Markit, a market research group, reported that manufacturing PMI for Germany dropped 0.5 points in June, reaching 44.7, whereas in May it was 45.2. Analysts' forecast was that the figure for the last month would be 45.2. June's PMI reached the lowest level for the last three years on market's concern about the impact of Eurozone debt crisis on the German economy.
Markit reported that French manufacturing PMI added 0.6 in June, from the May's 44.7, and reached 45.3 on a seasonally adjusted basis. This is more than expected, since analysts predicted that the figure would be 44.5. French service sector activity also gained more than expected in June, reaching 47.3, from the May's 45.1, whereas initial forecast was that it would be at 45.0.
U.K. retail sales gained more than expected, after a sharp fall in April. U.K. Office for National Statistics reported that retail sales grew by 1.4% in May on a seasonally adjusted basis, whereas initial forecast was that it would rise only by 1.2%. The figure for April was revised down from a 2.3% decline, reaching a 2.4% fall.
On Thursday, Switzerland's Federal Statistics Office reported that the Swiss trade surplus increased to CHF2.48 billion in the last month from the April's figure of CHF1.26 billion, which is a revised down figure from CHF1.33 billion. Analysts, however, expected that the May's trade surplus would be CHF1.97 billion.
US equities ended modestly lower on Wednesday after Federal Reserve disappointed investors lowering growth forecast for 2012 and expanding only Operation Twist program instead of expected quantitative easing. S&P 500 index slipped 0.17% or 2.29 points and closed at 1,355.69, Dow Jones Industrial Average gave up 0.1% or 12.94 points and closed at 12,824.39. Nasdaq Composite ended marginally higher adding
European markets pared losses on Wednesday evening after the Bank of England's Monetary Policy Committee said it plans to enlarge the USD 511 billion asset buying program. Stoxx Europe 600 added 0.4%, FTSE 100 gained 0.6% and German DAX edged 0.4% higher. French CAC 40 index ascended 0.3%. In contrast Spanish IBEX 35 dropped 1.2%.
The Federal Reserve announced on Wednesday it will extend its Operation Twist program to prolong maturities of its assets and pledged intervention in labour market if situation worsens. The central bank will extend the program by the end of 2012 through selling shorter-term assets worth USD 267 billion and purchasing same size longer-term securities in order to cut borrowing costs.
Gold futures slid in Asian trade on Tuesday as Fed announced it would continue its Operation Twist and did not plan to ease the monetary policy further. COMEX gold for delivery in August traded at 1,605.05 US Dollars per troy ounce on the New York Mercantile Exchange, falling by 0.67%. Meanwhile, COMEX silver for delivery in July traded at 27.945
Crude oil prices dropped in Asian session on Thursday as EIA reported a 2.86 million barrels increase in crude oil inventories last week, confronting the expectations of a 1.11 million barrels fall. Moreover, Fed decided not to implement the next round of QE thus weighting on the demand prospects. Light, sweet crude oil futures for August delivery traded at 80.76
China's manufacturing activity contracted again in June as new export orders and overall output both posted losses. The results of the survey conducted by HSBC indicated that China's PMI shank to 48.1 in June as compared to 48.4 in the preceding month. China's analysts claim that essential decline in prices and stagnation of new orders both suggest that domestic demand
The GDP of New Zealand expanded at faster pace than initially expected in Q1, reported Statistics New Zealand. The economy of the country grew by 1.1% on a seasonally adjusted basis in Q1 as compared to a 0.3% gain in the preceding quarter.Experts predicted the GDP to grow by 0.5% in Q1. Following the data release, the New Zealand Dollar
The Fed has lowered its forecast for the US economic expansion from 2.9% to 2.4% in 2012. The central bank also expects the unemployment rate to attain 8.2% as compared to an April's forecast of 8%. The Fed announced it would continue Operation Twist, the program of swapping short-term debt for the long-one. The project is aimed at reducing long-term
The leader of Greek New Democracy Party was approved as PM after greek politicians managed to form a coalition. New Democracy will merge forces with socialist Pasok party and Democratic left party gaining in total 179 of 300 seats in parliament. European leaders have kept possibility to relieve fiscal austerity after Greek election showed nation's willingness to stay in the Eurozone.
The Canadian Dollar depreciated versus US Dollar on Wednesday after Fed reduced its estimates for this year's growth. The Federal Reserve also suggested it expects weak improvement in labour market this year. Loonie gave up 0.1% against greenback to CAD 1.0183. Currently USD/CAD is trading at 1.0214.
The 17-nation currency depreciated on Thursday as investors awaited Spanish bond auction. Moreover report on Eurozone manufacturing and service activity is going to be released today and it is predicted to show contraction. Euro fell 0.3% versus greenback to USD 1.2670. Currently EUR/USD is trading at 1.2675.
German Chancellor Merkel denied using direct countries' debt purchases via Eurozone rescue fund as a measure to fight turmoil. Merkel admitted that such a tool is legally possible. However, Merkel considers this measure as purely theoretical and hasn't express any interest in committing to sovereign bill purchases. French Socialist President Hollande in contrast suggests that it would be a reasonable way how to lower surging
The Euro inched higher versus the U.S. Dollar on Wednesday, after Greek announcement about coalition formation, while investors eyed Fed's meetings. EUR/USD peaked at 1.2723 in U.S. morning trade, and later consolidated at 1.2702, inching 0.13%. The pair's support was likely to be found at 1.2567, while resistance was prone to be at 1.2746.
Futures for crude held losses in U.S. morning trade, after the U.S. government reported that oil supplies gained more than expected. On the NYMEX, July delivery futures for light sweet crude were traded at USD82.89 per barrel, easing 1.3% during European morning trade. While contracts for August lost 1.35%, reaching the level of USD83.22 a barrel.
The British Pound held gains versus the U.S. Dollar, after the leader of Greek pro-bailout party announced that they managed to form a coalition, while traders were focused on Federal Reserve meeting outcomes. GBP/USD peaked at 1.5778, which was one-month high, and consolidated at 1.5741, gaining 0.10% in the U.S. morning trading session.
Futures for natural gas retreaded from a four-week high in the U.S. morning hours, as investors focused on upcoming natural gas supplies report by the U.S. government. On the NYMEX, July delivery futures were traded at USD2.546 a MMBtu, gaining 0.15% in U.S. morning trading session. Earlier, natural gas rallied 4.2% and was traded at USD2.676 per MMBtu.
Futures for gold came under pressure in U.S. early trade, falling to an almost one-week low, as markets were focused on the outcomes of a Federal Reserve policy meeting. On the NYMEX, August delivery futures were traded at USD1,604.55 per troy once, losing 1.15%. Earlier, contracts for gold lost 1.2%, being traded at USD1,601.05.
German DAX index edged higher on Wednesday as Greece moved closer a pro-austerity coalition and investors looked forward the results of FOMC meeting. Index was supported by Bank of England who announced asset purchase program. Utility firms rallied within the index. RWE AG surged 2.3% after Nomura raised the stock's rating from reduce to neutral. E.ON AG added 2.5% after
Farm commodities rallied on Tuesday on unfavorable weather conditions in North and South America.Wheat rocketed to four-week high on speculation that worse crops in the US and China will stimulate wheat demand as livestock feed.Corn surged by over 5% as hot and dry weather in Midwest of the US is expected to erode crops yield potential.Sugar soared to one-month high
Energy markets were mixed on Tuesday amid weaker US Dollar and stronger equities. Expectations for the next round of QE in the US continued to dominate market sentiment.Crude oil was top-gainer on easing hopes. At the same time, global growth fears continued to dent energy demand prospects thus pressurizing the price. Brent oil fell despite lack of clear result from