UK FTSE 100 climbed on Tuesday lifted by investor hopes for additional stimulus from Bank of England. Financial stocks prized the news with HSBC Holdings adding 1.7% and Royal Bank of Scotland Group soaring 1.6%. Whitbread surged 6.3% as the UK hotel and restaurant company said its first-quarter same-store sales improved 4.5% while total sales accelerated 14%. Engineering-solutions provider Weir
Spain witnessed an increase in borrowing cost as it was selling its debt on Tuesday. Spain's Treasury sold 12-month bonds worth EUR2.4 billion at the average yield of 5.074%, which was a sharp increase from May's 2.985%. 18-month bonds, worth EUR64 million, were sold at the average yield of 5.107%, which is more than May's 3.302%.
U.K. Office for National Statistics reported on Tuesday that the consumer price inflation slipped to 2.8% in May from April's 3.0%. Analysts, however, expected that CPI would remain unchanged and remain equal to 3.0%. Core CPI, which does not include products like tobacco and alcohol, climbed to 2.2% on a seasonally adjusted basis, whereas it was expected to be 2.3%.
Japan's Nikkei Stock Average retreated from yesterday's gains and slipped on Tuesday as Spain's financial turmoil amid surging yields worsened the outlook of European economy. Nikkei 225 index fell 0.75% or 65.15 points and closed at 8,655.87. Nomura Holdings fell 0.7% after Reuters reported the firm was not chosen to assist a state sale of its Japan Tobacco Inc stake.
Hong Kong's equities declined on Tuesday as Spanish yield accelerated and optimism diminished that Greek election outcome will curb European turmoil. Hang Seng index gave up 0.25% or 48.57 points finishing at 19,385.35. Tsingtao Brewery Co fell 8% after Dow Jones Newswires reported the main shareholder was trading 32 million shares in the company at discount between 4% and 7%.
Dow Jones Industrial Average edged modestly lower on Monday driven as blue chip stocks diminished. Dow main index slipped 0.20% or 25.35 points and finished at 12,741.82. 11 stocks of 30 posted gains for the session. Bank of America gave up 1.8% as Spanish 10-year borrowing costs hit Eurozone record high of 7.13%. Retail shares supported the index on the
S&P 500 index traded slightly higher on Monday, posting gains for a third straight day as optimism over Greek austerity supporting coalition offset the worries about surging Spanish yields. US benchmark added 0.14% or 1.94 points and closed at 1,344.78. The world's biggest online trader EBay Inc. rallied 4.5% after the company was upgraded to outperform in new coverage at
On Tuesday, the Australian Dollar held steady versus the Greenback, as traders were focused on soaring borrowing costs for Spain ahead of the sale of its government debt later this day. AUD/USD reached a session low at 1.0105 in the late Asian trading hours, and later the pair consolidated at 1.0124, which was a slight 0.02% decrease for that trading session.
On Tuesday, the British Pound held steady against the Greenback, since traders were focused on upcoming inflation data in the U.K. Cable peaked at 1.5696, and later consolidated at 1.5671, gaining 0.03% during the European morning trading hours. The pair's near-term support could be at 1.5636, while resistance was likely to be found at 1.5741.
Chen Deming, Chinese Commerce Minister, during the G20 summit in Mexico said that China is beginning to revive from the slowdown following the government's steps to boost the economy. China experienced its initial interest-rate cuts after 2008 signifying the potential economic risks due to the lowered export demand. However, The Commerce Minister still trusts that a 10% trade increase in 2012 is attainable.
Gold futures were rising for the eighth day in a row in the European morning trade on Tuesday, as markets were focused on rising Spanish yields and upcoming Federal Reserve policy meeting. On the NYMEX, contracts for August delivery of gold were traded at USD1,632.95 per troy once, adding 0.37% in early European trade. Earlier gold stopped 10 cents lower than USD1,634.35, a 2-week high.
The Greenback edged lower versus the Japanese Yen on Tuesday, since investors were cautious about rising borrowing costs for Spain and looking for safe havens. USD/JPY hit the bottom at 78.93, and later consolidated at 78.96, losing 0.19% during the early European trading session. The pair's support could be at 78.60, while resistance was likely to be found at 79.50.
On Tuesday, the Euro edged higher versus the U.S. Dollar, but gains seemed to be capped by worries over rising Spanish bond yields. EUR/USD peaked at 1.2616 in the late Asian trading hours, and later consolidated at 1.2589, gaining 0.10%. The pair's support was likely to be at 1.2541, and resistance may be at 1.2663.
On Tuesday, futures for gold erased losses and were traded steady during Asian trading session, as investors were focused on Spanish debt problem rather than on market-friendly elections in Greece. On the NYMEX, August delivery futures for gold were traded at USD1,627.45 per troy once, adding 0.03%. Earlier, contracts peaked at USD1,629.75 and hit the bottom at USD1,626.95.
During their meeting in Mexico the leaders of the Group of 20 countries put emphasis on stabilizing European banking system adding pressure on German leader Merkel to boost rescue tools as Spain's crisis worsen. Merkel, however, keeps rejecting the ideas of boosting deficit spending or pooling Eurozone debt.
European markets traded mostly higher on Monday as the initial results of Greek elections signalled the new coalition is likely to be pro-austerity oriented. Nevertheless gains were limited as Spanish 10-year borrowing costs reached all time record high of 7.13%. Stoxx Europe 600 traded flat. French CAC gave up 0.7% while German DAX added 0.3%. British FTSE 100 gained 0.2%
US shares faced a choppy, low volume trade on Monday with blue chip companies giving up the gains while S&P 500 climbed for a third straight day. S&P 500 index added 0.14% or 1.94 points and closed at 1,344.78, Dow Jones Industrial Jones slipped 0.20% or 25.35 points and finished at 12,741.82 and Nasdaq Composite soared 0.78% or 22.53 points
Canadian currency fell versus its US peer on Monday amid anxiety data to be released this week that may indicate the country's economy is struggling. Loonie dropped 0.3% against greenback to CAD 1.0243 while 10-year bills remained flat at 1.71%. Currently USD/CAD is trading at 1.0225.
The US Dollar slipped versus the Yen and Euro on Tuesday ahead of Fed meeting later in the day. Investors are betting the US central bank will consider introducing further stimulus to support US economy.The greenback shed 0.3% versus Euro to USD 1.2611 and depreciated 0.2% against Yen to JPY 78.98. Currently EUR/USD is trading at 1.2611.
The winner of Greek parliamentary elections Antonis Samaras continues talks with Socialist Pasok party for a second day to create a coalition that would keep rescue funding flowing. Samaras had secured an initial agreement with Evangelos Venizelos, the leader of Pasok party. Today Samaras is going to discuss the possible strengthening of coalition with Fotis Kouvelis from Democratic Left party. In case all three forces manage to
Emerging market countries including Brazil and China affirmed financing pledges to the IMF, almost doubling its lending power in order to rescue world economy from European debt woe. With pledges from South Africa, India and Russia the total commitment will amount to USD 456 billion a slightly more than USD 430 billion package promised in April.
On Monday, the Greenback was traded higher versus other major currencies, as concerns over Spanish debt situation overshadowed good news from Greece. In the U.S. morning trading session, EUR/USD went down by 0.53%, hitting 1.2572; Cable fall 0.35%, reaching 1.5660; the Yen grew up 0.25% and USD/JPY was traded at 78.89.
On Monday, futures for natural gas found support during U.S. morning trading hours, amid warm weather forecasts in the key regions of the U.S. On the NYMEX, July delivery futures for natural gas were traded at USD2.517 a MMBtu, rallying 2% during the morning trade. It earlier peaked at USD2.534 a MMBtu, rising by 2.7%.
On Monday, the Euro continued its fall versus the U.S. Dollar and reached a new session low, as Spain witnessed record high borrowing costs and Greek concerns over the ability to create a coalition also weighed. The EUR/USD pair hit the bottom at 1.2850, a 3-day low, and later consolidated at 1.2610, witnessing a 0.30% drop during the U.S. morning trading session.