U.S. Treasuries declined and the U.S. Dollar cut rise on Wednesday, increasing yields, as a media report added signs the ECB may create a further sovereign-debt buying program at this week's meeting. 10-year note rates moved 1 basis point up to 1.58%. The ICE Dollar Index slipped to 81.249 from 81.327 yesterday.
The U.S. Bureau of Labor Statistics reported that productivity in non-farm business sector increased by 2.2% on a seasonally adjusted basis in the second quarter, which is more than an estimate of 1.6%. Analysts expected that the revised figure would be 1.8%. Following the release of the data, the Greenback was lower versus the Euro, gaining 0.2% and was traded at 1.2592.
U.K. service sector expanded at a five-month high pace in August, Markit Economics and the CIPS reported on Wednesday. The seasonally adjusted service sector PMI increased to 53.7 in August from 51 in previous month. Economists had estimated a reading of 51.2. August reading posted the twentieth straight month of expansion.
Markit Financial Information Services reported on Wednesday that services PMI in Spain increased to 44.0 in August on a seasonally adjusted basis from the July's figure of 43.7. Analysts, however, expected that the index would fall to 43.3. The rate of contraction of the service sector in Spain was the lowest since March, but the sector contracted for the fourteenth month in a row.
Markit reported on Wednesday that German service activity in August fell to its lowest since July 2009. The German services PMI remained unchanged from a first estimate at 48.3 on a seasonally adjusted basis. Following the release of the data, the Euro dipped 0.32% versus the U.S. dollar and was traded at 1.2527.
Hong Kong private sector PMI advanced a five-month fast pace in August, Markit Economics reported on Wednesday. The benchmark HSBC PMI climbed to 50.5, the strongest level since March 2012, in August from 50.3 in preceding month. Meanwhile, the number of incoming new businesses was unchanged from July and firms decreased their workforce for a fourth straight month.
Markit market research group reported on Wednesday that services PMI for Eurozone in August was revised down to 47.2, while the preliminary reading of the index was 47.5. Economists, however, expected that the index would remain unchanged. After the release of the data, the Euro was lower versus the U.S. dollar, being traded at 1.2522, which was a 0.36% loss.
Swiss Federal Statistic Office reported on Wednesday that consumer price inflation remained unchanged in August, while it was expected that prices would witness a modest increase of 0.1%. Year over year, consumer prices in Switzerland fell by 0.5% at an annualized rate, which is more than an expected 0.4% decrease in August.
On Wednesday, Eurostat reported that retail sales in Eurozone declined by 0.2% on a seasonally adjusted basis. The data is in compliance with expectations. The figure for June's retail sales was revised up from 0.1% and reached a 0.2% increase. After the release of the data, the Euro lost 0.43% versus the Greenback, and was traded at 1.2514.
British government's net foreign holdings rose for the third consecutive month in August, the HM Treasury said on Wednesday. Net foreign reserves surged to $47.0.3 billion after a rise to $46.29 billion in July. Gross foreign reserves increased to $100.94 billion from $98.99 billion in the previous month. BoE's net foreign currency and gold reserves fell $8 million on month.
Japanese equities plunged for the fifth consecutive day on Wednesday on lingering global growth fears after weaker-than-expected US manufacturing PMI data release. Meanwhile, market players are cautious ahead of the ECB press conference due on Thursday. The Nikkei 225 Index sank 1.09% to end the session at 8,679.82. Only two sectors within the index rose. Health care and telecommunication firms
The Dow Jones Industrial Average Index slid 0.42% to end Tuesday's session at 13,035.94. Dismal US economic data releases coupled with increased risk-aversion ahead of the ECB press conference due on Thursday created heavy pressure on the US blue chips. However, persistent expectations that the Fed will loosen its policy limited the downswing of the Dow Jones Index. Four in
US stocks retreated on Tuesday amid weak US data releases. US construction spending dropped by 0.9% in July on a monthly basis while US manufacturing contracted for the third consecutive month in August. However, hopes that the Fed will provide monetary stimulus continued to lend support for the US equities. The S&P 500 Index lost 0.12% to close at 1,404.94.
Rural commodities were mixed on Tuesday amid better weather conditions in the US. Market participants also awaited weekly USDA report, showing harvest progress and crop conditions due on Tuesday after the bell. Wheat declined as cooler and wetter weather in the US southern Great Plaints may allow farmers to seed winter wheat starting from September. Moreover, absence of export limits
Energy commodities apart from natural gas slid on Tuesday after dismal manufacturing data release from the US. Increased cautiousness in the markets ahead of the ECB press conference due on Thursday also weighted down on the commodity group. Crude oil was the top-loser on potential demand decline amid weak manufacturing activity worldwide. Meanwhile, traders await US inventory data due on Thursday. Brent
Base metals were bullish on Tuesday despite lingering concerns over global manufacturing weakness after dismal US PMI release. However, persistent hopes that poor economic data will result in easing measures from the Fed lifted the industrial metals. Aluminum stayed in the positive territory on heightened hopes for monetary easing in the US, EU and China. Better automobile demand also provided support
Precious metals rallied for the third day in a row on Tuesday as weak US manufacturing data stocked hopes that the Fed will ease its monetary policy soon. The US ISM manufacturing PMI contacted to three-year low of 49.6 in August. Gold posted mild gain, balancing between US easing speculation and potential demand slump in India. The Indian government is considering
Asian stocks declined as economic data from the U.S. to China and Australia added to concern the global economic growth is slowing. The MSCI Asia Pacific Index fell 1% to 116.07, setting for a fifth day of decline. Australia's S&P/ASX 200 lost 0.6% and New Zealand's NZX 50 Index fell 0.2%. Japan's Nikkei 225 Stock Average slid 0.8% and South
The Australian Dollar reached the lowest level since July 25 as the nation's economic growth slowed more than expected in the Q2. The Aussie Dollar fell 0.1% to $1.0211 after touching $1.0190 earlier, the weakest since July 25. Australia's Dollar traded at 79.996 Yen, also the lowest since July. The nation's 10-year yield fell 3 basis points to 3.06%.
The Euro depreciated for a second day before the European Central Bank's meeting tomorrow to discuss measures to tame the Eurozone's debt crisis. The 17-nation currency lost 0.3% to $1.2529 following a 0.2% decline yesterday. It touched $1.2638 on August 31, a two-month high.The common currency fell 0.4% to 98.21 Yen.
Australia's economic growth slowed in previous three-month period, pushing the domestic currency lower as investors bet the RBA will cur the key rate to extend a 21-year expansion. GDP rose 0.6% in the Q2 from the beginning of the year, when it advanced a revised 1.4%, the Bureau of Statistics said today. The nation's economy expanded 3.7% from a year
On Tuesday, September 4, natural gas futures rocketed to a four-week high, as Tropical Storm Leslie is getting more active in the Gulf of Mexico, and may cause a disruption of gas supplies from the region. Natural gas futures with October contract rocketed 2.3 per cent to $2.865 a million British thermal units.
Activity in the U.S. manufacturing sector rose less than predicted in August, as exports declined for a third consecutive month and firms were slow to hire new employees. Nation's purchasing manufacturing index fell by 0.2 points to 49.6 in August from a reading of 49.8 in the preceding month.
Treasury 10-year yields surged to near a one-month high amid belief the ECB will report measures this week to weaken the Eurozone's recession. On Tuesday, the 10-year note yield advanced two basis points to 1.57%. The 1.625% note maturing in August 2022 declined 4/32 to 100 17/32. The Fed will buy 6- to 30-year notes in two transactions today.