Treasuries surged, moving 10-year rate to the weakest in more than a week after first-time claims for unemployment benefits increased to the highest in one month, posting little rebound in the U.S. labor force. The 10-year yields fell to 1.67%, after reaching 1.66%, the least since Aug. 14. 30-year note yields slid to 2.78%.
U.S. new home sales surged more-than-expected in July, the Commerce Department said on Thursday. New home sales posted a 3.6% rise to a seasonally-adjusted annual rate of 372,000, from an upwardly-revised 359,000 in June. Economists expected an increase to 362,000.
U.S. initial claims for jobless benefits unexpectedly posted a slight rise in the week through Aug. 18., the Labor Department said on Thursday. First-time unemployment claims advanced to 372,000, compared to 368,000 in preceding week. Analysts forecast a decline to 365,000. The four-week average rose to 368,000 from 364,250.
The Ruble advanced to a two-week high after oil rose amid speculation China and U.S. central banks will add stimulus. The Ruble gained 0.6% against the U.S. Dollar to 31.6828 and fell less than 0.1% versus the Euro to 39.75275, staying 0.3% above the central bank's currency basket.
Oil climbed to the highest in three month in New York on belief that U.S. and China central banks may ease monetary policy to boost growth and after U.S. crude stockpiles fell 5.4 million barrels. October-settlement oil rose $1.03 to $98.29 per barrel, the most since May 4, and it traded at $97.74. Brent crude for October delivery surged 1.1%
The inflation in South Africa slowed more-than-expected in July, and speculations grew that nation's policy makers may cut the benchmark interest rate already for a second time in this year. The South African inflation rate reached a fourteen-month low, at a 4.9 per cent level, down from 5.5 per cent in the previous month.
Japan' trade balance fell less-than-expected in July, official data showed on Tuesday. The nation's trade gap came in at $6.53 billion (¥517.4 billion) last month, after a surplus of ¥60.3 billion in the previous month. In the meanwhile, Japanese exports to the world's second biggest economy shrank by 11.9% in July, the sharpest downfall since February.
German stocks moved higher on Thursday as hopes for easing in the US and China spurred European equities. Moreover, upbeat Germany's manufacturing data supported the country's shares. German flash PMI rose to 45.1 in August from 43.0 in July. The German DAX Index gained 0.22% to trade at 7,035.09. Five out of nine industries included in the index went up.
UK stocks jumped on speculation that the US and China are preparing to loosen their monetary policies after negative economic data releases earlier this month. The Fed announced that monetary easing is highly possible soon while bleak outlook on China's PMI may force the POBC to follow the Fed's suit. The FTSE 100 Index added 0.46% to trade at 5,800.81
Gold rallied to a 16-week high, after exceeding the 200-day average, as the Fed said it may create additional stimulus and investment stockpiles surged to a record. On Thursday, bullion for December delivery rose 1.5% to $1,665 per ounce in New York. Futures increased to $1,669.50 earlier today, the highest since May 1. The metal climbed 0.5% to $1,662.95 in
The Euro surged to an almost seven-week high after belief China and the U.S. will post monetary easing fueled demand for better-performing currencies. The 17-nation currency advanced versus the Yen before Germany and France meeting today. On Thursday, the Euro rose 0.2% to $1.2549, after touching $1.2572, the highest since July 4. The Euro surged 0.2% to 98.66 Yen.
China's leading index increased in July, showing a strong climb in loans, the Conference Board reported on Thursday. The index improved 0.7% in July from stagnation in previous month, government loans were the main driver, boosting banks to finance infrastructure investment. The coincident economic index rose 0.8%, after a 0.9% surge in June.
U.K. mortgage approvals rose more-than-expected in July, British Bankers Association said on Thursday. The amount of approved mortgages for house buying surged to 28,411 from 25,490 in June. Total mortgage approvals rose to 55,634, after 51,425 in preceding month. Gross mortgage lending was at GBP 7.1 billion in July, below the monthly average, adding signs of slowdown in property market.
Germany's PMI Manufacturing preliminary reading posted a 45.1 increase in August, after 43.0 point reading in previous month, Markit reported on Thursday. Analysts forecast a rise to 43.5. PMI Services dropped to 48.3 points, after 50.3 points in July and below estimates of a decline to 50.0 points.
Chinese equities rallied on Thursday amid hopes for easing measures in the US and China. On Wednesday, the Fed hinted that QE3 is highly possible in the nearest term as recovery of the US economy is slowing. At the same time, China's government is expected to announce easing measures as manufacturing activity may have shrunk further in August. The Hang
The Nikkei 225 Index soared by 0.51% to close at 9,178.12 after a survey showed that China's PMI may have contracted at faster pace this month. Weak manufacturing activity in China is expected to force the country's government to ease its monetary policy. Japanese shares also received a boost from reports that the Fed is likely to implement easing measures
The Dow Jones Industrial Average Index lost 0.23% to end Wednesday's session at 13,172.76 despite speculation that the Fed will announce QE3 at the next meeting due on 12-13th September. Disappointing existing home sales data also added pressure on the US blue chips index. Only four in nine industries within the index climbed. Basic materials and oil and gas companies
US stocks were flat after the Fed hinted that it is likely to implement easing measures in the immediate future. Meanwhile, market participants remained cautious ahead of the meeting between Angela Merkel and Grancois Hollande due on Thursday. The S&P 500 Index added 0.02% to trade at 1,413.49. Only four in ten sectors included in the index rose. The biggest
Rural commodities apart from sugar retreated on Wednesday despite broadly softer greenback and hopes for monetary stimulus in the US. Meanwhile, market players continued to monitor weather conditions in India, Brazil, Russia and the US. Wheat halted its rally amid potential increase in Indian exports as surging global prices spurred demand for cheaper shipments from Asia. Corn futures declined on speculation
Energy commodities were bullish on Wednesday on brighter demand prospects as the Fed may launch monetary stimulus program in the nearest future. Moreover, a tropical storm threat in the Caribbean region created additional support for energy prices. Crude oil jumped after the Fed hinted on monetary easing. Adding to the gains of the commodity, US crude oil supplies dropped by 5.4
Base metals except for copper surged on Wednesday after the Fed announced it is likely to embark on stimulus measures in the nearest future. Easing concerns over the Eurozone's debt crisis also boosted the industrial metals. Aluminum rose on hopes for easing in the US. However, elevated inventory levels as well as weak investors' confidence weighted down on the light
Precious metals soared on Wednesday as the Fed hinted that stimulus measures are possible in the nearest future. Broadly softer US Dollar after weaker than expected existing home sales data also added to gains of the commodity group. Gold soared 1% on speculation that the Fed will announce QE3 at the next FOMC meeting due on 12-13th of September. However, soft
U.S. new-home purchases probably increased in July, a sign the industry is recovering. According to analysts' estimation, sales rose 4.3% to a 365,000 annual pace, as buyers are willing to benefit from record-low mortgage rates and cheaper properties. The Commerce Department will release the data shortly.
The South Pacific nation's currencies strengthened after minutes of the Fed's most recent policy meeting indicated officials favour more stimulus if the economy does not show signs of pickup. The Australian Dollar climbed 0.2% to $1.0505 after rising 0.4% to $1.0487 the previous day. The New Zealand Dollar gained 0.4% to 81.40 U.S cents, after a 0.3% strengthening the day