The Chinese Caixin manufacturing PMI showed a 0.3 point drop from the month before at 49.4 points, continuing the recessive trend that has pushed the measure in negative territory for the 14th consecutive month. The indicator was 0.4 points short of investors' expectations and it is thought that the economy is still in need for a solid recovery foundation.
Asian stocks surged with Australia leading the trend on Tuesday, following a rate cut by the RBA. While Japanese markets closed for Constitution day, the Shanghai Composite index spiked by 1.4% to show 2 979.75 points at 5:00 GMT, while the Hang Seng index fell 1.1% and traded at 20 828.69 points at 5:00 GMT.
The Australian Dollar dropped 1.3% after the RBA announced cutting rates to a record low 1.75%. The Aussie hovered around the $0.7700 mark before the announcement, and plunged to $0.7563 right after the news came out at 4:30 GMT. The RBA explains the rate cut with fears of a stronger Australian Dollar that can potentially harm economic adjustment.
Building approvals in Australia exceeded expectations, as the data release on Tuesday showed a 3.7% jump, topping the 3.1% gain in February. This is an unexpected positive development, as investors had forecast a 3% drop, however, the measure still did not reach last year's levels, remaining 6.5% lower.
In the United States, Markit's Purchasing Managers' Index for the manufacturing sector dropped to a score of 50.8 in the fourth month of the year, following March's 51.5 reading and falling behind analysts' forecast of 51.0 points. That's the worst result since September 2009.
According to Markit's official data released on Monday, the Eurozone's Manufacturing PMI grew more-than-expected in the fourth month of the year. The Eurozone's PMI was revised upward to 51.7 from the originally reported 51.5 points, following the previous month's 51.6 reading.
The German PMI showed expansion in the industrial sector as it surged to 51.8 points, displaying a positive trend from the previous month when the measure showed 50.7 points. Although the indicator was 0.1 points short to meet investors' expectations, the sector shows a consistent upward trend, surpassing the 50 point mark for the 16th consecutive month.
The Italian PMI reached this year's high at 53.9 points in comparison to the expectation of 53 points, continuing to top the 50 point mark and show an ongoing positive trend in the sector. The indicator experienced one-year lows in the first months of 2016, after encountering the highest level of 55.6 points over a one-year period in December.
The data release on the Spanish PMI showed a positive trend in the manufacturing sector as the measure grew by 0.1 points since the month before and showed 53.5 points which exceed expectations of 53 points. A number higher than 50 shows expansion, and operating conditions in the industrial sector of Spain have been advancing for 29 months in a
Bullion traded 0.4% higher on Monday, reaching $1,295.10 as a reaction to the Chinese manufacturing data release and the lowering chances of a rate hike. Gold is believed to be targeting the $1,300 mark which is the highest since January 2015, after expanding its gains for the second consecutive week.
Asian markets closed low on Monday with Japanese stocks leading the way, as the Yen gained strength following lack of monetary policy expansion by the BoJ. While Labour Day kept the Chinese and Hong Kong markets closed, the Nikkei index finished with a 3.1% slip at 16,147.38 points and the Topix was down 3.0% to show 1,299.96 points at a
An official data release on Friday showed the lowest unemployment rate in Italy since 2012, falling as low as 11.4% in March, in recovery from the 11.6% mark that it reached in February. The level is still significantly higher than the pre-crisis rate, however, it shows improvement when compared with the staggering 13.3% a year ago.
Despite the 11 year highest daily exchange rate fix by the PBoC, the Chinese Yuan fell 0.06% onshore to trade at 6.4795 against the US Dollar after opening, staying in the bounds of the daily guidance restriction of 2%. The 0.6% increase in the daily fixing did not, however, hinder the Hong-Kong traded equivalent to meet the 6.4837 Yuan mark, which
The Hang Seng index traded lower on Friday, reflecting the trend of Hong Kong markets. While the Japanese market was closed for a public holiday, other Asian indices were mixed. The Shanghai Composite Index traded 0.1% lower at 2 945.34 points at 6:00 GMT and the Hang Seng index dropped by 1.2% and showed 21 122.75 points at 6:00 GMT,
The Euro traded expensively against the Dollar, hovering just beneath the $1.14 mark, as investors await US macro data announcement later on Friday. Releases on personal spending, income as well as the employment cost and PCE indices may later give a grasp of the potential inflation levels. The consumer confidence gauge is expected to slightly pick up, while it is
Bullion futures continued their rise on Friday as the Dollar lost its value, following the Fed's verdict to leave interest rates unchanged at 0.5%. Futures surged 0.9% to show $1,277.70 per ounce at 4:30 GMT while the Dollar index dropped by 0.4%. The spot price for bullion is on track to a 2.7% weekly gain and has jumped 3.4% for
The Personal Consumption Expenditure Price Index grew 0.3% during the first three months, following a 0.3% increase registered in the Q4 2015 and surpassing economists' 0.2% forecast. The PCE Index eliminating food as well as energy rose 2.1% in the Q1 2016, whereas analysts expected a 1.9% hike, after a 1.3% improvement seen in the Q4 2015.
Germany's Consumer Price Index jumped 0.1% year-over-year in April, following the 0.3% inflation rate seen in the previous month and falling behind the 0.2% forecast. Meanwhile, the country's monthly inflation gauge showed a negative 0.2% reading, compared to the 0.8% hike reported in the third month of the year.
US stock markets opened Thursday's trading session lower, following the Bank of Japan's decision to keep its monetary policy steady. The Dow Jones Industrial Average Index lost around 0.2%, trading at 18,010.39, whereas the S&P 500 Index dropped 0.2% and the Nasdaq Composite Index lost 0.1%, trading at 2,091.84 and 4,857.65 points respectively.
The number of filings for unemployment benefits declined by 9,000 to 257,000 in the week ended April 23, following the previous week's revised up 248,000. Analysts forecasted jobless claims to grow by 12,000 to 260,000. It was the 59th consecutive week that jobless claims remained below the 300,000 mark, indicating a strong labour market.
On Wednesday, the Energy Information Administration's weekly report revealed that crude oil inventories in the US increased by 2.0 million in the period ended April 22, following a 2.1 million increase seen in the previous seven days and surpassing analysts' forecasts for a 1.4 million gain.
Wednesday's data showed that the Pending Home Sales Index in the United States jumped 1.4% to 110.5 in the third month of the year, touching its 10-month high and following February's revised down 3.4% gain. Moreover, the Index rose 2.9% on an annual basis, according to the National Association of Realtors.
The US monthly international trade deficit decreased to $56.9 billion in the third month of the year, according to the latest data released by the US Department of Commerce on Wednesday. Until today, analysts expected to see the $62.8 shortfall after February's $63.4 billion reading.
The level of unemployment plunged by 1.7%, reaching the lowest level since the dot com bubble in 2000, however, it is likely that this indicator does not legitimately reflect the employment status of the country. The sharp increase in the partially employed as well as a surge in the average unemployment time displays no positive trend in unemployment and that the slip is likely due