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.
Gold advanced on Monday, partially rebounding from the last session's slip, after the US Dollar dropped before U.S. economic report that will show more information on how long the U.S. quantitative easing measures will last. U.S. gold futures gained 0.8% to $1,404 an ounce, and spot gold increased to the highest level of the session by 1.3% and was at
West Texas Intermediate Crude Oil climbed from a one-month low after U.S. shares recovered and the U.S. Dollar depreciated versus its major counterparts. The July WTI crude contracts increased 0.8% to $92.67 a barrel and the July Brent oil contracts climbed 1.1% to $101.53 a barrel. The S&P 500 futures rose 1.3% from the lowest level in three weeks.
The Canadian currency advanced versus its U.S. counterpart after better-than-expected data on manufacturing in Europe raised investors interest in more risky assets. The Canadian Dollar climbed 0.2% to 1.0350 against the U.S. Dollar after reaching the weakest level in a year versus the greenback on May 29.
The 17-nation currency held a rise from the previous week against the U.S. Dollar as the data indicated manufacturing in the Eurozone fell slower than initially expected in May. The common currency remained flat at 1.30 against the U.S. Dollar and climbed 0.4% to 1.2464 versus the Swiss currency, and was steady at 130.53 against the Yen. The Euro bloc
U.S. stock futures climbed after the Standard & Poor's 500 Index recorded its first losses for the week since November amid ideas that data due later in the day may indicate manufacturing was steady in May. S&P 500 futures maturing this month gained 0.5% to 1,637.2. The Dow Jones Industrial Average rose 0.6% to 15,190.
Hedge funds pushed gold prices upwards as slower than expected GDP growth in the U.S. boosted speculations that the Fed will maintain its stimulus. Gold futures increased 0.4% last week while the bullion spot prices has surged 58% since late 2008 due to unprecedented monetary stimulus.
Global fixed income market data showed sharp monthly losses in May after the Dollar rose and shares hit record highs on speculation the U.S. economy's growth will allow the Fed to scale back its monetary stimulus. The U.S. Treasury yields, German and U.K. bonds are all predicted to increase by the end of the year from current positions, while bond
Volatility of Treasury prices will increase when central banks withdraw their stimulus, according to the BIS. Yields on 10-year U.S. government bonds rose 0.46 percentage points last month due to speculation that the Fed could slow down its monetary stimulus amid recovering economy. The jump was the highest since December 2010 when yields rose 50 basis points.
Germany plans to provide EUR 1 billion worth of support to Spanish small and medium-sized enterprises in an attempt to fight rising unemployment. The aid package consists of various financial instruments that will be used to improve Spanish SMEs' capital structure and deal with liquidity shortfalls. The German finance ministry expects other European organizations to contribute to the program as
Manufacturing activity index in the U.K. jumped from 50.2 in April to 51.3 in May - the highest level in 14 months, while economists predicted an increase to 50.3. The level above 50 indicates expansion of the sector. The economy in the U.K. is recovering, although not fast enough, according to Mervyn King, the Governor of the Bank of England.
U.K. shares declined, with the benchmark FTSE 100 Index falling to near one month low, led by weak China's manufacturing numbers and a decline in the U.S. stocks. The FTSE 100 slipped 0.8% to 6,532.42 as of 8:48 a.m. London time, reaching the lowest level in almost a month, while the FTSE All-Share Index also slid 0.8%.
Experts said that there would be little progress in U.S. manufacturing sector before today's official data release. Index above 50 indicates expansion and the prediction stood at 50.7. Growth in factory activity has been slowing since it reached almost a 24-month high in February 2013. It is expected that growing demand for cars and residential construction will lead to higher