The U.S. Federal Reserve reported on Tuesday that industrial output in the U.S. gained more than expected last month, following a sharp fall in the preceding month. Industrial production gained 0.4% in September after a 1.4% decline in August, which was revised downwards from an initially reported reading of 1.2%. Analysts expected that the September's reading would be an increase of 0.2%.
On Tuesday, the Euro was traded higher versus the U.S. Dollar, rising above $1.30, amid improvements in German investor sentiment and speculation that the Spanish government would soon request for bailout. The 17-nation currency added 0.8% to trade at $1.3055 by 8:31 a.m. in New York. Earlier in the day, the European currency reached the level of $1.3059, which was the highest since October 5.
Statistics Canada reported on Tuesday that manufacturing sales in Canada gained more than expected in August, ending a 5-month streak of losses. Canadian manufacturing sales rose by 1.5% on a seasonally adjusted basis in August, following a drop of 0.8% in the month before. Economists, however, expected that the August's reading would be equal to a 1% increase.
On Tuesday, treasuries were traded lower, following the report that showed that the cost of living increased in September, which supported speculations about an acceleration in inflation amid record stimulus by the Federal Reserve. The yield on benchmark 10-year notes added 4 basis points, reaching 1.70%, at 8:34 a.m. New York time.
On Tuesday, copper was traded higher, following stronger equities and the Euro and retreating from a 1-month low. Moreover, investor sentiment was also positively influenced by an upcoming European leaders meeting, which may reduce uncertainty over Spanish and Greek bailout. On the London Metal Exchange, three-month copper was traded at $8,145 per metric tonne.
Eurostat reported on Tuesday that Eurozone's consumer price inflation was revised down, declining unexpectedly last month. Year-on-year CPI fell to 2.6%, whereas economists expected that the revised reading of the index would be unchanged from the initial estimate, which was equal to 2.7%. Following the release of the data, the Euro added 0.34% versus the greenback to trade at $1.2991.
The Labor Department reported on Tuesday that consumer prices in the U.S. were advancing in September, following an increase the month before, which was a reflection of a growth in energy expenses. September's consumer prices were growing at a rate of 0.6% for the second consecutive month, while economists expected that it would by only 0.5%. Core CPI added 0.1%, which was lower than a 0.2%
The ZEW Center for European Economic Research in Mannheim reported on Tuesday that its index of investor confidence in Germany was growing in September for the second consecutive month, as ECB bond buying program supported speculations that European debt crisis can be resolved soon. German ZEW index of investor confidence increased to minus 11.5 last month, compared to a reading of minus 18.2 in August. Economists,
The Office for National Statistics reported on Tuesday that British inflation declined to an almost-three-year low last month. The slowdown of inflation was mainly driven by surging electricity and gas prices during the year prior to September 2011. Annual CPI in the United Kingdom added 2.2% the last month, compared to a reading of 2.5% in the preceding month. Economists, however, predicted that inflation would be
Gold futures for December settlement gained $3, or 0.2%, to $1740.70 in the beginning of London trading session. Metal price retreated first time in last three days, therefore some investors purchased it after price dropped the most in last few months yesterday. Although analysts say that gold price experiences pressure to move down due to a weak inflation data from
Standard & Poor's trimmed its credit ratings on Banco Santander SA (SAN) and Banco Bilbao Vizcaya Argentaria SA (BBVA), Spain's major lenders, together with nine other banks after decreasing country's sovereign rating to BBB-/A-3 last week, S&P reported on Tuesday. The agency downgraded Santander's long-term counterparty credit rating from A- to BBB-.
European stock futures inched higher ahead of a report expected to show German investor sentiment increased for a second consecutive month. The Euro Stoxx 50 Index futures advanced 0.9%, while those on S&P 500 Index rose 0.1% in London. Copper surged 0.8% in London, while wheat gained 0.6% in Chicago.
Brent oil premium against WTI has reached one-year peak, as the difference has climbed to $24.28 a barrel during New York trading session. Oil premium rises as investors are concerned about possible supply disruptions from the North Sea region and the Middle East. Also, markets stay cautious as the European Union tightens up Iran's energy exports sanctions. Investors of oil
Reserve Bank of Australia's policy makers decided that the central bank's monetary policy needs to become more accommodative, RBA's October meeting minutes showed on Tuesday. The bank mentioned that the pace of domestic expansion may be slower than original estimates, adding signs to global growth slowdown. At the meeting, the monetary policy board cut the cash rate by 25 basis
Farm commodities plunged on Monday as favorable weather conditions accelerated harvesting in the US and Brazil. Slightly lower US Dollar despite encouraging national data restricted losses of rural commodities. Wheat lost almost 1% after US numbers showed that farmers sold only 14,200 tons of grain last week, the lowest level since June.Corn was the top-loser as US harvesting is accelerating.
Energy futures except for Brent oil were bearish on Monday amid strong US data releases and persistent worries over Spain. The commodity group continued to face pressure after the EIA reduced its global demand estimate, citing lower consumption in Europe, US and China.Crude oil was almost flat, balancing between escalated tensions in the Middle East and concerns that global demand
Asian currencies advanced as U.S. retail sales data surpassed economists' expectations, thus supporting demand for higher-yielding currencies. Advanced retail sales in the U.S. increased 1.1% last month, while economists anticipated a 0.8% gain. South Korea's Won rose 0.3% to 1,107.13 per U.S. Dollar and the Philippine Peso gained 0.2% to 41.397. India's Rupee advanced 0.2% to 52.9126 and Malaysia's Ringgit
Industrial metals apart from nickel dropped on Monday amid uncertainty over Spain and deepening slowdown in China. However, weak China‘s data coupled with lower inflationary pressure spurred speculation that the POBC will ease its prudent monetary policy. Meanwhile, the US releases were supportive as a surge in retail sales limited losses of base metals' pack.Aluminum retreated amid expected increase in
The New Zealand Dollar dropped versus all the major counterparts after data indicated that inflation slowed to the weakest pace in 12 years, increasing speculation that the nation's Reserve Bank will lower interest rates. The Kiwi Dollar lost 0.3% to 81.59 U.S. cents, while remaining unchanged at 67.38 Yen. Consumer prices in New Zealand increased 0.8% in the Q3 from
Precious metals started the week in the red territory amid upbeat US retail sales data. Mounting concerns over Spain's bailout also boosted demand for safe-haven greenback. However, speculation that POBC will loosen its monetary policy pared losses of the commodity group.Gold slid to almost one-month low as market participants turned to greenback amid signs that US economy is improving. Silver
The Yen weakened versus most of the major counterparts, as Asian stocks gained and U.S. data that may show an increase in industrial production and housing starts, curbing demand for haven assets. The Yen lost 0.3% to 78.89 per U.S. Dollar, after touching 78.91, the weakest level since September 19. The Yen fell 0.4% to 102.27 per Euro.
Asian stocks rose on Tuesday, lead by better-than-forecast U.S. retail sales, pushing Dow Jones Industrial Average 0.7% up, and a rebound of Softbank Corp.'s shares in Tokyo. The Nikkei surged 1.2%, the Kospi added 0.9%, while the S&P/ASX 200 and the Hang Seng indices both advanced 0.3%. The Shanghai Composite index gained 0.5%.
Wall Street rose on Monday, as retail sales in the U.S. and Citigroup (C) Inc.'s earnings topped estimates. The Dow Jones Industrial Average advanced 0.74%, to 13,427.58; the Standard & Poor 500 Index jumped 0.73%, to stand at 1,438.91, while Nasdaq 100 futures added 0.52%, to 3,059.83.
European stocks edged higher on Monday, October 15, after better-than-expected U.S. retail sales and hopes that Spain is going to request a sovereign bailout soon The Stoxx Europe 600 Index rose 0.51 per cent to 270.80. Germany's DAX Index edged higher 0.40 per cent to 7,261.25 and France's CAC 40 Index jumped 0.92 per cent to 3,420.28.