West Texas Intermediate fluctuated after a report suggested that U.S. crude inventories shrank, while China's manufacturing sector slowed down in July. WTI for September settlement added 3 cents to $107.26 per barrel on the New York Mercantile Exchange. Brent for September delivery traded at $107.91 per barrel, up 51 cents on ICE Futures Europe exchange.
U.S. stock-index futures jumped, indicating the Standard & Poor's 500 Index will recover after yesterday's decline, as Apple Inc. released profit that was well ahead of expectations and European manufacturing grew more-than-forecast. The S&P 500 futures maturing in September climbed 0.2% to 1,691.7 and the Dow Jones Industrial futures rose 0.1% to 15,535.
The British Pound depreciated versus the U.S. Dollar after a report showed a below-expectations increase in manufacturing optimism in the U.K. The Sterling dropped 0.1% to $1.5353 versus the Dollar at 11:03 a.m. GMT. It also was down 0.22% to 0.8619 against the Euro after data showing higher Purchasing Manager's Index in the Eurozone.
Asian stocks dropped after survey showed that China's manufacturing activity slowed at a faster-than-expected rate. The MSCI Asia Pacific Index retreated 0.1% to 137.07, deleting 0.2% of gains from earlier today. As of yesterday, the gauge had lost 4.9% of its value since May 20. Japan's Topix and Nikkei 225 dropped 0.2% and 0.3% respectively, while Hang Seng Index gained
Gold extended its four-day increase after a decline earlier today, as investors were awaiting increased demand for the gold despite India's inbound shipment restrictions and disappointing Chinese report. The August Gold contract recovered to the $1,340 and spot gold remained steady at $1,338.84 per ounce.
The 10-year Treasuries sank for a second consecutive day after better-than-expected manufacturing and services data was announced in Eurozone, indicating that global economy is recovering and decreasing demand for safer investments. Yield on 10-year government securities rose 4 basis points to 2.54% so far today, while investment-grade corporate securities gained 1.4% this month.
10-year British government bonds fell for a second consecutive day before a report, which is expected to show an improvement in country's manufacturing industry. The gauge is expected to rise from 48.8 to 50.1 in July, while median estimate is a rise to 49.1. Yield on 10-year Gilts rose 6 basis points to 2.36% so far today after reaching 2.37%
German stocks rose after 3 days of losses after reports showed that manufacturing expansion was bigger-than-expected. The index increased to 50.3, the first expansion in the industry since February, while experts predicted the value of 49.2. An index for German service industry jumped from 50.4 to 52.5, while median estimate was 50.7. The DAX and HDAX Indexes both climbed 0.5%.
Crude oil futures declined, as China's manufacturing report for July came in against expectations, indicating contraction in the sector's activity. WTI crude oil futures dropped 0.05% to $107.19 per barrel and the Brent futures prices were at $107.78. China's Purchasing Managers Index decreased from 48.3 points in June to 47.7 this month.
German manufacturing rose surprisingly in July and services sector growth strengthened, indicating on that nation's economy is growing. A manufacturing index increased 1.7 basis points to 50.3, according to Markit Economics, while services sector grew 2.1 basis points to 52.5. After these data were released the Euro appreciated versus the greenback at $1.3250 by 8:37 a.m. in London.
Factory output in euro zone increased in July, PMI index showed as manufacturing activity in France and Germany reached highest level in several months. The data sent the Euro to the highest point against the Dollar in a month and sustained stock market growth. MSCI's world equity gauge climbed 0.1%, while Germany's bond futures slid 0.3%.
Japanese exports gained for a fourth month in a row in June as the nation's currency declined and that made its products more attractive to consumers and shipments to the EU bounced off. Exports rose 7.4% compared to the previous year, according to the Finance Ministry. Japan's currency has plunged 22% versus the U.S. Dollar over the previous year and
Manufacturing in China shrank by more than expected in July, preliminary survey shows. It casts doubt on whether the government can achieve its growth target. The gauge of 47.7 is expected, the lowest in almost a year, where 50 is dividing line between expansion and contraction. The report came after China's authorities vowed to protect 7.5% growth.
Japanese stocks dropped, with the regional Topix index falling from the highest level in two months, after shipping lines and construction companies posted losses. The Topix declined 0.2% to 1,219.92 at the close in Tokyo, after decreasing 0.7%, the index has fallen 18% from its highest level on May 22, while the Nikkei 225 Stock Average slid 0.3% to 13,731.28.
The manufacturing and services sector measures in the Euro block showed an improvement in July. The flash Euro area Manufacturing Purchasing Managers Index advanced to 50.1 in July, the highest level in 24 months, after reaching 48.8 last month. The flash services PMI inched up from 48.3 in June to 49.6 this month.
European shares increased as Germany and France posted better-than-forecast preliminary manufacturing and services data for July. The pan-European Euro Stoxx 50 inched up 0.69% to 2,741.80 and the German DAX gained 0.55% to 8,359.80. The flash manufacturing PMI for July in France surged to 49.8 points and in Germany to 50.3.
The Japanese Yen plummeted versus the U.S. Dollar, as Japan's trade deficit declined less-than-predicted and Chinese preliminary manufacturing report came in under estimates. The Japan's currency depreciated 0.39% to ¥99.83 versus the U.S. Dollar and retreated 0.43% to ¥153.50 versus the Sterling, and fell 0.30% to ¥131.88 versus the 17-nation currency.
Chinese shares retreated, with the regional benchmark index falling for the first day out of last three, as disappointing manufacturing index spurred worries that nation's economy is struggling. The Shanghai Composite Index slipped 0.5% to 2,033.33 at the close, while the CSI 300 Index slid 0.7% to 2,249.15. The Hang Seng China Enterprises Index declined 0.3% in Hong Kong.
The Euro block's currency advanced versus the U.S. Dollar after Germany posted better-than-forecast manufacturing and services PMI report in July. The Euro jumped 0.19% to $1.3247 versus the U.S. currency. German flash manufacturing PMI increased from 48.6 points in June to 50.3 in July, it was forecast to advance to 49.2.
Gold snapped a four-day gain after its advance to the highest level in a month boosted investors' confidence to sell the yellow metal. Spot gold dropped 0.5% to $1,338.60 an ounce, and was at $1,341.51 as of 2:27 p.m. Singapore time, after climbing 5.4% in the last four days. Gold has rallied 8.7% in July and it is headed for
The Australian currency declined, as new inflation report came in under forecasts, allowing the Reserve Bank of Australia to cut interest rates at the next meeting on August 6. The Australian Dollar retreated 0.34% to $0.9263 versus the greenback and contracted 0.25% to A$1.4259 versus the common currency. Yearly CPI declined to 2.4%, missing analysts estimates of 2.5%.
The Canadian Dollar jumped to the strongest level in one month following data that indicated May retail sales advanced the most in three years, boosting bets the economy may be growing. The retail sales added 1.9%, topping economists estimates of 0.4%. The loonie gained 0.5% to C$1.0287 versus the U.S. Dollar.
The U.S. Dollar fell to one-month low on lack of new economic data from the States and as analysts bet on The Fed's reduction of quantitative easing in September. The Euro gained 0.23% to $1.3217 at 12:27 a.m. EDT. The British Pound added 0.02% to $1.5358. The Loonie strengthened 0.31% to .0300 after Canada showed unexpected increase in retail sales
U.K. bonds decreased after data showing mortgage approvals rose in June, adding evidence that the U.K. Economy is recovering. Mortgage approvals climbed from 36,290 to 37,278 in June. Yield on 10-year bonds added five basis points to 2.32% s of 3:48 p.m. in London. The Sterling was up 0.1% to $1.5373. Versus the common currency, the Pound declined 0.2% to