The Dow Jones Industrial Average managed to climb 0.02% to close at 13,172.14 amid positive news from the US. US retail sales and wholesale prices increased more than expected last month. However, optimistic data failed to boost US stocks as hopes for more stimulus measures from the Fed started to fade. Five out of nine industries included in the index
The IBD/TIPP Economic Optimism Index tumbled by 1.4 points or 3 per cent in August, and reached 45.6 against 47 in the month earlier. The Index dropped to its lowest reading of 2012 so far, and reading below 50 indicates pessimism. Meanwhile, in December 2007 the reading was at 44.4 level, when the world's biggest economy fell into the recession.
PPI in the world's biggest economy jumped more-than-expected, by 0.3 per cent in July, after increasing by 0.1 per cent in the previous month. Meanwhile, core prices also advanced, adding 0.4% in July. The Fed uses core prices as a better measure for future inflationary pressure, as they do not take in to account energy and food categories.
According to the U.S. Census Bureau's report, nation's business-inventories added 0.1 per cent in June, after jumping 0.3% in the previous month. The data came below the expectations, as analysts expected an increase of 0.2%. The modest June increase in business- inventories pushed total business stockpiles up to $1.58 trillion.
Wall Street edged higher on Tuesday, boosted by better-than-expected U.S. retail sales data and the improvement of Germany's economic growth. The Dow Jones Industrial Average added 0.2%, to 13,189, the S&P 500 jumped 0.3%, to 1,408, and the Nasdaq Composite gained 0.3%, 3,030. Germany's GDP added 0.3 per cent in the Q2, while French GDP was unchanged. Retail sales in the U.S. rose by 0.8%, after
The Commerce Department reported on Tuesday that U.S. retail sales added 0.8 per cent to $403.9 billion in July, and rose by 4.1% compared to the same month in the previous year. In the meanwhile, consumer spending slowed to a 1.5 per cent annual growth rate in the second quarter, after adding 2.4 per cent in the first quarter.
Industrial metals were mixed on Tuesday, with nickel and copper rising and aluminum and zinc falling. Positive data from the US and Eurozone boosted market sentiment. Germany's GDP grew slightly more than expected in Q2 while US retail sales beat estimates in July. Aluminum was steady as positive headlines from the Eurozone and US did not manage to outweigh recent dismal
US stocks closed lower on Tuesday despite better than expected US data releases. US core retail sales and producer prices beat economists' forecasts. Positive news from the Eurozone also boosted US stocks. However, the S&P 500 Index lost 0.01% to end the day at 1,403.93. S&P 500 constituents were mixed; four industries declined, four advanced and one was unchanged. On
Precious metals were mixed as hopes for EQ3 in the US started to fade after strong retail sales data. US retail sales rose by 0.8% in July compared to a forecast of a 0.3% increase. Broadly stronger US Dollar also weighted down on the commodity group. Gold was the worst performer as hopes that the Fed will ease its monetary
Copper has cut earlier rally as concerns about the global growth boosted worries about demand for metals. On Wednesday, three-month copper dropped 0.2% to $7,401.25 per tonne. But declines were capped by belief in additional stimulus actions from China as a think-tank official said the country must find pro-growth policies during next quarter or it may miss its annual expansion
Some Bank of England policymakers wanted to step up the central bank's monetary stimulus programme in August, minutes for the August 1-2 show. All of nine members of the MPC agreed to sustain the BoE's asset purchase objective at the 375 billion Pound, but some believed there was a room for more. They demanded more time to estimate the impact
The number of people applying for unemployment benefits in the U.K. fell in July and jobless rate declined, the U.K. Office for National statistics reported on Wednesday. The claimant count dropped 5,900 in July, compared to an estimated rise of 6,000. The unemployment rate slid to 8.0% from 8.1%. Following the data, the Pound rose 0.12% to 1.5695 versus the
The non-performing loans of China's banks held unchanged in the second quarter, the China Regulatory Commission said on Wednesday. The average bad loan ratio was at 0.9%, stable from the first quarter. Meanwhile capital adequacy ratio came in at 12.9%, up from 12.7% in the preceding quarter.
Australia's consumer confidence weakened in August despite government pay-outs and interest rate pares, as reported on Wednesday. The Melbourne Institute Index of Consumer Confidence fell 2.5% to 96.6 this month. The index was below the 100-mark line, displaying pessimistic views on the economy, for the sixth consecutive month.
U.S. Treasuries cut a two-day fall before a report on Wednesday expected to post U.S. inflation is stable. 10-year yields dropped 1.5 basis points to 1.72% on Wednesday, after reaching 1.74% yesterday. 1.625% note due in August 2022 gained 1/8 to 99 3/32. Consumer prices increased 0.2% on month in July, the survey reported.
German Bund yields increased as European Economic and Monetary Affairs Comissioner Olli Rehn reported Spain is intently considering applying for a full sovereign bailout. The German 2-year bond yield was negative for the 29th straight day, at -0.30% on Wednesday. The 10-year bond yield climbed to 1.50%, the highest level since July 4. The 1.75% bond due July 2022 dropped
Japan's stocks declined, lead by the Topix Index dropping for the first time in three days, as Eurozone economy posted contraction in the second quarter. Losses were partially offset after U.S. retail sales climbed more than expected. On Wednesday, the Nikkei 225 Stock Average slipped 0.1% to 8,925.04. The Topix fell 0.3% to 747.32.
Hong Kong stocks dropped, lead by the benchmark index falling from a 3-month high, amid worries China's worsening economic slowdown may decrease corporate earnings. The Hang Seng Index declined 1.1% to 20,065.34, with 22 shares dropping for each that gained. The Hang Seng Enterprise Index tumbled 1.2% to 9,798.46.
Crude declined in New York as a report showed inventories in the U.S., the world's major oil consumer, surged for the first time in three weeks. On Wednesday, futures fell 0.5%, cutting 0.8% climb yesterday, as the American Petrolium reported stockpiles rose 2.78 million barrels to 367.1 million last week. September-delivery oil dropped to $92.97 per barrel.
Australia's and New Zealand's Dollars held lower on expectation U.S. data will constrain the Federal Reserve in expanding monetary stimulus. On Wednesday, The Aussie fell 0.1% to $1.0478, after reaching $1.0465, the weakest since Aug. 3. Australia's Dollar dropped 0.1% to 82.55 Yen. The Kiwi was stable at 80.52 U.S. cents, after a 0.5% decline yesterday.
On Wednesday, the U.S. Dollar held advance against most major counterparts before data today expected to add signs of economic rebound in the U.S., constraining opportunities for additional monetary easing from the Federal Reserve. The Greenback surged 0.1% to 78.79 Yen, after climbing to 78.93 yesterday, the highest since July 18.
Canada's currency was at an almost 3-month high as crude oil advanced and a report posted U.S. retail sales increased, fueling optimism demand for exports to the U.S. will rise. On Wednesday, Canada's Dollar gained 0.1% to 99.23 cents per U.S. Dollar, after touching 99.07 yesterday. The Loonie buys $1.0076.
Gold futures tumbled on Tuesday, as U.S. fundamentals improved, with a 0.8 per cent jump in retail sales and wholesale prices adding 0.3 per cent in July. The bullion for December settlement fell 0.7 per cent, to $1,602 during today's New York trading session. At the same time, silver for September delivery followed gold and declined by 0.2 per cent, to $27.70 per ounce. On
Crude oil futures rose on Tuesday, as investor optimism grew amid improved economic data from the U.S. and Europe. Oil with September contract jumped by 0.9%, to $93.52 per barrel, after losing 0.2% on Monday. At the same time, September natural gas and heating oil for the same month advanced as well, by 1.47% and 0.2% respectively. Among other energy-related products, September gasoline resisted the trend