US blue chips index rallied on Thursday after the Fed stated that it will embark on stimulus measures to boost US economy. Larger-than-expected increase in the US PPI last month also lifted the Dow Jones index. On Friday, market players are likely to focus on the US CPI and retail sales data. The Dow Jones Industrial Average Index jumped 1.55%
US stocks surged on Thursday after the Fed announced a fresh round of QE in form of buying mortgage-backed securities. The Fed will inject USD40 billion in the economy each month until situation in the labour market improves significantly. Meanwhile, market participants also awaited US CPI data and retail sales figures due on Friday. The S&P 500 Index soared 1.63%
On Friday, Italian 10-year bonds gained for the fourth consecutive day, pushing the yields below 5% for the first time in half a year on Fed's decision to stimulate the economy. Benchmark 10-year yields eased 5 basis points and reached 4.96% at 12.55 a.m. in London. Earlier in the day the yields dropped 6 basis points, reaching 4.95 percent.
On Friday, treasuries declined on inflation expectations after Fed's decision to buy debt in attempts to boost the economy. Benchmark yields on 10-year treasuries grew by 9 basis points and reached 1.82 at 7:39 am New York time. 30-year yields were pushed to the level of more than 3% for the first time in four months, and were are equal to 3.04%, which was a
U.S. stock futures rose on Friday, after reaching multi-year highs on Fed's decision. Dow Jones futures climbed 0.4% to 13,499. Futures on the S&P 500 Index gained 6 points to 1,456.4, while those on the Nasdaq 100 climbed 13.5 points to 2,834.5. On Friday, the ICE Dollar Index declined to 78.847 from 79.2254 yesterday.
Futures for crude oil were higher on Friday on another round of Fed's monetary stimulus in the world's largest consumer of oil, and amid political tension in the Middle East. On the NYMEX, October delivery futures for light sweet crude were traded at USD100.26 per barrel, which was a 1.98% gain in the European trading hours.
The Euro continued rally against weaker U.S. Dollar on Friday, after the Fed decided to create a new round of easing in order to support the U.S. economy. Extra stimulus cuts interest rates, which has a negative impact on the greenback. The Euro climbed to $1.3121, getting above $1.31 for the first time since May, and was at $1.3108.
Eurostat reported on Friday that the level of employment remained unchanged in Eurozone in the second quarter of 2012, confounding expectations of a 0.2% decline. However, the employment level declined by 0.6%, compared to the second quarter of 2011. In Q1, employment declined by 0.3% from the preceding quarter.
Eurostat reported on Friday that the consumer price index in Eurozone was 2.6% on a seasonally adjusted basis in August, unchanged from the July's reading. Analysts also expected that the inflation would hold steady in the previous month. Core CPI, however, grew less than expected and reached 1.5%, while economists predicted that it would be 1.7%, unchanged from the preceding month's figure.
On Friday, the Ministry of Economy, Trade and Industry reported that Japanese industrial output declined to -1.0% on a seasonally adjusted basis in July, compared to a figure of -1.2% in June. Analysts, however, expected that the industrial output would witness a steeper fall and that the reading would be -1.2%.
Gold futures appreciate in Asian and European sessions on Friday, prolonging yesterday's rally amid new easing plans from U.S. Fed supporting the economy. December-delivery gold surged $5.50 to $1,777.60 per ounce in New York, posting a 2.2% one-day move, the strongest since late June.
The head of HSBC Chinese operations said that China has a variety of tools that can be useful to stimulate economy, including monetary and fiscal policies. Recently announced huge government spending on infrastructure should help to keep a moderate growth in the fourth quarter of 2012. Although the pace of economic growth slowed to 7.5% in the first two quarters, China's economy is still expanding at
European stocks surged on Friday, as traders elevated the U.S. Fed decision for the third quantitative easing round to boost economic growth. The Stoxx Europe 600 Index rallied 1.4% to 276.20, poised for its strongest close since June 2011. The FTSE 100 Index rose1.6% to 5,910.97 amid higher oil prices. The CAC 40 Index climbed 2%, while the DAX 30
U.S. stocks advanced, pushing the Standard & Poor's 500 Index 500 to the highest level since 2007, as the Fed announced a third round of bond purchases, aka QE3. The S&P 500 rose 1.6% to 1.459.99, increasing for a third consecutive day and closing at the highest since 2007. The Dow Jones Industrial Average soared 206.51 points or 1.6% to
U.K. house prices rose for the first time in 3 months in August as demand improved after a summer lull. The average price of home in England and Wales increased 0.1% to 226,243 pounds from July. Prices increased 2.6% from the previous year, while in London prices soared 10.5%. As housing market struggles to recover, the the BOE and the
Farm commodities advanced on Thursday amid broadly weaker US Dollar and rising demand for grains form the world's top importers. Meanwhile, investors remained focused on weather forecasts in the US, Russia, Brazil and India. Wheat rallied on signs that high prices failed to dampen importers' demand. Jordan agreed to buy 100,000 tons from Ukraine while Egypt is seeking to buy at
Energy commodities were mixed on Thursday, with crude and Brent oil rallying and heating oil and natural gas retreating. Market sentiment was boosted by FOMC statement, indicating new round of QE. Escalated tensions in the Middle East also supported the commodity group. Crude oil surged on brighter demand prospects amid easing measures in the US. However, an unexpected inventory increase last
The Canadian Dollar rose to the highest level in 13 months against the U.S. Dollar as the Fed announced a third round of bond purchases to stimulate economic growth in Canada's largest trading partner. The Loonie strengthened 0.8% to 96.85 cents per greenback. It fetched 96.65 cents, the strongest since August 2011. Canada's Dollar bought $1.0325.
Industrial metals except for copper posted sharp gains on news that the US PPI rose last month. Market participants awaited the Fed decision on whether to loosen its monetary policy further that was due on Thursday after the end of LME trading session. Aluminum climbed on lower inventory levels at the LME warehouses and hopes that the Fed will announce stimulus
Asian currencies were set for the biggest weekly advance since June as the Fed Chairman Ben Bernanke unveiled a third round of quantitative easing. Thailand's Baht and Malaysia's Ringgit fetched the highest levels in 4 months as Asian stocks set for the best performance this year. This week the Ringgit advanced 1.8% to 3.0520 per U.S. Dollar, while the Baht
Precious metals skyrocketed after the Fed announced another round of QE. The Fed stated that it would buy mortgage-backed securities unless the US labour markets recover. Broadly weaker US Dollar after FOMC statement also created strong support for the commodity group. Gold jumped, erasing previous losses after the Fed launched the fresh round of QE to boost US economy. Dismal US
The U.S. Dollar dropped to the lowest level in four months versus the Euro amid the Fed Chairman Ben Bernanke's plan to launch open-ended monetary easing, which tends to debase the greenback. The Dollar fell to $1.3034 per Euro, the weakest level since May. During this week the Dollar has lost 1.6% versus the Euro and 0.8% versus the Japanese
Retail sales in the U.S. probably rose for a second consecutive month in August, economist said before the Commerce Department's data release today. Higher fuel and food prices along with disappointing increase in wages and payrolls might impact household finances. Labour market weakness spurred the Fed yesterday to announce QE3 to stimulate a 3-year expansion.
Oil futures for October settlement added $1.15 to $99.46 a barrel during New York trading session and was $99.28 on mid trading session on Singapore on Friday. Oil price surged as the Federal Reserve announced about $40 billion monthly operations on bond buying programme, thus boosting fuel demand in the U.S. Investors had concerns that unrest in North Africa and the Middle East will