US shares prolonged their slump on Thursday as fears over the US fiscal cliff continued to create a heavy pressure on riskier assets. Moreover, Chinese Communist Party Congress as well as concerns over the eurozone's economic instability added to losses of the equities. However, the downswing was limited by positive domestic data. US jobless claims dropped more than expected last
China's industrial output and retail sales rose more than anticipated and inflation unexpectedly decelerated to the slowest pace in 33 months. Industrial production increased 9.6% in October from the last year, according to the National Bureau of Statistics. Retail sales augmented from 14.2% in September to 14.5% and the consumer price index rose 1.7%.
Exports from the U.S. rose to a record level in September, and the trade deficit unexpectedly declined, propping up the world's largest economy at the end of the Q3. The gap narrowed 5.1% to $41.5 billion, the smallest since the end of 2010 and lower than economists' estimate. The increase in sales to overseas buyers appeared to be broad-based, with improvement from soybeans to civilian
The South Pacific currencies strengthened after data showed better-than-expected retail sales and industrial output in china, improving the export outlook for the countries. The Australian Dollar gained 0.2% to $1.0423, set for a 0.8% weekly advance. The New Zealand Dollar climbed 0.3% to 81.69 U.S. cents, after 1% decline since November 2, the biggest drop among the U.S. Dollar's major
The Pound rose for a second straight day versus the Euro as the Bank of England halted its bond-buying programme expansion and left its key interest rate at a historic low of 0.5%. The Pound strengthened 0.2% to 79.74 pence per Euro, after touching 79.61 pence, the strongest since October 1. Sterling traded at $1.5976 after falling to $1.5930, the
The Canadian Dollar fell below parity versus the U.S. Dollar on concern the Eurozone's debt crisis may deepen as officials said they will postpone decision on Greece bailout package. The loonie weakened 0.4% to C$1.0003 per U.S. Dollar after declining yesterday the most in 3 weeks. Canada's Dollar last fell below parity November 1 after Hurricane Sandy closed equity markets.
Rural commodities were mixed on Thursday, with wheat and coffee advancing and corn and sugar declining. Broadly stronger greenback and deteriorating global economic outlook pushed farm commodities lower. At the same time, fears that global supplies may tighten further due to unfavorable weather conditions lent support for the commodity group.Wheat jumped on worries that drought in the US will weight
Energy futures except for heating oil were bullish on Thursday after the release of upbeat US data. Moreover, the commodity group was supported by the previous day's sharp drop as lower prices created bottom fishing opportunities for investors. However, rising US inventories coupled with bleak demand outlook limited gains.Crude oil climbed after the US data showed that unemployment claims declined
Industrial metals rebounded on Thursday despite on-going fears over the US fiscal cliff and weak eurozone's sentiment. Moreover, increased cautiousness ahead of the key China's economic reports due on Friday added pressure on the base metals. Meanwhile, traders turned their focus to the 18th Chinese Communist Party Congress, where a leadership change will take place.Aluminum extended previous gains on improving
Precious metals changed direction and advanced on Thursday, tracking gains in other commodities. However, positive data from the US pushed the greenback higher, thus capping the upswing of the commodity group. Meanwhile, traders remained cautious ahead of the US consumer confidence data due on Friday.Gold moved higher despite stronger US Dollar and weak economic outlook on the eurozone. The yellow
The Japanese Yen fell versus its major counterparts before report next week that is expected to show the nation's economy shrank in the Q3. Japan's currency trimmed a 2-day advance against the Euro after data showed faster than projected growth in China's industrial output and retail sales. The Yen lost 0.4% to 101.66 per euro form 101.30 yesterday. It weakened
China's inflation unexpectedly slowed to the lowest level in 33 months on food costs, adding to signs that the government succeeds in propping up growth without driving a price rebound. The CPI rose 1.7% in October from the last year, according to the National Bureau of Statistics. The figure appeared to be lower than economists' expectation and compared to 1.9%
U.S. equities dropped triggering the Dow Jones Industrial average to fall the most this year, as EU official said the funds may not be allocated to Greece until end the of November, and Apple Inc. shares fell. The Corporation lost 1.7%, prolonging its decrease since mid-September. The S&P's 500 Index slumped 0.2% to 1,392.01, after rallying 0.5% earlier. Meanwhile, The Dow Jones index lost 0.2%
German equities rose on Thursday after Greece passed new tax hikes and budget cuts late on Wednesday. Positive national data also lifted German shares. German trade balance rose slightly more than expected last month. However, the gains remained limited as growth concerns persisted. On Wednesday, the European Commission lowered German expansion forecast from 1.7% to 0.8% for 2013. The DAX
UK shares rebounded on Thursday, supported by easing concerns over Greece. Greek parliament backed fresh austerity measures needed to secure the next tranche of the bailout. However, deteriorated global economic outlook as well as lingering worries over the US fiscal cliff capped gains of the UK stock index. Meanwhile, the BoE left its benchmark interest rate and asset purchasing program
Japanese shares posted sharp losses on Thursday amid disappointing data from domestic economy. Japan's current account dropped unexpectedly while core machinery orders slumped more than expected last month. Moreover, weakness in US stocks coupled with firm Yen created additional pressure on the Japan's blue chips. Meanwhile, traders turned their attention to Chinese Communist Party Congress where the leadership change will
The European Central Bank is expected to leave the key interest rate unchanged, as the ECB waits for Spain to ask a financial help in international markets, what will allow starting a new government bond buying round. Currently, the refinancing key interest rate is 0.75 basis points for a fourth month in a row and the deposit rate is already zero. The government council announcement
On Thursday, the U.S. Dollar was traded in tight range versus the Swiss Franc, as concerns over fiscal cliff weighed. USD/CHF hit a session low of 0.9442, and later consolidated at 0.9445, which was a 0.02% drop for the European morning trading session. The pair's support was likely to be found at 0.9398, while the resistance was prone to be
The Customs Office reported on Tuesday that trade deficit of France narrowed down in September. The country's deficit in merchandise trade fell to 5.03 billion Euros from a revised down figure of 5.26 billion Euros in the preceding month. Year over year, the deficit in trade of goods decreased by 1.84 billion from a reading of 6.87 billion Euros in
The New Zealand's government valuer revealed on Thursday that house prices continued to gain last month. Year over year, residential property prices grew by 5.7% in October, while quarter over quarter, values of houses increased by 1.9%. Current prices are 1.1% higher than during the last market peak, witnessed in late 2007.
On Thursday, the 17-nation currency was traded near a 2-month low versus the U.S. counterpart, as tax increases and spending cuts in U.S. weighed. EUR/USD hit a session low of 1.2743, and later consolidated at 1.2763, which was a slight 0.06% decrease during Asian trading hours. The pair's support was likely to be found at 1.2625, while the resistance was
On Thursday, the New Zealand Dollar decreased to a 2-week low versus the U.S. counterpart, as U.S. fiscal cliff and EU debt crisis undermined demand for riskier assets. NZD/USD hit a session low of 0.8158 during European morning trading session, and consolidated at 0.8173, which was a 0.13% fall for the trading session.
On Thursday, Natural gas was traded lower before a supply data of the commodity later in the week. On the Comex division of NYMEX, December delivery futures were traded at $3.571 per million Btu, which was a 1.29% gain for the U.S. morning trading session. Earlier, natural gas lost 1.5%, being traded at $3.556 per MMBtu, which was a session
At a press conference in Frankfurt Mario Draghi, president of the European Central Bank, said the economy of eurozone would weaken in future, therefore the bank is ready to implement bond-purchase program as soon as the governments comply with necessary requirements. The policy makers decided to leave the benchmark interest rate at 0.75%. Draghi announced the ECB may reconsider putting rate reductions, as the debt crisis threatens