German manufacturing rose surprisingly in July and services sector growth strengthened, indicating on that nation's economy is growing. A manufacturing index increased 1.7 basis points to 50.3, according to Markit Economics, while services sector grew 2.1 basis points to 52.5. After these data were released the Euro appreciated versus the greenback at $1.3250 by 8:37 a.m. in London.
Factory output in euro zone increased in July, PMI index showed as manufacturing activity in France and Germany reached highest level in several months. The data sent the Euro to the highest point against the Dollar in a month and sustained stock market growth. MSCI's world equity gauge climbed 0.1%, while Germany's bond futures slid 0.3%.
Japanese exports gained for a fourth month in a row in June as the nation's currency declined and that made its products more attractive to consumers and shipments to the EU bounced off. Exports rose 7.4% compared to the previous year, according to the Finance Ministry. Japan's currency has plunged 22% versus the U.S. Dollar over the previous year and
Manufacturing in China shrank by more than expected in July, preliminary survey shows. It casts doubt on whether the government can achieve its growth target. The gauge of 47.7 is expected, the lowest in almost a year, where 50 is dividing line between expansion and contraction. The report came after China's authorities vowed to protect 7.5% growth.
Japanese stocks dropped, with the regional Topix index falling from the highest level in two months, after shipping lines and construction companies posted losses. The Topix declined 0.2% to 1,219.92 at the close in Tokyo, after decreasing 0.7%, the index has fallen 18% from its highest level on May 22, while the Nikkei 225 Stock Average slid 0.3% to 13,731.28.
The manufacturing and services sector measures in the Euro block showed an improvement in July. The flash Euro area Manufacturing Purchasing Managers Index advanced to 50.1 in July, the highest level in 24 months, after reaching 48.8 last month. The flash services PMI inched up from 48.3 in June to 49.6 this month.
European shares increased as Germany and France posted better-than-forecast preliminary manufacturing and services data for July. The pan-European Euro Stoxx 50 inched up 0.69% to 2,741.80 and the German DAX gained 0.55% to 8,359.80. The flash manufacturing PMI for July in France surged to 49.8 points and in Germany to 50.3.
The Japanese Yen plummeted versus the U.S. Dollar, as Japan's trade deficit declined less-than-predicted and Chinese preliminary manufacturing report came in under estimates. The Japan's currency depreciated 0.39% to ¥99.83 versus the U.S. Dollar and retreated 0.43% to ¥153.50 versus the Sterling, and fell 0.30% to ¥131.88 versus the 17-nation currency.
Chinese shares retreated, with the regional benchmark index falling for the first day out of last three, as disappointing manufacturing index spurred worries that nation's economy is struggling. The Shanghai Composite Index slipped 0.5% to 2,033.33 at the close, while the CSI 300 Index slid 0.7% to 2,249.15. The Hang Seng China Enterprises Index declined 0.3% in Hong Kong.
The Euro block's currency advanced versus the U.S. Dollar after Germany posted better-than-forecast manufacturing and services PMI report in July. The Euro jumped 0.19% to $1.3247 versus the U.S. currency. German flash manufacturing PMI increased from 48.6 points in June to 50.3 in July, it was forecast to advance to 49.2.
Gold snapped a four-day gain after its advance to the highest level in a month boosted investors' confidence to sell the yellow metal. Spot gold dropped 0.5% to $1,338.60 an ounce, and was at $1,341.51 as of 2:27 p.m. Singapore time, after climbing 5.4% in the last four days. Gold has rallied 8.7% in July and it is headed for
The Australian currency declined, as new inflation report came in under forecasts, allowing the Reserve Bank of Australia to cut interest rates at the next meeting on August 6. The Australian Dollar retreated 0.34% to $0.9263 versus the greenback and contracted 0.25% to A$1.4259 versus the common currency. Yearly CPI declined to 2.4%, missing analysts estimates of 2.5%.
The Canadian Dollar jumped to the strongest level in one month following data that indicated May retail sales advanced the most in three years, boosting bets the economy may be growing. The retail sales added 1.9%, topping economists estimates of 0.4%. The loonie gained 0.5% to C$1.0287 versus the U.S. Dollar.
The U.S. Dollar fell to one-month low on lack of new economic data from the States and as analysts bet on The Fed's reduction of quantitative easing in September. The Euro gained 0.23% to $1.3217 at 12:27 a.m. EDT. The British Pound added 0.02% to $1.5358. The Loonie strengthened 0.31% to .0300 after Canada showed unexpected increase in retail sales
U.K. bonds decreased after data showing mortgage approvals rose in June, adding evidence that the U.K. Economy is recovering. Mortgage approvals climbed from 36,290 to 37,278 in June. Yield on 10-year bonds added five basis points to 2.32% s of 3:48 p.m. in London. The Sterling was up 0.1% to $1.5373. Versus the common currency, the Pound declined 0.2% to
U.S. equities fluctuated after several major companies reported their earnings. Companies mostly showed earnings in line with projections, except technology industry which disappointed investors. The S&P 500 gauge dropped about 0.1% to 1,694.93 as of 10:15 a.m. New York time, while the Dow added 0.2%, or 33.14 points, to 15,578.69.
WTI crude declined after the U.S., the largest oil-consumer country, showed lower-than-expected data from its vitally important housing market. Additional factor for the drop was the weaker Dollar as greenback's movements and commodities expressed in dollars typically react inversely. WTI futures lost 0.73% to $106.17 per barrel, while Brent crude remained at $108.27 on ICE Futures Europe exchange.
Hungary's central bank decreased the main interest rate from 4.25% to 4.0%, a record low level. This was the 12th monthly cut. The Hungarian Forint depreciated 0.2% to 294.77 versus the Euro at 2:18 p.m. Budapest time. The currency advanced 1.7% in the previous three month. The yield on 10-year bonds dropped from 6.9% to 5.91% yesterday.
The Rupee climbed after the central bank came up with new restrictions that prevents gold imports. The currency was up 0.1% to 59.6575 versus the greenback at 9:13 a.m. Mumbai time. In order to narrow current-account deficit, the bank said that 20% of imported gold has to be available for export. Due to the measures, gold-shortage might occur in the
The Canada's Dollar jumped to a record high, following retail sales report showed an improvement in May. The Canadian currency inched up 0.26% to C$1.0305 versus the greenback. Retail sales in Canada jumped 1.9% in May, following an increase of 0.1% in April, overshooting analysts expectations of a 0.4% advance.
The Ruble depreciated for a second consecutive day as crude, the main export good of Russia, decreased. The currency declined 0.2% against the greenback to 32.40 at 2:35 p.m. Moscow time, after a 1% gain last week. Oil dropped 0.9% to 106 a barrel in New York today. The crude and natural gas industry accounts for about half of the
The greenback advanced versus its major counterparts as treasury yield increase supported the Dollar. The common currency declined 0.04% to $1.3173. The Dollar rose 0.32% to 99.92 against the Yen. The Pound depreciated 0.08% to $1.5343, while the Aussie was down 0.11% to 92.40. The return on 10-year treasuries jumped 3 basis points to 2.513%.
U.K. equities gained as the Prime Minister of China Li Keqiang announced that the economy will expand at least 7%. Rio Tinto and BHP Biliton, the world's largest mining companies, advanced 2%. The British FTSE 100 increased 0.3%, or 18.9 points, to 6,641.36 as of 11:25 London time. Several gauge's companies will publish their earnings this week.
The Japanese Yen depreciated, ending its morning sessions gain, after the greenback entered in a bull market. The Japan's currency dropped 0.31% to 99.95 versus the Dollar at 10:15 a.m. GMT. The downward pressure on the currency started as some experts see possible complications with implementation of Prime Minister of Japan Shinzo Abe's expansionary policy.