Italian three-year debt costs advanced to the highest level since March on Thursday, after worries that the Fed could soon scale back its stimulus which curtails demand for riskier assets. Rome auctioned three-year notes worth of 3.42 billion euros at 2.38%, up from 1.92% it paid on sale in the middle of May.
German government bunds climbed, with 10-year bonds gaining for the third day, as the World Bank snapped its global-expansion predictions and a slip in shares fueled investors to buy safer assets. French and Dutch bonds also advanced on stimulus concerns. Yields on benchmark 10-year notes declined two basis points to 1.56% and the 1.5% bund maturing in May 2023 climbed
U.K. bonds increased for the second day after shares fell as the World Bank damped its global expansion predictions, boosting demand for safer assets. The 10-year bond yield dropped two basis points to 2.12% and the 1.75% note maturing in September 2022 gained 1.90 Pounds per 1,000-Pound par value to 96.905.
The Sterling slipped versus the 17-nation currency on speculation a climb that has made the Pound the best-trading major currency in the last three months might be threatened by the next Bank of England Governor Mark Carney. The Sterling plummeted 0.2% to 85.20 versus the Euro and dropped 0.1% to $1.5668.
The Treasury 10-year securities worth of $21 billion auction drew the weakest demand since August, impended by worries the Federal Reserve will scale back its bond-buying programme. The benchmark 10-year bond yield advanced this week and reached a 14-month high, after investors bets whether the economy is improving enough for Ben Bernanke to start scaling back purchases.
Gold futures decreased on Thursday after advancing on the previous session's, with upcoming report on jobless claims and U.S. retail sales that may boost market speculation about the Federal Reserve's decisions on stimulus. The August gold contracts plummeted 0.3% to $1,388.20 per ounce. Gold prices gained 1.1% , or $15, on Wednesday.
U.S. crude-oil prices fell on Thursday before U.S. retail sales and unemployment data. Crude for July delivery dropped 56 cents to $95.32 a barrel, erasing Wednesday's gain. Crude-oil was under pressure today; however, the greenback slipped versus its most-traded peers. London Brent July crude declined 34 cents to $103.15 a barrel.
Gold prolonged its gains into second trading session today, as Asia's share markets plummeted and the greenback declined to lowest level in four months on worries that the Fed may taper the stimulus programme. Spot gold climbed 0.4% to $1,393.91 an ounce at 2:51 GMT, while U.S. yellow metal was a little changed at $1,393.50.
The World Bank cut its growth predictions for the global economy on Thursday, recalling deeper-than-predicted recession in the Euro block and slow growth in developing states. The world economy is predicted to expand 2.2% this year, slowing from the 2.3% growth in 2012. The Eurozone is predicted to grow moderately, with the GDP advancing 0.9% in 2014 and 1.5% in
Leaders in developing countries took actions to deal with a capital outflow as investors speculate that growth in emerging markets might be harmed by upcoming end of ultra-loose monetary policy. India and Thailand sold dollars in the last several days to fight depreciation of their currencies. Brazil said it is likely to partly unwind its capital controls. The MSCI EM
The BoJ governor Sayuri Shirai expects Japanese government bond prices to stabilize without any intervention by the central bank. He predicts that economic growth will resume in the middle of 2013, while achieving the goal of 2% inflation will take time. The BoJ decision to keep its monetary policy steady and speculations on Fed's withdrawal of its QE significantly contributed
Japan's Nikkei 225 Stock Average declined, slipping 19%, and it almost entered the bear market as the Japanese currency appreciated to its strongest versus the greenback in more than eight weeks. The Nikkei 225 dropped 5.6% to 12,547.96 at 12:39 p.m. Tokyo time, making it the third decline of more than 5% in previous month. The index slid 6.6% today,
The Australian and New Zealand currencies fell versus its most-traded peers after market volatility triggered selling. The Aussie depreciated 0.4% to 94.49 U.S. cents at 1:53 p.m. Sydney time after advancing 0.4%. The Australia's Dollar reached 93.26 on June 12, its lowest level in almost three years, while the kiwi dropped 0.9% to 79.15 U.S. cents.
Bond prices rose in the U.S., Japan and Australia as Asian stocks collapsed, increasing demand for safer assets. The yields rose this month on speculations that the Fed might end its QE, which kept borrowing costs low. 10-year Treasuries yields dropped 2 basis points to 2.21%, while similar maturity Japanese and Australian yields decreased 0.5 and 2 basis points respectively.
The Japan's currency rose, the appreciated to strongest level in eight weeks versus U.S. Dollar as the Japanese investors have sold, more overseas stocks and bonds than bought for a fourth week in a row. The Japanese Yen advanced 1.4% to 94.60 per Dollar at 6 a.m. London time after jumping to 94.45, the strongest level in eight weeks. The
China's stocks slumped after a 3-day holiday when worse than expected exports and industrial production data was released. The Shanghai Composite Index slid 3% to the lowest point since December 13, 2012. The index has already lost 12% of its value since it reached its high in February 3. The CSI 300 Index dropped 3.4%, while Hang Seng China Enterprise
U.S. crude-oil future prices fell on Wednesday, after a surprising weekly climb in oil supply underlined concerns about high inventory levels. The July crude oil contracts declined to $94.77 a barrel. Investors already had concerns about large crude supplies, adding to signs the total U.S. oil supplies were at 397.6 million barrels last week, the highest level since the beginning of
Euro block industrial output gained 0.4% in April, mainly on higher capital goods production and non-durable consumer goods. Industrial production was predicted to remain steady following a gain of 0.9% in March. Capital goods output rose 2.7% and non-durable consumer goods climbed 0.7%. Annual industrial output declined 0.6%, however less than 1.4% fall in March.
Gold futures declined on Wednesday amid pressure over concerns that central banks will not provide more bond-buying stimulus into the worldwide financial system. The August gold contracts fell $1.50 to $1,375.50 an ounce. Gold futures have retreated about 18% this year after investors have been waiting for signals from Fed on scaling back stimulus.
Treasuries remained steady, after yesterday's largest jump in a week, ahead of the U.S. auctions $21 billion worth of 10-year securities today and $13 billion worth of 30-year notes tomorrow. Benchmark 10-year bonds yielded 2.2% and the price of 1.75% note due in May 2023 was at 96 1/32. Thirty-year bond yields advanced one basis point to 3.33%
The Sterling advanced for the second day against the 17-nation currency, touching the highest level in over three weeks, as data indicated U.K. jobless claims declined more than economists predicted in May. The Pound appreciated versus most of its 16 major counterparts after unemployment fell more-than-expected in April. The U.K. currency climbed 0.1% to 1.5661 against the U.S. Dollar. And
Asian shares retreated on worries that central banks from Japan to U.S. may scale back the stimulus programme. The MSCI Asia Pacific Index fell 0.4% to 131.02 at 1:33 p.m. Tokyo time, meanwhile, the markets in China, Hong Kong, Taiwan and the Philippines were closed for holidays. The MSCI gauge reached the highest level this year on May 20 but
The Loonie appreciated to its highest level in almost 36 months against its Australian peer as investors weighed that the North America will lead in economic growth. The Canadian Dollar added 0.4% to 96.06 Canadian cents per Aussie at 5 p.m. Toronto time, while it also strengthened 0.4% against the kiwi. The Canada's currency gained 0.1% to C$1.0189 per U.S.
German government bunds remained steady after the report showed that consumer prices in the Euro block's biggest economy rose in May as reaching the lowest level since August 2010 in the previous month. German 10-year note yielded 1.59%, after reaching 1.66%, the highest level since February 20. The price of the 1.5% bond maturing in May 2023 was 99.145.