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.
Australia's currency climbed from a 6-week low as the RBA officials refused to decrease the benchmark rate, despite signs of further weakening in the global economy. On Tuesday, the Aussie surged 0.2% to $1.0266, after reaching $1.0224, the least since July 25. It rose 0.5% to 80.50 Yen. New Zealand's Dollar slid to 79.56 U.S. cents, the lowest since July
Gold, selling close to a five-month high, advanced in New York after economic reports adding signs central banks may create further stimulus fueled demand. On Tuesday, December-delivery gold surged 0.3% to $1,692.10 per ounce in New York. Prices touched $1,669.60, the strongest since March 27. Gold for immediate delivery slid 0.1% to $1,689.50 per ounce in London.
Oil surged to a one-week high in New York amid belief central banks will step up efforts to support economic growth, fueling demand for commodities. On Tuesday, futures rose 0.9% from the Aug.31 close. October-delivery oil climbed 90 cents to $97.37 per barrel, the highest since Aug.27. October-settlement Brent oil advanced 34 cents to $116.12 per barrel.
The Swiss economy contracted unexpectedly in Q2, influenced by declining domestic demand and weak external trade, the State Secretariat for Economic Affairs said on Tuesday. Real GDP slipped 0.1%, after a 0.5% increase in Q1. Economists expected an expansion of 0.2%. On yearly basis, GDP expanded only 0.5%, compared to preceding growth of 1.2% and estimates of 1.6%.
Futures for crude oil trimmed gains on Tuesday during U.S. morning trading hours, as investors eyed upcoming ISM report on activity in the U.S. manufacturing sector later in the day and the ECB's policy meeting later in the week. On the NYMEX, October delivery futures for light sweet crude were traded at USD96.54 per barrel, giving up 0.1% for the trading session. Earlier in the
On Tuesday, Markit reported that its final U.S. manufacturing PMI gained 0.1 point in August and reached 51.5. This is lower than initial estimates of 51.9 and indicates only a slight improvement in manufacturing business conditions in the U.S. Although it is still up from July's 51.4, the reading was one of lowest since October 2009, when recovery in manufacturing sector was first indicated.
U.K. 10-year rates rose to a two-week high after speculation Mario Draghi will announce a bond-purchasing program this week decreased demand for safer assets. U.K. 10-year yields advanced 1 basis point to 1.66%, after earlier climb to 1.71%, the most since Aug. 20. The 1.75 note due in September 2022 slipped 0.06 to 100.855. German 10-year yields gained 1 basis
On Tuesday, the Euro remained almost unchanged versus the U.S. Dollar, as it was supported by expectations that the ECB will announce measures to cope with Eurozone's debt crisis. The pair reached 1.2628, which was the highest since Friday, and consolidated at 1.2592, adding 0.02% for the European morning trading session. The pair's support was likely to be found at 1.2492, while the resistance was prone
German equities slumped on Tuesday on escalated risk-aversion in the markets as Moody's cut its EU credit outlook to 'negative' and may downgrade AAA region's rating as debt crisis continued to rage. However, hopes for easing still provide slight support for European shares. The German DAX Index slid 0.51% to trade at 6,982.63. Only two in nine sectors included in
UK shares tumbled on Tuesday, extending previous drop after Moody's downgraded its outlook on EU credit rating to 'negative'. The ratings agency also warned that the AAA rating may be cut soon because of lack of debt crisis resolution in the region. Meanwhile, market participants are cautious ahead of the ECB press conference due on Thursday. The FTSE 100 Index
On Tuesday, the British Pound remained almost unchanged versus the U.S. dollar, as traders eyed the upcoming ECB's policy meeting, while weak U.K. data weighed on sterling demand. The Greenback hit the daily low of 1.5869 in terms of U.S. Dollar, and later consolidated at 1.5886, which was a slight 0.02% decrease for the European afternoon trading session.
U.S. stocks traded almost unchanged as investors returned from a three-day weekend and awaited the release of a closely watched manufacturing survey. The Dow Jones Industrial Average fell 0.1%, to 13,077.; the Standard & Poor 500 Index edged 0.02% higher, to 1,403.80, while Nasdaq 100 futures lost 0.04%, to 2,770.00.
European stocks turned lower on Tuesday, September 4, as investors are waiting for the ECB's meeting on Thursday, while Moody's credit rating agency changed Eurozone's outlook to negative. The Stoxx Europe 600 Index erased 0.4% to 267.33, the U.K.'s FTSE 100 Index lost 0.4% to 5,737.2, German DAX 30 Index fell 0.3% to 6,996.92, while French CAC 40 Index inched 0.4% lower to 3,440.04.
On Tuesday, futures for copper were traded higher in European morning trade, as traders continued to hope that the ECB and the Fed will act soon to support their economies. On the Comex, December delivery futures for copper were traded at USD3.486 per pound, which was a 0.85% gain during that trading session. Earlier in the day, copper hit USD3.495, rising by 1.1%.
On Tuesday, the Spanish Employment Ministry reported that the level of registered unemployment increased by 38,179 in August from the July's figure of 4.63 million. However, this is less than a 51,185 increase in August in the previous year. Spanish joblessness increased for the first time since April when it grew by almost 39 thousand.
Markit market research group reported on Tuesday that activity in U.K.'s construction sector fell. Markit's construction PMI declined by 1.9 points and reached 49.0 on a seasonally adjusted basis, while the analysts expected that the index would decrease by 0.9 points. Following the release of the data, the Cable trimmed gains versus the U.S. Dollar and was traded at 1.5893.