U.S. cost of living rose after a 0.4% increase in May, since gasoline became more expensive. The food index is up 0.1% from May, the energy index added 1.6%, which is a third gain up in a row, the index for all items minus food and energy was up by 0.1%. However, inflation did not gain much pace, as pointed
U.K. budget suffered minor changes in June as the economic upturn increased tax receipts while the government spending rose. Net borrowing amounted to 11.4 billion pounds in contrast to 11.5 billion pounds in 2013. The government revenue climbed 4.7%, whereas spending rose 3.9%. The economic indicators tell the economy is improving, which in turn provides backup for U.K. Prime Minister David Cameron before the elections
The Texas light sweet was trading at a higher level for the second day before the US fuel inventories data. Its August futures rose by 0.6% and were as high as $105.24 on the NYMEX. It is also estimated that the crude inventories declined by 2.8 million barrels, which is forecast by a Bloomberg survey in relation to tomorrow's report.
Data released by Eurostat reveals that the ratio between government debt and GDP rose to 93.9% in the Euro zone, representing an extra 1.2% compared to the previous quarter. Concerning the 28 countries which form the European Union, the ratio rose to 88%. Greece, Italy and Portugal registered the highest ratios of debt to GDP, while the lowest ratios were
The US Dollar keeps rising as the conflicts in Ukraine and Gaza are still concerning traders. The Euro dropped by 0.27% versus the Dollar, while the Sterling remained stable, falling 0.06% to 1.7065. The greenback was also higher against the Swiss Franc and the Yen, respectively 0.35% and 0.09%. The US Dollar Index, which compares the Dollar's performance with six
The Yen depreciated against both the Greenback and the Euro on Tuesday following a minor reduction in geopolitical risk aversion, which raised the equity value across Asia. The 18-nation currency grew 0.1% to 137.25 Yen, while the Dollar gained the same 0.1% to 101.48 Yen. The Asian markets could not entirely escape geopolitical concerns, keeping the Greenback and the common currency in a narrow range against the
The UK has started a large scale investigation into banks such as UBS, Deutsche Bank, Barclays, RBS and others about foreign exchange manipulation. The investigation will target bank and other financial institution employees. There have already been raised such concerns, as a BoE employee was allegedly suspended for it in March.
Political vagueness in Britain may affect the fastest-growing Group of Seven economy. Next year's elections may result in U.K. leaving the European Union if the Prime Minister David Cameron sticks to his post. As the economy of the U.K. is making big steps towards full recovery, political instability in the country heads the list of concerns of the CEO's in the Deloitte survey published in the
The governor of the Bank of Japan, Haruhiko Kuroda, still has to persuade the board members that they can achieve their targeted inflation level. The majority of the board disagree that increasing the money supply will result in 2% increase in CPI. The board's conclusion led to believe that it is impossible to do so without the government raising the
Janet Yellen, Chair of the Federal Reserve, seems to have overcome Mario Draghi's power on the control of the common currency. As of last week, Yellen caused the Euro to drop below 1.35 dollars when she stated that US interest rates could rise earlier than anticipated. On the other hand, Draghi's declarations seem to have lost influence over the currency's
As Scotland's independence vote looms, investors are starting to add in the risk of it leaving the UK into the price of the Pound Sterling. Although the majority of voters seem to be against independence, investors are looking to hedge against the possible risk. Furthermore, analysts say that either result in the vote will cause a shock to the currency.
The Asian regional benchmark index headed towards its six-year high as investors believe that the rising tensions in Ukraine will not curb global economic growth. The MSCI Asia Pacific Index rose 0.6% to 147.75 and Hong Kong's Hang Seng Index went up 1.3%. Japan's Topix added 0.8%, while South Korea's Kospi Index increased 0.5%.
The Aussie depreciated against 30 out of 31 main counterparts following concerns raised by a cooling housing market in China. The Australian Dollar dropped 0.2% to 93.73 U.S. cents following 1.3% increase in June, the largest since March. The Aussie fell 0.2% versus the Euro and 0.1% against the Sterling.
Zinc rose to its highest level since 2011, as decreasing inventory and higher consumption created speculation the demand will exceed supply. Zinc went up 1% for three month futures to $2,359 a metric ton. The second best performer between six metals on the London Metal Exchange is up 15% this year.
The gauge for the Dollar was within 0.1% from the month's highest point, as a rise in U.S. treasury yields created speculation that the Fed will increase interest rates. Ray Attrill pointed out that the U.S. Dollar displays correlation with the U.S. yield curve. The Bloomberg Dollar Spot Index was little changed at 1,009.66 and rose 0.1% to 101.50 versus
With continued involvement in Ukraine the Russian financial markets are taking a beating. Since the late February intervention in Crimea Micex has lost around $28 billion in value, which is about 4.2%. This and the distress in Russia's bond market takes place during the time of exuberant demand in other markets, such as in the US and India.
Reserve Bank of Australia Governor Glenn Stevens expressed his satisfaction with the present monetary policy regulation and is prepared to take more actions if needed. The Aussie jumped 5.2% this year reaching almost eight-month high earlier in July. The RBA stressed once again this month it surmises a period of no changes in the interest rates while the government is cutting spending.
As European stocks fell, traders rushed for safe-haven currencies, resulting in rises in both Swiss Franc and Japanese Yen. Still, trading volume was light due to Japan's holiday. During the European session, the Euro dropped to 136.89 versus the Yen and also against the Swiss Franc, trading at 1.2147 francs. In regards to the US Dollar, the shared currency remained
This Monday, Switzerland and China agreed on a deal that allows either central bank (Swiss National Bank and People's Bank of China) to trade their currencies, limited to 150bn Yuan, or 21bn Swiss francs (corresponding to 23.4bn US dollars). The Swiss National Bank stated that the deal will also let them use foreign exchange reserves to participate in the Chinese
Credit Suisse Group AG is prepared to announce its largest quarterly loss since the breakdown of the Lehman Brothers Holding Inc. following a fine of $2.6 billion for assisting american customers to avoid payments. The bank will report a loss of around 701 million Swiss francs and a 1.6 billion-franc fine. Credit Suisse's loss would be the biggest since the end of 2008.
As of earlier this day, the Aussie advanced versus the Dollar by 0.05%. Throughout the Asian session, uncertainties regarding the recovery in the Euro zone caused the shared currency to drop to a five-month low versus the US Dollar and the Japanese Yen. Safe haven currencies' demand has increased, due to the recent instability in Eastern Europe.
German Chancellor's budget doubled in June following an increase in the federal tax revenue and a decrease in the expenses of servicing debt. The federal tax revenue climbed 10.9% in June, whereas spending fell 0.4%. The state tax revenue by-turn jumped 19.6%. Merkel set the objective to operate a near-balanced budget in the present year and give up new borrowing
Mariano Rajoy's duties on Spain's economy may not yet be complete as Spain expects to enter a second year of recovery. The nation's economy still depends on adjusted exports from the debt crisis as Spain's domestic demand is limited. Spain's GDP grew 0.4% for two consecutive quarters for the first time since 2007, faster than the Euro-region average.
European stocks went down as investors weighed financial reports and global tensions of the Malaysian passenger jet and the Gaza-Israel conflict. The Stoxx Europe 600 Index dropped 0.3% to 338.61, while EURO STOXX 50 lost 0.42%. FTSE 100 Index went down 0.2% and CAC 40 Index decreased 0.35%.