The Pound appreciated versus the Greenback for a fourth straight day before a GDP report to be released next Friday, which analysts expect to show that the country's GDP grew faster than expected in the second quarter. The currency advanced 0.2% to $1.5257 as of 1:40 p.m. London time, adding to this week's gain to 1%. Against the common currency
U.S. stock-index futures decreased, indicating benchmark equities gauges may decline from records, after Microsoft Corp and Google Inc. earnings were against expectations. Microsoft fell 6.3% in early session and Google slipped 4%. Standard & Poor's 500 Index futures maturing in September dropped 0.1% to 1,678.3 and the Dow Jones Industrial Average futures plummeted 0.2% to 15,452.
U.S. shares increased, with benchmark indexes set to records, after earnings from Morgan Stanley and UnitedHealth Group Inc. overshoot expectations and jobless claims declined amid speech from the Federal Reserve Chairman Ben Bernanke. The Standard & Poor's 500 Index added 0.5% to 1,689.37 and the Dow Jones Industrial Average jumped to a record of 15,548.54.
Hong Kong stocks dropped, led by developers and utilities, as concerns mounted that more cities will take measures to cool the overheating property market. The Hang Seng Composite gauge slid 0.1%, decreasing gains of this week to 0.3%. The Hang Seng Index jumped 0.1% to 21,362.42 after losing 0.6% earlier, while gauge's future contracts decreased 0.1% to 21,334.
Stocks in Switzerland dropped for the 3rd time in 4 days this week and was poised for the first weekly loss after 3 weeks of consecutive gains as Roche Holding AG dropped 1.3% today and 4.6% this week. The SMI slid 0.5% to 7,893.72 today and lost 1.1% of its value so far this week. The Swiss Performance Index decreased
German shares retreated from the highest level in more than two months and the benchmark DAX Index snapped five-day advance as technology stocks slipped on disappointing earnings from Google Inc. to Microsoft Corp. The benchmark DAX Index slid 0.6% to 8,289.49 as of 9:53 a.m. Frankfurt time, halting its climb to 0.9% weekly, while the HDAX Index fell 0.6% today.
U.K. government gilts were steady, with 10-year bonds set for a second weekly advance, ahead of data analysts said will indicate Britain's budget deficit decreased in June from a year earlier. Benchmark 10-year notes yielded 2.26% and the price of the 1.75% security expiring in 2022 was 95.815, and two-year bond yields were at 0.29%.
Stocks in the U.K. declined after worse-than-expected earnings from Microsoft and Google, decreasing fourth consecutive weekly gain. The FTSE 100 dropped 0.4% to 6,607.19 so far today, however, the index is still poised for a 1% rise this week. The FTSE All-Share Index and ISEQ Index lost 0.4% and 0.5% respectively.
Stocks around the world slowed on Friday, but are still heading towards a forth consecutive week of gains after better-than-expected earnings announcements and Fed's comments on its stimulus. The FTSE Eurofirst 300 index dropped 0.3%, but was poised for a rise this week. The same was true for MSCI's 45-country all world index.
Moody's Investors Service improved the outlook for the U.S. credit rating to stable as there has been economic growth in the U.S. and the budget deficit has narrowed. The federal deficit is estimated to drop to 4% of U.S. GDP this year, for comparison, it was 7% previous year, according to Congressional Budget Office. The deficit has reached $509.8 billion
After Ben Bernanke's speech did not provide any guidance or clear signs on QE, currency traders brought the Dollar lower versus the Euro, while markets expect the start of G-20 meeting in Moscow. The common currency advanced 0.17% to $1.3131 against the greenback and gained 0.15% to 0.8622 versus the Sterling.
Japanese stocks declined before the parliament elections this weekend, paring a four straight day climb in the Topix index, as the non-ferrous metal companies led declines. The Topix slipped 0.8% to 1,211.98 Tokyo time at the close, after adding 0.8% and the equity-benchmark has gained 0.8% weekly. The Nikkei 225 Stock Average fell 1.5% to 14,589.91.
Corn prices decreased for a third consecutive day on indications that weather in the U.S. might boost crop yield. Contracts for commodity's delivery in December dropped 0.6% to $4.98. Futures dropped 1.9% so far this week, while corn prices slid 28% this year as the U.S. expands its production after last year's drought. Crop of 13.95 billion bushels is expected.
European shares retreated, snapping the four week streak of gains for the Benchmark Stoxx Europe 600 Index, as investors speculated on worse than expected earnings from Google Inc. to Microsoft Corp. The Stoxx 600 fell 0.3% to 298.96 as of 8:10 a.m. London time; however, the equity-benchmark is set for 0.9% five-day advance.
The British currency is set for a second consecutive five-day rise versus the U.S. Dollar ahead of data that are predicted to show Britain's budget deficit narrowed last month compared to previous year. The Sterling traded at $1.5224 at 7:45 a.m. London time; however, it has climbed 0.8% weekly. The Pound depreciated 0.2% to 86.26 pence per Euro, reversing this
Asian shares declined, with the regional benchmark index heading towards a fall for the third day, as Advantest Corp. and Taiwan Semiconductor Manufacturing Corporation pushed technology shares lower. Advantest retreated 7% and TSMC plummeted 6.9%. The MSCI Asia Pacific Index decreased 0.4% to 135.01
The Australian currency is headed for its first one-week climb in approximately a month ahead of inflation data that will be released next week. The Aussie slid 0.1% to 91.64 U.S. cents at 4:43 p.m. Sydney time and is set for 1.3% gain weekly. New Zealand's currency added 0.1% to 79.05 U.S. cents and is headed for 1.7% rise; however,
German government securities were virtually unchanged after data release showed that country's producer prices stagnated in June, while experts predicted a decline of 0.1%. 10-year government bunds were poised for a third consecutive week of gains after Bernanke's claim that the Fed will not decrease its stimulus. Germany's 10-year securities traded at the yield of 1.51%, falling 5 basis points
The Japanese currency appreciated, snapping weekly retreats versus almost all major counterparts, as Asian shares fell before Japan's parliament elections on July 21. The Yen added 0.5% to 99.95 per Dollar at 6:40 a.m. London time, reversing its weekly slip to 0.7%, while it climbed 0.2% to 131.37 per Euro. The greenback dropped 0.3% to $1.3142 per Euro, prolonging its
WTI futures were traded steady as they reached the highest level in 16 months in the previous session on optimistic news from the U.S. economy, oil stockpiles having fell for the third week and on traditionally high-on-demand summer season. The August WTI contract fell slightly 0.02% to $107.81 per barrel, after hitting $108.44 on Thursday, the highest level in 16
U.S. government bonds will probably rise for a second consecutive week after Ben Bernanke affirmed that the Fed will not start reducing its stimulus in September. Yield on 10-year Treasuries dropped 2 basis points to 2.51% so far today. The yield decreased 7 basis points this week, after decreasing 16 basis points a week earlier.
European stock futures dropped, indicating that shares might lose fourth week's gains, after worse-than-expected earnings from technology stocks, most notably Google and Microsoft. The Euro Stoxx 50 Index futures expiring in September dropped 0.3% to 2,707, while futures on FTSE 100 Index slid 0.2%. Contracts on S&P 500 and MSCI Asia Pacific fell 0.2% and 0.4% respectively.
Prices of gold inched up for the second day in a row following Wednesday's decrease amid bets that precious metal demand may recover in the future, despite the Federal Reserve Chairman Ben Bernanke's forecast that gold should fall in the near term. Gold futures advanced 0.49% to $1,290.59 per ounce and spot gold gained 0.59% to $1,291.80.
Stocks prices in developing countries dropped for a second consecutive day, led by technology shares. The MSCI Emerging Markets Index slid 0.3% to 954.45 so far today, decreasing a weekly gain to 1%. Technology stocks retreated 1.7%, the most out of all 10 industries in the gauge, after Taiwan Semiconductor predicted lower-than-expected earnings in Q3.