The Global agency Fitch has increased Latvia's credit rating by one degree to BBB+, after Latvian membership in the Euro block was approved. The ECOFIN's announced their decision and gave the green light to Latvia to join the Euro block and become the 18th member of the Eurozone on the January 1 2014, adding to signs the approval was broadly
European shares dropped from their highest level in about a month as data indicated Chinese overseas sales and inbound shipment declined more-than-expected. U.S. Index futures remained steady and Asian stocks jumped. The Stoxx Europe 600 Index decreased 0.3% to 293.66 and the equity benchmark inched up to the highest level since June 10.
German stock prices were virtually unchanged as unexpected fall in China's exports and imports and a rise in Beiersdorf and Henkel offset each other. The DAX Index dropped as much as 0.1% to 8,054.64. The gauge has lost 5.6% of its value since May 22 when Ben Bernanke indicated that the Fed might end its stimulus earlier.
Italian government securities decreased for a second consecutive day as S&P cut the credit rating for the country due to worsening economic outlook. The rating was decreased from BBB+ to BBB. The yield on 10-year government bonds increased 3 basis points to 4.44%. The yield on similar-maturity German bunds decreased 1 basis points to 1.65%.
The Australian currency reached its strongest level in seven days on bets that its retreat has been excessive. The Aussie gained 0.3% to 91.98 U.S. cents at 4:42 p.m. Sydney time from Tuesday, and reached 92.18, the strongest level since July 2. The New Zealand's Dollar added 0.1% to 78.62 U.S. cents, after sliding 0.3% and climbing 0.4%.
European stocks advanced to the 1-month high as investors await the report of the last Fed's meeting, which might indicate how long monetary stimulus will last. The Stoxx Europe 600 jumped 0.3% to 295.45, the highest point since June 10. S&P 500 futures increased as much as 0.1%, while MSCI Asia Pacific Index gained 0.7%
The Loonie climbed for a second straight day on bets that corporate profits will beat expectations and June housing starts topped the forecasts, according to analysts'.The Canadian currency gained 0.3% to C$1.0527 per U.S. Dollar as of 5:03 p.m. Toronto time, while it rose 1% to C$1.3455 per Euro and one Canada's Dollar buys 94.99 U.S. cents.
Gold dropped as Chinese overseas sales declined more-than-forecast in June and as investors expect minutes from the Federal Open Market Committee's meeting previous month on speculation the central bank will start to taper bond purchases. Spot gold retreated 0.6% to 1,244.03 per ounce and the August Bullion contract remained steady at $1,246 per ounce.
The British Pound rebounded from a 3-year low on speculation that recent decline was excessive. The currency dropped yesterday as the data showed that U.K. manufacturing shrank, indicating weakening recovery. The Sterling jumped 0.1% to 1.4881 per U.S. Dollar, while it was virtually unchanged against the Euro and traded at 85.94 pence.
European stock-index futures declined, showing the Stoxx Europe 600 Index will retreat from its highest level in about a month, as data indicated Chinese overseas sales and inbound shipments declined more-than-predicted. Euro Stoxx 50 Index futures maturing in September dropped 0.2% to 2,655.
Stock prices in China rose as investors expect the authorities to support the economy after an unexpected 3.1% slump in exports. The Shanghai Composite Index increased 1.7% to 1,997.87, leaning towards the biggest rise since April 19. The CSI 300 Index jumped 2.1% to 2,208.79, while the Hong Seng China Enterprise Index gained 1.4%.
Imports and exports unexpectedly declined in China indicating severity of the impacts of decreasing credit growth. Imports dropped 0.7%, while experts predicted a rise of 6%. Exports plummeted 3.1%, the biggest decline since the Great Recession, compared to the market expectation was an increase of 3.7%. The trade surplus in May was $27.1 billion, while analysts' estimate was $27.8.
The Japanese Yen appreciated against its major peers on speculation that the BoJ will not increase its monetary stimulus amid recovering economy. The Japanese currency rose 0.7% to 100.44 per U.S. Dollar after touching the lowest point since May 30 two days ago. The Yen appreciated 0.7% to 128.42 per Euro so far today. The currency has lost 21% of
Asian stocks advanced after the data showed that China's exports dropped most significantly since 2009. The MSCI Asia Pacific Index rose 0.2% to 131.68 after advancing 0.8% earlier today with 7 out of 10 industries soaring. Japan's Topix jumped 0.6% before dropping 0.5% later in the day. S&P/ASX 200 increased 0.2%, while NZX 50 climbed 0.7%.
Yield on 10-year Treasuries relative to 2- and 30-year government securities was near the highest point since 2011 before $21 billion auction today. The difference between yields was 1.25%, while it reached 1.39% last week. Yield on 10-year government bonds was 2.63%, while it is expected that the yield might rise to 3% next week.
Share prices in India rose for a second consecutive day. The S&P BSE Sensex index jumped 0.2% to 19,485.55, led by ICICI Bank and State Bank of India, which rose 0.7% as well as Tata Consultancy Services, which increased 0.9%. The gauge is still 2.9% below its level on May 22, when Ben Bernanke said that the Fed might unwind
Future contracts on S&P 500 jumped, which indicates that the index itself will extend its gains as it rose for 3 previous days. The futures expiring in September rose 0.4% to 1,641.90, while future contracts on Dow Jones Industrial Average climbed 0.3% to 15,200 so far today. The S&P 500 soared 1.6% in previous 3 days.
Share prices in the U.K. increased to the highest point in 5 weeks despite worse-than-expected manufacturing data. The FTSE 100 jumped 1.1% to 6,519.63 today after increasing 1.2% yesterday, while the index soared 2.6% last week. The rally was supported by a rise in mining companies' stocks and by central bank's commitment to maintain growth.
The yield on three-year U.S. government notes more than doubled from their level in May as investors speculate that the Fed might start unwinding its QE. The yield increased from 0.29% in May to 0.68% today before the $32 billion auction. The yield on 10-year Treasuries was little changed and stood at 2.63% after rising 24 basis points on July
WTI crude oil traded at almost highest price in fourteen months before a data release, which is expected to show that the U.S. crude oil supplies dropped for a second consecutive week. Crude inventories dropped 3.1 million barrels previous week, according to experts' predictions. Prices also increased due to deadly unrest in Egypt. WTI for delivery in August traded at
The Canadian Dollar rose after Alcoa announced better-than-expected performance, increasing demand for riskier investments. The Loonie remained higher after housing data turned out to beat experts' expectations. The currency jumped 0.1% to 1.0547 per U.S. Dollar today, while S&P 500 Index future contracts increased 0.4%.
Stock prices rose around the world after Alcoa, starting U.S. earnings season, showed better-than-expected financial results in Q2. FTSEurofirst 300 index of European stocks dropped due to profit-taking after reaching the highest point in a month. Japanese Nikkei 225 gauge soared 2.6%, almost reaching 6-week high.
U.K. shares inched up and reached the highest level in five weeks as Alcoa Inc. began the U.S. earnings-reporting with outcome that overshot analysts expectations, as investors maintained their optimism that central banks will support expansion. The FTSE 100 climbed 66.07 point to 6,516.14 and the FTSE All-Share Index rose 1%, and Ireland's ISEQ Index added 0.4%.
Greece will receive 3 billion euros of financial aid, European authorities confirmed. The aid is intended to prevent another debt crisis in the country. Greece will received 2.5 billion euros in July, while the rest in October, if the government manages to cut spending and implement required reforms. Yields on 10-year Greek government bonds decreased 31 basis points to 10.6%.