German investor sentiment increased in June as Europe's largest economy is recovering at a faster pace. The ZEW index advanced from 36.4 in May to 38.5, and the ZEW's measure of the current situation dropped more-than-expected from 8.9 in May to 8.6. German industrial output increased the most in over a year and overseas sales advanced more-than-predicted in April .
The U.S. Dollar appreciated as investors were expecting signals from the Federal Reserve about starting to taper stimulus. European shares remained flat, while German bunds and U.K. gilts declined. The greenback rose to 0.7% to 95.15 versus the Yen. U.K. 10-year bond yield inched up to 2.12% and the similar-maturity German bunds increased to 1.55%
U.K. shares advanced, led by FTSE 100 Index rise for fourth day in a row, on bets China might cut interest rates to spur economy. The FTSE 100 climbed 0.4% to 6,355.73 as of 9:32 a.m. London time; however, the equity benchmark has dropped 7.1% since May 22 on worries the Fed will taper its stimulus. The broader FTSE All-Shares
U.S. crude oil futures prices advanced on Tuesday, before the weekly inventory data that are expected to fall in inventories. Crude oil for July delivery gained 0.3% reaching $98.01 a barrel. Oil prices slipped 8 cents on Monday after the report from Financial times indicated that the Fed's Bernanke plans to state they are close to winding down its stimulus programme.
Gold declined for the second day ahead of the U.S. Federal Reserve begins its policy meeting on Tuesday as investors gauged when the central bank will taper its quantitative easing. Spot gold retreated 0.4% to $1,379.26 per ounce and was trading at $1,379.96 in Singapore at 1:36 p.m., adding to signs the gold has fallen 18% this year.
German shares fell ahead of the Fed policy meeting, which could indicate whether the Fed officials will start tapering stimulus at its meeting today. The DAX Index slid 0.4% to 8,186.71 as 9:38 a.m. Frankfurt time; moreover, the gauge declined 1.5% past week on worries that the Fed could start to scale back the monetary stimulus programme. The broader HDAX
German government bunds fell for the second day ahead of the data that, according to the economists, will indicate investor confidence in the country advanced in June, cutting demand for the Euro block's safest asset. German 10-year bond yield gained four basis points to 1.56% and the 1.5% note maturing in May 2023 decreased 0.365 to 99.44.
Treasuries cut a drop from yesterday ahead of the Federal Reserve starts a two-day meeting as investors will be seeking for signs as to when the central bank may taper its stimulus. The benchmark 10-year security yield remained steady at 2.18% and the price of the 1.75% note maturing in May 2023 was 96 7/32.
Hong Kong shares retreated on worries that rise in China's house prices may lead to monetary stimulus reduction. The Hang Seng Index declined 0.8% to 21,056.33 at 9:50 a.m. Hong Kong time as every nine stocks slid for each that advanced on the 50-member index. The Hang Seng China Enterprises Index fell 1.1% to 9,640.79.
U.S. shares climbed with the Standard & Poor's 500 Index recovering from the last week's losses. Investors are awaiting an economic report that may show that the Federal Reserve may decide at this week's policy meeting to wind down its stimulus. The S&P 500 increased 0.8% to 1,639.04 and the Dow Jones Industrial Average gained 0.7% to 15,179.85.
Canadian shares advanced, following a fall for a third straight week for the benchmark index, as the price of crude reached highest level in nine months and home sales were up in May. The Standard & Poor's/TSX Composite Index gained 0.8% to 12,288.90 as of 4 p.m. Toronto time; however, the measure slid 1.5% previous week and has fallen 1.2%
Asian shares were little changed before the Fed policy meeting that starts today and will last for two days. The MSCI Asia Pacific Index traded at 132.36 at 3:15 p.m. Tokyo time, the equity benchmark retreated 1.8% monthly on worries that central banks may reduce stimulus. Japan's Topix index gained 0.2% at the close, while the benchmark Nikkei 225 Stock
The Australian currency prolonged this quarter's largest drop among major peers after the Reserve Bank's minutes which showed that the Dollar may decline further. The Australian Dollar depreciated 0.6%to 94.87 against the U.S. Dollar, after it plummeted 0.3% yesterday. New Zealand's Dollar fell 0.3% to 79.71 versus the greenback.
European shares declined before the U.S. house data, which could indicate whether the Fed will start tapering stimulus at its meeting today. The Stoxx Europe 600 Index slid 0.5% to 291.94 as of 8:08 a.m. London time; however, the gauge advanced to its highest level in one week on Monday. Standard & Poor's 500 Index futures gained less than 0.1%,
The Euro plummeted against the U.S. Dollar as European Central Bank President Mario Draghi's declared that the central bank is weighing further non-standard monetary policy instruments and will use them under certain circumstances. The common currency fell 0.3% to 1.3329 versus the Dollar and appreciated 0.1% to 126.45 against the Japanese Yen.
The Sterling depreciated against the greenback ahead of a report that could show consumer-price inflation accelerated for the first time in four months, according to economists. The British currency dropped 0.3% to $1.5674 as of 7:22 a.m. in London, after reaching $1.5752 on Monday, while it traded at 85.07 pence per Euro.
The Japanese Yen fell for the second day versus the U.S. Dollar on speculation the Fed may wind down its easing programme at its two-day meeting due to start on Tuesday. The Japan's currency dropped 0.3% to 94.83 versus the U.S. Dollar and 0.3% to 126.65 against the 17-nation currency.
Chinese currency appreciated as the People's Bank of China increased its reference rate to the highest level of all time. The Yuan rose 0.09% to 6.1250 versus the Dollar. The China's central bank raised the Yuan's reference rate by 0.01% to 6.15980, a record high. The People's Bank of China Governor said that the bank will not lower the Yuan to increase competitiveness.
German salaries climbed at their fastest temp in four years at the beginning of 2013 and Euro area overseas sales inched up in April, pushing the Eurozone's economy towards recovery. German Hourly labour costs increased 3.9% in the first quarter, the most since 2009, and gained more than the overall Euro area rate of 1.6%.
U.S. crude-oil futures climbed to the highest level in four months on Monday, following boosted concerns that the riot could spread to other states in the oil-producing regions of the Middle East. The July crude contracts gained 49 cents to $98.34 a barrel, the highest since early February. Brent crude for August settlement also rose 18 cents to $106.11 per
U.K. government bonds dropped, after rising for four days in a row, as an industry data indicated property prices climbed, damping the case to maintain low borrowing costs for additional central-bank bond purchases. The 10-year U.K. bond yield advanced two basis points to 2.08% and the 1.75% gilt maturing in September 2022 dropped 0.165 to 97.235.
Switzerland's shares advanced, bouncing off a fourth weekly decline in a row before the Fed policy meeting on Tuesday. The Swiss Market Index rose 0.9% to 7,704.12 as of 10:33 a.m. Zurich time; however, the index slipped 1.9% past week, making it the longest streak of losses in more than a year. The Swiss Performance Index also advanced 0.9% on
The South Korean Won rebounded from the weakest level in two months as the government announced it has market stabilization programme ready to protect from external shocks. The South Korean currency declined 0.3% to 1,126.25 versus the U.S. Dollar. The Won weakened as investors sold Korean stocks today and on the previous week.
The Japanese currency fell at least 0.5% against all of its 16 major counterparts as shares all over the world advanced. The Japanese Yen slid 0.7% to 94.93 per Dollar as of 9:26 a.m. in London, after a 3.3% advance previous week, while the Eurozone's currency gained 0.8% to 126.65 Yen, following a 2.6% retreat past week.