The BoJ governor Sayuri Shirai expects Japanese government bond prices to stabilize without any intervention by the central bank. He predicts that economic growth will resume in the middle of 2013, while achieving the goal of 2% inflation will take time. The BoJ decision to keep its monetary policy steady and speculations on Fed's withdrawal of its QE significantly contributed
Japan's Nikkei 225 Stock Average declined, slipping 19%, and it almost entered the bear market as the Japanese currency appreciated to its strongest versus the greenback in more than eight weeks. The Nikkei 225 dropped 5.6% to 12,547.96 at 12:39 p.m. Tokyo time, making it the third decline of more than 5% in previous month. The index slid 6.6% today,
The Australian and New Zealand currencies fell versus its most-traded peers after market volatility triggered selling. The Aussie depreciated 0.4% to 94.49 U.S. cents at 1:53 p.m. Sydney time after advancing 0.4%. The Australia's Dollar reached 93.26 on June 12, its lowest level in almost three years, while the kiwi dropped 0.9% to 79.15 U.S. cents.
Bond prices rose in the U.S., Japan and Australia as Asian stocks collapsed, increasing demand for safer assets. The yields rose this month on speculations that the Fed might end its QE, which kept borrowing costs low. 10-year Treasuries yields dropped 2 basis points to 2.21%, while similar maturity Japanese and Australian yields decreased 0.5 and 2 basis points respectively.
The Japan's currency rose, the appreciated to strongest level in eight weeks versus U.S. Dollar as the Japanese investors have sold, more overseas stocks and bonds than bought for a fourth week in a row. The Japanese Yen advanced 1.4% to 94.60 per Dollar at 6 a.m. London time after jumping to 94.45, the strongest level in eight weeks. The
China's stocks slumped after a 3-day holiday when worse than expected exports and industrial production data was released. The Shanghai Composite Index slid 3% to the lowest point since December 13, 2012. The index has already lost 12% of its value since it reached its high in February 3. The CSI 300 Index dropped 3.4%, while Hang Seng China Enterprise
U.S. crude-oil future prices fell on Wednesday, after a surprising weekly climb in oil supply underlined concerns about high inventory levels. The July crude oil contracts declined to $94.77 a barrel. Investors already had concerns about large crude supplies, adding to signs the total U.S. oil supplies were at 397.6 million barrels last week, the highest level since the beginning of
Euro block industrial output gained 0.4% in April, mainly on higher capital goods production and non-durable consumer goods. Industrial production was predicted to remain steady following a gain of 0.9% in March. Capital goods output rose 2.7% and non-durable consumer goods climbed 0.7%. Annual industrial output declined 0.6%, however less than 1.4% fall in March.
Gold futures declined on Wednesday amid pressure over concerns that central banks will not provide more bond-buying stimulus into the worldwide financial system. The August gold contracts fell $1.50 to $1,375.50 an ounce. Gold futures have retreated about 18% this year after investors have been waiting for signals from Fed on scaling back stimulus.
Treasuries remained steady, after yesterday's largest jump in a week, ahead of the U.S. auctions $21 billion worth of 10-year securities today and $13 billion worth of 30-year notes tomorrow. Benchmark 10-year bonds yielded 2.2% and the price of 1.75% note due in May 2023 was at 96 1/32. Thirty-year bond yields advanced one basis point to 3.33%
The Sterling advanced for the second day against the 17-nation currency, touching the highest level in over three weeks, as data indicated U.K. jobless claims declined more than economists predicted in May. The Pound appreciated versus most of its 16 major counterparts after unemployment fell more-than-expected in April. The U.K. currency climbed 0.1% to 1.5661 against the U.S. Dollar. And
Asian shares retreated on worries that central banks from Japan to U.S. may scale back the stimulus programme. The MSCI Asia Pacific Index fell 0.4% to 131.02 at 1:33 p.m. Tokyo time, meanwhile, the markets in China, Hong Kong, Taiwan and the Philippines were closed for holidays. The MSCI gauge reached the highest level this year on May 20 but
The Loonie appreciated to its highest level in almost 36 months against its Australian peer as investors weighed that the North America will lead in economic growth. The Canadian Dollar added 0.4% to 96.06 Canadian cents per Aussie at 5 p.m. Toronto time, while it also strengthened 0.4% against the kiwi. The Canada's currency gained 0.1% to C$1.0189 per U.S.
German government bunds remained steady after the report showed that consumer prices in the Euro block's biggest economy rose in May as reaching the lowest level since August 2010 in the previous month. German 10-year note yielded 1.59%, after reaching 1.66%, the highest level since February 20. The price of the 1.5% bond maturing in May 2023 was 99.145.
The Japanese Yen fell versus its 16 most-traded peers as there were speculations that yesterday's advance against the U.S. Dollar was too big. The Japan's currency depreciated 0.8% to 96.84 per Dollar at 8:55 a.m. London time, after jumping 2.8% on Tuesday, while it slipped 0.9% to 128.93 per Euro. The Yen slid for the third day out of last
U.K. government gilts remained flat after decreasing for four days in a row, ahead of data economists predicted will indicated jobless claims in the U.K. slipped for the seventh month in May. Benchmark 10-year bond yields were at four-month high ahead of the U.K. auctions 2.25 billion pounds worth of notes maturing in 2023.
European shares remained steady after investors await the outlook for prolonging the central bank stimulus programme. Asian stocks fell, while U.S. futures advanced. The benchmark Stoxx Europe 600 Index declined about 0.1% to 291.67. Inditex AS retreated 1.9% as the world's largest clothing retailer posted profit that missed analysts estimates.
Japan's Topix index reversed losses at the close after sliding earlier as the Japanese currency gained overnight. The Topix declined 0.4% to 1,096.54 at the end of the session in Tokyo; the index earlier slipped 2.6% as the Yen appreciated by the most in 36 months. The Nikkei 225 Stock Average fell 0.2% to 13,289.32, making it the best performer
The U.S. currency fell versus the Japanese Yen on Wednesday as dropping the most in three years on the previous session when investors withdraw risky Yen bets after the BOJ held back from changing the policy to damp bond market volatility. The greenback advanced 0.8% to 96.77 versus the Japanese currency and the 17-nation currency also rose 0.7% to 128.76
U.S. shares declined, sending the S&P's 500 Index for second straight retreat, after Japan's central bank's Haruhiko Kuroda left stimulus unchanged. The Standard & Poor's 500 slipped 1% to 1,626.13 as of 4 p.m. New York time, while the Dow Jones Industrial Average slid 116.57 points, or 0.8%, to 15,122.02. Approximately 6.4 billion stocks were traded.
The Sterling was little changed versus the greenback and the Eurozone's currency before a report that is expected to show that unemployment rate has fallen for seventh straight month in May. The British currency was at $1.5667 at 7:49 a.m. in London after reaching $1.5684 on June 6, while the Pound traded at 84.96 pence per Euro.
The Aussie stopped a three-day decline and recovered from near a three-year low on sign that it has been oversold. The Australia's currency added 0.2% to 94.50 U.S. cents at 2:33 p.m. Sydney time from Tuesday, when it reached 93.26, near the three-year low, while the New Zealand's currency gained 0.1% to 78.80 U.S cents.
The Europe's shared currency traded less than 0.1% from almost a four month high on the speculations the ECB may cut the interest rates. The 17-nation currency was at $1.3308 at 1:28 p.m. in Tokyo after reaching $1.3318 on Tuesday, while the Eurozone's currency added 0.3% touching 128.28 Yen, after declining 2.4% day earlier.
U.K. industrial output advanced more-than-expected in April amid rallied output at oil and water businesses. Manufacturing declined following a rise in February and March. Production at factories, utilities and mines climbed 0.1% from March. The U.K. economy is expected to grow and recover and the industrial output report signals the sector will show improvement signs in the second quarter.