Asian stocks showed positive performance as the MSCI Asia Pacific Index was up by 1% to 120.47 in the middle of Tokyo trading session. Today's trading extended gain of last four days and that was the longest winning period since July. Markets moved up after the ECB positive decision on unlimited bond-buying plan and continue to gain on speculation that China's and U.S. policy makers
French annual inflation posted a more-then-estimated increase in August, the Insee reported on Wednesday. The CPI surged 0.7% on month, compared to a 0.4% decline in July and exceeding forecasts of a 0.6% rise. On yearly basis, CPI advanced 2.1% in August after 1.9% in the previous month, rise was mostly due to a climb in energy prices.
Hong Kong stocks opened significantly higher on Wednesday, getting on path to 5th rally day, as Chinese premier announced the country will face its expansion target for 2012, and as stronger closing on Wall Street supported sentiment. The Hang Seng Index surged 1% to 20,061.57 and the Hang Seng China Enterprises Index rallied 1.4% to 9,507.04.
On Tuesday, September 11, Moody's Investors Service warned that it may cut the U.S's AAA rating, if budget negotiations for 2013 do not result in policy measures, which will reduce the nation's debt. According to the Congressional Budget Office, the budget deficit is going to reach $1.1 trillion in 2012, down from $1.3 trillion in the preceding year.
German stocks moved higher on Tuesday despite China's growth cuts and anticipation of the German Constitutional Court decision on whether to leave the ESM. Alarming Spain's PM announcement on extensive intervention of the ECB and EU in its budget deficit cuts capped the upswing of the German stock index. At the same time, hopes for easing in the US provided
UK shares extended previous slump on Tuesday amid lingering concerns over spreading debt crisis in the Eurozone. Spanish PM announced that he will not allow the EU and ECB to decide how the county will narrow its budget deficit. Weighting down on risk sentiment, the German Constitutional Court will decide on whether to halt its participation in the ESM on
Farm commodities were mixed, with sugar and coffee rebounding and grains dropping. Broadly stronger US Dollar coupled with better weather conditions in the US created heavy pressure on agricultural commodities. Wheat futures declined despite crop forecasts' cuts. Rabobank lowered Australian wheat output to 22.79 million MT in 2012-2013, citing unfavorable weather conditions in July. Corn was the worst-performer after USDA reported that
Hong Kong stocks increased slightly on Tuesday despite weaker-than-expected auto sales last month. Adding pressure on the China's stocks, Macquarie lowered China's growth forecast for 2012 to 7.7% from 8.1%. At the same time, fixed-asset stimulus approved by the government continued to lend support for China's shares. The Hang Seng Index gained 0.16% to close at 19,857.88. Six out of
Energy commodities advanced on Monday amid continuous hopes for stimulus in the US and China. Sending the commodity group lower, Saudi Arabia's oil minister announced that high oil prices were a global concern and were not justified. Crude oil ended the day with a mild gain, balancing between US and China's stimulus speculation and reports that high oil prices are
The Dow Jones Industrial Average Index inched down by 0.39% to close at 13,254.29 on Monday. High risk aversion ahead of the German Constitutional Court ruling coupled with weak state of the US labour market weighted down on the US blue chips index. Only two in nine economic sectors included in the index eased up. The top-gainer was health care
Japanese shares closed lower on Tuesday as traders started to decrease their exposure to riskier assets head of the German Constitutional Court decision regarding the ESM due on Wednesday. Weakness of US equity markets as well as anticipation of the Fed meeting on Thursday pushed Japan's shares lower. Only one sector within the index gained. Consumer services added 0.14%. At
Industrial metals prolonged their rally on Monday on escalated hopes for easing measures in the US and China. Meanwhile, market participants anticipated an outcome of the German Constitutional Court hearing regarding the ESM existence. Aluminum climbed on hopes that recent negative headlines from the US and China will force the central banks to implement stimulus measures. Copper rallied to three-month high on
US equities dropped on Monday amid increased cautiousness in the market ahead of the German Constitutional Court decision on whether to suspend the ESM. Recent pessimistic data releases from the US and China also added pressure on the US stocks. Even speculation that the Fed and POBC will loosen their monetary policies failed to buoy US shares. The S&P 500
Precious metals were mixed on Monday, with platinum and palladium extending previous gains and gold and silver retreating. Mounting hopes that the Fed will ease its monetary policy failed to lift gold and silver. Meanwhile, market players were cautious ahead of the German Constitutional Court decision on whether to suspend the ESM. Gold retreated from recent highs despite speculation that US
Natural gas futures soared 5% and reached a four-week high on Tuesday, as traders looked for the U.S. government's report on natural gas stockpiles scheduled for later this week. October natural gas rocketed 4.5% to$2.939 per million British thermal units.
Wall Street turned green on Tuesday, as Germany's highest court announced it won't delay its ruling on the Eurozone's permanent bailout fund. The Dow Jones Industrial Average rose 0.3%, to 13,280; the Standard & Poor 500 Index gained 0.41%, to 1,432.30, while Nasdaq-100 futures jumped 0.3%, to 2,792.75.
The U.S. trade deficit widened a slight 0.2%, as both exports and imports fell. Nation's trade deficit widened to a seasonally adjusted $42.0 billion in July from $41.9 billion in prior month, the U.S. Bureau of Economic Analysis said on Tuesday. Overall U.S. imports fell 0.8% to $225.3 billion, down from $227.1 billion, while exports declined by 1% to $183.3 billion from $185.2 billion in
On Tuesday, prices for treasuries declined, pushing yields up, as investor eyed the upcoming auction of 3-year government debt in the U.S, which may provide some clue on the discount potential of another round of monetary stimulus. Yields on 10-year notes gained 2 basis rose, and reached 1.68%. While yields on 3-year bonds increased by 0.01%, reaching 0.33%.
OECD area's unemployment rate rose slightly in July, following a cut of a modest fall in the preceding month. The jobless rate surged to 8% from 7.9% in June. On yearly basis, the rate was stable. July data shows 47.9 million unemployed people in the OECD, with Spain posting a rate of 25.1%, Eurozone 11.3%, U.S. 8.3% and Japan 4.3%.
Germany's statistics office said that wholesale price index in Europe's biggest economy picked up pace in August. Nation's Wholesale Price Index rose 1.1% month-on-month, up from 0.3% in July, and added 3.1% year-on-year, as compared to a 2% climb in the previous month. In the meanwhile, forecasts were around 0.3% increase on monthly basis and 2.2% on yearly basis.
As reported by the Ministry of Finance, Japanese Business Index Survey of large manufacturing conditions, which measures business sentiment in manufacturing, rose to a seasonally adjusted annual rate of 2.5 in the third quarter, up from -5.7 in the prior quarter. Analysts had predicted Japan's BSI manufacturing index to fell to -6.1. A reading above 0.0 indicates optimism, below indicates pessimism.
On Tuesday, Spanish 10-year government bonds declined for the second consecutive day amid speculations that Spain will not seek for bailout. The yield on 10-year government debt in Spain added 3 basis points and reached 5.73%. Yesterday, the yield on bonds due January 2022 increased by 7 basis points. The Spanish 2-year note yield gained nine basis points, reaching 2.98%.
On Tuesday, the Euro grew versus the U.S. Dollar to almost 4-moth high on upcoming German court decisions about the country's role in European bailout plan and possible round of monetary stimulus in the U.S. The Euro gained 0.2% and reached USD1.2779 at 7:32 New York time. Earlier in the day, it hit USD1.2819, which was an almost 4-month high.
Fitch Ratings on Tuesday confirmed New Zealand's major ratings despite significant external indebtedness and worldwide economic slowdown. The long-term foreign currency Issuer Default Ratings was affirmed at "AA", while local currency rating was at "AA+", with stable outlook.