Commodities dropped and currencies from Australia to South Africa depreciated as China's data disappointed investors. U.S. stock futures rallied, Japanese Topix rose the most in over two years and the Japan's Yen slipped. Brent decreased 0.3% and West Texas Intermediate oil fell 0.4% to $95.65 a barrel.
Most shares in Europe climbed, recovering from the losses through a three week period, after Japanese economy grew more than expected in the first quarter. U.S. stock-index futures and Asian stocks rose. The Stoxx Europe 600 Index advanced 0.1%, stocks recovered 4.8% since May 22 on speculation the Fed will scale back its stimulus as the U.S. economy improves.
The Dow futures jumped over 200 points, reaching the highest level since January 2, and the S&P 500 recovered from a two-week loss on Friday as U.S. employment report calmed investors' concerns that the Federal Reserve may scale back its asset purchase programme soon. The S&P 500 and the Nasdaq reported their greatest daily percentage climbs since April 16.
The U.S. currency advanced versus the Japanese Yen and its major counterparts on Monday, adding to gains after Friday's positive U.S. employment data signaled that the Federal Reserve might start tapering stimulus soon. U.S. employment data rose hardly above expected 175,000 jobs in May, while the unemployment level inched up. The U.S. Dollar Index added 0.3% to 81.915.
The Swedish Krona depreciated to the lowest level versus the Euro in five months as the manufacturing activity suddenly shrank in April, creating pressure on the Sweden's central bank to cut rates. The Sweden's currency depreciated 0.44% to 8.7078 per Euro, almost five-month low, and was at 8.7001 at 10:35 a.m. Stockholm time, while the Krona slipped 0.6% versus the
Swiss shares gained, after the Swiss Market Index registered the biggest jump in a month and a half, as stocks of the health-care companies advanced. The benchmark SMI rose 0.3% to 7.808.18 as of 9:55 a.m. Zurich time; the index soared 2.1% on June 7, spurred by U.S. employment data that topped the expectations, while the Swiss Performance Index gained
The Japan's currency fell on Monday, before the Central Bank's decision due tomorrow, while weak China's economic report pushed the Aussie lower. The U.S. currency advanced to 98.25 against the Yen and the Australian Dollar declined to 94.12 U.S. cents, while the common currency dropped under $1.32, trading at $1.3194.
U.K. shares fell, after the FTSE 100 Index declined for a third week in a row, as the mining companies dropped after China's export growth fell to the lowest level in 10 months. The FTSE 100 slipped 0.2% to 6,400.44 as of 8:31 a.m. London time, while the broader FTSE All-Shares Index slid 0.1% and the Ireland's ISEQ Index added
Europe's shares were slightly changed after declining for three weeks in a row, as China's export did not rise as much as expected, reaching the lowest level in 10 months, while Japan's economic growth topped the expectations. The Stoxx Europe 600 Index fell 0.1% to 295.14 as of 8:50 a.m. London time, while Standard & Poor's 500 Index futures gained
Treasuries (BUSY) advanced after reaching the lowest level in six weeks, ahead of James Bullard's, the President of the Federal Reserve of St. Louis, speech today on speculation he will give signal the U.S. central bank needs to keep its asset purchase programme. The benchmark 10-year yield dropped to 2.16%. The 1.75% security due in May 2023 gained 94 cents
The British currency fell versus the greenback after advancing the most in approximately 36 months in the previous week, while U.K. gilts were little changed at the opening. The Sterling dropped 0.4% to $1.5501 as of 8:24 a.m. in London after jumping 2.4% last week, the most in three years, while it traded at 85.06 pence per Euro. The Pound
German 10-year Government bunds remained flat ahead of the data economists forecast will indicate the Euro block investor sentiment advanced for the second month in June. German 10-year bond yielded 1.55%, following a rise to 1.57% on June 3, the highest level since February 25. The cost of the 1.5% bond maturing in May 2023 was 99.56.
Last week, gold bull bets reached the highest level in seven weeks ahead of the U.S. employment report, which showed that the country's jobs data have beat the expectations. The yellow metal futures gained 1.6% in the first four days of the previous week before declining 2.3% on June 7, making it the biggest drop in almost two months.
Crude-oil futures climbed in electronic trade on Monday, with the market expecting three key reports on energy later this week. The July benchmark U.S. crude contracts increased to $96.13 a barrel during Asian session hours, after a 1.3% gain on Friday as May employment data advanced more-than-expected.
Asian shares increased, with the benchmark regional stock index heading towards the highest level in over six weeks, as data indicated the U.S. hired more employees than predicted. The MSCI Asia Pacific Index gained 1.5% to 132.29, the highest climb since April 24. Shares advance also as Japanese revised data showed its first-quarter economic growth.
The weekend data showed that the China's exports and domestic activity missed expectations in May, raising worries about the country's economic growth. At the same time, Premier Li Keqiang said the economy is stable and there are no problems with growth even though the evidence showed that the China's economy is struggling. The imports declined 0.3%, against the predicted
Japanese stocks recovered on Monday as the global equities advanced and the U.S. employment data were solid; however, not good enough to raise concerns about scaling back the Fed's stimulus in the nearest time. The Nikkei average gained 3.7% after Friday's 2.8% loss, while the MSCI's broadest index stayed steady.
Economists changed their calculations for how much the Federal Reserve will minimize its monthly bond purchases. The most economists predict that officials will cut fiscal stimulus programme from $85 billion to $65 billion worth of purchases a month. The uncertainty of when and by how much the Central Bank lawmakers will scale back its QE programme has jolted financial markets.
The U.S. currency was weak and shaky on Friday, following the biggest one-day decline versus the Japanese currency in three years and ahead of employment report that might move the greenback down if it will be under predictions. The common currency was flat at $1.3242 versus the U.S Dollar. The Fed might start scaling back its stimulus in September if employment data
Crude-oil futures were taking a breather after gains on Thursday, as the U.S. employment data may influence the outlook for the Fed's stimulus programme. Oil prices for July delivery were little changed, reaching $94.78 a barrel. The decline of the U.S. Dollar is helping oil and other dollar-denominated commodities making them cheaper to holders of other major currencies.
German overseas sales unexpectedly increased in April, adding to signs the economy potentially will continue to improve in the second quarter. The Bundesbank today cut German economy's growth forecast for the year 2013 and 2014 on extended structural issues in the Eurozone. The exports increased 1.9% in April following a gain of 0.5% in March.
The Japan's currency climbed higher on Friday morning trading as Tokyo ruled out intervention, however most currency pairs outside the Asia headed sideways before the U.S. employment data for May. The U.S. currency dropped to 96.49 against the Yen, after reaching a low of 95.88 per Yen yesterday.
U.S. shares advanced, with the Standard & Poor's 500 Index climbing to snap a two-session losing streak, after investors awaited the Fed's stimulus programme ahead of the data amid jobs growth tomorrow. The S&P 500 gained 0.9% to 1,622.56 and the Dow Jones Industrial Average rose 0.5% to 15,040.62.
European shares changed slightly, after the Stoxx Europe 600 Index declined to the six-week low on Thursday, as the U.S. jobs data are awaited. The Stoxx 600 slid near 0.1% to 291.6 as of 8:04 a.m. London time; however, the index has advanced 4.3% this year to date as most central banks kept their stimulus programmes.