On Tuesday, Eurostat reported that the producer price index rose by 0.4% on a seasonally adjusted basis, which is more than the expected 0.2% increase. In June producer prices declined by 0.5%. Year-over-year, the PPI gained 1.8% at an annualized rate, while analysts expected a 1.6% gain. Following the release of the data, the Euro was slightly higher versus the Greenback, adding 0.12%.
Farm commodities except for corn moved higher over the last five trading sessions amid global easing hopes and weaker greenback. Meanwhile, market participants remained focused on crop conditions in the main growing regions. Wheat added 0.11% over the week as previous rally was capped after Russia reported that it would not impose any export limitations despite recent drought. Corn was the only
Energy commodities soared over the week amid building expectations that China will ease its prudent monetary policy in view of weakening manufacturing activity. Meanwhile, hopes that the Fed will also announce stimulus measures continued to lend support for energy prices. Crude oil gained 0.33% over the last five trading days amid brighter demand prospects as widely expected stimulus measures are likely
Industrial metals were bullish during short Monday's trade as weak manufacturing activity in China and Eurozone raised hopes for more accommodative monetary policies. Recent hints that the US is likely to join global easing also supported the base metals pack. Aluminum remained in the positive territory due to mounting expectations for easing in the US, China and Eurozone. Better vehicle demand
Precious metals extended previous gains on Monday amid mounting expectations that the Fed and POBC will loosen their monetary policies to boost growth. Broadly weaker US Dollar also supported the rally of the commodity group. Gold moved slightly higher during thin Mondays' session as recent Ben Bernanke's comments that weakness of the US labour market may force the Fed to loosen
The ECB's President Mario Draghi told European policy makers that the short-term sovereign bond-buying scheme by the ECB would not violate EU rules. Draghi is expected to provide more details of the bond-purchase programme on Thursday. The programme is aimed at reducing borrowing costs for ailing and indebted economies that seek help.
Asian stocks declined as Moody's Investors Service cut its outlook for the European Union before the European leaders' meetings. The MSCI Asia Pacific Index lost 0.4% to 117.31. Japan's Nikkei 225 Stock Average slid 0.4% and South Korea's Kospi Index fell 0.2%. Australia's S&P/ASX 200 declined 0.6%, while New Zealand's NZX 50 Index climbed 0.2%. Hong Kong's Hang Seng Index
Moody's Investors Service cut the outlook on the top-notch Aaa rating of the EU to "negative" from "stable", saying it may downgrade the region if it cuts the ratings on the EU's 4 biggest economies: Germany, France, the U.K, and the Netherlands. In July Moody's cut its outlook to "negative" for Germany, the Netherlands, and Luxembourg as the escalating Eurozone
Reserve Bank of Australia Governor Glenn Stevens decided to keep its benchmark interest rate unchanged at 3.5%, the highest among developed economies. The domestic demand appeared to be firm in the first half of the year, while commodity prices have declined substantially recently and outlook for China's economic growth is uncertain. Stevens said the Aussie Dollar' performance was stronger than
The Euro advanced versus the Japanese Yen on speculation the ECB President Mario Draghi's bond-buying programme will increase confidence in the common currency. The Euro gained against most of the major counterparts and approached a 2-month high versus the U.S. Dollar before the meetings of European officials today. The Euro rose 0.3% to 98.87 Yen and climbed 0.2% to $1.2617,
Andalusia, the most populated of Spain's regions, asked for 1 billion euros from Spanish government. In the meanwhile, region's unemployment rate remains at a record level of 33.9 per cent. Valencia, Murcia and Catalonia have already requested bailouts in recent weeks. An 18 billion euro public fund was set up by Madrid to help its troubled regions.
The U.S. dollar held steady versus its major counterparts on Monday, as traders remained cautious about upcoming ECB meeting and the U.S. data on employment. The U.S. Dollar witnessed a slight increase of 0.05% versus the Euro in European afternoon trade. The Greenback also witnessed a minor 0.02% growth versus the Swiss Franc and a slight 0.10% decline against the Japanese Yen.
On Monday, the Euro held steady versus the Greenback, as investors were focused on upcoming U.S. employment data and ECB's policy setting meeting. The EUR/USD pair 1.2587 and consolidated at the rate of 1.2570, losing 0.05% during the European afternoon trade. The support for the currency pair could be at 1.2492, while resistance was prone to be at 1.2636.
Purchasing managers index gained more than expected the last month. Markit market research group reported that the index climbed 4.1 points, reaching 49.5 on a seasonally adjusted basis, while it was expected that it would rise only by 0.8 points. Output rose significantly on the account of consumer goods, while companies that produce intermediate goods witnessed less considerable gains.
Japanese stocks slid for a third straight day as the nation's capital spending increased less than forecast and the Yen advanced after Fed Chairman Ben Bernanke announced further monetary stimulus. The Nikkei 225 Stock Average dropped 0.6% to 8,783.89, after earlier 0.6% gain. Volume was 6.6% up from the 30-day average.
Chinese shares advanced for the first time in four days as the PMI decline fueled belief the government will create further stimulus measures. The Shanghai Composite Index surged 0.6% to 2,059.15, regaining from the weakest since February 2009. The Hang Seng China Enterprise Index rose 0.5%.
Gold futures rocketed to a five-month high, as weak Chinese manufacturing data added to hopes that Chinese policymakers will soon introduce more stimulus measures. Gold for December settlement jumped 0.4 per cent, to $1,693.50 per ounce, adding gains to a 1.8 per cent rally on Friday.
Oil futures depreciated on Monday, as manufacturing activity in the world's second largest economy fell, and the U.S. Dollar edged higher. Oil futures with October contract erased 0.1 per cent, to $96.38 per barrel. Other oil-related products were also lower on Monday, with gasoline, heating oil and natural gas for October delivery erasing 0.4%, 0.3% and 0.5%, respectively.
India's trade balance widened more than expected in July, according to official data. The Ministry of Statistics and Programme Implementation reported that nation's trade gap tumbled to -15.5B, down from -10.3B in the previous month. In the meanwhile, experts had predicted India's trade balance to decline -8.8B last month.
Activity in the Eurozone's manufacturing sector shrank more than expected in August. The final PMI came in at 45.1, up from 44.0 in the preceding month. Any reading below 50 signals a contraction in manufacturing activity. PMI in the Europe's biggest economy was also revised lower from 45.1 to 44.7, according to Markit. Factories in Germany and France saw activity fall for the sixth in a
Swiss retail sales rose at a weaker pace in July, according to the Federal Statistical Office preliminary report on Monday. Real retail sales soared seasonally adjusted 3.2% on year in July, after a 3.3% increase in previous month. Overall retail sales declined 0.4% in July, after a 0.1% gain in June.
Japan's auto sales increased 7.3% on year in August, the Japan Automobile Dealer's Association reported on Monday compared to a 36.1% expansion in July. Overall automobile sales amounted 232,372 units in August. Passenger cars surged 8.7% from last year. While, truck sales tumbled 0.4%.
The U.S. Dollar climbed against major peers on Monday, rebounding after last weeks losses amid Ben Bernanke's talk about further monetary stimulus. The Sterling fluctuated after the U.K. manufacturing PMI data posted weakening of the slowdown. On Monday, the ICE Dollar Index surged to 81.31 from 81.242 on Friday. The Pound was stable at $1.588. The EUR/GBP slid 0.82% to
Resource firms supported advance of European stocks, with markets gaining on Asian stock exchanges after weak China's manufacturing data fueled speculation about additional monetary easing. On Monday, the Stoxx Europe 600 Index surged 0.5% to 267.68, after a 0.5% rise on Friday. The FTSE 100 Index gained 0.7% to 5,749.08. The Dax added 0.4% to 6,996.64.