The Pound depreciated versus its major counterparts after U.K. GDP posted a less-than-expected decline in the second quarter. On Friday, Sterling traded at 0.7925 versus the Euro, 124.55 versus the Swiss Franc and 1.5830 versus the U.S. Dollar.
Orders for durable goods in the world's biggest economy advanced more than expected in July, as demand for civilian aircraft rose. The Commerce Department's report showed that manufacturers' orders for durable goods added 4.2 per cent to a seasonally adjusted $230.7 billion, from 2.4 per cent increase in the previous month.
Poland's unemployment rate fell to 12.3 per cent in July, down from 12.4 per cent in the previous month, the nation's main statistical office said on Friday, August 24. The results met analysts' expectations. Meanwhile, 1.95 million people registered as unemployed, slightly less than 1.96 million in the preceding month.
Fitch rating agency joined Standard & Poor's rating agency in saying that Spanish credit rating remains stable for now, even despite the fact nation may request for a bailout to help it through the Eurozone's sovereign debt crisis. In the meantime, Madrid has already asked for up to €100 billion ($125.5 billion) as aid for its troubled banks.
The single currency depreciated versus its major peers, as Angela Merkel claimed Germany's unwillingness to give Greece more time for implementation of cuts and necessary reforms. The EUR/USD currency pair lost 0.4 per cent to $1.2512, down from yesterday's $1.2564. The ICE Dollar Index added 0.34 per cent to 81.65, up from 81.368.
Business investment in the British economy slipped in the second quarter, mostly led by a 3.3% drop in private area non-manufacturing, the Office for National Statistics showed in preliminary data on Friday. Investment declined 1.5% on quarter to GBP 30 billion. Investment in private area manufacturing rose 5.5% on quarter. Business investment surged 1.7% on year-on-year basis.
Number of tourists visiting Hong Kong rose 13.8% on year to about 4.37 million in July, the Hong Kong Tourism Board said on Friday. Before August a total of 26.69 million tourists arrived in Hong Kong in 2012, posting a 15.2% climb from the same period of the prior year.
Belgium's business sentiment declined this month after a short-term rebound in July, the National Bank of Belgium reported on Friday. The index tumbled to -11.8 in August, compared to -11.3 in July. Analysts forecast a reading of -12. Except for production industry all other sectors posted fall in confidence. Sentiment deteriorated most in the trade sector.
Oil increased as German Chancellor Angela Merkel announced the country is ready to support Greece's government as it undertakes essential steps to deal with its economic woes, discouraging critics who claim Greece's exit from Eurozone. October-delivery crude surged 0.4% to $96.61 per barrel in New York. October-settlement Brent oil gained 4 cents to $115.05 per barrel in London.
U.S. Treasuries advanced for a sixth straight day amid belief the Fed will step up efforts to cut borrowing costs just as its meeting in September to boost the U.S. economy. The benchmark 10-year note rate slipped to 1.66%. The 1.625% note maturing in August 2022 increased 7/32 to 99 22/32.
German stocks tumbled for a third day amid investors awaiting the result of meeting between French, German and Greek leaders to review second bailout program for Greece. The DAX Index declined 0.3% to 6,931.14. The gauge still advanced 16% from the year's lowest level on June 5.
Asia's stocks dropped amid signs of weaker growth in the U.S. and China and on worries Europe's leaders are not improving the situation over the euro-debt crisis. Japan's Nikkei 225 stock average tumbled 1.2%, while Australia's S&P/ASX 200 Index dropped 0.8%. Hong Kong's Hang Seng Index declined 1.3%.
The Euro cut a four-day rally versus the U.S. Dollar as the ECB bond purchasing plan was announced to be postponed until Germany's ruling on Eurozone bailout fund. On Friday, the Euro tumbled 0.4% to $1.2516, after reaching $1.2590 yesterday, the highest since July 4. It fell 0.3% to 98.28 Yen.
Austria's production index surged in June amid a rise in industrial output offsetting a drop in construction output, Statistics Austria reported on Friday. The index increased a working-day adjusted 0.3% on year. Industrial production advanced 0.8%, while construction output fell 2.7%. However the production index declined 1.6% on monthly basis.
The U.K. economy shrank 0.5% in Q2, upwardly revised from a preliminary 0.7% decline, the Office for National Statistics said on Friday. The first quarter posted a fall of 0.3%. Production output slid 0.9%, from 1.3% fall estimated previously. Construction output slipped 3.9% instead of 5.2%.
German shares declined on Friday amid escalated risk-aversion in the market during meetings between EU leaders to discuss second bailout program of Greece. Mixed Eurozone's data coupled with rising uncertainty over the US stimulus measures created additional pressure on the German's stocks. The German DAX Index retreated by 0.44% to trade at 6,915.91. On the upside were utility and health
UK stocks halted previous rally on Friday as hopes for QE3 in the US started to vanish. Meanwhile, traders are anticipating an outcome of meetings between Greek, German and French leaders regarding Greek bailout program. Adding to the negative mood of the UK stocks, UK preliminary GDP shank by 0.5% in Q2. The FTSE 100 Index lost 0.16% to trade
The Hang Seng Index tumbled to the lowest level since March 2009 amid weak earnings reports and comments from St. Louis Federal Reserve President James Bullard. The Fed official said that it is too early to be certain about QE3 taken recent upbeat US data releases. The Hang Seng Index sank by 1.25% to end the week at 19,880.03. All
Japanese shares dropped sharply on Friday after weak manufacturing data from China added to worries about global economic slowdown. Moreover, rising uncertainty over stimulus measures in the US and China also weighted down on Japan's equities. The Nikkei 225 Index ended the week in red territory, sinking by 1.17% to 9,070.76. Only one industry included in the index managed to
US blue chips sank on Thursday on speculation that the FOMC minutes were out-of-date and the US economic recovery sped up since then. However, slightly better-than-expected PMI releases from the Eurozone limited the downswing of the US blue chips. The Dow Jones Industrial Average Index lost 0.88% to close at 13,057.46. All sectors included in the index tumbled. Basic materials
US stocks plunged on Thursday as hopes for QE3 started to fade amid positive economic data from the US. Flash US PMI rose more than expected in August while new home sales beat forecasts in July. Moreover, upcoming meetings between EU officials regarding anti-crisis measures increased cautiousness among market participants. The S&P 500 Index tumbled 0.81% to end the session
Aussie declined to a month low as the RBA Governor Glenn Stevens mentioned the currency would most likely decline if the nation's mining boom was to faint. Australia's Dollar dropped 0.5% to $1.0392, after reaching $1.0388, the least since July 27. It fell to NZ$1.2819, the lowest since July 12. The Kiwi slipped 0.3% to 81.02 U.S. cents.
Farm commodities tumbled on Thursday despite weaker US Dollar. Market participants awaited data from Pro Famer Midwest Crop Tour and USDA export sales report due on Friday. Wheat dropped ahead of the key crop reports due on Friday. Limiting the downswing, SovEcon cut its forecast for Russia's crops to 39 million tonnes. Corn plunged the most in more than two months
Energy commodities were mixed, with heating and Brent oil rising and natural gas and crude oil falling. Pushing the commodity group lower, China's PMI dropped to nine-month low in August. At the same time, speculation that the Fed will ease its monetary policy supported energy prices. Crude oil was the top-loser on global growth concerns after China released dismal PMI data.