Stocks in the U.K. appreciated, led by Lloyds Banking Group Plc and commodity producers. Country's mining companies gained after unexpected expansion in Chinese manufacturing, while Lloyds rose to the highest point since October 2010. The FTSE 100 jumped 0.3% to 6,643.55, while the FTSE All-Share Index gained 0.4% so far today. The ISEQ gauge rallied 0.8%.
German bunds rose most in almost 3 weeks as investors speculated that the ECB will keep rates at record lows. Yield on 10-year government securities decreased 6 basis points to 1.61%, the biggest drop since July 12. Similar-maturity France's bonds yield slid 0.06 percentage points to 2.18%, while Austria's yield slipped 0.05 percentage points to 2.03%.
European shares jumped for the fourth day as banks inched up on better-than-expected earnings at Societe Generale and Lloyds Banking Group Plc while China's manufacturing report fueled mining companies. The Stoxx Europe 600 Index added 0.8% to 302.09. Societe Generale rose 7.7% and Lloyds jumped to the highest level since October 2010.
Gold was seen climbing on Thursday as the Federal Reserves maintained its current monetary stimulus programme unchanged, meaning that the central bank will continue asset purchases in total of $85 billion per month. The yellow metal rose 0.78% to $1,323.30 per ounce, while silver was traded 0.46% higher at 19.720 per ounce.
The British Pound has appreciated for the first time in more than a week against the Euro after manufacturing in the U.K. rose more-than-expected. The Sterling rose 0.4% to 87.14 pence per Euro, while it dropped 0.1% to $1.5198 after dropping 0.5% earlier today. The factory output index increased from 52.9 to 54.6, while experts predicted a drop to 52.8.
Japanese bonds were virtually unchanged after a rise in demand at a government debt auction, while stocks surged. The yield on 10-year official securities stood at 0.795%. Japanese authorities sold $22.3 billion of 10-year bonds with demand 3.51 times higher than an amount offered. The Topix gauge jumped 2.8% after a drop of 1.5% yesterday.
Stocks in Asia rose after data showed that China's manufacturing beat market expectations and the Fed claimed to maintain its QE at current level. The MSCI Asia Pacific Index jumped 1.3% to 133.94, however, the gauge is still heading towards 1.1% loss this week. Manufacturing index expanded from 50.1 to 50.3 this month, while experts predicted a drop to 49.8.
The common currency declined versus the greenback, falling from the strongest level in one and a half months, when the Federal Reserve announced its monetary policy future. Markets now await for the interest rate decision from the European Central Bank. The Euro slipped 0.35% to $1.3254 versus the Dollar and jumped to 0.8752 versus the Sterling, and climbed 0.49% to
The Federal Reserve stated that low inflation level could negatively impact the economic expansion and will continue with its bond-buying programme. According to the FOMC, in case the inflation remains below its 2% target for a longer term that could hamper the country's economic growth. The Fed's Chairman Bernanke and other officials said that the growth so far has been
The Australian Dollar reached the weakest level in approximately 36 months on speculations that the nation's central bank will cut interest rates the following week. Australia's currency fell 0.2% to 89.67 U.S. cents at 4:41 p.m. Sydney time, after slipping 0.6% to 89.27, the lowest since September 2010. The Kiwi slid 0.2% to 79.68 U.S. cents after depreciating 1.3% in
West Texas Intermediate oil increased for the second day, prolonging the largest monthly rise since previous August as manufacturing expanded more-than-expected in China. The September WTI settlement advanced to $105.72 per barrel and Brent for September delivery inched up 0.4% to $108.15 per barrel.
The Canadian currency rose versus almost all of the most-traded peers as the U.S. economy continued its recovery and that raised bets the Bank of Canada may tighter monetary policy this year. The Canadian Dollar gained 0.3% to C$1.0277 as of 5 p.m. Toronto time after reaching C$1.0212 earlier, the highest level since June 19.
The Greenback strengthened even more versus the Australian Dollar after positive U.S. economic data. The Aussie was down to 35-month low and, depending on the Fed's policy decision, the currency might be pushed even lower. The Aussie lost 1.14% to $0.8960 after touching a low of $0.8940. The currency has fallen more than 15% since the beginning of April.
Better-than-expected U.S. macroeconomic sent the S&P gauge and the Dow Jones Industrial Average to the highest levels of all time. The Standard & Poor's 500 gauge climbed 0.54% to 1,695.04 and the Dow Jones index added 0.14% to 15,603.42. The Nasdaq Composite index gained 0.51% to 3,634.87, the highest level since 2000. Investors are waiting for FOMC statement at 6:00
The Hungary's currency headed for a monthly decline for the first time in four months after the nation's central bank revealed that it would continue interest rate cuts and the government intends to phase out forex loans. The Forint fell 0.2% to 299.78 per Euro at 1:07 p.m. Budapest time, declining for the seventh consecutive day and accumulating the loss
European stocks traded flat, the Stoxx Europe 600 gauge increased slightly to 299.55. Investors wait for the U.S. report on GDP growth in the second quarter, and investors seek some hints form the Federal Reserves about monetary policy plans. Markets struggled to interpret mixed data. Retail sales unexpectedly dropped in Germany, while unemployment rate fell in June, the first decline
The benchmark ten-year yield gained six basis points to 2.67% as of 8:50 a.m. New York time. The 30-year treasury yields were at 3.74%, the highest levels since August 16, 2011, after reports showed U.S. Economy expanded 1.7% in the second quarter and employers provided additional 200,000 jobs this month, while economists expected only 180,00 new positions.
The Canadian Dollar dropped after the nations released disappointing economic data on GDP growth in May, boosting speculation that the Bank of Canada will not stop monetary stimulus anytime soon. The loonie declined 0.27% to C$1.0333 per U.S. Dollar as of 8:31 a.m. Toronto time. Canada's economy expanded 0.2% in May, while analysts expected a 0.3% increase.
Canada's economy continued expansion in May, yet at lower rate than economists predicted. The GDP advanced 0.2% in May, while on year -to-year basis it rose 1.6%. Analysts projected a 0.3% increase. The main drivers behind the growth was retail and wholesale industries, while resource extraction sector plummeted 1.7%. Energy sector production fell 2% in May.
The U.S. Dollar appreciated versus the 17-nation currency as reports suggested that the nations economy expansion exceeded estimates. The Department of Commerce reported that the economy grew 1.7% in the second quarter, beating a 1% estimate of analysts. The greenback added 0.31% to $1.3223 versus the Euro at 12:32 p.m. GMT.
Eurozone's inflation remained steady this month after climbing for two straight months, providing some freedom for the European Central Bank to pursue a stimulus policy as the Euro bloc's recovery is slow. The annual CPI was 1.6%, the same as it was in June, which is in line with economist's predictions. Economists believe that the benchmark interest rate will remain
The Swiss currency inched up to the strongest level in over a month versus the U.S. Dollar as investors await the FOMC statement to indicate the proper direction for the greenback later on Wednesday. The Swiss franc advanced 0.11% to ₣0.9286 versus the greenback and climbed 0.18% to ₣1.2307 against the 17-nation currency.
Yield on 30-year German government bonds decreased after EUR 1.63 billion debt auction. The yield dropped 3 basis points to 2.45%, while 10-year bund yield slid 3 basis points to 1.64% after reaching 1.71% earlier today. Germany's bonds lost 1.3% of its value this year so far, compared to gains of 2.9% in Italian bonds and 6.2% in Spanish government
Treasuries headed for another monthly loss, which would be the third consecutive monthly fall, on speculation the Federal Reserve will reduce its bond buying programme this year. Policymakers may comment on the programme after today's meeting. U.S. bonds declined 0.2% this month through yesterday. The yield on ten-year treasuries remained flat at 2.62% today as of 10:39 a.m. London time.