US stock markets headed South on Tuesday after Federal Reserve minutes indicated reduced need for additional monetary stimulus. S&P 500 index fell 0.4% or 5.66 points to 1,413.38, Dow Jones Industrial Average slipped 0.49% or 64.94 points and closed 13,199.55 and Nasdaq Composite lost 0.2% or 6.13 points to 3,113.57.
European markets closed down on Tuesday as banks pushed major stock indices lower amid surging Italian and Spanish borrowing costs. Stoxx Europe 600 index fell 1.1%, German DAX lost 1% and UK FTSE index shed 0.6%. French CAC 40 index fell 1.6%, Spanish IBEX 35 gave up 2.7% and Italian FTSE MIB index tumbled 2%.
The gauge measuring British construction activity through a number of new orders unexpectedly surged in March, stimulating hopes UK has avoided recession. Construction PMI soared from 54.3 in February to 56.7 in previous month, the sharpest growth in almost two years. Analysts had predicted the reading to decline to 53.6.
Federal Reserve board claim the recovering US economy reduces the urgency for additional stimulus. FOMC explained the new accommodation may be implemented only in case if economy slows sharply. Fed also reiterated it still plans to keep its key interest rate close to zero by the end of 2014. US stock indices declined on the news.
USD/CHF bounced off the resistance level at 0.9003 and formed a falling wedge pattern on the 1H chart. The formation has 72% quality along with 53% magnitude within 125 bars.Greenback has been depreciating against Swiss Franc during last two weeks, and decreased to 0.9038. The price was capped twice at 0.9092, then at 0.9071, and dropped to the resistance around
Rural commodities were mixed on Monday with growing coffee and corn prices and falling wheat and sugar futures. The commodity group was supported by the upbeat PMI data from the US and China; however, firmer US Dollar created some pressure. Wheat was lower as Russia exports are expected to be higher than initially estimated during current marketing season. At the
Australia's retail sales improved less than initially expected in March, according to Australian Bureau of Statistics. Australian retail sales increased by 0.2% on a seasonally adjusted basis as compared to a 0.3% gain in February. Experts had predicted the retail sales to advance by 0.3% in March.
The Euro Zone's rate of unemployment hit record high in February, reported Eurostat. The jobless rate in the region hit 10.8% on a seasonally adjusted basis in February as compared to a January reading of 10.7%. The figure was mostly in compliance with expectations. The number of individuals without job in the region attained 24.55 million people. The lowest jobless
Canadian currency strengthened versus its US peer on Monday on report which showed US manufacturing index climbed to 53.4% in March. Loonie added 0.8% versus greenback to CAD 0.9906 and advanced 1% against the Euro to CAD 1.3351. Currently USD/CAD is trading at CAD 0.9895 and EUR/CAD is trading at CAD 1.3197.
The American dollar traded flat against the Swiss Franc on Tuesday as the pair is still being confronted by 0.9000 and 0.9100 levels.
USD/JPY moved lower today as the annual average cash earnings in Japan rose more than expected (0.7% act./0.2% est.).
USD/JPY moved lower today as the annual average cash earnings in Japan rose more than expected (0.7% act./0.2% est.).
The Cable slumped today versus the greenback as the U.S factory orders rose 1.3% in February on capital goods.
The shared European currency moved lower against the Japanese Yen as the EU quarterly GDP data (-0.3% act./-0.3% est.) revealed a contraction of the region's economies.
Samsung announced it plans to invest about 7 billion US Dollars to set up a chip production in China. The initial investment will be 2.3 billion US Dollars to establish the plant that will manufacture chips for tablets, smartphones and MP3 players. The company will increase investments gradually. Samsung was willing to penetrate China's market but had a reservation on
Crude oil price dropped during Asian trade on Tuesday despite inspiring US manufacturing data release. Investors continued to worry about high crude oil inventory level in the US that is expected to rise further. Light, sweet crude oil futures for May delivery traded at 104.17 US Dollars per barrel on the New York Mercantile Exchange, decreasing by 0.28% from the
UK manufacturing PMI strengthened in March, indicating the fastest growth in the last 10 months. The manufacturing PMI in the UK added 0.6 points to 52.1 on a seasonally adjusted basis last month as compared to a February reading of 51.2, according to Markit research group. Experts had predicted the figure to lose 1.0 point, approaching 50.5 in March.
Gold futures were firm during Asian session on Tuesday as inspiring manufacturing data improved risk appetite among investors thus stimulating selloff of the greenbacks. The yellow metal was also bolstered as strikes in India ended. COMEX gold June contract traded at 1,681.05 US Dollars per troy ounce on the New York Mercantile Exchange, easing up by 0.08%.
Energy commodities soared on Monday on the improved demand perspectives from the US and China. Moreover, BP has reported that it has closed its oil output terminal at the Valhall platform for compressor maintenance that is likely to create short time supply disruptions in the North Sea. However, poor Euro Zone data coupled with eased supply concerns from Iran limited
Industry metals rallied on Monday after upbeat manufacturing data releases from the US and China. Broadly stronger equities also supported the gains. However, disappointing Euro Zone's unemployment data and stronger US Dollar weighted down on the base metals pack. Aluminium was mainly tracking the economic data releases while zinc continued to face weak spot demand and high inventory levels. Copper
Precious metals advanced on Monday despite broadly stronger US Dollar. The commodity pack drew strength from the solid performance of the base metals and energy commodities. However, controversial announcements of Fed officials limited the gains. Gold, being the main engine for the group, was also pressured by persistent strikes in India against the gold import duty hike. Moreover, the yellow
German DAX index edged slightly lower on Tuesday pushed down by banks in a rather calm, low volume session. Drug producer Bayer AG added 0.6% after company said it received positive results in its third phase of cancer drug trial. K+S AG swung between gains and losses after Nomura lowered the stock from neutral to reduce. Heavyweight Deutsche Bank and
FTSE 100 index erased morning gains and strived lower on Tuesday as miners and banks weighed down on the index as metal prices tumbled. Compass Group fell 1.8% after Morgan Stanley cut the company's rating from overweight to equal weight. Bunzl dropped 0.9% on news Bank of America Merrill Lynch lowered the stock from neutral to underperform. On the upside
Asian markets closed mostly up on Tuesday as US PMI data signalled improvements in US manufacturing. Hong Kong's Hang Seng index added 1.3%, South Korea's Kospi surged 1% and S&P/ASX 200 index soared 0.2%. In contrast Japanese Nikkei Stock Average fell 0.6% and Taiwan's Taiex tumbled 1.3%. Shanghai market remained closed.