The Euro advanced sharply versus its major counterparts after the ECB held its key interest rate unchanged at 0.75%, despite market expectations. On Thursday, the 17-nation currency traded at 99.30 versus the Yen, 1.2652 versus the U.S. Dollar, 0.7948 versus the Sterling and 1.2045 versus the Franc.
Eurozone's policy makers agreed to an unlimited bond- purchase program to regain control of interest rates in the region. The decision was made during today's press conference in Frankfurt after the ECB held its benchmark rate at a record low of 0.75 per cent. The European Central bank will target government bonds with maturities from one to three years, including longer-dated debt that has a
The Institute for Supply Management said in a report that the U.S. non-manufacturing index jumped to 53.7 in August compared to previous month's reading of 52.6. Experts had predicted the headline reading to advance 53.0 in the month. Any reading above 50 indicates nation's non-manufacturing sector is generally expanding.
European stocks pared advance on Thursday, after the ECB held its key interest rate unchanged at 0.75%. The Stoxx Europe 600 Index surged 0.6% at 267.01. The FTSE 100 Index gained 0.5% to 5,688.33. The CAC 40 Index rose 0.9% to 3,436.96. The DAX 30 Index climbed 1.2% to 7,046.14.
U.K. house prices slipped for the second consecutive month in August, Lloyds Banking Group's Halifax reported on Thursday. Property prices dropped 0.4% on month, after a 0.7% slid in July. Economists estimated a 0.2% increase. On quarterly basis, prices fell 0.9%. The government is expected to outline support to 16,500 new buyers by extending the FirstBuy scheme.
London stocks increased on Thursday, boosted by miners banks and oil firms, as investors awaited the ECB policy meeting, while the BoE held its benchmark interest rate stable. The FTSE 100, leading U.K. index, advanced 0.7% to 5,694.92. Most metal prices were up.
The Banks of England announced on Thursday that it will maintain its official bank rate at the record-low level of 0.5% for the 42nd month in a row. The amount of asset purchasing program will also be unchanged from GBP375 billion for the third consecutive month. The data is in compliance with expectations.
On Thursday, the Economy Ministry reported that German industrial orders grew by 0.5% on a seasonally adjusted basis, which is more than an expected 0.2% increase. Domestic bookings increased by 1.0%, while foreign ones grew by 0.1% despite a 0.6% drop in Eurozone orders. The figure for June was revised up from a 1.7% decrease to a more modest 1.6% decline.
On Thursday, futures for oil were rising for the second day in a row on weak U.S. supply data, which hit a five-month low, and optimism about today's ECB's policy meeting. On the NYMEX, October delivery futures for crude were traded at USD96.12 per barrel, which was a 0.8% increase during European morning trading hours.
The European Central Bank left benchmark interest rate unchanged today, as President Mario Draghi prepares to unveil a bond-purchase plan to save the shared currency. During today's meeting in Frankfurt, region's policy makers left the benchmark rate at a record low of 0.75 per cent, meeting analysts' expectations.
Gold futures advanced on Thursday, September 6, topping the key $1, 700 level for the first time since March, as investors looked ahead to the highly anticipated European Central Bank's policy meeting later in the day. Gold futures with December contract jumped 1.02 per cent to $1,711.10. Elsewhere on the Comex, silver for December settlement rose 1.65 per cent, while copper for the same month
U.S. stock index futures edged higher on Thursday, suggesting investors are confident word from the ECB policy meeting later this day will ease ongoing concerns over the fate of the region. The Dow Jones Industrial Average added 0.5% to 13,117 points; the Standard & Poor 500 Index edged 0.47% higher, to 1,410.10, while Nasdaq 100 futures rose by 0.6%, to reach 2,785.
French jobless rate rose to a thirteen-year high in the second quarter, as companies reduce staff in order to cope with nation's worsening fundamentals. The unemployment rate rose to 10.2 per cent in the second quarter, up from 10 per cent in the preceding quarter, as the Eurozone's second-largest economy has posted three consecutive quarters of zero growth.
Australian Bureau of Statistics reported on Thursday that the Australian unemployment rate in August decreased to 5.1% on a seasonally adjusted basis, compared to the July's figure of 5.2%. The data defied the expectations, since analysts expected that the unemployment rate in Australia would grow to 5.3% in August.
On Thursday, Spain witnessed a decrease in its borrowing costs, while it was selling its medium-term debt as traders eyed ECB's policy meeting. Spain's Treasury sold 2-year bonds for EUR608 million, having the average yield equal to 2.798%, which is a significant decrease from the last month's figure of 4.774%. The average yield for 3-year government bonds was 3.676%, compared 5.086% in the previous month.
Eurostat reported on Thursday that the gross domestic product of Eurozone fell by 0.2% in the second quarter. The data is in compliance with expectations and did not change from the first estimate. Year on year, GDP in Eurozone shrank 0.5%, which is worse than an expected 0.4% decline. Following the release of the data, the Euro gained 0.1% versus the Greenback to trade at 1.2612.
On Thursday, France witnessed a decrease in yields as it was selling its debt on an auction, since traders eyed upcoming ECB's policy meeting. France's Treasury managed to sell government bonds worth EUR7.98 billion, while the target was between 7 and 8 billion Euros. The average yield of 10-year bonds was 2.21%, which is less than the average yield of 2.53% in August.
The Australian Dollar strengthened after report indicated the nation's unemployment fell from 5.2% in July to 5.1% in August. The so-called Aussie Dollar climbed 0.3% to $1.0227 and gained 0.3% to 80.18 Yen. The Pacific currencies gained versus most of the 16 major peers before Mario Draghi's speech at the press conference today.
The Swiss Franc declined versus the Euro to the lowest level in a month on speculation the Swiss National Bank will shift the cap to weaken the local currency. The Franc lost as much as 0.2% to 1.2058 per Euro, the lowest level since August, while being little changed at 95.65 centimes per Dollar.
The Euro hovered near a two-month high versus the U.S. Dollar on speculation the ECB will announce today bond purchases to tame the Eurozone's crisis. The Euro touched $1.2612 from the day before, when it climbed 0.3%. The common currency fetched $1.2638 on August 31, the highest level since July. The Euro also gained 0.1% to 98.91 Yen.
Farm commodities slumped on Wednesday amid improved weather in Brazil and India. Meanwhile, slowing demand for US grains exports weighted down on wheat and corn futures. However, broadly lower US Dollar provided slight support for rural commodities. Wheat plunged to almost three-week low on news that demand for the commodity will weaken as livestock producers are switching to cheaper corn for
Energy commodities except for crude oil moved lower ahead of the US inventory data release due on Thursday. Adding pressure on the commodity group, most of the refineries in Louisiana restarted production as tropical storm, Isaac, passed. Crude oil was almost flat, balancing between easing concerns over supply disruption from the Gulf of Mexico and potential fall in the US crude
Industrial metals rallied on Wednesday after news that the ECB is likely to announce an unlimited bond-purchasing program without capping the bond yields. Expectations of stimulus measures from the Fed and POBC also buoyed the base metals group. Aluminum remained well-supported by strong vehicle sales and mounting easing hopes. The light metal also found support on lower inventory levels at the
Precious metals were mixed ahead of the key ECB meeting due on Thursday. The ECB is expected to cut its benchmark interest rate by 25bps to 0.50%. Moreover, some analysts predict that the ECB may announce an unlimited bond-buying program at the policy meeting. Gold dropped at the early European session; however, the yellow metal managed to trim losses during US