The Reserve Bank of Australia unexpectedly cut its benchmark rate for the first time since June at its October policy meeting, stating a decline in commodity prices and signs that the nation's mining investment boom fades as the main reasons. The RBA has decided to cut the interest rate by 25 basis points or 0.25% to 3.25%, the level last
Canada's Dollar strengthened versus most of its counterparts amid positive manufacturing data from the U.S., the country's largest trading partner, which boosted an increase in stocks and positive risk sentiment. The so-called Loonie rose 0.1% to 98.23 cents per U.S. counterpart, after advancing as much as 0.4%. One Canada's Dollar buys $1.0178.
European stocks were boosted by the surprise increase in the U.S. manufacturing activity, as well as upbeat comments by EU Commissioner Olli Rehn. The Stoxx Europe 600 Index added 1.4% to close at 272.33; French CAC 40 Index added 2.4% to 3,434.98, while German DAX 30 Index closed 1.5% higher at 7,326.73.
U.S. stocks extended gains on Monday as market sentiment lifted was lifted by the better-than-expected ISM manufacturing PMI in the U.S. The Dow Jones Industrial Average rose 1.19%, to 13,596.45; the Standard & Poor 500 Index gained 0.93%, to 1,454.75, while Nasdaq-100 futures jumped 0.63%, to 3,135.82.
The U.S. manufacturing sector rose unexpectedly last month, after three consecutive months of contraction, indicating the industry is stabilizing. The Institute for Supply Management reported that he ISM manufacturing PMI rocketed to 51.5, up from 49.6 in August, while analysts had expected factory index to remain under 50, a level which indicates industry expansion, for the fourth straight month, at 49.7.
Japanese businesses sentiment deteriorated in the third quarter of 2012, a sign the world's third biggest economy is slowing, the Bank of Japan reported Monday. Tankan Manufacturing index dropped to a seasonally adjusted -3, down from -1 in the previous quarter. A reading above 0.0 indicates improving conditions, while any reading below indicates worsening conditions.
U.S. stock futures start the fourth quarter of this year on a positive note as traders await the manufacturing data and Ben Bernanke's talk later today. On Monday, Dow Jones futures added 60 points to 13,415. Futures on S&P 500 Index gained 5.6 points to 1,439.80, while those on Nasdaq soared 13.5 points to 2,805.50.
European stocks rose on Monday,lead by gains in banking sector and rebounding from steep declines last week. Stoxx Europe 600 Index surged 0.8% to 270.69. The IBEX 35 Index added 0.5% to 7,743.70 as Spanish banks' stress test revealed capital needs of 59.3 billion Euro. The FTSE 100 Index gained 1% to 5,798.71, the CAC 40 Index inched 1.3% up
On Monday, copper edged higher on increased demand for risky assets among European investors, but gains were capped by disappointing data on Chinese manufacturing activity. On the NYMEX, December delivery futures were traded at $3.74 per pound by 6:51 a.m. in New York. Earlier, the prices hit a session low of $3.76 and a session high of $3.72.
Germany's manufacturing declined at a weaker pace in September because of slower drops in output, new orders and stabilization of production employment levels, Markit Economics showed on Monday. The final seasonalized production PMI surged to 47.4, compared to 44.7 in the preceding month, and posting a six-moth low rate of contraction. Initially PMI showed a reading of 47.3.
On Monday, futures for natural gas rose for the fifth day in a row, which was the longest rally for the last three months, on speculations that the storage limits will be reached before cold weather increases demand. On the NYMEX, November delivery futures added 4.9 cents to trade at $3.369 per MMBtu by 10:43 a.m. in Tokyo.
Euro area's manufacturing in September tumbled at a slightly weaker pace than previously estimated, Markit Economics presented final data on Monday. The seasonalized manufacturing PMI came in at 46.1, the highest level in six months, up from preliminary 46.0. In August PMI was at 45.1. Production eased for the seventh straight month, however at a five-moth low pace.
On Monday, the British Pound was little changed versus the U.S. counterpart, being traded close to a 2-week low, following the release of disappointing data on the U.K. manufacturing activity. GBP/USD hit 1.6110, which was the lowest since Sept. 13, and consolidated later at 1.6151, losing 0.010% for the European morning trading session.
On Moday, the 17-nation currency retreated from a 3-week low versus the greenback on results of Spanish banks stress tests, which were a part of terms that allow winning of the European bailout. The Euro added 0.3% to trade ate $1.2896 by 9:59 a.m. in London. Earlier it lost 0.4%, being traded at $1.2804, which was the weakest since September 11.
U.S. government bonds inched higher on Monday ahead of a report forecast to show U.S. manufacturing fell in September after today's data posted slowdown in manufacturing in Japan, China and Australia. The 10-year yield was at 1.64%, while the 1.625% note maturing in August 2022 traded at 99 29/32.
On Monday, gold prices were lower, following the disappointing figures of the Chinese manufacturing activity and the U.S. and Japanese sentiment data. On the NYMEX, December delivery for gold traded at $1,768.65 per troy once, which was a 0.30% decline for the Asian trading session. The support was likely to be at $1,755.35, while the resistance was prone to be at 1,785.65.
Markit, a market research group, reported on Monday that activity in the manufacturing sector in the U.K. declined more than expected on a decrease in exports and an increase in costs. The Markit manufacturing PMI in September fell to 48.4, compared to an August's figure of 49.6, which was revised upwards. Analysts expected that the last month's reading would be 49.5."Overseas sales continue to be hit
On Monday, oil retreated from a 1-week high, as China witnessed an unexpected decrease in its manufacturing activity, raising speculations that the demand for fuel may fall. On the NYMEX, November delivery futures lost 93 cents, hitting a session low of $91.26, and subsequently consolidated at $91.97 by 9:01 a.m. in London.
Eurostat reported on Monday that the level of unemployment in the countries that are using the Euro was 11.4% in August, which was unchanged from the readings for the preceding two months, after these figures were revised upwards. The level of unemployment was the highest since 1995, when the records started.
Emerging-market stocks declined as data from South Korea, China and Japan indicated that the global slowdown is deepening. The MSCI Emerging Markets Index slipped 0.3% to 999.73. Vietnam's VN Index lost 1.1%, while the Jakarta Stock Exchange Composite Index and Taiwan's Taiex Index fell 0.7%. China's manufacturing shrank in September and Japanese manufacturers became pessimistic.
Asian stocks fell for a second day as China's manufacturing decreased amid global slowdown that curtailed export demand and Japanese manufacturers became pessimistic. The MSCI Asia Pacific Index dropped 0.7% to 121.65. Japan's Nikkei 225 Stock Average lost 0.8%, while Taiwan's Taiex Index slipped 0.7% and Singapore's Straits Times Index fell 0.5%.
The U.S. Dollar and Japanese Yen advanced against most of the major peers as indication of economic slowdown in Europe and Asia spurred demand for safe-haven assets. The Dollar rose 0.3% to $1.2826 per Euro from last week, after touching earlier $1.2804, the strongest level since September 11. The Yen traded at 99.88 per Euro and added 0.4% to 80.55 per Australia's Dollar.
Japan's industrial output fell more than expected in August, as the demand for cars and electronics was weak due to the global slowdown. As reported by the Ministry of Economy, Trade and Industry, nation's industrial production slumped to a seasonally adjusted -1.3%, down from -1.0% in July, adding concerns that the world's third biggest economy may slip into recession by the end of 2012.
The inflation rate in the Eurozone's 17 countries that have the Euro in circulation rose to a six-month high in September, the EU's statistics office, Eurostat said on Friday. Consumer price inflation jumped to a seasonally adjusted annual rate of 2.7%, up from 2.6% in the prior month, while analysts had estimated the annual rate of inflation fell to 2.4%.