speeches last week. Gold futures jumped 1.64% to $1,314.20 per ounce, adding to signs the gold price remains more than 20% lower this year.
The Sterling touched the highest level in over two weeks versus the U.S. Dollar as U.K. Prime Minister David Cameron announced a growth in the economy may allow the U.K. government to reduce taxes. The Sterling was flat at $1.5288 and remained steady at 86.04 pence against the common currency, adding to signs the Sterling has increased 1.9% in the
The common currency inched up, as G-20 leaders convinced to provide precise communication when the tapering of bond-purchases starts in Japan and the U.S., while China moved towards lending rate liberalization. The 17-nation currency jumped 0.15% to $1.3154 versus the Dollar and rose 0.07% to 0.8607 versus the Pound, however it declined 0.44% to 131.58 versus the Japanese Yen.
Treasuries inched up, prolonging the largest two-week jump in 11 months, after the manager of the world's largest bond fund joined investors speculating that the Federal Reserve will keep bond-purchases to support the economy. The yield on the benchmark 10-year bond declined one basis point to 2.48% and the price of the 1.75% bond maturing in May 2023 rose to
U.K. shares decreased, after FTSE 100 Index advancing for four straight weeks in a row. The FTSE 100 retreated 14.9 points to 6,615.77. The FTSE All-Share Index slipped 0.2% and Ireland's ISEQ Index inched up about 0.1%. European shares remained flat, with the benchmark Stoxx Europe 600 Index near the highest level in seven weeks.
The Australian currency advanced against most of its 16 major counterparts as expectations of tapering the Federal Reserve stimulus were curbed, boosting demand for higher-yielding bonds. The Aussie increased 0.5% to 92.19 against the U.S. currency and declined 0.1% to 92.21 versus the Yen. The New Zealand Dollar jumped 0.1% to 79.32 versus the greenback and fell 0.5% to 79.33
The Japanese Yen appreciated as Shinzo Abe's LDP party won a majority in Sunday's upper house election and handed a mandate to Mr. Abe to continue with his plan for economic growth. The Japanese currency inched up 0.61% to 99.99 against the U.S. Dollar and climbed 0.46% to 131.55 versus the Euro, and 0.49% to 150.84 against the Sterling.
Canadian Dollar depreciated after a release of inflation report that showed a 1.2% increase in CPI which is below the central bank's 2% target. The Canada's currency lost 0.6% against the New Zealand Dollar and 0.5% against the South African Rand, while it still managed to climb 0.1% versus the greenback, reaching C$1.0370 per U.S. Dollar.
Soybean and corn futures decreased amid forecasts that weather will cultivate crop conditions in the U.S. A report showed that low temperatures and rain will moisturize soil that will benefit harvest. Corn futures for December settlement decreased 1.2% to $4.945 per bushel as of 10:03 a.m. on the Chicago board of Trade. Soybeans futures for November settlement fell 0.1% to
European stocks declined slightly at the closing on Friday as major companies reported weaker-than-expected earnings in the second quarter. The Euro Stoxx 50 fell 0.05% to 2,716.50. The French CAC 40 gauge lost 0.04% to 3,926.30, while Germany's DAX was 0.04% down at 8,333.8. The U.K. FTSE 100 dropped 0.07% to 6,629.80.
Gold prices climbed for a second consecutive day after Federal Reserve Chairman Ben Bernanke's speech confirmed further stimulus. Gold futures increased 0.67% to $1,292.70 an ounce as of 2:43 p.m. GMT. Silver gained 0.26% to $19.440 an ounce. While metals rose, the greenback weakened. The U.S. Dollar Index lost 0.2% to 82.659.
Italian bonds climbed for a second consecutive day after the Interior Minister A. Alfano survived a confidence vote in the Senate, muting investor concern about the nation's ruling coalition coming apart. Yield on Italian 10-year bonds declined one basis point to 4.4% as of 2:07 p.m. in London, after hitting 4.36%, the lowest rate since July 11.
U.K. stocks dropped from a 7-week high after Microsoft Corp. and Google Inc. showed worse-than-expected earnings in the second quarter. ARM Holdings Plc that designs chips for Google's software devices fell 2.7% to 896.5 pence. The company's half-year earnings will be published on July 24. The FTSE 100 gauge slipped 0.5% to 6,604.06 as of 1:55 p.m. London time.
Canadian Dollar was little affected by the country's inflation data released today. The Consumer Price Index climbed 1.2% from year ago following a 0.7% increase in May, according to Statistics Canada report. The loonie rose 0.05% to C$1.0381 versus the greenback after the report was published. Against the Euro, the Dollar declined 0.11% to C$1.3620.