After Ben Bernanke's speech did not provide any guidance or clear signs on QE, currency traders brought the Dollar lower versus the Euro, while markets expect the start of G-20 meeting in Moscow. The common currency advanced 0.17% to $1.3131 against the greenback and gained 0.15% to 0.8622 versus the Sterling.
Japanese stocks declined before the parliament elections this weekend, paring a four straight day climb in the Topix index, as the non-ferrous metal companies led declines. The Topix slipped 0.8% to 1,211.98 Tokyo time at the close, after adding 0.8% and the equity-benchmark has gained 0.8% weekly. The Nikkei 225 Stock Average fell 1.5% to 14,589.91.
Corn prices decreased for a third consecutive day on indications that weather in the U.S. might boost crop yield. Contracts for commodity's delivery in December dropped 0.6% to $4.98. Futures dropped 1.9% so far this week, while corn prices slid 28% this year as the U.S. expands its production after last year's drought. Crop of 13.95 billion bushels is expected.
European shares retreated, snapping the four week streak of gains for the Benchmark Stoxx Europe 600 Index, as investors speculated on worse than expected earnings from Google Inc. to Microsoft Corp. The Stoxx 600 fell 0.3% to 298.96 as of 8:10 a.m. London time; however, the equity-benchmark is set for 0.9% five-day advance.
The British currency is set for a second consecutive five-day rise versus the U.S. Dollar ahead of data that are predicted to show Britain's budget deficit narrowed last month compared to previous year. The Sterling traded at $1.5224 at 7:45 a.m. London time; however, it has climbed 0.8% weekly. The Pound depreciated 0.2% to 86.26 pence per Euro, reversing this
Asian shares declined, with the regional benchmark index heading towards a fall for the third day, as Advantest Corp. and Taiwan Semiconductor Manufacturing Corporation pushed technology shares lower. Advantest retreated 7% and TSMC plummeted 6.9%. The MSCI Asia Pacific Index decreased 0.4% to 135.01
The Australian currency is headed for its first one-week climb in approximately a month ahead of inflation data that will be released next week. The Aussie slid 0.1% to 91.64 U.S. cents at 4:43 p.m. Sydney time and is set for 1.3% gain weekly. New Zealand's currency added 0.1% to 79.05 U.S. cents and is headed for 1.7% rise; however,
German government securities were virtually unchanged after data release showed that country's producer prices stagnated in June, while experts predicted a decline of 0.1%. 10-year government bunds were poised for a third consecutive week of gains after Bernanke's claim that the Fed will not decrease its stimulus. Germany's 10-year securities traded at the yield of 1.51%, falling 5 basis points
The Japanese currency appreciated, snapping weekly retreats versus almost all major counterparts, as Asian shares fell before Japan's parliament elections on July 21. The Yen added 0.5% to 99.95 per Dollar at 6:40 a.m. London time, reversing its weekly slip to 0.7%, while it climbed 0.2% to 131.37 per Euro. The greenback dropped 0.3% to $1.3142 per Euro, prolonging its
WTI futures were traded steady as they reached the highest level in 16 months in the previous session on optimistic news from the U.S. economy, oil stockpiles having fell for the third week and on traditionally high-on-demand summer season. The August WTI contract fell slightly 0.02% to $107.81 per barrel, after hitting $108.44 on Thursday, the highest level in 16
U.S. government bonds will probably rise for a second consecutive week after Ben Bernanke affirmed that the Fed will not start reducing its stimulus in September. Yield on 10-year Treasuries dropped 2 basis points to 2.51% so far today. The yield decreased 7 basis points this week, after decreasing 16 basis points a week earlier.
European stock futures dropped, indicating that shares might lose fourth week's gains, after worse-than-expected earnings from technology stocks, most notably Google and Microsoft. The Euro Stoxx 50 Index futures expiring in September dropped 0.3% to 2,707, while futures on FTSE 100 Index slid 0.2%. Contracts on S&P 500 and MSCI Asia Pacific fell 0.2% and 0.4% respectively.
Prices of gold inched up for the second day in a row following Wednesday's decrease amid bets that precious metal demand may recover in the future, despite the Federal Reserve Chairman Ben Bernanke's forecast that gold should fall in the near term. Gold futures advanced 0.49% to $1,290.59 per ounce and spot gold gained 0.59% to $1,291.80.
Stocks prices in developing countries dropped for a second consecutive day, led by technology shares. The MSCI Emerging Markets Index slid 0.3% to 954.45 so far today, decreasing a weekly gain to 1%. Technology stocks retreated 1.7%, the most out of all 10 industries in the gauge, after Taiwan Semiconductor predicted lower-than-expected earnings in Q3.
10-year Indian government bonds dropped after the central bank increased its interest rates to fight currency depreciation. The yield on 7.16% government securities expiring in May 2023 jumped 6 basis points to 8.05%, while it has already increased 52 basis points so far this week, the biggest surge since March 2009. The Rupee decreased 0.1% to 59.7687 per U.S. Dollar.
Copper declined to the lowest in a week in New York, as signals of increasing China's home prices and falling jobless claims in the U.S. imply that further stimulus will not take place in two largest metal-consumer countries. Copper futures for September settlement dropped 0.4% to $3.117 per pound as of 10:28 a.m. on the Comex, while it traded at
The gauge of U.S. leading economic indicators remained the same in June, meaning the economy might take time to gain strength. The index includes ten indicators from which four weakened in June. Main declining indicators were building permits and orders to factories, while unemployment insurance claims and credit conditions were indicators that improved.
The U.S. Dollar gained as the number of jobless claims for the first time dropped last week, giving positive signals about the economy's recovery. The number fell from 358,000 to 334,000, while analysts predicted it to be 345,000. The U.S. currency was up 0.7% to 100.26 versus the Japanese Yen at 9:25 p.m. GMT. Against the Pound, the Dollar traded
Treasuries declined for the first time this week after reports on regional manufacturing and jobless claims indicated that the U.S. economy is gaining strength. The data boosts speculation that the Federal Reserves could slow down asset purchases. Yield on 10-year treasury gained three basis points to 2.52% at 10:51 a.m. in New York.
European bonds advanced for a third straight day as Fed Chairman Bernanke's speech boosted speculation that that central banks around the globe will continue stimulus. Germany's ten-year bond yield declined two basis points to 1.52% as of 2:07 p.m. in London. Return on 10-year Dutch bonds decreased three basis point to 1.95%.
West Texas Intermediate crude traded almost at one-week high after U.S. crude supplies decreased to the lowest since January. Crude inventories fell 6.9 million barrels to 367 million which is the third weakly decline. WTI for August settlement stepped up 27 cents to $106.75 a barrel as of 1:53 p.m. on the New York Mercantile Exchange.
The Pound advanced against the common currency after a retail sales report in the U.K. showed an 0.2% increase in June. June is the second month with growth in retail sales, signaling that the recovery is gaining pace. The currency added 0.1% to 86.17 pence per Euro as of 12:30 p.m. in London. Also yield on 2-year bonds declined 0.04
The U.S. Dollar inched up against the Euro, as the number of first-time unemployed benefit seekers declined moderately by 24,000, ahead of the second day of Ben Bernanke's testimony later today. The greenback advanced 0.30% to $1.3085 versus the common currency, after the jobless claims fell to 334,000, overshooting economists expectations of 360,000.
Canada's wholesale sales jumped from 0.4% gain in April to 2.3%, reaching $50.3 billion in May. It was the biggest advance since 2011. A report showed unexpected results as economists projected wholesale sales in Canada might climb only about 0.3% in May. The main drivers behind the increase was 19.6% growth in sales of agricultural supplies and 4.2% growth in