The BOJ refused to loose its monetary policy and decided to keep the 45 trillion yen asset-purchase fund unchanged 25 trillion yen lending facility unchanged. Japan's central bank kept its interest rate between 0 and 0.1% and monthly bond purchases at 1.8 trillion Yen.
The shared currency weakened versus the most-traded peers as German industrial production decreased, U.K. growth forecasts lowered increased concerns that the region's debt crisis is escalating. The Euro declined 0.3% to $1.2365, after climbing to $1.2444 on 6 August, the strongest since July. The common currency lost 0.5% to 96.67 Yen.
The Japanese Yen rebounded after the BOJ refused to add stimulus at its policy meeting. The Yen gained 0.1% to 78.35 per U.S. Dollar after losing 0.2% earlier, while climbing from 96.97 to 96.99 per Euro. The BOJ decided to keep the asset-purchase fund at $573 billion (45 trillion Yen) and lending facility at 25 trillion Yen.
The Swedish Krona is expected to reach a record level versus the common currency. The Krona will strengthen to 8.0480 per Euro, as Sweden is one of 12 countries with AAA rating ranked by 3 biggest credit-rating agencies. Its currency has been strengthening after becoming a haven from the Eurozone's debt turmoil. The Krona climbed 0.8% to 8.2732 per Euro
The Australian Dollar strengthened versus the New Zealand Dollar for a third day as data indicated Australia's payrolls picked up in July, whereas unemployment increased in New Zealand. The Aussie gained 0.4% to NZ$1.3021, after touching NZ$1.3028 earlier, the highest level since 26 July. Australia's Dollar climbed to $1.0613, the strongest level since 20 March, while the Kiwi declined 0.2%
The shared currency fell on Wednesday, as BoE cut its growth forecast, and German exports and imports declined. The Euro erased 0.3 per cent to $1.2367, after rising to $1.2444 on Monday. The single currency depreciated against the yen as well, by losing 0.5 per cent to 96.95 per yen. Meanwhile, the Swedish Krona advanced versus the Euro, and reached twelve-year high at 8.2546.
On Wednesday, August 8, crude oil rocketed to a three-month high, as crude oil stockpiles dropped more-than-expected. Crude oil for September settlement soared 05.51 per cent to $94.15 per barrel during today's New York trading session. At the same time, Brent oil with September contract jumped 0.71 per cent to $112.80 per barrel. Inventories fell by 3.7 million barrels during the previous week.
On Wednesday, August 8, gold futures edged higher on better-than-expected U.S. productivity data. Gold for December settlement jumped 0.2%, to $1,616.80 during today's New York trading session. Among other metals, copper with September contract dropped 0.5 per cent, to $3.42 per pound, September silver erased 0.1 per cent, to $28.04 per ounce, while platinum and palladium also declined, by 0.3 per cent both.
As reported by the Labor Department, the world's biggest economy's productivity rebounded in the April-to-June period and added 1.6 per cent, after declining by 0.5 per cent in the first quarter of 2012. Despite the fact that the number of hours employees worked was little changed, the total amount of produced goods and services jumped 2%. Moreover, hourly wages added 3.3 per cent, while productivity in
The Bank of England cut the U.K's growth forecast to zero on Wednesday, from the previous estimate of 0.8 per cent. The double-dip recession intensified in the second quarter, leaving more space for possible interest rate cut. At the same time, the report showed no sign of the inflation growth for 2012, from the previous forecast of 2%. Currently, interest rates are at the record
German shares halted the rally on Wednesday on dismal exports data. Germany's exports dropped by 1.5% in June on a monthly basis. The downgrade of Greece's outlook also pushed stocks lower. However, hopes that the ECB will loosen its monetary policy to avoid recession restricted the downswing. German DAX 30 Index retreated by 0.75% to trade at 6,919.15 at the
UK stocks slid on Wednesday after Standard & Poor's cut Greece outlook from stable to negative. Adding pressure on the equities, the Bank of England reduced its UK growth forecast close to zero from 0.8%, citing double dip recession and zero inflation rate. FTSE 100 Index lost 0.63% to trade at 5,811.21. Eight out of ten industries included in the
Agricultural commodities tumbled on Tuesday on more favorable weather conditions in the US, Brazil and India. However, hopes that the ECB and Fed will loosen their monetary policies restricted the downswing. Wheat slid 0.4% despite supply cuts from Russia. Russia's harvest is expected to be less than in 2010 when the country faced the worst drought in more than 50 years
Hong Kong shares were flat on Wednesday, balancing between Greece downgrade and expectations for easing measures from the ECB and Fed. On Tuesday, Standard & Poor's lowered Greece's outlook from stable to negative. Market participants were also cautious ahead of key China's data due on Thursday. Hang Seng Index closed 0.04% lower at 20,065.52. Resources stocks provided strong support for
Nikkei 225 prolonged its rally on Wednesday on building expectations that central banks of the Eurozone and US will launch additional easing measures to boost economy. Fading impact of weak corporate earnings in Q2 also provided support for Japanese equities. Nikkei 225 surged by 0.88% to trade at 8,881.16. On the upside were basic materials and industrials. Nippon Kayaku, Mitsui
Energy commodities soared on Tuesday amid improving demand prospects and potential supply disruptions. Expected easing measures from the ECB and PBOC are likely to boost demand while hurricane may impact oil production in the Gulf of Mexico. Crude oil jumped 1.59%, attaining 12-week high as output from the North Sea continued to fall. Persistent tensions in the Middle East also lent
US blue chips edged higher on Tuesday on expectations that the ECB and Fed will ease their monetary policies. Eric Rosengren, Boston Fed president, said that the Fed has to embark on fresh asset purchasing program to facilitate economic recovery. Dow Jones Industrial Average Index rose by 0.39% to end Tuesday's session at 13,168.60. The largest gains posted industrial and
Industrial metals apart from nickel surged on Tuesday despite weak German factory orders data. Germany's factory orders dropped 1.7% in June while analysts expected a 0.8% decline. However, easing speculation supported base metals' pack. Aluminum was the top-gainer on improved risk-sentiment after the ECB moved closer to fresh bond-purchasing program. Copper balanced between slight decline in inventories and a fall in
S&P 500 continued its upward trend on Tuesday as better than expected quarterly results buoyed US equities. Traders' sentiment was also boosted by easing expectations for the ECB. S&P 500 gained 0.51% to trade at 1,401.35.Oil and gas as well as basic materials were the top-gainers among the industries included in the index. Among oil and gas companies, Alpha Natural
Precious metals advanced on Tuesday despite broadly stronger US Dollar. Speculation that the ECB and Fed are planning to launch easing measures boosted the commodity group. Meanwhile, physical demand from India is expected to remain weak ahead of the festival season. Gold added 0.1% as the ECB is likely to take steps to reduce borrowing costs of Spain and Italy. Sending
Treasuries gained after a three-day drop as S&P revised Greece's debt rating outlook to negative, boosting demand for U.S. bonds as a hedge from Europe's debt crisis. The price of the 1.75% security due in May 2022 increased to 101.25. Benchmark 10-year yields slipped 0.02 percentage points to 1.61%. Yields rose from an all-time low of 1.38%, posted on July
On Tuesday, August 7, the greenback remained lower versus the Euro and other major currencies amid hopes that the ECB will soon make decisive actions to stem the debt crisis in the Eurozone. In order to lower Italian and Spanish borrowing costs, the ECB may soon resume bond-buying program. The shared currency strengthened against the greenback during today's New York trading session, with EUR/USD adding
Gold futures fluctuated on Tuesday, as investors are getting more cautious about actions by the ECB to curb Eurozone's debt crisis. Gold futures with the October contract erased 0.02 per cent to $1,612.75 per troy ounce during today's New York trading session. Meanwhile, other precious metals advanced, with September silver adding 0.54% and copper for September settlement rising by 1.50%.
German factory orders fall more-than-expected in June, as the number of goods, sold to Eurozone's countries tumbled. Orders dropped 1.7 per cent in June, after rising 0.7 in May. Report proves that Eurozone's largest economy is decelerating, hit by global economic slowdown. The demand for German goods eroded, with orders from the Eurozone erasing 4.9 per cent, while domestic orders declined by 2.1 per cent.