Spain raised 4.81 billion euros of debt in an auction on Thursday, with nation's borrowing rates dropping sharply from the previous auction. The average yields on Spanish government securities, due to mature in 2022, dipped to 5.66% to 6.65%. Demand strengthened slightly, with bids exceeding supply 1.6 times.
The Bank of Japan increased the size of its asset-purchase program by JPY10 trillion ($127 billion) to a total of JPY80 trillion, in order to boost slowing economic activity. The increase in nation's asset-purchase program will be split equally for additional purchases of treasury discount bills and government's bonds. The BoJ also kept benchmark interest rate unchanged at 0.10%.
Economic expectations in Switzerland deteriorated in September, a survey by the European Economic Research (ZEW) and Credit Suisse showed Wednesday. The ZEW index that measures expectations of futures economic performance fell by 1.6 points to -34.9, down from -33.3 in the prior month. A reading above 0.0 indicates optimism, while a reading below indicates pessimism.
Hopes the Bank of England will announce new economic stimulus plan above the existing program with a total value of 375 billion pounds ($610 billion) have been raised after minutes of the monetary policy committee's meeting on Wednesday. The BoE also expects the inflation rate to decelerate less rapidly, as oil and food prices rose.
U.S. housing starts rose less than expected in August, while applications for home mortgages declined, adding to concerns over the U.S. property market, the U.S. Census Bureau said on Wednesday. Construction of new U.S. homes rose 2.3% to 750,000, up from 733,000 in the prior month, below expectations for a 2.85% increase to 765,000. Building permits issued in July declined
European stocks advanced on Wednesday, as the Bank of Japan followed the Fed and announced fresh easing measures. The BoJ said on Wednesday that it is increasing the size of its asset-purchase program by JPY10 trillion, in an effort to boost economic activity in the country and to counter the strengthening yen.
Japanese stocks were mixed on Tuesday, as tensions between Japan and China increased, and utilities gained on speculation that Japan will not halt construction of nuclear reactors.
The Swiss government has downgraded its economic outlook for 2012 and 2013, as worldwide economic slowdown had intensified. Government's experts cut their growth forecast to 1% for 2012, down from their previous 1.4% estimate, while a slight pickup to 1.4% is expected in 2013.
U.K. inflation rate slowed in August compared with the previous month due to smaller rises in furniture and gas prices. Consumer prices grew by 2.5 per cent last month, meeting analysts' expectation, down from 2.6 per cent in July, according to the Office for National Statistics figures.
The U.S. current account deficit narrowed to $117.4 billion in the second quarter of 2012, down from $133.6 billion in the first quarter, the Commerce Department reported on Tuesday. Analysts had predicted U.S. current account balance to fall to -125.5B last month. The decline may be, mostly, explained by a fall in oil prices and a larger surplus in income
German investor confidence grew more than expected in September, as the ECB released a plan to buy government bonds to curb Eurozone's debt crisis. German ZEW economic sentiment index rose to -18.2, from -25.5 in the preceding month, the ZEW Centre for Economic Research said on Tuesday. Any reading above zero indicates optimism, while a reading below indicates pessimism.
Banks in Japan were closed on Monday in observance of Respect for the Aged Day.
UBS expects Swiss banks to see European clients withdraw up to 200 billion francs by 2016 of the 789 billion as a result of measures to stop foreigners using secret accounts to evade taxes. Switzerland is to impose taxes on German, British and Austrian citizens' accounts.
Home sellers in the U.K. cut asking prices for a third consecutive month in September, as prices in eight regions out of the 10 reported a decline in prices. Average asking prices in England and Wales fell 0.6% to £234,858, after erasing 2.4% in the prior month. Despite an overall fall in prices, house prices in London grew 0.3% in
Manufacturing activity in the State of New York fell more than expected in September, Federal Reserve Bank of New York announced on Monday. Region's general economic index fell to a seasonally adjusted -10.4, down from -5.8 in August. Analysts had predicted Empire State manufacturing activity to drop 2.0 points last month.
Eurozone's current account surplus narrowed more than expected in July, as exports from the 17-nation region erased 2% from June, and imports lost 1.2%, the ECB said on Monday. Current account shrank to 9.7 billion euros last month, from 14.3 billion euros in the previous month.
Industrial production in Japan fell less than expected in August, the Ministry of Economy, Trade and Industry said on Friday. Nation's industrial production showed signs of recovery, posting a final reading of -1.0%, up from -1.2% in July. Analysts had predicted Japanese industrial output to fall -1.2% last month.
Swiss stocks edged higher on Friday, as the Federal Reserve announced a fresh round of quantitative easing to shore up U.S. economic growth. On Thursday, the Fed said that it would buy $40 billion of mortgage-backed securities every month and would keep buying them until the labour market improves.
U.K. house prices picked up in August, posting a first gain in three months, as demand grew, data from a survey by Acadametrics and LSL Property Services showed on Friday. The average price of a home in England rose 0.1 per cent to 226,243 pounds last month, jumping 2.6 per cent from a year earlier.
U.S. retail sales grew to a seasonally adjusted 0.9% in August, up from 0.8% in the previous month, as demand for autos and gasoline rose sharply, the Commerce Department data showed Friday. Service-station sales added 5.5% last month, while auto sales jumped 1.3%.
Consumer Price Index (CPI) for the Eurozone countries grew by 2.6% from a year ago in August, Eurostat announced on Friday. On a monthly basis, CPI inflation rose by 0.4% from -0.5% in July, in line with analysts' expectations. However, region's inflation rate remains above the ECB's 2% target level for this year.
Japanese stocks extended gains on Friday after the Federal Reserve said it will extend its asset purchase programme to help the world's largest economy recover.
The Swiss National Bank left the target range for the three-month Libor rate unchanged at 0.0-0.25% on Thursday, in line with analysts' expectations. The bank also trimmed its growth expectations with a GDP growth forecast of 1% for 2012, down from 1.5% projection made in June. Inflation target rates are -0.6% for 2012, 0.2% for 2013, and 0.4% for 2014.
The U.K. placed 3.81 billion euros of debt in an auction on Thursday, with nation's borrowing rates dropping sharply from the previous auction. The average yields on British government securities, due to mature in 2022, dipped by 0.93% to 1.822%. Demand strengthened slightly, with bids exceeding supply 1.82 times.