Portugal decided to raise taxes to meet necessary requirements to receive an international bailout. Average rate of income tax will be increased by 2 percentage points from 9.8% currently to 11.8%. The government's measures, including income and property taxes hikes, a new tax on financial transactions and spending cuts, will amount to 3% of GDP next year.
On Thursday, copper was traded lower on Chinese economy slowdown and a worsening outlook for European economies. Traders eyed the upcoming ECB meeting later in the day and U.S. non-farm payroll data. On the London Metal Exchange, three-month copper reached $8,274 per tonne, losing 0.19%, by 04:30 a.m. in London.
On Thursday, treasuries were traded lower amid speculation that quantitative easing could boost the U.S. economy, stoking inflation. 10-year notes trimmed 4-day gains as increased Asian stocks, sapped safer assets demand. 30-year notes yield added 2 basis points and reached 2.84% by 7:07 a.m. London time.
On Thursday, crude oil declined on soft Chinese output and uncertainty over Spanish bailout. On the NYMEX, November delivery futures for light sweet crude were trade at $88.11 per barrel, which was a 0.03% decrease for the Asian trade. Earlier, it hit a session low of $88.09 and $88.34 per barrel, which was a session high.
On Thursday, gold prices were higher, after traders started to sell the U.S. Dollar. On the NYMEX, December delivery futures for gold were traded at $,781.35 per troy ounce, which was a 0.09% increase for the Asian trading hours. Earlier it hit $1,780.55, which was a session low, and a session high of $1,782.15 per troy once.
Australian trade deficit widened to its highest level in more than four years, as exports from industrial commodities shrank, the Australian Bureau of Statistics said on Wednesday. Nation's trade balance dropped to a seasonally adjusted -2.03B, down from -1.53B in the previous month. Analysts had predicted Australia's trade balance to narrow -0.70B last month.
UK shares rebounded on Wednesday on positive news from the US labour market. US ADP non-farm employment rose more than expected last month. However, weak data from the domestic market limited gains of the UK stocks.UK services PMI fell more than expected last month. Meanwhile, uncertainty over Spain's bailout continued to weight. The FTSE 100 Index gained 0.17% to trade
German equities advanced on Wednesday on encouraging headlines from the US jobs market. Boosting German equities further, eurozone's retail sales grew 0.1% in August, confronting expectations of a 0.1% decline. However, dismal data from German services sector created heavy pressure on the stock index. German services PMI contracted to 49.7 last month compared to a preliminary reading of 50.6. The
Hong Kong shares inched up despite negative data from national economy. China's services PMI tumbled to the lowest level in two years. Moreover, Asian Development Bank downgraded China's GDP growth estimate by almost one per cent point to 7.7% compared to 8.5% previously expected. The bank also warned that downside risks will persist in the short term. The Hang Seng
Japanese equities declined on Wednesday as concerns whether Spain will request the bailout started to dent market sentiment. Meanwhile, market players awaited key meetings of the ECB and BoJ. The Nikkei 225 Index tumbled 0.45% to close at 8,746.87. Only four in ten sectors within the index gained. Financials and oil and gas companies were among the top-gainers. Shares of
The Institute for Supply Management's index of U.S. non-manufacturing sector increased to the highest level in six months. The figures rose to 55.1 in September from 53.7 in the prior month, beating analysts' expectations of 53.4. The reading follows factory data, which showed that manufacturing rose in September for the first time in 4 months. The ISM factory index increased
The Dow Jones Industrial Average Index slid 0.24% to close at 13,482.36. Rising concerns over Spain's bailout weighted down on the US blue chips. However, recent positive data from the US capped the downswing. Only three in nine sectors included in the index gained. The top-performers were oil and gas sector and health care companies. Chevron moved higher by 0.61%
US stocks inched up on Tuesday on persistent support from upbeat manufacturing data. Stronger-than-expected vehicle sales also lifted US stocks. However, the market sentiment was weakened by disappointing news from eurozone. Spain is still uncertain whether to apply for a new bailout this weekend. S&P 500 Index added 0.09% to close at 1,445.75. Seven out of ten sectors within the
On Wednesday, the British Pound was traded close to a 3-week low versus the U.S. Dollar, after the U.K. data showed that its services PMI fell last month. GBP/USD reached the lowest since Sept. 13, which was 1.6084, and later consolidated at 1.6001, which was a 0.17% decrease during the European morning trading hours.
On Wednesday, futures for natural gas experienced a fall for the first time during the last 7 days after hitting a ten-month high on cold weather forecasts. On the NYMEX, November delivery futures eased 3.5 cents, or 1 %, to trade at 3.496 per MMBtu. Yesterday, futures added 1.5%, being traded at $3.531 per MMBtu, which was the highest since December 2.
On Wednesday, the U.S. Dollar was traded higher versus the Japanese Yen, amid uncertainty over Spanish bailout and disappointing Chinese data, which boosted the safe haven demand. USD/JPY hit 78.30, which was the lowest since September 20, and later consolidated at 78.21, which was a 0.07% gain for the European morning trading session.
Markit, a market research group, reported on Wednesday that German service activity decreased at the most rapid rate since March 2009 on a quick drop in employment. German services PMI was revised down to 49.7 in the previous month from a preliminary estimate of 50.6. Following the release of the data the Euro dipped 0.08% versus the U.S. Dollar to trade at $1.2908.
French service sector tumbled at a faster-than-expected pace in September, Markit Economics revealed final data on Wednesday. The seasonallized composite output index slipped to a 42-month low of 43.2, compared to 48 in August and below preliminary estimate of 44.1. The service sector PMI was at 45 from 49.2 in the preceding month, and up from initial 46.1. The activity
On Wednesday, the New Zealand Dollar was significantly lower versus the U.S. counterpart, amid concerns over Spanish bailout and Chinese economic growth. NZD/USD hit the lowest since Sept. 26, which was 0.8206, and subsequently consolidated at 0.8210, which was a 0.79% drop for the European morning trading session.
On Wednesday, copper was traded lower, following a 4-day rally, amid uncertainty over Spanish bailout plan and holidays in China, which is a top copper consumer. On the London Metal Exchange, three-month copper fell by 0.85% to trade at $8,255.00 per tonne at 08:15 a.m. London time. Earlier, the metal hit a 4-month high on September 19.
Markit Financial Information Services reported on Wednesday that Spanish service sector activity witnessed a steeper decline in September than it was expected. Services PMI declined to 40.2 on a seasonally adjusted basis, compared to a preceding month's reading of 44.0. Analysts, however, expected that the index would be equal to 42.5.
On Wednesday, gold was traded near an 11-month high, amid uncertainty over Spanish bailout plan and upcoming U.S. unemployment report. Spot prices for gold were little changed, being traded at $1,772.69 per troy ounce at 2:24 a.m. in New York. Earlier this week, gold hit a level of $1,791.20, which was the highest since November 2011.
On Wednesday, treasuries were traded higher for the fourth day in a row, following the announcement of disappointing Chinese non-manufacturing data, and amid speculations that an upcoming report will show a similar decrease in the U.S. The yield on 10-year notes decreased 2 basis points, and reached 1.60% by 8:20 a.m. London time.
European stocks declined on Wednesday amid worries Spain may postpone a bailout and weak China sentiment. The Stoxx Europe 600 Index slid 0.3% to 270.90. The DAX 30 Index tumbled 0.2% to 7,294.86, the FTSE 100 Index slipped 0.3% to 5.,794.37 and CAC 40 Index dropped 0.4% to 3,400.73.