U.S. stock futures tumble on Monday amid belief Fed will launch extra monetary stimulus round this week after Friday's disappointing jobs data. Dow Jones futures slid 0.2% to 13,274. Nasdaq 100 futures lost 5.75 points to 2,817.25, while S&P 500 Index futures declined 3.2 points to 1,435.
On Monday, the Cable pushed lower versus the U.S. Dollar, as investor's sentiment was driven by expectations of Fed stimulus and upcoming German court ruling. GBP/USD hit a daily-low of 1.5974, and subsequently consolidated at 1.5976, which was a 0.20% fall for the European afternoon trading session. The support was prone to be at 1.5921, while resistance was likely to be at 1.6077.
China's trade balance expanded more than forecast in August, National Bureau of Statistics reported on Monday. The trade balance increased to $26.66 billion, from $21.10 billion in the previous month. Analysts had estimated China's trade balance to post a surplus of $19.80 billion in August.
On Monday, futures for copper rallied to a 4-month high during European morning trade on hopes that China and U.S. will stimulate their economies. On the NYMEX, December delivery futures for copper rallied 1.35% to trade at USD3.695 per pound. Earlier in the day, prices grew by 1.5% and hit the session's high of USD3.700.
National Statistics Institute reported on Monday that the change in Italian gross domestic product in the second quarter was equal to a decline of 0.8%, which is more than the initially reported figure of a slighter 0.7% decline. Analysts, however, expected that the revised Italian GDP will remain unchanged.
Research group Sentix reported on Monday that investor sentiment in Eurozone improved this month, after five months of decline, on ECB's plans to rescue the 17-nation currency. The monthly index, which tracks investors sentiment in EMU, grew to -23.2 this month from the August's figure of -30.3, which is more than an expected decline on 0.4 points.
Agricultural commodities jumped on Friday amid broadly weaker greenback and strengthening demand. Meanwhile, market participants remained focused on crop reports releases from the US and weather forecasts in the top-growing regions. Wheat rose for the third consecutive session on signs that demand for US shipments is improving as cheaper Russia's supplies started to fall. Corn inched up after Informa Economics downgraded
Energy commodities apart from natural gas were slightly higher on Friday amid rising hopes for easing program in the US after weak labour market data. However, concerns that US strategic oil reserves may be released to ease pressure from tightening oil supplies weighted down on the energy prices. Crude oil gained almost 1%, drawing strength from recent ECB decision and hops
Base metals surged on Friday, boosted by mounting hopes for the Fed stimulus. Adding to the positive mood of the industrial metals, China's government approved infrastructural projects worth more than USD157 billion in an attempt to revive economic expansion. Aluminum climbed on brighter demand prospects from vehicle market. Speculation that the Fed will loosen its monetary policy also buoyed the light
Precious metals rallied for the second trading day on Friday as weaker-than-expected US job reports fuelled hopes for stimulus measures in the US. Recent ECB decision on unlimited bond-buying program also continued to lend support for the commodity group. Gold soared amid broadly weaker US Dollar and hopes for easing in the US amid weak labour market. Silver followed the yellow metal's
Asian stocks traded mixed as data from the U.S., Japan, and China, which indicated weakening growth in the world's largest economies, increased speculation central banks would add stimulus measures. The MSCI Asia Pacific Index swung between a 0.3% gains and 0.2% losses. Australia's S&P/ASX 200 Index, Hong Kong's Hang Seng Index and South Korea's Kospi Index were little changed.
The Swiss Franc declined to the lowest level in almost 8 months versus the Euro as the ECB's bond-buying plan curtailed demand for safer assets. Switzerland's currency dropped for a fifth consecutive day against the Euro after the SNB's foreign-exchange reserves rose at a slower pace in August, signalling there was less need to intervene and weaken the nation's currency.
The 17-nation currency fell on renewed worries about the Eurozone debt turmoil before Greece's Prime Minister Antonis Samaras meets representatives from the country's creditors. The Euro weakened versus most of the 16 major counterparts as Samaras did not secure agreement from the coalition on 11.5B euros of spending cuts demanded by the lenders. The Euro slid 0.3% to $1.2784.
Japan revised down growth numbers for the Q2, adding to concerns about a downturn in the world's third biggest economy. The government reported that the nation's economy expanded at a 0.7% annual rate during the April-June period, down from the earlier forecast of 1.4%. Depressed domestic demand and weakening exports have undermined Japan's growth.
China's imports unexpectedly declined, while industrial production increased the least since 2010, indicating more stimulus might be required following the nation's government announcement of approved road and subway projects. Inbound shipments fell 2.6% in August from the previous year as exports grew 2.7%, the customs bureau reported today.
The pace of purchasing activity in the Canadian economy slowed in August, but stronger-than-expected, according to Ivey Purchasing Managers Index data released on Friday, September 7. The data showed the seasonally adjusted index dipped to 62.5 in August from 62.8 in the preceding month. Analysts had predicted Canada's Ivey PMI to drop to 58.3.
European stocks edged higher on Friday, on growing expectations for bond buying in the euro zone, but disappointing U.S. nonfarm-payrolls data weighed on investors' minds. The Stoxx Europe 600 Index added 0.22% to 272.26; French CAC 40 Index jumped 0.38% to 3,524.82, while German DAX 30 Index gained 0.7% to 7,218.92.
The 17-nation currency increased versus the Greenback on Friday after the disappointing U.S. Labor Department report on non-farm payrolls. EUR/USD gained 1.12% to trade at 1.2773, up from a day-low of 1.2627. The pair's support was likely to be at 1.2627, while the resistance was prone to be found at 1.2779.
Futures for crude were lower one Friday, trimming earlier gains on disappointing U.S. non-farm payroll data. On the NYMEX, October delivery futures for crude oil declined USD1.46 and reached USD94.08, which was a day-low. Earlier in the day, before the release of the data, it hit USD96.59 per barrel, which was a day-high.
On Friday, treasuries grew as the amount of jobs in the U.S. increased less than it was expected, which fueled bets that Fed will start another round of quantitative easing. The benchmark yield on 10-year bonds decreased by 6 basis points, and reached 1.62% at 8:51 in New York. It hit 1.75% earlier in the day, which was the highest since August 22.
On Friday, futures for natural gas were traded lower, despite the report from the U.S. Energy Information Administration that showed that gas supplies increased less than expected. On the NYMEX, October delivery futures were traded at USD2.769 a MMBtu, which was a 0.91% decline for the U.S. afternoon trade.
British industrial output soared at its fastest pace for 25 years in July, official data showed on Friday. In a report, National Statistics said that industrial output rose by 2.9%, after dropping by 2.4% in the previous month. Moreover, manufacturing output rose by 3.2%, the fastest pace for 10 years, after falling by 2.9% in June. Despite strong rise in July, industrial output erased 0.8%
Canadian unemployment rate remained unchanged at 7.3 per cent, in line with market expectations, Statistics Canada reported on Friday. At the same time, employment rose by 34.3 thousand jobs, after falling 30.4 thousand in the preceding month, beating expectations of 10 thousand.
Oil futures edged higher after unemployment rate in the world's biggest economy fell by 0.2% and Eurozone's policy makers agreed on launching massive bond buying program. Light sweet crude futures for delivery in October traded at $96.16 per barrel, adding 0.67%.