US blue chips climbed on inspiring US data releases. Market sentiment was boosted by positive reports from US labour markets and services sector. Meanwhile, investors await key jobs market data due on Friday. The Dow Jones Industrial Average Index gained 0.09% to lose at 13,494.61. Six out of nine sectors included in the index climbed. The biggest gains posted telecommunications
US equities advanced on Wednesday on encouraging economic data. US services PMI attained 55.1 last month compared to estimates of 53.4. Moreover, US non-farm employment increased more-than-expected in September. However, dismal services PMI releases from eurozone and China capped the upswing of the US stock index. The S&P 500 Index gained 0.36% to close at 1,450.99. Eight out of ten
U.S. unemployment claims increased last week, indicating an uneven labour market improvement. According to the Labour Department figures, the number of applications for unemployment benefits rose 4000 to 367 000, while economists projection was 370 000 claims. "We're not going anywhere quickly in the jobs market," said Ryan Sweet, Senior Economist at Moody's Analytics Inc. "The job market is just more
The ECB President Mario Draghi said the central bank is prepared to start buying government bonds as soon as the requirements are met, forcing Spain to decide whether it request bailout. The central bank stands ready to implement Outright Monetary Transactions, after the benchmark rate was left at 0.75%. "With the OMT, the ECB has tackled and exorcised fears of an imminent Eurozone break-up," said Carsten Brzeski,
The worldwide food price index surged in September after two months of stagnation, the Food and Agriculture Organization reported on Thursday. The index added 1.4% on month to 216, compared to 213 in August. Meanwhile, FAO cut its expectations of cereal output in 2012 to 2,286 million tones, 2.6% down from the preceding year's record harvest, compared to previous forecast
Spain raised 3.99 billion Euro in the debt auction on Thursday on continuing uncertainty over the necessity of a bailout. The benchmark yield on a new 3-year note surged to 3.956%, compared to 3.845% at the preceding auction on Sept. 20. The bid-to-cover ratio advanced to 2 times, compared to 1.56 last time. Demand for 2014 debt exceeded supply 2
Hong Kong's retail sales growth accelerated in August, however at a lower-than-expected expansion rate, the Census and Statistics Department said on Thursday. Retail sales soared 3.2% on year, compared to an upwardly revised 1.4% rise in July. Economists estimated sales volume to increase 3.5%. On a seasonalized basis retail sales slid 0.1% in the three months through August.
U.S. stock futures advanced ahead of Wall Street's opening on Thursday, as traders awaited weekly unemployment claims, manufacturing orders and results of the ECB meeting. Dow Jones futures rose 0.2% to 13,4518 and those on S&P 500 added 0.2% to 1,447.80. Nasdaq 100 futures surged 0.3% to 2,815. Economists expect 370,000 unemployment claims for the latest week, from 359,000 in
On Thursday, Spain witnessed a decrease in its borrowing costs as it was selling the government debt. Spain's Treasury managed to sell 5-year bonds worth EUR710 million at the average yield of 4.766%, which was a sharp fall from a figure of 6.456% in the last month. The yield on 2-year bonds also declined from 2.798% to 2.282%, whereas 3-year bond yield rose to 3.956% from
On Thursday, European stocks experienced a decline, as Spain sold its government debt and traders eyed an upcoming ECB policy meeting. The Stoxx Europe 600 Index declined by 0.2% and reached 270.77 by 9:59 a.m. London time. Earlier it rose by 0.5%. The index slipped 2.7% last week, as France and Germany disagreed on terms of banking union.
On Thursday, the British Pound was traded higher versus the U.S. Dollar, as investors eyed the upcoming BoE decision on interest rates. GBP/USD hit a session high of 1.6134, and later consolidated at 1.6112, which was a 0.22% gain for the European morning trading session. The pair's support was likely to be at 1.6065, while the resistance could be found at 1.6174.
On Thursday, oil retreated from a 2-month low, as the 17-nation currency appreciated versus the U.S. counterpart before the upcoming ECB meeting, supporting demand for commodities. On the NYMEX, November delivery futures for light sweet crude hit a session high of $88.76 per barrel, and consolidated at $88.60 by 8:46 a.m. in London.
The ECB Governing Council held its minimum bid rate stable at 0.75% for the third consecutive month during a monthly meeting on Thursday. Markets posted only a 3% probability of a rate decrease today. For now the 0.75% bid is the rate at which refinancing agreements are established for all participants.During the meeting the Council also decided to leave its
On Thursday, the Euro grew to a 2-week high versus the Swiss Franc, as traders' sentiment was buoyed by speculation that Spain's request for a bailout will happen soon. The 17-nation currency added 0.2%, to trade at 1.2133, which was highest level since the middle of September. Moreover, the ECB is expected to leave interest rates unaltered on Thursday.
Asian currencies were close to 7-month high as data showed the U.S. employment increased more than economists projected, alleviating market concerns about global slowdown and boosting demand for riskier assets. The Taiwan Dollar gained 0.3% to NT$29.322 versus the U.S. Dollar, while the Philippines peso rose 0.1% to 41.555.The Malaysian Ringgit climbed 0.1% to 3.0575.
The Japanese Yen fell versus its major counterparts amid speculation central banks will take more measures to prevent further economic slowdown, curtailing demand for haven assets. Japan's currency lost 0.2% to 78.67 per U.S. Dollar after touching 78.72, the lowest level since September 19. The Yen fell 0.4% to 101.68 per Euro, heading for a sixth-consecutive decline.
The Bank of England kept the base rate of interest at the record low of 0.25% for the 44th consecutive month and decided to hold off any further economy-boosting measures. Economists had widely forecast such outcome. Analysts expect no further quantitative easing until November, when the latest investment of 50 billion Pounds is used up. The total commitment in bond-purchasing
On Thursday, the British Pounds was at a 2-week low versus the Euro, as traders eyed the upcoming results of BoE meeting. Although, the central bank is expected to leave its policy unchanged, soft data in the U.K. kept alive speculation about another monetary stimulus. The Euro added 0.1% and was traded at £80.375, which was the highest since September 20.
Halifax, a mortgage lender, reported on Thursday that its house price index declined unexpectedly, as demand was influenced by the weak economy. In September, British house prices lost 0.4%, following an unexpected August's 0.5% increase. Economists, however, predicted that U.K. house prices would add 0.2% last month.
Australian Bureau of Statistics reported on Thursday that Australia's retail sales increased less than expected in September. Retail sales grew by 0.2% on a seasonally adjusted basis, compared to a preceding month's decrease of 0.8%. Economists, however, expected that retail sales would witness a more optimistic growth of 0.4%.
The Canadian Dollar declined to almost one-month low versus the U.S. Dollar as a decrease in China's non-manufacturing industrial growth offset data that showed U.S. employment rose more than expected. The Loonie lost 0.4% to 98.76 cents per U.S counterpart. The Canadian Dollar touched 98.84, the lowest since September 6.
The Asian Development Bank slashed its forecast for China's GDP growth in 2012 to 7.7% from 8.5% projected in April, while the Chinese government will assure a soft economic landing. According to economists of ADB, the downside risks to the Chinese economy possibly will intensify in the short run due to weak global demand and concerns surrounding China's largest trading
The Australian Dollar was close to 1-month low as data showed retail sales rose at a slower pace than expected. The Aussie was little changed at $1.0218 after touching $1.0182, the weakest level since September 6. Australia's currency climbed 0.2% to 80.35 Yen. The New Zealand Dollar gained 0.2% to 82.09 U.S. cents and increased 0.4% to 64.55 Yen.
Asian stocks rose as data on U.S. employment and service sector overshot expectations, calming concerns the world's biggest economy is slowing. The MSCI Asia Pacific Index rose 0.6% to 122.25. The Nikkei 225 Stock Average gained 1.3% and Australia's S&P/ASX 200 Index climbed 0.4%. Hong Kong's Hang Seng Index rose 0.2% and South Korea's Kospi Index added 0.1%.