German industrial output fell as consumption and demand weakened, adding to concerns that the country was hit by the global economic slowdown. The Federal Statistical Office (Destatis) said on Monday that nation's industrial production contracted by 0.5% after jumping 1.2% in July. Analysts had predicted German industrial production to decline by -0.8% in August.
German shares started the week on the negative note amid increased cautiousness in the market ahead of the EU finance ministers' meeting due later in the day. Disappointing news from Asia also weighted down on German stocks. The World Bank downgraded its growth forecast for China, citing weak exports and slowing investment growth. However, smaller than expected fall in the
UK equities slumped on Monday amid persistent concerns over debt pressure in Spain and Greece ahead of the key meeting between European finance ministers due later in the day. Adding to the risk-aversion among investors, the Word Bank lowered its growth forecast for China for this year. The FTSE 100 index dropped 0.63% and is currently trading at 5,834.11. All
Hong Kong shares retreated on Monday on escalated worries that the national economy is slowing down. The World Bank cut its growth forecast for China, citing soft exports and weak growth in investments. The bank predicts the country's economy to grow by 7.7% in 2012 compared to a previous forecast of a 8.2% expansion. The Hang Seng Index lost 0.89%
Australian stocks moved lower on Monday despite mounting hopes that the Reserve Bank of Australia will lower its benchmark interest rate amid speculation that unemployment rate rose last month. The Aussie weakened to three-month low on Monday, thus lifting exporters. Market participants also were cautious ahead of the EU finance ministers' meeting due later in the day. The S&P/ASX 200
US blue chips advanced on Friday as US jobless rate unexpectedly dropped under 8% last month. However, mixed data from the single currency union capped the upswing of the US blue chips index. The Dow Jones Industrial Average added 0.26% to end the week at 13,610.15. Six out of nine sectors included in the index gained. Basic materials and consumer
US stocks ended last week on the negative note despite encouraging data from the national labour market. US unemployment rate tumbled to 7.8% last month, beating expectations of a rise to 8.1%. The S&P 500 Index inched down 0.03% to close at 1,460.93. Six out of ten sectors within the index rose. The top-gainers were industrials and basic materials. Shares
On Monday, the U.S. Dollar edged lower versus the Japanese Yen, as traders were locking in profits after U.S. employment rally. USD/JPY hit a session high of 78.25, and consolidated at 78.33, which was a 0.42% fall for the European morning trading session. The pair's support was likely to be at 78.12, while the resistance was prone to be 78.76.
Japan's Honda Motor, Nissan Motor and Toyota Motor plan to cut their production in China by half, as territorial disputes between Asia's trading partners decrease sales of Japan's cars in the world's biggest car market. Toyota's China Sales declined 40% in September from the previous year to 50 000 cars.
On Monday, Sentix reported that its investors confidence index decreased more than expected. Sentix Eurozone investor confidence index fell to minus 22.2 on a seasonally adjusted basis in September, compared to the reading of minus 23.3 in August. Analysts, however, expected that investor confidence would decline at a more modest pace, with the index equal to minus 20.8."There were plenty of reasons for this: the
Precious metals slumped on Friday amid positive data releases from the US labour market. US unemployment rate dropped to 7.8% last month while experts predicted the jobless rate to rise to 8.2%. At the same time, broadly weaker greenback limited losses of the commodity group. Gold started Asian session on the positive note on Friday; however, unexpected rise in the US
Swiss Federal Statistical Office reported on Monday that consumer prices in Switzerland were growing in September. Consumer price index added 0.3% last month, compared to no change in August. The data is in line with expectations, since analysts also expected that Swiss prices would grow by 0.3%.Swiss consumer prices in September declined 0.4% year-on-year, following a 0.5% decrease in August. Economists projected a 0.6%
Farm commodities dropped on Friday despite softer US Dollar. Weakening demand for US supplies coupled with favorable weather forecasts in the country created heavy selling pressure on grains. Meanwhile, renewed oversupply concerns sent sugar and coffee futures lower. Wheat prolonged its slump on worries that demand for US supplies is weakening due to availability of cheaper grains from Russia. Corn followed
The Australian Dollar touched a three-month low before a data this week, which may show jobless rate increased, adding to speculation the Reserve Bank of Australia may cut its interest rate next month. The Aussie Dollar declined 0.2% to $1.0164 after earlier reaching $1.0150, the weakest level since July 13. Australia's currency fell 0.4% to 79.81 Yen.
Energy futures sank on Friday despite softer US Dollar and supply-side support. Mounting uncertainty over eurozone's debt crisis pushed the commodity group lower. However, positive job market figures from the US limited losses of energy futures. Crude oil was the worst-performer on speculation that global demand is likely to fall amid economic slowdown in Asia and eurozone. Meanwhile, investors remained cautious
The World Bank revised its growth forecast for the East Asia and Pacific region downward on Monday and indicated that China's economic slowdown was likely to worsen and last longer than expected. However, it is anticipated that China will face a soft landing with a 7.7% growth outlook for this year and 8.1% for next year.
Base metals apart from zinc moved lower on Friday amid worries that China's economy continues to slow down. Sending industrial metals lower, German factory order plunged 1.3% in August, confronting forecasts of a 0.5% decline. Aluminum retreated ahead of the key industrial data from Germany due on Monday. Even slight decline in LME inventories failed to push the light metal
Asian stocks excluding Japan fell before European finance ministers meeting today. The MSCI Asia Pacific Excluding Japan Index fell 0.9% to 440.82, set for the first decline in 3 days. Hong Kong's Hang Seng Index lost 0.6% and China's Shanghai Composite Index slid 0.8%. South Korea's Kospi Index slipped 0.8% and Taiwan's Taiex Index lost 0.9%. Australia's S&P/ASX 200 Index
The 17-nation currency dropped versus all the major peers before a report, which may show that industrial production in Germany as well as its exports fell, increasing concerns the Eurozone's debt crisis is undermining growth. The Euro fell 0.4% to $1.2994 and lost 0.5% to 102.02 Yen after touching 102.80 on October 5, the highest level since September 19.
On Monday, the Cable declined to a 3-day low versus the U.S. counterpart, as investors eyed an upcoming meeting of finance ministers in Luxemburg. GBP/USD hit a session low of 1.6072, and consolidated at 1.6078, which was a 0.33% decrease. The support was likely to be at 1.5992, while the resistance at 1.6175.
On Monday, copper prices declined by more than 1 percent, trimming earlier gains, on worries that the U.S. economy is still depressed, and on upcoming Chinese data. On the London Metal Exchange, three-month copper was traded at $8,185.75 per metric tonne at 08:00 a.m. in London, which was a 1.3 percent fall for the session.
On Monday, German 10-year bonds were traded higher, decreasing yields, as investors eyed an upcoming meeting of European finance ministers in Luxembourg. 10-year notes yield decreased by 4 basis points, reached 1.48% by 9:41 a.m. in London. Earlier on October 5, it hit 1.53%, which was the highest since September 28.
On Monday, oil prices declined in Asian trading hours, as investors eyed presidential elections in Venezuela. On the NYMEX, November delivery futures for light sweet crude were traded at $89.57 per barrel, which was a 0.34% fall for the session. Earlier, it hit $89.69, which was a session high, and a session low of $89.54 per barrel.
On Monday, gold prices held steady during Asian trading session, as traders speculated that optimistic U.S. employment numbers did not mean improvements in the U.S. economy. On the NYMEX, December delivery futures for gold were traded at $1,741.15 per troy ounce, which was a 0.02% increase for the session.