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.
Industrial metals soared on Thursday amid better-than-expected manufacturing data releases from the US and Eurozone. US Markit's flash PMI rose to 51.9 while Eurozone's PMI advanced from 44 to 45.1 in August. Broadly weaker greenback also spurred rally of the base metals. Aluminum extended previous gains on hopes for monetary stimulus in the US. Moreover, upbeat US manufacturing data provided additional
Precious metals prolonged rally on Thursday amid hopes for QE3 in the US. However, the upswing was capped after the Fed official, James Bullard, reported that recent FOMC minutes were out of date and the economic situation in the US since improved. Gold rose by almost 1% on speculation that the US and China will loosen their monetary policies soon.
Brazil's foreign direct investment rose to the highest level in July since 2010 and is likely to exceed the nation's central bank's $50 billion forecast this year as investors expect economic growth will pick up. Though economists anticipated FDI of $7 billion, FDI increased from $5.8 billion in June to $8.4 billion in July, the central bank reported.
The RBA Governor Glenn Stevens said that officials are ready to take steps if the nation's economy slows, auguring Australia's mining investment boom will peak within the next two years. The Aussie Dollar declined to a 1-month low versus the New Zealand Dollar as Stevens said the Australian currency is likely to depreciate if the mining boom ends.
The Brazilian Real dropped to a 1-week low on speculation the nation's central bank will intervene to weaken the Real outweighed bets officials will take steps to support the global economy. The Real lost 0.4% to 2.0238, the lowest level since August 14.
The Japanese Yen appreciated against most of 16 major counterparts this week due to Asian stocks' decline and discouraging global economic data that increased demand for safe haven assets. The Yen set for its biggest 5-day strengthening versus the U.S. Dollar in three months as reports showed U.S. unemployment claims rose while the latest reading of manufacturing in Europe and
The RBA Governor Glenn Stevens was surprised by the Swiss National Bank's decision to purchase the Australian Dollar, which is usually sold when prices of commodity fall. The SNB has been buying the Aussie since May, reflecting the severity of the Eurozone debt turmoil. The Australian Dollar is increasingly considered as a safe haven for some private and official investors.