The Dow Jones Industrial Index edged higher by 0.09% to close at 13,564.64 on news that the US current account deficit narrowed more than expected in Q2. However, weak manufacturing state in the US and lingering concerns over spreading debt crisis in Eurozone weighted down on the US blue chips. A half of the business sectors included in the index
US equities were slightly lower on Tuesday despite positive news from the US. US current account deficit narrowed more than expected in Q2. At the same time, uncertainty over whether Spain will apply for bailout created heavy pressure on the US stock markets. The S&P 500 Index inched down by 0.13% to close at 1,459.32. Five out of ten sectors
Gasoline stockpiles in the U.S. declined surprisingly in the third quarter of 2012, the US Energy Information Administration reported on Wednesday. Gasoline Inventories declined to a seasonally adjusted annual rate of -1.407M, down from -1.177M in the prior quarter. Experts had predicted U.S. Gasoline Inventories to jump 1.229M in the last quarter.
On Wednesday, September 19, treasuries climbed for the third day in a row, after Jyrki Katainen, Finnish Prime Minister, said that investors continue to worry that Eurozone can breakup, which supported the safe haven demand. The yields on benchmark 10-year notes declined 0.02 percentage point, or 2 basis points, reaching 1.79% at 7:35 a.m. New York time.
The Australian Dollar advanced against the Yen, following the BOJ's announcement that it will expand its stimulus measures. The Australian Dollar rose 0.4% to trade at 82.73 in terms of the Yen at 5:06 p.m. Sydney time. Elsewhere, the yield on benchmark 10-year Australian bond advanced 2 basis points and reached 3.35%.
On Wednesday, prices for gold reached a six-and-a-half-month high, following the BOJ's announcement about its fresh monetary stimulus. Spot quotes for gold did not change significantly and were traded at USD1,772.49 per ounce at 10:16 a.m. London time, while December delivery futures gained USD4.00 per ounce to trade at USD1,775.20.
On Wednesday, copper prices climbed to the level which was the highest since May 1 on Japan's central bank announcement of fresh round of monetary stimulus. On the NYMEX, December delivery futures for copper were traded at $3.812 per pound, which was a 0.65% for the European morning trading session. Earlier, copper hit $3.838, which was the highest since May 1.
On Wednesday, European stocks rose, halting a two-day fall, on BOJ's announcement that it will expand its asset-purchasing program. The Stoxx 600 climbed 0.3% to 274.71 at 1:52 p.m. London time, which was a 17% gain during the rally started on June 4. Porsche SE jumped 7.7%, which was the biggest gain in the Stoxx Europe 600 Index.
On Wednesday, the greenback was broadly higher versus its major counterparts, as Spanish financial worries supported the demand for safe haven. EUR/USD went down by 0.38%, reaching the level or 1.2996. GBP/USD fell to 1.6202, which was a 0.26% loss. USD/CHF climbed 0.18%, being traded at 0.9302. USD/CAD inched up 0.07% and was traded at 0.9748.
On Wednesday, prices for oil hit a 6-week low on Spanish financial worries, trimming earlier gains on Japan's central bank monetary stimulus. November delivery futures for Brent eased $0.80 to trade at $111.23 per barrel at 10:50 a.m. London time. Contracts for October delivery of U.S. crude lost $0.41 and were traded at $94.88 per barrel.
U.S. housing starts rose less than expected in August, while applications for home mortgages declined, adding to concerns over the U.S. property market, the U.S. Census Bureau said on Wednesday. Construction on new U.S. homes rose 2.3% to 750,000, up from 733,000 in the prior month, below expectations for a 2.85% increase to 765,000. Building permits issued in July declined to 0.803 million units, from
Hopes the Bank of England will announce new economic stimulus plan above the existing program with a total value of 375 billion pounds ($610 billion) have been raised after minutes of the monetary policy committee's meeting on Wednesday. The BoE also expects the inflation rate to decelerate less rapidly, as oil and food prices rose.
Economic expectations in Switzerland deteriorated in September, a survey by the European Economic Research (ZEW) and Credit Suisse showed Wednesday. The ZEW index that measures expectations of futures economic performance fell by 1.6 points to -34.9, down from -33.3 in the prior month. A reading above 0.0 indicates optimism, while a reading below indicates pessimism.
The outlook for the Chinese real estate development sector stayed negative despite some advance in the last six month amid improving liquidity and an increase in sales volumes, S&P said on Wednesday. Property prices in China rose in 35 out of 70 cities in August, an increase was due to interest rate cuts by the People's Bank of China.
Japan's leading economic indicator tumbled for a fourth straight month in July, Cabinet Office said on Wednesday. The leading index dropped to 93 from 94.1 in June. Both July's and June's readings were upwardly revised from 92.8 and 94.1 respectively. Meanwhile, the lagging index slipped to 86.7 in July from 86.8 in the preceding month.
Rural commodities apart from coffee plunged on Tuesday amid stronger US Dollar and favorable weather conditions in the world top growing regions. Moreover, recent rally in prices encouraged producers to sell more supplies, sending farm commodities lower. Wheat sank as planting of the US winter-wheat crop accelerated due to dry weather. Adding pressure on the commodity, Australia is likely to witness
On Wednesday, the BOJ eased monetary policy through supporting its asset buying program, as weakening exports and outcome from a territorial conflict with China showed that prospects of a short-term recovery in Japan's economy faded. The Yen dropped to a month low, bonds advanced and Nikkei stock average reached a four-month high amid the decision of a bigger-than-forecast stimulus.
Energy commodities tumbled on Tuesday on global growth fears and weakening manufacturing activity in the US. The New York manufacturing activity dropped unexpectedly this month, attaining three-year low. Moreover, solid greenback added pressure on the commodity group. Crude oil plunged as uncertainty over Spain's bailout and contracting manufacturing activity in the US pressurized the commodity price. Brent oil retreated on tensions between
Foreign Direct Investment in China tumbled in August mainly because of lower inflows from crisis-trapped European Union. FDI dropped 1.4% on year in August to $8.3 billion, the Ministry of Commerce said on Tuesday. During first 9 month of the year, China attracted $75 billion in FDI, down by 3.4%. Meanwhile, outbound investment climbed around 39% to $47.7 billion.
Base metals were mixed on Tuesday amid broadly stronger US Dollar and profit-taking after US stimulus-fueled rally. Meanwhile, weak state of the US manufacturing activity continued to push industrial metals lower. Aluminum prolonged its slump as financial instability in Eurozone continued to weight on market sentiment. Copper swung from losses to gains on positive US current account data. However, softening manufacturing activity
Precious metals were mixed on Tuesday, with gold and silver rebounding and palladium and platinum tumbling. Strong US Dollar, profit taking and fading boost from the US stimulus measures all created heavy selling pressure on the commodity group. Gold advanced despite appreciation in US Dollar amid upbeat current account data. Meanwhile, traders locked in profits after previous rally of the yellow
Australia's leading economic indicator extended advance in July, while its rate of rise stayed lower than its long-term trend signing that the economy is unlikely to outperform trend in the foreseen future. The annualized increase of the leading index was 2.2%, lower than the long-term trend of 2.7%, Westpac reported on Wednesday. Meanwhile, annualized expansion rate of coincident index was
New Zealand' current account posted a shortfall of NZ$1.797 billion in Q2 of the year, Statistics New Zealand reported on Wednesday. Economists had forecast a deficit of NZ$1.620 billion, while the upwardly revised deficit for the first quarter was at NZ$1.072. Significant expansion of the shortfall was due to increase in earnings of foreign-owned banks in New Zealand.
German shares are trading in the negative territory on Tuesday despite positive news from Eurozone. On Tuesday, Spain sold the targeted amount of debt with lower borrowing costs. Moreover, German ZEW economic sentiment index advanced more-than-expected in August. The German DAX Index slumped 0.70% to trade at 7,351.78. Only three sectors included in the index rose. The top-performers were consumer