French industrial output declined less than experts expected in May. It fell 0.4% after a 2.2% gain in April while economists estimated a 0.8% drop. The Eurozone's currency advanced 0.3 % to $1.2817 at 11:29 a.m. in London. The Bank of France reported this week that a factory executive confidence gauge rose to 96 in June, the highest since September
Gold advanced for a third straight day amid speculation previous quarter's plunge is stimulating physical demand, and the greenback declined from a three-year record level. Gold for August settlement advanced 0.8% to $1,255.80 per ounce at 7:46 a.m. on the Comex in New York. Immediate deliveries gained 0.6% to $1,258.46 in London.
The Japanese Yen advanced the most in about a month versus the U.S. Dollar as clues of recovery in Japan's economy curbed prospects that the Japan's central bank will ease policy this year. The Yen strengthened 1.1% to 100.04 against the U.S. Dollar and jumped 0.8% to 128.28 versus the common currency.
Italy's one-year borrowing costs advanced to the highest level in four months at an auction, a day after the Standard & Poor's snapped Italian sovereign credit rating to two notches over junk. The Treasury auctioned one-year bonds worth of 7 billion euros, paying a yield of 1.078%. Italy's sovereign debt was cut from BBB-plus to BBB by S&P on concerns
German government bunds increased as the data indicated consumer prices, estimated by using a harmonized European Union method, inched up 1.9% in June from the previous year, in line with analyst expectations. The yield on the 10-year bond retreated two basis points to 1.63%, decreasing for the third day in a row.
China's imports and exports surprisingly fell in June, adding pressure on its economy. Overseas shipments dropped 3.1% compared to previous year, making it the biggest decline since the global financial crisis, according to General Administration of Customs data. Imports fell 0.7%, while the predictions were for a 6% gain.
The greenback declined versus major currencies, and investors expect further information on the Federal Reserve's time frame for tapering bond purchases. The U.S. Dollar traded at 99.92 versus the Japanese Yen. The 17-nation currency jumped to $1.2803. The ICE Dollar Index retreated from 84.598 to 84.454.
The Global agency Fitch has increased Latvia's credit rating by one degree to BBB+, after Latvian membership in the Euro block was approved. The ECOFIN's announced their decision and gave the green light to Latvia to join the Euro block and become the 18th member of the Eurozone on the January 1 2014, adding to signs the approval was broadly
European shares dropped from their highest level in about a month as data indicated Chinese overseas sales and inbound shipment declined more-than-expected. U.S. Index futures remained steady and Asian stocks jumped. The Stoxx Europe 600 Index decreased 0.3% to 293.66 and the equity benchmark inched up to the highest level since June 10.
German stock prices were virtually unchanged as unexpected fall in China's exports and imports and a rise in Beiersdorf and Henkel offset each other. The DAX Index dropped as much as 0.1% to 8,054.64. The gauge has lost 5.6% of its value since May 22 when Ben Bernanke indicated that the Fed might end its stimulus earlier.
Italian government securities decreased for a second consecutive day as S&P cut the credit rating for the country due to worsening economic outlook. The rating was decreased from BBB+ to BBB. The yield on 10-year government bonds increased 3 basis points to 4.44%. The yield on similar-maturity German bunds decreased 1 basis points to 1.65%.
The Australian currency reached its strongest level in seven days on bets that its retreat has been excessive. The Aussie gained 0.3% to 91.98 U.S. cents at 4:42 p.m. Sydney time from Tuesday, and reached 92.18, the strongest level since July 2. The New Zealand's Dollar added 0.1% to 78.62 U.S. cents, after sliding 0.3% and climbing 0.4%.
European stocks advanced to the 1-month high as investors await the report of the last Fed's meeting, which might indicate how long monetary stimulus will last. The Stoxx Europe 600 jumped 0.3% to 295.45, the highest point since June 10. S&P 500 futures increased as much as 0.1%, while MSCI Asia Pacific Index gained 0.7%
The Loonie climbed for a second straight day on bets that corporate profits will beat expectations and June housing starts topped the forecasts, according to analysts'.The Canadian currency gained 0.3% to C$1.0527 per U.S. Dollar as of 5:03 p.m. Toronto time, while it rose 1% to C$1.3455 per Euro and one Canada's Dollar buys 94.99 U.S. cents.
Gold dropped as Chinese overseas sales declined more-than-forecast in June and as investors expect minutes from the Federal Open Market Committee's meeting previous month on speculation the central bank will start to taper bond purchases. Spot gold retreated 0.6% to 1,244.03 per ounce and the August Bullion contract remained steady at $1,246 per ounce.
The British Pound rebounded from a 3-year low on speculation that recent decline was excessive. The currency dropped yesterday as the data showed that U.K. manufacturing shrank, indicating weakening recovery. The Sterling jumped 0.1% to 1.4881 per U.S. Dollar, while it was virtually unchanged against the Euro and traded at 85.94 pence.
European stock-index futures declined, showing the Stoxx Europe 600 Index will retreat from its highest level in about a month, as data indicated Chinese overseas sales and inbound shipments declined more-than-predicted. Euro Stoxx 50 Index futures maturing in September dropped 0.2% to 2,655.
Stock prices in China rose as investors expect the authorities to support the economy after an unexpected 3.1% slump in exports. The Shanghai Composite Index increased 1.7% to 1,997.87, leaning towards the biggest rise since April 19. The CSI 300 Index jumped 2.1% to 2,208.79, while the Hong Seng China Enterprise Index gained 1.4%.
Imports and exports unexpectedly declined in China indicating severity of the impacts of decreasing credit growth. Imports dropped 0.7%, while experts predicted a rise of 6%. Exports plummeted 3.1%, the biggest decline since the Great Recession, compared to the market expectation was an increase of 3.7%. The trade surplus in May was $27.1 billion, while analysts' estimate was $27.8.
The Japanese Yen appreciated against its major peers on speculation that the BoJ will not increase its monetary stimulus amid recovering economy. The Japanese currency rose 0.7% to 100.44 per U.S. Dollar after touching the lowest point since May 30 two days ago. The Yen appreciated 0.7% to 128.42 per Euro so far today. The currency has lost 21% of
Asian stocks advanced after the data showed that China's exports dropped most significantly since 2009. The MSCI Asia Pacific Index rose 0.2% to 131.68 after advancing 0.8% earlier today with 7 out of 10 industries soaring. Japan's Topix jumped 0.6% before dropping 0.5% later in the day. S&P/ASX 200 increased 0.2%, while NZX 50 climbed 0.7%.
Yield on 10-year Treasuries relative to 2- and 30-year government securities was near the highest point since 2011 before $21 billion auction today. The difference between yields was 1.25%, while it reached 1.39% last week. Yield on 10-year government bonds was 2.63%, while it is expected that the yield might rise to 3% next week.
Share prices in India rose for a second consecutive day. The S&P BSE Sensex index jumped 0.2% to 19,485.55, led by ICICI Bank and State Bank of India, which rose 0.7% as well as Tata Consultancy Services, which increased 0.9%. The gauge is still 2.9% below its level on May 22, when Ben Bernanke said that the Fed might unwind
Future contracts on S&P 500 jumped, which indicates that the index itself will extend its gains as it rose for 3 previous days. The futures expiring in September rose 0.4% to 1,641.90, while future contracts on Dow Jones Industrial Average climbed 0.3% to 15,200 so far today. The S&P 500 soared 1.6% in previous 3 days.