On Monday, August 27, European stocks edged higher, as shares of telecommunications equipment makers and banks rose. The German DAX 30 Index gained 0.9 per cent to 7,031.48; the French CAC 40 Index jumped 0.6 per cent to 3,453.12, while the Spanish IBEX 35 Index soared 0.78 per cent to 7,367.30.
Canadian housing affordability fell in the second quarter, as home prices and mortgage rates rose modestly. The cost of owning a home edged up to 43.4 per cent for a detached bungalow, to 49.4 per cent for a two-story home, while the measure for condos remained unchanged at 28.8 per cent, showed by the RBC Housing Affordability index on Monday, August 27. A reading of
Swedish retail sales advanced more than estimated in July. A report made by Statistics Sweden today indicated consumers are continuing to support economic growth, with retail sales rising 0.3 per cent over the month and by 2.4 per cent over the year. Analysts had predicted a 1.7 per cent increase y/y or 0.2 per cent m/m.
Import prices in Europe's biggest economy rose by 0.7% in July, after a 1.5% drop registered in the previous month. Export prices jumped 1.4% in July, measured on a year-on-year basis, while import prices rose by 1.2% in the same month over a year. The results met analysts' expectations.
U.K. mortgage bonds are at the highest level since 2008 as purchasers brush off the impact of a slowdown in the economy and look for top-rated substitutes for benchmark government notes. Investors demand 95 basis points more than the rate on five-year notes supported by prime U.K. mortgages, offered by the Euro interbank. That's the first time in 4.5 years
European stock futures climbed after Germany's Finance Minister Wolfgang Schaeuble reported Germany and France will create a union to enhance Eurozone's fiscal and monetary union. The Stoxx Europe 600 Index advanced 0.3% to 268.77, after declining 0.2% earlier.
German shares moved higher on Monday on speculation that the Fed will ease its monetary policy. However, dismal Ifo Business Climate Index data capped the upswing of the German equities. Meanwhile, market participants are cautious ahead of annual economic symposium in Jackson Hole due in later in the week. The German DAX Index edged up by 0.26% to trade at
Australian equities retreated on Monday despite hopes that the Fed will start new round of QE soon. Disappointing China's data coupled with lack of actions from the ECB weighted down on Australia's tocks. The S&P/ASX 200 Index lost 0.12% to end Monday's session at 4,221.5. Resources firms were mixed, with Interpid Miners falling by 9.09% and Aquila Resources gaining 11.56%.
Oil surged to a one-week high and gasoline climbed near a four-moth high after Tropical Storm Isaac intensified, weakening output in the Gulf of Mexico, and a fire in the world's 2nd biggest refinery in Venezuela cut part of its output. October-delivery oil advanced $1.57 to $97.72 per barrel in New York, trading at $97.28.
Wall Street turned slightly lower on Friday, as investors are getting more cautious about Eurozone's leaders will ability to handle region's debt crisis. The Dow Jones Industrial Average fell 0.1%, to 13,041.9; the Standard & Poor 500 Index edged 0.2% lower, to 1,399.54, while Nasdaq 100 futures lost 0.3%, to 3,042.89.
The Euro rose to a seven-week high versus the U.S. Dollar as German business confidence dropped less than some analysts estimated, adding signs the economy can survive the sovereign-debt crisis. The Euro gained 0.1% to $1.2529, after surging to $1.2590 on Aug. 23, the most since July 4. It advanced 0.2% to 98.59 Yen, after a rise to 99.18 Yen
German business confidence declined for a fourth consecutive month in August, touching its weakest point since March 2010, Ifo think tank reported on Monday, showing domestic companies are more sensitive to the ravages of the Euro-debt crisis and that Germany may stop being a hedge. Business sentiment index tumbled to 102.3, compared to a downgraded reading of 103.2 in July.
China's blue chips dropped on Monday after the National Bureau of Statistics reported that China's industrial companies profits fell by annualized 5.4% in July. Pushing Chinese stocks lower, HSBC downgraded the country's growth forecast to 8.0% from 8.4% for this year, citing recent weak data releases. The Hang Seng Index slumped 0.41% to close at 19,798.67. Only two in nine
Japanese stocks were slightly higher on Monday, being boosted by hopes that the Fed will embark on asset purchasing program in the nearest future. However, a fall in profits of China's industrial companies in July created notable pressure on the Asian equities. The Nikkei 225 managed to close with a 0.16% gain at 9,085.39. Six out of ten sectors included
The Dow Jones Industrial Average Index advanced by 0.77% to close at 13,157.97 on Friday. The US blue chips were lifted by Ben Bernanke's comments regarding room for further action. Traders interpreted the comment as a sign that the Fed is likely to ease its monetary policy soon. All industries within the index rose. The best-performers were telecommunications and financials.
US equities rose on Friday amid speculation that the Fed will loosen its monetary policy to boost growth. Moreover, an unexpected increase in the US durable goods orders in July lifted US stocks. However, absence of fresh measures from the ECB created pressure on the US shares. The S&P 500 Index gained 0.65% to end the week at 1,411.13. Nine
On Friday, August 24, gold futures retreated from a four-month peak, after soaring 2% on Fed's fresh speculations about another round of quantitative easing. Bullion depreciated by 0.1%, or $1.80, to $1,670.80 per ounce. Other precious metals were mixed, with September silver adding 0.3%, to $30.54 per ounce. In the meanwhile, copper for September delivery lost 0.6%, to $3.48 per pound, and platinum and palladium
Rural commodities except for coffee slid on Friday on hopes that rain in the US will improve harvest conditions. Favorable weather in Brazil and India also weighted down on the farm commodities. Wheat tumbled for the third consecutive session on Friday on speculation that rain will improve soil conditions in the US Great Plaints, boosting prospects for winter crops. Corn was the
Energy commodities plunged on Friday on speculation that the International Energy Agency will release oil reserves as soon as in September in order not to dampen the results of Iranian oil sanctions. However, supply concerns from the Gulf of Mexico restricted the downswing of the commodity group. Crude oil retreated after IEA announced that US strategic oil reserves may be released
Industrial metals were mixed on Friday on speculation that US, China and Eurozone will embark on growth-stimulus measures. An unexpected surge in the US durable goods orders last month also added to gains of the base metals. However, solid US Dollar capped the upswing of the commodity group. Aluminum climbed as positive data flow from the US continued to lend support
Precious metals were mixed on Friday amid persistent hopes for easing in the Eurozone, US and China. Stronger greenback coupled with positive US data releases weighted down on the commodity group. Meanwhile, market participants were cautious ahead of FOMC member, Sandra Pianalto, speech due on Monday. Gold was unchanged as hopes for QE3 in the US were weakened by an unexpected
Asian stocks dropped as Chinese industrial companies' profits declined in July. The MSCI Asia Pacific Index fell 0.1% to 120.22. Hong Kong's Hang Seng Index declined 0.2% and Taiwan's Taiex Index fell 0.1%. Australia's S&P/ASX 200 Index gained 0.2% and Japan's Nikkei 225 Stock Average added 0.5%. South Korea's Kospi Index increased 0.2%.
German 10-year bond yields dropped 0.14 percentage point, the most since the start of July, as concerns over Eurozone growth has weakened and the sovereign debt is escalating increased demand for safer assets. Benchmark yields declined to a 3-week low after PMI indicated the Euro area's service sector contracted in August and German manufacturing declined for a sixth consecutive month.
The Aussie Dollar touched one-month low, extending a 2-week decline, as concern the global economic growth is fading curtailed demand for riskier assets. The Australian Dollar weakened against most of 16 major peers after data showed Chinese industrial companies' profits declined 5.4% in July from the previous year. The Aussie declined 0.1% to $1.0394, after trading at $1.0372, the lowest