The Euro advanced versus the Japanese Yen on speculation the ECB President Mario Draghi's bond-buying programme will increase confidence in the common currency. The Euro gained against most of the major counterparts and approached a 2-month high versus the U.S. Dollar before the meetings of European officials today. The Euro rose 0.3% to 98.87 Yen and climbed 0.2% to $1.2617,
Andalusia, the most populated of Spain's regions, asked for 1 billion euros from Spanish government. In the meanwhile, region's unemployment rate remains at a record level of 33.9 per cent. Valencia, Murcia and Catalonia have already requested bailouts in recent weeks. An 18 billion euro public fund was set up by Madrid to help its troubled regions.
The U.S. dollar held steady versus its major counterparts on Monday, as traders remained cautious about upcoming ECB meeting and the U.S. data on employment. The U.S. Dollar witnessed a slight increase of 0.05% versus the Euro in European afternoon trade. The Greenback also witnessed a minor 0.02% growth versus the Swiss Franc and a slight 0.10% decline against the Japanese Yen.
On Monday, the Euro held steady versus the Greenback, as investors were focused on upcoming U.S. employment data and ECB's policy setting meeting. The EUR/USD pair 1.2587 and consolidated at the rate of 1.2570, losing 0.05% during the European afternoon trade. The support for the currency pair could be at 1.2492, while resistance was prone to be at 1.2636.
Purchasing managers index gained more than expected the last month. Markit market research group reported that the index climbed 4.1 points, reaching 49.5 on a seasonally adjusted basis, while it was expected that it would rise only by 0.8 points. Output rose significantly on the account of consumer goods, while companies that produce intermediate goods witnessed less considerable gains.
Japanese stocks slid for a third straight day as the nation's capital spending increased less than forecast and the Yen advanced after Fed Chairman Ben Bernanke announced further monetary stimulus. The Nikkei 225 Stock Average dropped 0.6% to 8,783.89, after earlier 0.6% gain. Volume was 6.6% up from the 30-day average.
Chinese shares advanced for the first time in four days as the PMI decline fueled belief the government will create further stimulus measures. The Shanghai Composite Index surged 0.6% to 2,059.15, regaining from the weakest since February 2009. The Hang Seng China Enterprise Index rose 0.5%.
Gold futures rocketed to a five-month high, as weak Chinese manufacturing data added to hopes that Chinese policymakers will soon introduce more stimulus measures. Gold for December settlement jumped 0.4 per cent, to $1,693.50 per ounce, adding gains to a 1.8 per cent rally on Friday.
Oil futures depreciated on Monday, as manufacturing activity in the world's second largest economy fell, and the U.S. Dollar edged higher. Oil futures with October contract erased 0.1 per cent, to $96.38 per barrel. Other oil-related products were also lower on Monday, with gasoline, heating oil and natural gas for October delivery erasing 0.4%, 0.3% and 0.5%, respectively.
India's trade balance widened more than expected in July, according to official data. The Ministry of Statistics and Programme Implementation reported that nation's trade gap tumbled to -15.5B, down from -10.3B in the previous month. In the meanwhile, experts had predicted India's trade balance to decline -8.8B last month.
Activity in the Eurozone's manufacturing sector shrank more than expected in August. The final PMI came in at 45.1, up from 44.0 in the preceding month. Any reading below 50 signals a contraction in manufacturing activity. PMI in the Europe's biggest economy was also revised lower from 45.1 to 44.7, according to Markit. Factories in Germany and France saw activity fall for the sixth in a
Swiss retail sales rose at a weaker pace in July, according to the Federal Statistical Office preliminary report on Monday. Real retail sales soared seasonally adjusted 3.2% on year in July, after a 3.3% increase in previous month. Overall retail sales declined 0.4% in July, after a 0.1% gain in June.
Japan's auto sales increased 7.3% on year in August, the Japan Automobile Dealer's Association reported on Monday compared to a 36.1% expansion in July. Overall automobile sales amounted 232,372 units in August. Passenger cars surged 8.7% from last year. While, truck sales tumbled 0.4%.
The U.S. Dollar climbed against major peers on Monday, rebounding after last weeks losses amid Ben Bernanke's talk about further monetary stimulus. The Sterling fluctuated after the U.K. manufacturing PMI data posted weakening of the slowdown. On Monday, the ICE Dollar Index surged to 81.31 from 81.242 on Friday. The Pound was stable at $1.588. The EUR/GBP slid 0.82% to
Resource firms supported advance of European stocks, with markets gaining on Asian stock exchanges after weak China's manufacturing data fueled speculation about additional monetary easing. On Monday, the Stoxx Europe 600 Index surged 0.5% to 267.68, after a 0.5% rise on Friday. The FTSE 100 Index gained 0.7% to 5,749.08. The Dax added 0.4% to 6,996.64.
South Korea's consumer prices rose 1.2% from the previous year following a 1.5% increase in July, Statistics Korea reported today. Analysts expected a 1.4% gain. The central bank kept the interest rates unchanged last month following an unexpected cut in July. Weak inflation provides more room for another benchmark rate reduction.
China's manufacturing tumbled to a 9-month low in August, adding to concern that the economy is weakening faster than expected. The PMI dropped to 49.2, the lowest level since November 2011. Economists argued that China has been hurt by a slowdown both in global and domestic demand.
Retail sales in Australia unexpectedly fell in July at the fastest pace since 2010 and profits of companies declined for a third consecutive quarter, pushing the Australian Dollar to a 5-week low. Sales dropped 0.8% to A$21.4 billion, or $22 billion, from June, when they increased a revised 1.2%, the Bureau of Statistics reported today. Gross operating profits declined 0.7%
The Japanese Yen advanced versus most of the 16 major counterparts as worries that the world's economy is weakening spurred demand for safe haven assets. The Yen strengthened 0.1% to 78.29 per U.S. Dollar from 78.39 on August 31, when the currency touched 78.19, the strongest level since August 13. The Yen climbed 0.1% to 98.48 per Euro.
Orders to U.S. companies rose in July, reflecting strong demand for autos and commercial aircraft. The Commerce Department says factory orders jumped 2.8 per cent in the previous month, after erasing 0.5 per cent in June, posting a biggest rise in one year period. In the meanwhile, core capital goods orders plunged 0.5 per cent in the same month.
Crude oil futures rose on Friday after two consecutive sessions of loses, as the U.S. Dollar depreciated, and traders were waiting for a speech by Ben Bernanke. October crude edged 1.7 per cent higher to $96.27 per barrel. At the same time, the ICE Dollar Index erased 0.68 per cent to 81.16, from earlier 81.704. Other oil-related products were also higher on Friday.
Canadian economy grew more than expected in July, Statistics Canada reported on Friday. Nation's GDP rose by 0.5 per cent in the second quarter, while on the monthly basis Canada's economy expanded by 0.2 per cent in June, after adding 0.1 per cent in the preceding month. Experts had predicted GDP to rise by 0.1 per cent.
The unemployment rate in the Eurozone stays at a record high of 11.3 per cent in July (from a revised figure for June), Eurostat's data showed on Friday, August 31. Despite the fact that overall jobless rate remained unchanged, 88,000 more people were without a job in July, bringing the total to 18 million. In Spain, the jobless figure rose by another 0.2 per
Gold futures advanced on Friday, ahead of a highly anticipated Ben Bernanke's speech, that can signal new policy moves from the Fed. Gold with December contract rose by 0.4 per cent, to $1,664 per ounce. Other precious metals also edged higher on Friday, with copper, silver and palladium for December settlement jumping 0.4%, 0.9% and 1.1%, respectively.