The Aussie fell for a second day in a row versus the kiwi after Australia's growth slowed to the lowest level in almost 24 months, boosting the Reserve Bank borrowing cost cut expectations. The Australia's currency slipped 0.5% to NZ$1.1983 at 3:02 p.m. Sydney time, while it lost 0.1% to 96.42 U.S. cents. The New Zealand's Dollar appreciated 0.3% to
The U.S Dollar remained above 100 against the Yen for a second straight day, after advancing from the lowest in more than three weeks, ahead of the U.S. jobless claims that may influence the Fed's stimulus programme. The greenback rose 0.2% to 100.18 Yen as of 11:04 a.m. Tokyo time, compared to yesterday, when it appreciated 0.5%.
The Fed is likely to start unwinding its monetary easing already in September and end it completely by the end of the year, Deutsche Bank says. Earliest cut will consist of $10 billion of mortgages and $15 billion of U.S. government bonds, totaling $25 billion. The current size of bond-purchasing programme is $85 billion per month. The cut is expected
Canada's shares were steady after energy producers climbed, while wireless providers and gold producers decreased. The Standard & Poor's/TSX Composite Index gained less than 0.1% to 12,611.63, the index has advanced 1.4% this year. Niko Resources Ltd., Petrominerales Ltd. and Penn West Petroleum Ltd. added at least 1.7% to lead gains between oil and natural gas shares.
The Canadian currency declined following a climb in merchandise trade deficit in April after energy drove inbound shipment to a record high while overseas sales slipped for the first time since January. The Canada's Dollar dropped 0.3% to C$1.0310 versus the U.S. currency. The Canadian Dollar advanced 1.1% on Monday, the most since June 29,2012.
West Texas Intermediate crude dropped amid predictions that U.S. supplies of gasoline grew in the previous week and after the U.S. Dollar appreciated versus the basket of major counterparts. The July WTI contracts slipped 0.5% to $93 a barrel and Brent for July delivery decreased to $101.97 a barrel.
U.K. shares advanced, with the FTSE 100 Index recovering from the lowest level in a month, following the Fed officials commentary that U.S. economy is still weak to justify the reduction in QE measures. The FTSE 100 climbed 0.6% to 6,562.25 and the FTSE All-Share Index also gained 0.5%, while Ireland's ISEQ added 0.7%
The U.S. Dollar rebounded from the weakest level in four weeks versus the Japan's currency on Tuesday, with the Japanese Yen declining amid the data that Japan's pension funds could raise foreign holdings. The greenback advanced 0.5% to 100.10 versus the Yen on the comments about Japanese pension funds.
Treasury 10-year yields reached the highest level in 14 months on speculation the Fed will scale back its monetary stimulus after the report that is predicted to indicate that companies employed more people adds to signs the growth is continuing. The U.S. 10-year yields increased 0.01 percentage point to 2.13%. The 1.75% bond due in May 2023 dropped 2/32, or
Czech GDP contracted 1.1% in Q1 compared with the previous quarter, which was worse than expected 0.8% decrease. It was sixth straight quarter when Czech economic output shrunk, the longest recession since 1996, as European debt crisis decreased export demand and lead to less spending by businesses and households. Policy makers are considering an intervention to weaken the Koruna.
U.K. construction activity index unexpectedly rose to 50.8 in May from 49.4 a month ago, indicating a growth in the sector. It was the first time the sector grew since October 2012. The index increased due to expanding residential activity, while civil engineering and commercial construction output contracted. Rising construction output is expected to support economic growth in Q2 2013.
Spain registered record high exports worth EUR223 billion last year and the first trade surplus in March 2013 since 1971, an indication that economic crisis in the country might fade away. The trade balance moved to surplus as imports dropped 15% and foreign sales increased 2%. Meanwhile, Spanish Labor Ministry issued data today, which showed that number of citizens signing
The Yen depreciated 0.7% to 100.25 per U.S. Dollar so far today, after rising to 98.87 yesterday, the highest level since May 9. Japan's currency dropped as speculation that the Fed might cut its stimulus earlier waned due to worse than expected U.S. factory activity figures. The Yen may weaken further to 110 per U.S. Dollar in upcoming 12 months,
Italian 10-year government bond yields fell 5 basis points to 4.11%, while Spanish and Portuguese yields on the same maturity bods decreased 4 and 14 basis points, respectively. German yields rose 0.04 percentage points due to decreasing demand for safe investments as market becomes more risk-seeking. Increasing liquidity is currently the major driver of bond and stock prices, according to
The U.S. Dollar rebounded to above 100 Yen, after worse than expected U.S. manufacturing activity data, which fell to the lowest level since June 2009. It calmed concerns that the Fed might exit its stimulus early. FTSE EuroFirst 300 and DJ Euro Stoxx 50 ETF indexes jumped 0.6% at the opening, potentially ending two-day consecutive losses.
The Australian Dollar weakened after the RBA stated that inflationary outlook leaves a room for further easing and that the national currency remains strong. The Aussie depreciated versus all of its most-traded peers after the central bank left the benchmark interest rate unchanged at all-time low 2.75%. The Australia's currency fell 0.4% to 97.33 U.S. cents at 3:53 p.m. Sydney
European shares gained, bouncing off a four-week low, as Atlanta Fed's Lockhart backed the Fed's stimulus. The Stoxx Europe 600 Index advanced 0.7% to 300.57 as of 8:04 a.m. London time. The benchmark index dropped to the lowest level in four weeks amid bets the Fed will reduce the stimulus. The Stoxx jumped 1.4% in May, making it the 12th
The British Sterling fell slightly versus the greenback and the shared currency before the U.K. construction data report, which is expected to show a decline in construction output, according to economists. The British currency was at $1.5304 as of 7:48 a.m. in London after touching $1.5376 on Monday, the most in more than three weeks, while the Pound traded at
U.S. shares advanced, with the Standard & Poor's 500 Index reversing the earlier declines, after the Atlanta Fed's President Dennis Lockhart said the central bank is committed to its stimulus. The S&P 500 advanced 0.6% to 1,640.42 as of 4 p.m. in New York, while the Dow gained 138.46 points to 15,254.03. The S&P 500 dropped 1.1% previous week.
Asia's benchmark share index advanced, after retreating for three days in a row, as the Fed is likely to continue its stimulus programme. Japan's stocks rose the most in approximately four weeks. The MSCI Asia Pacific Index gained 1% to 134.82 at 3:25 p.m. Tokyo time after its yesterday closing at the lowest level in three months. Japan's Topix jumped
The U.S. Dollar fell below 100 Yen, attaining the lowest level in near a month amid worries that the Fed will reduce its stimulus. The greenback rose 0.3% to 99.81 Yen as of 6:05 a.m. London time, this four-day 2.8% gain versus the U.S. Dollar was the biggest since May 9, while the Dollar Index touched a near one-month low
The Canadian currency strengthened the most in 12 months versus its U.S. counterpart as the U.S. manufacturing data missed expectations, damping the bets that the Fed will scale back the stimulus. The Canadian Dollar gained 0.9% to C$1.0278 per U.S. Dollar as of 5 p.m. Toronto time after rising 1.1%, the biggest advance since June 29, 2012.
Gold extended gains after the biggest advance in two weeks on speculation that the Fed will continue its stimulus as the U.S. economic data did not meet expectations. Spot gold rose 0.3% to $1,415.15 an ounce and touched $1,411.80 as of 12:19 p.m. Singapore time. The bullion prices climbed 1.7% on Monday, the biggest jump in two weeks, while the
The Australia's and New Zealand's currencies advanced more than 2% versus the greenback on Monday, as the U.S. currency declined following a disappointing U.S. manufacturing report. The Aussie gained 2.1% to 0.9774 against the U.S. currency, while the kiwi also appreciated 2.1% to 0.8101 versus the U.S. Dollar.