US stock markets opened higher on Thursday as buying was triggered on the rise in oil prices. As the North American trading session started, the S$P 500 Index jumped around 0.3% to 2,056.20 points, whereas the Dow Jones Index gained 0.2% and the Nasdaq Composite Index added 0.3%, opening at 17,693.10 and 4,738.70 points respectively.
Initial Jobless Claims in the United States increased more-than-expected in the week ending April 30. According to the Department of Labour, initial filings for unemployment aid rose 17,000 to 274,000, posting the biggest increase since February 2015 and surpassing analysts' forecasts for a 260,000 rise.
The Markit UK Services Purchasing Managers' Index came in at 52.3 in the fourth month of the year, following March's 53.7 points and registering the worst result in the past three years in April. In the meantime, analysts expected the final Services PMI to decrease to 53.5 points.
On Wednesday, the Energy Information Administration's weekly report revealed that crude oil inventories in the US increased by 2.8 million barrels in the period ended April 29, following a 2.0 million increase seen in the previous seven days and surpassing analysts' forecasts for a 0.5 million gain.
The ISM Non-Manufacturing Index jumped to 55.7 points in the fourth month of the year, following March's 54.5 reading and surpassing analysts' expectations of 54.8. Meanwhile, the Markit Services PMI for the United States improved to 52.8 from the initial reading of 52.1 and March's 51.3 points.
ULC in the United States' private sector jumped 4.1% in the first three months of the year, according to the latest data released on Wednesday. In the meantime, US hourly compensation grew 3.0% in the Q1 of 2016, whereas productivity posted a 1.0% decrease. Unit labour costs rose 2.3% over the past four quarters.
According to the Department of Commerce, the country's trade deficit dropped 13.9% month-on-month to $40.4 billion in the third month of the year, following February's $46.9 billion gap and posting the narrowest deficit since November 2014. Meanwhile, US exports declined 0.9% and imports slipped 3.6% to $176.6 billion and $217.1 billion respectively.
US businesses added 156,000 new workers in the fourth month of the year, according to the ADP Employment Report released on Wednesday, whereas analysts expected payrolls to grow by 196,000. Meanwhile, the previous month's figure was revised downwards from 200,000 to 194,000.
The Bullion lost almost 0.8% against the US Dollar, trading at $1,286.10 per troy ounce by 15:20 GMT on the New York Stock Exchange. In the meantime, the Greenback regained its position after 15-month lows, despite Monday's disappointing release of the US ISM Manufacturing PMI.
According to the latest GlobalDairyTrade auction, dairy prices dropped 1.4% to $2,203 per metric ton after the 3.8% increase to $2,263 registered on April 19. In the meantime, the Kiwi declined around 1% against the Greenback, trading below the $0.70 level by 14:00 GMT on the London Stock Exchange.
On Tuesday, the European Commission revised downwards its GDP growth forecast for the Euro zone to 1.6% from the previous year's 1.7% result and the 1.7% growth outlook reported in February, whereas the European Union's GDP growth forecast was lowered to 1.8%, following the last year's 2% growth and February's 1.9% projection.
Data on UK's PMI surprised investors on Tuesday by entering negative territory with 49.2 points, plunging from 50.1 points in March. Investor Expectations were missed by 2 points as result to falling output and rising uncertainty over global and domestic economic conditions, which are believed to contribute to a further downturn during the second quarter.
The Chinese Caixin manufacturing PMI showed a 0.3 point drop from the month before at 49.4 points, continuing the recessive trend that has pushed the measure in negative territory for the 14th consecutive month. The indicator was 0.4 points short of investors' expectations and it is thought that the economy is still in need for a solid recovery foundation.
Asian stocks surged with Australia leading the trend on Tuesday, following a rate cut by the RBA. While Japanese markets closed for Constitution day, the Shanghai Composite index spiked by 1.4% to show 2 979.75 points at 5:00 GMT, while the Hang Seng index fell 1.1% and traded at 20 828.69 points at 5:00 GMT.
The Australian Dollar dropped 1.3% after the RBA announced cutting rates to a record low 1.75%. The Aussie hovered around the $0.7700 mark before the announcement, and plunged to $0.7563 right after the news came out at 4:30 GMT. The RBA explains the rate cut with fears of a stronger Australian Dollar that can potentially harm economic adjustment.
Building approvals in Australia exceeded expectations, as the data release on Tuesday showed a 3.7% jump, topping the 3.1% gain in February. This is an unexpected positive development, as investors had forecast a 3% drop, however, the measure still did not reach last year's levels, remaining 6.5% lower.
In the United States, Markit's Purchasing Managers' Index for the manufacturing sector dropped to a score of 50.8 in the fourth month of the year, following March's 51.5 reading and falling behind analysts' forecast of 51.0 points. That's the worst result since September 2009.
According to Markit's official data released on Monday, the Eurozone's Manufacturing PMI grew more-than-expected in the fourth month of the year. The Eurozone's PMI was revised upward to 51.7 from the originally reported 51.5 points, following the previous month's 51.6 reading.
The German PMI showed expansion in the industrial sector as it surged to 51.8 points, displaying a positive trend from the previous month when the measure showed 50.7 points. Although the indicator was 0.1 points short to meet investors' expectations, the sector shows a consistent upward trend, surpassing the 50 point mark for the 16th consecutive month.
The Italian PMI reached this year's high at 53.9 points in comparison to the expectation of 53 points, continuing to top the 50 point mark and show an ongoing positive trend in the sector. The indicator experienced one-year lows in the first months of 2016, after encountering the highest level of 55.6 points over a one-year period in December.
The data release on the Spanish PMI showed a positive trend in the manufacturing sector as the measure grew by 0.1 points since the month before and showed 53.5 points which exceed expectations of 53 points. A number higher than 50 shows expansion, and operating conditions in the industrial sector of Spain have been advancing for 29 months in a
Bullion traded 0.4% higher on Monday, reaching $1,295.10 as a reaction to the Chinese manufacturing data release and the lowering chances of a rate hike. Gold is believed to be targeting the $1,300 mark which is the highest since January 2015, after expanding its gains for the second consecutive week.
Asian markets closed low on Monday with Japanese stocks leading the way, as the Yen gained strength following lack of monetary policy expansion by the BoJ. While Labour Day kept the Chinese and Hong Kong markets closed, the Nikkei index finished with a 3.1% slip at 16,147.38 points and the Topix was down 3.0% to show 1,299.96 points at a
An official data release on Friday showed the lowest unemployment rate in Italy since 2012, falling as low as 11.4% in March, in recovery from the 11.6% mark that it reached in February. The level is still significantly higher than the pre-crisis rate, however, it shows improvement when compared with the staggering 13.3% a year ago.