The Congressional Budget Office projected a $1.1 trillion federal budget deficit, or 7.3% of nation's GDP in fiscal 2012,. This is already the fourth straight year when the U.S. government's shortfall will exceed $1 trillion. Meanwhile, the new estimates are slightly lower than the predictions in March, when analysts expected a $1.2 trillion federal deficit.
German stocks dropped amid higher-than-expected trade deficit in Japan and before European leaders meetings this week. The DAX Index decreased 1% to 7,017.7, the biggest drop since Aug.2. Meanwhile, the gauge surged 17% from the year's lowest level on June 5 amid Mario Draghi's pledge to sustain the euro.
The Ruble declined against the U.S. Dollar first in three days after Brent crude fell and Japan posted wider-than-expected trade deficit, weakening demand for riskier assets. On Wednesday, the Ruble depreciated 0.4% against the Dollar to 31.8441 and slipped 0.4% versus the Euro to 39.7250, the lowest in three weeks.
Copper tumbled in New york after decreasing Japan's exports added signs of a global economic downturn, weakening prospects for demand. Shipments fell 8.1% on year, the Finance Ministry reported on Wednesday. December-delivery copper tumbled 0.3% to $3.449 per pound. Three-month contract slid 0.4% to 77580 per metric ton in London.
Canada's core retail sales decreased unexpectedly in June, Statistics Canada reported on Wednesday. Core retail sales, excluding automobile sales, slipped 0.4% in June from 0.4% gain in May. Analysts forecast a 0.3% rise. Total retail sales dropped 0.4% in June, compared to a 0.2% increase in May and expectations of 0.1% rise. Following the data USD/CAD surged 0.49% to 0.9940.
Sales of previously owned homes in the U.S. advanced 2.3% to 4.47 million on year in July, the National Association of Realtors reported on Wednesday, from 4.37 million in preceding month. The median estimate of 73 economists asked by Bloomberg News forecast an increase to 4.51 million.
German Bunds advanced, with 10-year rate falling to a one-week low, on Luxembourg Prime Minister Jean-Claude Juncker visiting Greece today amid worries over nations opportunities of solving the debt crisis. The 2-year notes cut a two-day fall after sales topped the maximum target at securities auction on Wednesday. The 10-year note rate fell to 1.50%. The 1.75% note due in
German shares dropped after Japan reported wider than expected trade deficit in July. Escalated cautiousness ahead of the FOMC minutes release also weighted down on German blue chips. The German DAX Index declined by 0.78% to trade at 7,017.41. Only one sector included in the index increased. Financials moved higher thanks to Deutsche Bank that gained 0.52%. At the same
UK equities sank on Wednesday after reports on sharp increase in Japan's trade deficit. Adding to risk-aversion in the markets, traders await FOMC minutes release due later in the day. The FTSE 100 Index tumbled by 1.10% to trade at 5,800.23 at the time of writing. All industries included in the index slumped. Basic materials sector posted the biggest losses.
The Hang Seng Index plunged on Wednesday on speculation that China's government is planning to expand property tax. Moreover, dismal Japan's trade balance data, showing that exports to China dropped sharply in July, added pressure on Chinese blue chips index. The Hang Seng Index sank 1.06% to trade at 19,887.78. All sectors included in the index tumbled. Basic materials and
Hong Kong stocks dropped amid worries corporate earnings are falling and before European leaders meetings this week. The Hang Seng Index tumbled 1.1% to 19,887.78, with all except one stock declining on the 49-member gauge. The Hang Seng China Enterprise Index slid 1.3% to 9,698.83.
Europe's stocks declined to almost three-week low after Japan's trade deficit widened more-than-expected and investors waited for the European leaders meetings' outcome. The Stoxx Europe 600 Index tumbled 0.9% to 270.27, the biggest decline since Aug. 2. Contracts on the S&P 500 fell 0.2%, while the MSCIA Pacific Index dropped 0.5%.
Consumer price index in India rose at the slowest pace in four months in July, said the Central Statistical Office on Tuesday. Nation's CPI increased by 9.86 per cent from a previous year, after jumping 9.93% in June. In the meanwhile, the Indian Central bank left the benchmark interest rate unchanged in the previous month in order to prevent inflation risks.
Japanese economic ministry released its all industries activity index for June on Tuesday, where the reading came 0.2%, mismatching expectations, compared with a previous reading of -0.2% in the previous month. Meanwhile, analysts were expecting growth of 0.3%. Index is a leading indicator of nation's economic health, and may signal the future direction of economic activity.
The retail gasoline prices in the world's biggest economy reached a seasonal high during this week, the Energy Information Administration reported on Monday. The average price added 2.3 cents to $3.744 per gallon, and 0.163cts above the comparable year-ago national price average. This is the highest price for this season since 1990.
Investors' confidence was improved by hopes the ECB will take bold actions and the world's second largest economy will ease it's monetary policy. The European Stoxx 600 Index jumped 0.3% to 272.27, after losing 0.5% on Monday. At the same time, U.K.'s FTSE 100 Index added 0.3% to 5,842.57, Italian FTSE MIB Index soared 1.7% to 15,228.73, while German DAX 30 Index and French
Canadian wholesale sales surprisingly fell in June, after rising for four straight months. According to the official data, released by the Statistics Canada, wholesale sales declined by 0.1% in June, after rising 0.9% in May. The total volume of wholesale sales in June was about CAD49.9 billion. The decline may be explained, mostly, by lower sales of agricultural supplies. At the same time, market analysts had
Treasuries extended a three-day rally as global equities tumbled after Japan's trade data dropped short of analysts' estimates, rebounding worries that the Eurozone crisis and China's slowdown weaken global growth. The 10-year rate fell to 1.78%. The 1.625% bond due in August 2022 surged 5/32 to 98 18/32.
Oil fell from its three-day high close in London as worries that demand will ease added signs of declining supply in the U.S. Oil tumbled 1% as Japan's trade deficit rose more-than-expected amid euro-debt crisis and a slowdown in China's exports. On Wednesday, October-delivery Brent oil fell $1.05 and traded at $113.59 per barrel in London. In New York, October-settlement
Japanese equities extended previous losses on Wednesday after disappointing Japan's trade balance data. The trade deficit reached JPY517.4 billion in July, up from JPY60.3 billion in June. A sharp drop in exports was the major contributor to an increase in trade deficit. The Nikkei 225 Index tumbled by 0.38% to trade at 9131.74. Only three in ten industries included in
Shares of the US blue chips moved lower on Tuesday despite optimism over the Eurozone. On Tuesday, borrowing costs of Spain dropped after short-term debt auction. Meanwhile, market participants anticipated a release of Fed minutes as well as US existing home sales data due on Wednesday. The Dow Jones Industrial Average Index lost 0.51% to end Tuesday's session at 13,203.58.
US stocks dropped on Tuesday despite positive news from the Eurozone. Spain sold short-term debt with lower yields on Tuesday. Moreover, experts predict that the ECB will soon announce measures to ease debt pressure in the region. Meanwhile, traders remained cautious ahead of the FOMC minutes release due on Wednesday. The S&P 500 Index slid 0.35% to close at 1,413.17.
Asian stocks declined, with the regional benchmark index falling from a 3-month high, amid European leaders meeting this week to discuss the bailout package for Greece and after Japan showed a wider than expected trade deficit. The MSCI Asia Pacific Index fell 0.5% to 120.64. Japan's Nikkei 225 Stock Average slid 0.3%, while Australia's S&P/ASX 200 Index declined 0.2%.
The New Zealand and Australian Dollars declined versus most of their major counterparts before data that might indicate contraction in German and French manufacturing. The Aussie Dollar slid 0.5% to $1.0436 after gaining 0.4% to $1.0487 the previous day. It declined 0.5% to 82.73 Yen. The Kiwi Dollar dropped 0.4% to 80.81 U.S. cents, after gaining 0.3% yesterday. The New