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.
German shares rose for a second day in a row ahead of the two-day Fed meeting on Tuesday. The DAX Index gained 1.3% to 8,230.76 as of 10:11 a.m. Frankfurt time; however, the gauge fell 1.5% past week on worries that the Fed may wind down the monetary stimulus, while the HDAX Index climbed 1.2% on Monday.
U.K. shares gained for a third straight day before the Fed policy meeting on Tuesday. The FTSE 100 Index advanced 0.6%% to 6,348.12 as of 8:47 a.m. in London; however, the index declined 1.6% previous week on bets that central banks might scale back stimulus. The FTSE All-Share Index also gained 0.6% on Monday, while Ireland's ISEQ Index rose 0.4%.
Germany's bunds declined, with 10-year notes falling for the first time in five days, on speculation the Federal Reserve Chairman Ben Bernanke will seek to minimize worries the central bank will scale back its stimulus. German 10-year bond yield climbed two basis points to 1.53% and the 1.5% note maturing in May 2023 dropped 0.145 to 99.725.
Most Asian stock markets prolonged rises on Monday, with the Japan's shares recovering from the beginning of the week after many major overseas sellers advanced amid the Yen's losses. Nikkei Stock Average rose 2.2% with the benchmark's 1.9% gain on Friday, after declining for three days in a row. The broader Topix increased 2.1%.
The Standard & Poor's 500 Index, that has dropped 2.5% from its highest level on May 21, gained an average 16% over two years the previous four times the Fed started raising its interest rates. The S&P shares declined weekly for the third time in last month, falling 1% to 1,626.73 previous week, after Chinese industrial production missed the expectations.
Treasuries cut a two-day climb after investors awaited whether U.S. economy has grown enough to taper stimulus. U.S. 10-year note yields were steady at 2.14% and the price of the 1.75% security maturing in May 2023 fell 94 cents per $1,000 nominal value to 96 1/2. The benchmark yield rose to 2.29% on June 11, the highest in over a
Global shares advanced, while the Japanese Yen declined after its biggest one-week rise in 48 months as investors are waiting for the Fed policy meeting that starts on Tuesday. The MSCI All Country World Index gained 0.3% to 364.17 at 8:23 a.m. London time as the Stoxx Europe 600 Index added 0.5% and the MSCIA Asia Pacific Index grew 1.2%.
Gold futures prices advanced on Monday as part of the investors expect that the Fed will leave the bond-buying programme unchanged this week. The yellow metal futures for August delivery added 0.1% to $1,388.80 an ounce, in spite of the U.S. Dollar gain. Bullion futures on Friday climbed 0.7% after a report, which calmed worries that Bernanke will taper the
Asian shares gained, with the MSCI Asia Pacific Index set for the biggest two straight day rise since September, before the two-day Fed policy meeting that will start tomorrow. The MSCI Asia Pacific Index added 1.3% to 132.43 at 3:14 p.m. Tokyo time; the index has fallen 3% this month to date. Japan's Topix index and benchmark Nikkei 225 both
The Sterling remained steady against the U.S. Dollar and the Euro after an industry data indicated U.K. property sellers increased asking prices for the sixth month in June. The Pound touched the strongest level in four months against the Dollar last week and was trading at $1.5696 today. The U.K. currency was at 84.94 versus the Euro.
The Aussie advanced, prolonging its first one-week gain versus the U.S. Dollar in six weeks, on speculation that its retreat may be exaggerated. The Australia's Dollar climbed 0.4% to 96.1 U.S. cents as of 2:42 p.m. Sydney time from June 14, when it fell 0.7%, while it advanced 1.2% to 91.08 Yen. The kiwi rose 0.4% to 80.81 U.S. cents
The U.S. Dollar rose against the 17-nation currency and the Yen ahead of the Fed policy meeting that will start tomorrow and will last for two days. The greenback grew 0.4% to 94.72 Yen at 6:14 a.m. London time, following a 3.3% one-week retreat, while it advanced 0.2% to $1.3319 against the Euro. The Dollar Index gained 0.2% to 80.799.
Inflation in India dropped to the lowest level in 43 months in May, leading to speculations that the central bank might cut interest rates further. Wholesale prices rose 4.7% last month, while experts predicted an increase of 4.88%. As inflation provides room for rate cuts, the depreciating Rupee, which reached the lowest point of 58.9850 per Dollar on June 11,