Germany's manufacturing declined at a weaker pace in September because of slower drops in output, new orders and stabilization of production employment levels, Markit Economics showed on Monday. The final seasonalized production PMI surged to 47.4, compared to 44.7 in the preceding month, and posting a six-moth low rate of contraction. Initially PMI showed a reading of 47.3.
On Monday, futures for natural gas rose for the fifth day in a row, which was the longest rally for the last three months, on speculations that the storage limits will be reached before cold weather increases demand. On the NYMEX, November delivery futures added 4.9 cents to trade at $3.369 per MMBtu by 10:43 a.m. in Tokyo.
Euro area's manufacturing in September tumbled at a slightly weaker pace than previously estimated, Markit Economics presented final data on Monday. The seasonalized manufacturing PMI came in at 46.1, the highest level in six months, up from preliminary 46.0. In August PMI was at 45.1. Production eased for the seventh straight month, however at a five-moth low pace.
On Monday, the British Pound was little changed versus the U.S. counterpart, being traded close to a 2-week low, following the release of disappointing data on the U.K. manufacturing activity. GBP/USD hit 1.6110, which was the lowest since Sept. 13, and consolidated later at 1.6151, losing 0.010% for the European morning trading session.
On Moday, the 17-nation currency retreated from a 3-week low versus the greenback on results of Spanish banks stress tests, which were a part of terms that allow winning of the European bailout. The Euro added 0.3% to trade ate $1.2896 by 9:59 a.m. in London. Earlier it lost 0.4%, being traded at $1.2804, which was the weakest since September 11.
U.S. government bonds inched higher on Monday ahead of a report forecast to show U.S. manufacturing fell in September after today's data posted slowdown in manufacturing in Japan, China and Australia. The 10-year yield was at 1.64%, while the 1.625% note maturing in August 2022 traded at 99 29/32.
On Monday, gold prices were lower, following the disappointing figures of the Chinese manufacturing activity and the U.S. and Japanese sentiment data. On the NYMEX, December delivery for gold traded at $1,768.65 per troy once, which was a 0.30% decline for the Asian trading session. The support was likely to be at $1,755.35, while the resistance was prone to be at 1,785.65.
Markit, a market research group, reported on Monday that activity in the manufacturing sector in the U.K. declined more than expected on a decrease in exports and an increase in costs. The Markit manufacturing PMI in September fell to 48.4, compared to an August's figure of 49.6, which was revised upwards. Analysts expected that the last month's reading would be 49.5."Overseas sales continue to be hit
On Monday, oil retreated from a 1-week high, as China witnessed an unexpected decrease in its manufacturing activity, raising speculations that the demand for fuel may fall. On the NYMEX, November delivery futures lost 93 cents, hitting a session low of $91.26, and subsequently consolidated at $91.97 by 9:01 a.m. in London.
Eurostat reported on Monday that the level of unemployment in the countries that are using the Euro was 11.4% in August, which was unchanged from the readings for the preceding two months, after these figures were revised upwards. The level of unemployment was the highest since 1995, when the records started.
Emerging-market stocks declined as data from South Korea, China and Japan indicated that the global slowdown is deepening. The MSCI Emerging Markets Index slipped 0.3% to 999.73. Vietnam's VN Index lost 1.1%, while the Jakarta Stock Exchange Composite Index and Taiwan's Taiex Index fell 0.7%. China's manufacturing shrank in September and Japanese manufacturers became pessimistic.
Asian stocks fell for a second day as China's manufacturing decreased amid global slowdown that curtailed export demand and Japanese manufacturers became pessimistic. The MSCI Asia Pacific Index dropped 0.7% to 121.65. Japan's Nikkei 225 Stock Average lost 0.8%, while Taiwan's Taiex Index slipped 0.7% and Singapore's Straits Times Index fell 0.5%.
The U.S. Dollar and Japanese Yen advanced against most of the major peers as indication of economic slowdown in Europe and Asia spurred demand for safe-haven assets. The Dollar rose 0.3% to $1.2826 per Euro from last week, after touching earlier $1.2804, the strongest level since September 11. The Yen traded at 99.88 per Euro and added 0.4% to 80.55 per Australia's Dollar.
Japan's industrial output fell more than expected in August, as the demand for cars and electronics was weak due to the global slowdown. As reported by the Ministry of Economy, Trade and Industry, nation's industrial production slumped to a seasonally adjusted -1.3%, down from -1.0% in July, adding concerns that the world's third biggest economy may slip into recession by the end of 2012.
The inflation rate in the Eurozone's 17 countries that have the Euro in circulation rose to a six-month high in September, the EU's statistics office, Eurostat said on Friday. Consumer price inflation jumped to a seasonally adjusted annual rate of 2.7%, up from 2.6% in the prior month, while analysts had estimated the annual rate of inflation fell to 2.4%.
On Friday, the Euro declined versus the U.S. Dollar, following the release of the Chicago PMI and consumer sentiment data, which both showed optimistic trend of the U.S. economy. The 17-nation currency declined by 0.5% to trade at $1.2852 by 10:30 a.m. in New York. Earlier, it gained 0.4%, hitting a session high of $1.2960.
On Friday, the greenback was higher versus the Canadian Dollar, following optimistic reports from the U.S. USD/CAD hit 0.9821, and subsequently consolidated at 0.9815, which was a 0.09% gain during the European afternoon trading session. The pair's supports was likely to be found at 0.9757, while the resistance was prone to be at 0.9854.
University of Michigan reported on Friday that the final reading of its consumer sentiment index in September added to 78.3 from a previous month's reading of 74.3. Although the figure was the highest sine May, it was still lower than the analysts' forecast of 79, and below the level of the initial estimate of 79.2.
On Friday, the 17-nation currency was higher versus the greenback for the second day, following Spain's government announcement about its austerity package. The Euro gained 0.2% versus the U.S. Dollar to trade at $1.2934 by 9.22 a.m. in New York. Earlier it hit a session high of $1.2960 and a session low of 1.2904.
Kingsbury International, a research group, reported on Friday that its Chicago purchasing managers' index fell more than expected. The September's figure was equal to 49.7, which was a significant decrease from the previous month's reading of 53.0. Economists, however, predicted that the September's figure would be unchanged from the August's reading and equal to 53.0.
Commerce Department reported on Friday that the income of the U.S. consumers gained 0.1% in the previous month, matching a July's gain. Economists predicted that there would be a more significant increase of 0.2%. Disposable income, however, declined by 0.3% after adjustments for inflation, which was the worst reading since November.
Statistics Canada reported on Friday that the adjusted for inflation Canadian gross domestic product added 0.2% in July, compared to a June's increase of 0.1%, which was revised down from an initial estimate of a 0.2% growth. Analysts expected that the real GDP gain in July would remain unchanged from the June's reading.
German stocks fell on Friday ahead of Spanish bank's stress test results. Pessimistic news from the US also created heavy pressure on German equities. Adding to the negative mood of German blue chips, the country's retail sales rose 0.3% last month compared to a forecast of a 0.5% increase. The DAX Index lost 0.75% to trade at 7,235.05. All sectors
UK shares are trading slightly lower on Friday amid increased cautiousness among market participants ahead of the results of Spanish banks' stress tests due later in day after the market close. Mixed news from Germany and Italy also weighted down on the UK stock index. The FTSE 100 Index slid 0.25% and is currently trading at 5,764.83. Six out of