The Yen entered a bearish territory versus the Dollar, reaching the weakest level in February due to inflation slowdown in China that might provoke policy makers for additional stimulus. The Yen declined 0.1% to 118.71 per dollar.
The Spanish property market posted a positive tendency in home sales for the first time in five years, reaffirming speculations that the real-estate market started to recover from a strong recession. The amount of property deals rose 2.2% compared to the previous year to 319,389 houses sold. However, the data still did not outperform the 2006's peak of 955,186 units.
The Sterling posted a strong increase against other major currencies after the release of the UK retail sales and manufacturing activity that advanced more than expected, pushing the Bank of England toward raising interest rates. The manufacturing output expanded 0.1% in December, following a 0.8% advancement a month earlier. Meanwhile, the Pound added 0.4% to 74.10 pence versus the Euro,
China's consumer inflation increased at its slowest pace during the last five years, adding to concerns over weakening domestic demand and stimulating policymakers for more monetary easing. The consumer price index climbed 0.8% from a year ago, below a forecast of 1% gain, while the producer price index slipped to 4.3%.
European natural gas rose to a six-week high, when the European Union's largest producer, the Netherlands, announced further output caps. Natural gas for delivery in March in the United Kingdom advanced 2.5% to 51.25 pence a therm, reaching its strongest levels since December 29.
Stock-index futures in US climbed, adding to signs the equities are recovering from a two-day drop on speculation Greece may reach an agreement with the creditors. The S&P 500 Index contracts that expire in March added 0.6% to 2,054.5 as of 7:44 a.m. New York time, while Dow Jones Industrial Average futures rallied 0.6%, or 108 points, to 17,789.
The current account surplus of the largest Euro zone country hit a record high in 2014. The figure came in at 215.3 billion euros for 2014 compared to 189.2 billion euros in 2013, according to the Federal Statistics Office. The foreign trade balance showed a surplus of 217 billion euros in 2014.
Industrial output in Germany climbed for a four straight month in December, bolstering the view that the nation's economic recovery is gaining momentum. Output rose to a seasonally adjusted annual rate of 0.1%, after it was revised to a 0.1% advance in November. Meanwhile, manufacturing output climbed 0.5% in December.
European stocks dropped from the highest level in seven year, erasing a weekly advance. The Stoxx Europe 600 Index lost 0.3% to 371.51 as of 10:44 a.m. London time, cutting its 1.2% weekly gain. Greece's ASE Index slid 0.1%, paring its highest weekly advance since June 2012, while Germany's DAX Index retreated 0.6% on nation's industrial output data.
The world's biggest exporter of crude oil, Saudi Arabia, cut oil pricing for March sales to Asia, reinforcing a view that the nation is serious about defending its market share. State-owned Saudi Arabian Oil Co. decreased its official selling crude price for Arab Light oil by 90 cents, which is now $2.30 cheaper per barrel compared to alternative Middle East
The US trade deficit in December widened sharply to its highest level since 2012, due to strong Dollar which spurred import, and may lower fourth quarter economic growth forecasts. The trade deficit soared 17.1% to $46.6 billion, posting the largest gain since November 2012. Meanwhile, during the previous year, the trade gap expanded 6 % to $505 billion, while the
Asian shares gained value on Friday as well as oil prices, which started to rebound after a harsh drop, while investors are waiting for the US nonfarm payrolls for January. Asia-Pacific shares rose around 0.1%, Japan's Nikkei stock average, in turn, added 0.7 %. Meanwhile, economists forecasting US payrolls decrease to 234,000 people in January, compared to 252,000 in December.
Spain will not reach its deficit target, and will show the biggest monetary gap in the Euro area, according to the European Commission. The 4.5% shortage of GDP in 2015, is higher than the Spanish government's expectations of 4.2%. Meanwhile, the Spain's Prime Minister Mariano Rajoy, has assured to decrease taxes, to be re-elected on a prospect of economic recovery.
German factory orders recovered and increased at a faster-than-expected pace in December, posting signs that Europe's biggest economy is recovering. Factory orders grew 4.2 % in December, much faster than economists' expectations for a 1.5 % increase. Meanwhile, in November, orders declined 2.4%, posting the same rate of losses as in October.
The European Central Bank renounced its agreement of Greek bonds instead for funding, implying that Athens' Central Bank is obliged to support its lenders unless it approves a new reform. The decision was taken after a meeting of Greece's new Finance Minister Yanis Varoufakis with ECB President Mario Draghi, which will be implemented starting from February 11.
Japanese stocks declined since investors are analyzing corporate earnings while the European Central Bank concentrated on Greece's bailout. Therefore, the Topix index lost 0.2% to traded at 1,413.60 while the Nikkei 225 Stock Average declined 0.7% to 17,548.40. Meanwhile, the US shares fell as well, after the ECB curbed Greek banks loans, deepening fears over Euro zone's instability.
US Treasury Securities are still considered an attractive investment, as they bring more than the debt of other developed nations. The current yield on the US 10-year bond is 78 basis points higher than the average among the G7 countries. Yields on comparable Japanese and German debt are 0.355 and 0.37%, respectively.
Weatherford International Ltd, the Swiss oil and natural gas services company, is going to slash its workforce by 5,000 positions in the next three months. The decision was taken due do a harsh drop in crude oil prices, following the footsteps of its largest competitor Schlumberger Ltd. The cuts will cover the US and a part of Western Europe, and are
Gold rallied during the last two sessions, as the safe-haven asset is supported by uncertainty in Greece and China's efforts to spur its slowing economy. The precious metal added 0.4% to $1,274.18 an ounce, advancing 7.3% this year on fears that Greece may leave the Euro area and the Fed may delay an interest rate hike.
President Barack Obama announced a new tax plan for the US corporations with overseas profit. After the new legislation companies will be obliged to pay a 14% tax on the $2 trillion of foreign earnings they have accumulated. Meanwhile, this tax could encourage local companies to revoke their US residency as well as find a foreign purchaser.
Companies in the Euro zone increased hiring, as services and manufacturing sectors in the bloc grew faster than expected. A gauge of employment rose in both industries during the January and a Purchasing Managers' Index climbed from 51.4 to 52.6 in December.
UK services companies' growth exceeded economists' forecasts, since raw material costs declined and businesses hired more employees. Markit Economics announced on Wednesday that its Purchasing Manager's Index climbed from 55.8 to 57.2 in December, excelling the average 56.3 estimation of economists.
Six banks in Europe, including HSBC Holdings Plc and Credit Suisse Group AG, went through a rating cut by the S&P ratings agency amid the prospect governments are not likely to provide support during a crisis. The EU introduced the bank-resolution law in 2014 in an attempt to prevent bailouts using taxpayers' funds that prevailed during the financial crisis.
Asian stocks climbed along with the regional benchmark index, posting their highest advance in a month, since energy and material companies rallied. BHP Billiton Ltd. added 4.4%, Mitsubishi UFJ Financial Group Inc. climbed 5.2% and Hang Seng Bank Ltd. advanced 5.2%, while the MSCI Asia Pacific Index rose 1.6% to 142.07.