Crude oil dropped in European morning session on Tuesday as soaring Spanish bond yields weighted down on risk-appetite among market participants. Light, sweet crude oil futures for July delivery traded at 82.88 US Dollars per barrel, falling by 0.15%. Meanwhile, Brent oil futures for delivery in August traded at 95.60 US Dollars per barrel on the ICE Futures Exchange, losing
Gold prices rose in the European morning session on Tuesday, trading close to two-week high. Recent rise in Spanish borrowing costs returned safe-haven appeal of the yellow metal while FOMC meeting may result in the third round of QE in the US. COMEX gold August contract traded at 1,632.95 US Dollars per troy ounce on the New York Mercantile Exchange,
Wholesale sales in Canada increased more than expected in April, rising for the third month in a row, reported Statistics Canada. Wholesale sales surged by 1.5% in April as compared to a 1% jump expected. The country's wholesale sales amounted 49.3 billion Canadian Dollars mostly due to a 12.8% increase in miscellaneous sector. After the data release, the Canadian Dollar
U.S. Census Bureau reported on Tuesday that the amount of building permits that were issued in May rose 7.9% comparing to the April's figure of 0.723 million and reached 0.780 million on a seasonally adjusted basis. Analysts expected that this figure would gain 1%, reaching 0.728 million. Moreover, this is the highest level for almost five years.
Rural commodities were mixed on Monday as Eurozone's instability continued to dent demand prospects. At the same time, deteriorating weather in the top-growing regions worldwide provided fresh stimulus for the commodity pack.Wheat soared as Russian harvest is expected to fall by 7.2 MT this year because of drought. However, Rabobank's report that global supplies are likely to be ample while
Energy commodities apart from natural gas declined on Monday as inspiring results of Greek elections failed to ease worries about spreading Eurozone crisis.Crude oil fell on bleak demand outlook; however, talks between Iran and six major economies that are due to start on Tuesday in Moscow may bolster the price.Brent oil was top-loser despite possible easing measures by the Fed
Industry metals dropped on Monday as promising results of Greek elections were outweighed by surging Spanish yields. Yields on 10-year sovereign bonds rocketed above 7%, the level considered to be unsustainable in long-term.Aluminum fell as China's production remains under pressure because of weak prices.Copper was almost unchanged as positive data from the US homebuilding sector limited losses caused by economic
Precious metals were flat on Monday ahead of two-day long FOMC meeting that starts on Tuesday. Broadly stronger US Dollar and eased concerns over political situation in Greece continued to weight on the commodity group.Gold was almost unchanged, lacking clear direction amid mixed signs from the Eurozone and US. Meanwhile, holdings of the SPDR Gold Trust rose by 0.33% over
Despite a sharp drop in Zew sentiment index German DAX index managed to trade higher on Tuesday. The nation's benchmark index soared after Spain managed to sell the planned amount of bonds, though at significantly higher yields than in previous month. Moreover emerging market economies pledged to boost IMF firepower during G-20 meeting. Engineering company MAN SE led the gains
UK FTSE 100 climbed on Tuesday lifted by investor hopes for additional stimulus from Bank of England. Financial stocks prized the news with HSBC Holdings adding 1.7% and Royal Bank of Scotland Group soaring 1.6%. Whitbread surged 6.3% as the UK hotel and restaurant company said its first-quarter same-store sales improved 4.5% while total sales accelerated 14%. Engineering-solutions provider Weir
Spain witnessed an increase in borrowing cost as it was selling its debt on Tuesday. Spain's Treasury sold 12-month bonds worth EUR2.4 billion at the average yield of 5.074%, which was a sharp increase from May's 2.985%. 18-month bonds, worth EUR64 million, were sold at the average yield of 5.107%, which is more than May's 3.302%.
U.K. Office for National Statistics reported on Tuesday that the consumer price inflation slipped to 2.8% in May from April's 3.0%. Analysts, however, expected that CPI would remain unchanged and remain equal to 3.0%. Core CPI, which does not include products like tobacco and alcohol, climbed to 2.2% on a seasonally adjusted basis, whereas it was expected to be 2.3%.
Japan's Nikkei Stock Average retreated from yesterday's gains and slipped on Tuesday as Spain's financial turmoil amid surging yields worsened the outlook of European economy. Nikkei 225 index fell 0.75% or 65.15 points and closed at 8,655.87. Nomura Holdings fell 0.7% after Reuters reported the firm was not chosen to assist a state sale of its Japan Tobacco Inc stake.
Hong Kong's equities declined on Tuesday as Spanish yield accelerated and optimism diminished that Greek election outcome will curb European turmoil. Hang Seng index gave up 0.25% or 48.57 points finishing at 19,385.35. Tsingtao Brewery Co fell 8% after Dow Jones Newswires reported the main shareholder was trading 32 million shares in the company at discount between 4% and 7%.
Dow Jones Industrial Average edged modestly lower on Monday driven as blue chip stocks diminished. Dow main index slipped 0.20% or 25.35 points and finished at 12,741.82. 11 stocks of 30 posted gains for the session. Bank of America gave up 1.8% as Spanish 10-year borrowing costs hit Eurozone record high of 7.13%. Retail shares supported the index on the
S&P 500 index traded slightly higher on Monday, posting gains for a third straight day as optimism over Greek austerity supporting coalition offset the worries about surging Spanish yields. US benchmark added 0.14% or 1.94 points and closed at 1,344.78. The world's biggest online trader EBay Inc. rallied 4.5% after the company was upgraded to outperform in new coverage at
On Tuesday, the Australian Dollar held steady versus the Greenback, as traders were focused on soaring borrowing costs for Spain ahead of the sale of its government debt later this day. AUD/USD reached a session low at 1.0105 in the late Asian trading hours, and later the pair consolidated at 1.0124, which was a slight 0.02% decrease for that trading session.
On Tuesday, the British Pound held steady against the Greenback, since traders were focused on upcoming inflation data in the U.K. Cable peaked at 1.5696, and later consolidated at 1.5671, gaining 0.03% during the European morning trading hours. The pair's near-term support could be at 1.5636, while resistance was likely to be found at 1.5741.
Chen Deming, Chinese Commerce Minister, during the G20 summit in Mexico said that China is beginning to revive from the slowdown following the government's steps to boost the economy. China experienced its initial interest-rate cuts after 2008 signifying the potential economic risks due to the lowered export demand. However, The Commerce Minister still trusts that a 10% trade increase in 2012 is attainable.
Gold futures were rising for the eighth day in a row in the European morning trade on Tuesday, as markets were focused on rising Spanish yields and upcoming Federal Reserve policy meeting. On the NYMEX, contracts for August delivery of gold were traded at USD1,632.95 per troy once, adding 0.37% in early European trade. Earlier gold stopped 10 cents lower than USD1,634.35, a 2-week high.
The Greenback edged lower versus the Japanese Yen on Tuesday, since investors were cautious about rising borrowing costs for Spain and looking for safe havens. USD/JPY hit the bottom at 78.93, and later consolidated at 78.96, losing 0.19% during the early European trading session. The pair's support could be at 78.60, while resistance was likely to be found at 79.50.
On Tuesday, the Euro edged higher versus the U.S. Dollar, but gains seemed to be capped by worries over rising Spanish bond yields. EUR/USD peaked at 1.2616 in the late Asian trading hours, and later consolidated at 1.2589, gaining 0.10%. The pair's support was likely to be at 1.2541, and resistance may be at 1.2663.
On Tuesday, futures for gold erased losses and were traded steady during Asian trading session, as investors were focused on Spanish debt problem rather than on market-friendly elections in Greece. On the NYMEX, August delivery futures for gold were traded at USD1,627.45 per troy once, adding 0.03%. Earlier, contracts peaked at USD1,629.75 and hit the bottom at USD1,626.95.
During their meeting in Mexico the leaders of the Group of 20 countries put emphasis on stabilizing European banking system adding pressure on German leader Merkel to boost rescue tools as Spain's crisis worsen. Merkel, however, keeps rejecting the ideas of boosting deficit spending or pooling Eurozone debt.