Bullion broke support at $1,256, as it is its moving average of 200-days in a four hour frame, and might move lower than $1,230. Gold decreased 1.5% on Wednesday, as the Greenback gained strength after the Fed committee's minutes gave a big boost for the Buck. The Federal Reserve returned to hawkish rhetoric, which increased rate hike possibility in June.
Crude oil futures continued losses on Thursday, as rising US inventories, expectations of Iranian output increase and the Federal Reserve meeting minutes weighed upon the price. WTI futures fell 1.2% to $47.63 per barrel and Brent futures dropped 1.4% to $48.23 per barrel. Both had hit 2016 highs before after announcements of prospective shortages in Canada, Nigeria and Venezuela.
Monthly unemployment rate published on Thursday decreased to 9.9% from 10% in mainland France. However, the average metropolitan French and overseas unemployment rate remained unchanged at 10.2%. Analysts predicted such figures and they came in as no surprise. In the meantime, youth unemployment increased to 24.2% in Q1 of 2016.
Markets in Asia were mainly lower, as traders reacted to latest Federal Reserve minutes, which increased chances for a rate hike in June. In Japan Nikkei 225 index ended day's trading unchanged at 16,646.66 points and Topix went down 0.1% to 1,336.68 points. In Chine was a similliar picture, as Shanghai Composite increased 0.1% to 2,810.70 points, Shenzen Composite added
Major European equity indices finished higher on Wednesday amid solid UK labour market data, whereas the annual inflation rate turned negative in the EU in April. Britain's FTSE 100 Index closed flat at 6,167.00, whereas Germany's DAX 30 Index added 0.5%, finishing at 9,939.50 points. Meanwhile, France's CAC 40 Index jumped 0.6%, closing at 4,324.80, and the pan-European Euro Stoxx 50 Index grew
According to the US Energy Information Administration's weekly report released on Wednesday, gasoline inventories dropped more-than-expected in the week ended May 13. Thus, gasoline inventories declined 2.5 million barrels, following the 1.2 million drop seen in the previous week and surpassing analysts' expectations for the 0.9 million fall.
On Wednesday, the Energy Information Administration's weekly report revealed that crude oil inventories in the United States increased by 1.3 million barrels in the period ended May 13, following the 3.4 million drop seen in the previous seven days and surpassing analysts' forecasts for the 3.1 million decline.
The Euro traded lower against the British Pound on Wednesday, reaching its lowest level since March 10. Thus, the common currency dropped 1.18% against the Sterling, trading around 0.7728 pounds by 13:35 GMT on the London Stock Exchange and following Britain's promising data released earlier today.
Markets in US opened in the red zone on Wednesday, as investors monitored appearances of several speakers from the Fed, who discussed the Federal Reserve's June's meeting. In the meantime, Standard & Poor's index opened slightly lower by 0.2% at 2,043.48 points, Dow Jones lost 0.1% to 17,507.31 points and NASDAQ fell 0.2% to 4,705.84 points.
The Australian Dollar traded lower against its US counterpart on the NYSE, in view of the minutes from the FOMC meeting last month. The Aussie dropped 0.86%, trading at $0.7261 by the start of the North American trading hours on Wednesday and erasing all its gains from yesterday, when it traded above the $0.7300 level.
The largest US stock markets traded lower by 13:25 GMT on Wednesday due to lower oil prices. Thus, the Dow Jones Industrial Average Index dropped 0.4%, trading at 17,428.00, whereas the Standard and Poor's 500 Index declined 0.3% and the Nasdaq Composite Index lost 0.2%, trading at 2,037.00 and 4,309.25 points respectively.
Ahead of the EIA's weekly crude oil report, oil futures traded lower on Wednesday. WTI lost around 0.04%, trading at $48.23, whereas Brent dropped 0.43%, trading at $49.03 by 13:10 GMT on the New York Stock Exchange. In the meantime, gold declined 0.3% to $1,272.50 per ounce by the same time on the NYSE.
While the number of working people rose at a record pace, adding 44 000 to previous quarter's level, the jobless rate showed no change at 5.1%, indicating no contractionary labour market pressure stemming from the Brexit referendum. At the meantime, earnings growth with bonus payments added 2.0% during the first quarter, topping 1.9% a quarter before.
Markets on Wall Street were expected to pause on Wednesday after a big sell-off on Tuesday, as investors waited for the Open Market Committee's minutes, which would indicate market direction in a calm session. Standard & Poor's 500 index futures remained unchanged at 2,043.95 before the start of Wednesday's session.
Eurostat released latest European Union consume price indices, which in all aspects turned out exactly as predicted by analysts, confirming stagnation in the EU. CPI remained unchanged on a monthly basis, as forecasted. In the meantime, on a year-to-year basis consumer prices decreased by 0.2% and that also was expected by experts.
The Japanese economy grew by 0.5% during the first quarter of 2016, surprising analysts who forecast a 0.1% expansion. Household consumption gained 0.5% and government demand advanced 0.6%, contributing respectively 0.3% and 0.2% to the growth, and erasing the negative effects of a low investment level.
Latest United Kingdom's labour data published on Wednesday did not change GBP/USD currency pair's downfall. Jobless rate in UK stayed 5.1% in March and jobless claims number improved from 14,700 to negative 2,400. In addition, average weekly wages in March increased a little bit better, by 2% instead of 1.9% in February.
Japanese annualized GDP growth of 1.7% did not affect the trade between the US and Japanese currencies, as the Greenback continues to rise against the Yen, as US consumer prices in April rose the most in three years, bolstering expectations that the Fed will increase interest rates this year. The Buck was up 0.3% to 109.50 against the Yen by
The bullion weakened ahead of the FOMC meeting minutes release, failing to gain a foothold above the $1,280 mark, as it hovered around the $1,273 level. Gold traded highest during the day at $1,281 and lowest at $1,273 on Wednesday. The data release will help investors speculate on whether a rate hike is likely to take place later in June.
The cost of production inputs along with wholesale prices took a further hit in New Zealand, as Q1 data showed a 1.0% plunge in the Producer Price Index for inputs, which is slightly better than the 1.2% drop over the previous quarter. The news left analysts disappointed as they had anticipated a 0.3% gain in the measure. The Output PPI dipped 0.2%, recovering
Australian wage growth became significantly slower in Q1, showing the lowest levels in more than 20 years. The annual growth in the Australian Wage Price Index showed 2.1%, down from the final quarter of 2015, when wages displayed a 2.2% advance, a level last seen in 1997 when the series of data were first recorded. The quarterly WPI rose 0.4%,
Stock exchanges in Europe trailed Asian stocks by opening also lower on Wednesday, as at the session opening UK's FTSE 100 dropped 0.5% to 6,140.13 points and German DAX 30 index fell 0.8% to 9,811.80 points. In the meantime, French CAC 40 lost 0.6% to 4,272.74 points and pan-European Euro Stoxx 50 shrunk by 0.7% to 2,917.54 points.
Crude oil futures on Wednesday were stagnant and stayed just below multi-month highs reached on Tuesday after an API report was published, that US oil stockpiles have decreased during last week. WTI futures surged 0.4% to $ 48.49 per barrel and Brent added 0.2% to 49.38 per barrel. Energy Information Administration of the US was set to release official stockpile
Low performance in the US exchanges on Tuesday, due to speculations about future monetary policy, affected start of trading in Asian markets on Wednesday. Hang Seng index fell 1.1% to 19,889.55 points, Shanghai Composite dropped 1.1% to 2,811.75 points and Korean Kospi slipped 0.8% to 1,952.00 points. In the meantime Japanese Nikkei 225 index increased 0.6% to 16,748.36 points.