Energy markets plunged on Wednesday as lack of easing measures from the Fed weighted on demand prospects. Crude oil was the top-loser on absence of easing measures in the US and unexpected increase in the US crude oil inventories last week. The EIA reported that stockpiles rose by 2.86 million barrels as compared to expectations for a 1.11 million barrels
Industry metals apart from nickel slid on Wednesday after the Fed left no hopes for QE in the nearest term. Traders were also cautious ahead of HSBC China's PMI release due on Thursday.Aluminum followed bearish trend on absence of easing in the US. Meanwhile, China's production cuts approached such level that it may support weak prices due to lower supply.Copper
Precious metals tumbled on Wednesday as Fed decided not to implement QE at the moment. Gold fell after the Fed announced that it would not provide additional monetary stimulus and cut the US growth forecast from 2.9% to 2.4% 2012.Silver followed gold suit and declined by almost 1% as hopes for new round of QE faded.Platinum dropped after release of
German DAX index moved lower on Thursday following the cut of US growth forecast by the Federal Reserve. German manufacturing PMI for May dropped to 44.7 versus expected 45.3. Moreover HSBC report showed China's manufacturing kept contracting in May for an eight straight month. German car makers posted the biggest losses with Daimler AG sinking 1.4% and Volkswagen AG giving
UK FTSE 100 erased part of its previous gains and traded lower on Thursday as investors anticipated news from Federal Reserve, China and Eurozone manufacturing and service activity. Oil shares plunged as crude price fell below USD 81 a barrel. BP PLC tumbled 2.1% and Royal Dutch Shell shed 0.9%. Resource shares which heavily depend on manufacturing activity also slipped.
On Thursday, the Confederation of British Industry reported that the index that measures expectations of industrial orders gained 6.0 points and reached minus 11.0, improving from May's minus 17.0. Analysts, however, expected that the June's index would drop 3.0, reaching minus 20.0. The index reached a six-month high this month.
The Euro inched lower versus other major currencies, as Eurozone fiscal outlook weighed on market sentiment. In European morning trade, EUR was dropping versus the USD, reaching the level of 1.2666. EUR/GBP dropped 0.29%, and consolidated at 0.8060, while EUR/JPY eased up 0.18% and was traded at 101.24.
Japan's Nikkei Stock Average breached the negative trend of Asian stock markets and finished higher on Thursday. Although the Asia overall sentiment was negative on China PMI data and Fed decision, Japanese shares pared losses helped by weaker Yen which sent exporters higher. Nikkei 225 gained 0.82% or 71.76 points and finished at 8,824.07. Honda Motors surged 3.5% after Credit
Shares in Hong Kong fell sharply on Thursday after Chinese HSBC manufacturing PMI dropped to 48.1 indicating further contraction. Moreover investors did not received awaited news from Fed. Hang Seng index tumbled 1.3% or 253.78 points and closed at 19,265.07. Only two companies managed to end into positive area. Resource and financial shares declined most. Tencent Holdings fell 4.4% and
Dow Jones Industrial Average slipped on Wednesday after Reserve disappointed investors lowering growth forecast for 2012 and expanding only Operation Twist program instead of expected quantitative easing. Blue chip index dropped 0.1% or 12.94 points and closed at 12,824.39. Procter & Gamble fell 2.9% after the world's largest consumer-goods enterprise cut its earnings and revenue outlook for the second time
S&P 500 index traded lower on Wednesday after the Federal Reserve lowered its forecast for the US economic expansion from 2.9% to 2.4% in 2012 and said it expects the jobless rate to attain 8.2% in June. US leading index slipped 0.17% or 2.29 points and closed at 1,355.69. Adobe Systems the biggest producer of graphic-design software, dropped 2.7% after
Futures for copper dropped in early European trade on Thursday, following weak data about global economy, and Fed's decision on monetary policy. On the Comex, July delivery futures for copper were traded at USD3.344 per pound, losing 1.3% in European morning trading session. Earlier, contracts were traded at USD3.333, which was a 1.75% fall.
Spain witnesses an increase in costs for borrowing as it was selling its government debt on Thursday. Spain's treasure managed to sell five-year government bonds worth EUR602 million at the average 6.072% yield, which was a sharp increase from the last month's 4.752%. Whereas three-year and two-year bonds were sold having the average yield equal to 5.547% and 4.706%.
Markit, a market research group, reported that manufacturing PMI for Germany dropped 0.5 points in June, reaching 44.7, whereas in May it was 45.2. Analysts' forecast was that the figure for the last month would be 45.2. June's PMI reached the lowest level for the last three years on market's concern about the impact of Eurozone debt crisis on the German economy.
Markit reported that French manufacturing PMI added 0.6 in June, from the May's 44.7, and reached 45.3 on a seasonally adjusted basis. This is more than expected, since analysts predicted that the figure would be 44.5. French service sector activity also gained more than expected in June, reaching 47.3, from the May's 45.1, whereas initial forecast was that it would be at 45.0.
U.K. retail sales gained more than expected, after a sharp fall in April. U.K. Office for National Statistics reported that retail sales grew by 1.4% in May on a seasonally adjusted basis, whereas initial forecast was that it would rise only by 1.2%. The figure for April was revised down from a 2.3% decline, reaching a 2.4% fall.
On Thursday, Switzerland's Federal Statistics Office reported that the Swiss trade surplus increased to CHF2.48 billion in the last month from the April's figure of CHF1.26 billion, which is a revised down figure from CHF1.33 billion. Analysts, however, expected that the May's trade surplus would be CHF1.97 billion.
US equities ended modestly lower on Wednesday after Federal Reserve disappointed investors lowering growth forecast for 2012 and expanding only Operation Twist program instead of expected quantitative easing. S&P 500 index slipped 0.17% or 2.29 points and closed at 1,355.69, Dow Jones Industrial Average gave up 0.1% or 12.94 points and closed at 12,824.39. Nasdaq Composite ended marginally higher adding
European markets pared losses on Wednesday evening after the Bank of England's Monetary Policy Committee said it plans to enlarge the USD 511 billion asset buying program. Stoxx Europe 600 added 0.4%, FTSE 100 gained 0.6% and German DAX edged 0.4% higher. French CAC 40 index ascended 0.3%. In contrast Spanish IBEX 35 dropped 1.2%.
The Federal Reserve announced on Wednesday it will extend its Operation Twist program to prolong maturities of its assets and pledged intervention in labour market if situation worsens. The central bank will extend the program by the end of 2012 through selling shorter-term assets worth USD 267 billion and purchasing same size longer-term securities in order to cut borrowing costs.
Gold futures slid in Asian trade on Tuesday as Fed announced it would continue its Operation Twist and did not plan to ease the monetary policy further. COMEX gold for delivery in August traded at 1,605.05 US Dollars per troy ounce on the New York Mercantile Exchange, falling by 0.67%. Meanwhile, COMEX silver for delivery in July traded at 27.945
Crude oil prices dropped in Asian session on Thursday as EIA reported a 2.86 million barrels increase in crude oil inventories last week, confronting the expectations of a 1.11 million barrels fall. Moreover, Fed decided not to implement the next round of QE thus weighting on the demand prospects. Light, sweet crude oil futures for August delivery traded at 80.76
China's manufacturing activity contracted again in June as new export orders and overall output both posted losses. The results of the survey conducted by HSBC indicated that China's PMI shank to 48.1 in June as compared to 48.4 in the preceding month. China's analysts claim that essential decline in prices and stagnation of new orders both suggest that domestic demand
The GDP of New Zealand expanded at faster pace than initially expected in Q1, reported Statistics New Zealand. The economy of the country grew by 1.1% on a seasonally adjusted basis in Q1 as compared to a 0.3% gain in the preceding quarter.Experts predicted the GDP to grow by 0.5% in Q1. Following the data release, the New Zealand Dollar