The Cable weakened after no MPC members were reported to vote in favour of an interest rate hike. The committee members Martin Weale and Ian McCafferty changed their mind regarding the suitable interest rate level due unstable and weak oil prices that in turn may lead to low inflation. In a different report, the UK wage growth came out below
Oil commenced a recovery after a strong weekly decline, being that historically low prices are slowing oil drilling activities in the United States. BHP Billiton Ltd., the largest diversified natural resources company in the US, announced it is going to reduce the amount of active oil rigs by approximately 40%.
The Yen added versus the Dollar since the Bank of Japan did not enhance the asset-purchasing plan.The Aussie rose and New Zealand's Dollar gained, as Asian shares increased, fueling demand for high-yielding assets. Australia's Dollar rose 0.7% to 82.26 cents, while the kiwi went up by 0.4% to 76.67 cents. At the same time, the Euro appreciated ahead of the
The US currency trade-weighted index climbed to its 10-year high due to the Fed's willingness to raise interest rates, while the European and Japanese policy makers are thinking about measures to revive their economies. Meanwhile, the New Zealand Dollar dropped to a 1.5-year low, as the cost of living declined by 0.2%.
The Yen fell for a third day against the Dollar due to the significant growth of Chinese economy that exceeded analysts' forecasts. The Yen dropped almost against all 16 of its major peers and weakened 0.7% to 118.37 versus the Dollar at 10:10 a.m. in London. However, the Euro strengthened 0.5% to 137.16 against the Japan's currency.
The International Monetary Fund cut its global economic growth outlook the most in three years, with reduced anticipation almost everywhere, but the US, which expanded the drop in oil prices. The global economy will add only 3.5%, compared with anticipated 3.8% growth in 2015, the IMF reported yesterday.
Oil fell for a second day since the IMF downgraded its global economy growth forecast by the most in three years. Oil futures declined 1.3% in London after the biggest weekly drop. The global growth will add 3.5% in 2015, compared with 3.8% growth anticipated in October, the IMF informed in its quarterly report yesterday.
European stocks gained for a fourth day, heading to their strongest level since 2008, on speculations the ECB will start QE program this week. The Stock Europe 600 Index advanced 0.5% to 355.03 as of 10:04 a.m. London time, and the equity benchmark rose 4.5% during the fourth day after the SNB's actions.
On Tuesday prices for copper declined after China GDP data was released. China is the largest copper consumer in the world, accounting for approximately 40% of global consumption. During 2014 Chinese economy expanded at the slowest rate for the last 24 years, pushing down copper futures by 4.9 cents to $2.568 per pound, rebounding from the low of $2.563 during
In Asia prices for gold slightly gained on Tuesday amid higher demand and ignoring China's data released. China's data beat all expectations, with GDP for the fourth quarter rising 7.3%, last month's industrial production adding 7.9% and retail sales edging up 11.9%. Futures for February gained 0.09% to $1,278.10 per troy ounce, after a slight decline on Monday, but with
On Tuesday prices for oil slumped due to China's GDP growing at the slowest rate in 24 years, along with concerns over weaker demand and supply glut. China, the world's second biggest economy, rose by 7.4% in 2014, slightly less than the expectation of 7.5%. Fourth quarter growth rate was at 7.3%, better than anticipated, but at its slowest in
David Cameron, UK Prime Minister, promised to deliver the strongest employment rate in the G-7. He believes his Conservative Party has the best chance of rebuilding the economy following the May's general elections. Cameron promised to battle bureaucracy and to invest in infrastructure in order to support small businesses.
The Swiss National Bank's unexpected decision to abandon its minimal exchange rate for the pair CHF/EUR, due to which Franc advanced 41% against the Euro, negatively influenced the world's leading banks, as they received $400 million of cumulative losses. Citigroup, the world leading bank, faced $150 million losses, while Deutsche Bank lost around $150 million. Barclays, in turn, lost around
Hedge funds increased their net-long position in WTI oil by 12% in the previous week, thus cutting oil bets, the CFTC reported. WTI lost 4.3%, or $2.04, to $45.89 a barrel during the trading session, in the period of CFTC report, reaching to $44.20 on January 13, the weakest level since 2009. Futures climbed to $48.69 on Friday, heading to
The Yen rose versus the Dollar as Chinese stocks' plunge increased demand for safety. The Japanese Yen strengthened almost against all 16 of its major peers and added 0.2% to 117.23 versus the Dollar as of 9:44 a.m. London time. However, the currency weakened 0.2% to 136.25 versus the Euro after heading to 134.71 on January 16, the highest level
Oil declined after Iraq announced that it was producing a record number of crude, and Swiss stocks recovered from the weakest level in a year together with the strengthening Chinese currency. WTI crude fell 0.8% to $48.35 a barrel as of 10:40 a.m. London time, and crude declined almost 50% previous year.
European stocks stayed almost the same, paring early gains, on investor expectations of ECB's announcement about QE this week. The Stoxx Europe 600 Index gained 0.1% to 352.52 as of 9:42 a.m. London time, after an earlier advance of 0.5%, while Switzerland's SMI Index added 3.2% today after its biggest weekly decline since 2008 following the SNB's actions.
On Monday the UK Pound gained versus the US Dollar, but with limited gains due to investors who are locking-in profits. GBP/USD hit a high of 1.5234, afterwards settling at 1.5177, having gained 0.18% in total. The Sterling experienced hard pressure last week amid UK consumer inflation rate weakening to 0.5%, while the Greenback received a support after the SNB
On Monday prices for copper fluctuated ahead of China's key economic data being released. Copper futures for March lost 0.3 cents and traded at $2.614 per pound, with fluctuations held between $2.593 and $2.636, compared to a low of $2,423 last week, a level unseen since 2009. China, the largest copper consumer, accounts for nearly 40% of copper consumption in
Before the ECB policymakers' meeting taking place to discuss the the new stimulus introduction prices for gold rose to a four-month high. Immediate delivery price lost 0.4% to $1,275.09 per ounce after reaching the highest level of $1,283 since the beginning of September. Futures for February fell to $1,275.10, compared to last week's $1,276.40. Due to gold prices skyrocketing in
Last week oil gained for the first time in two months, but slumped this Monday amid fear of OPEC increasing output overweighting speculation that supply from the outside group will dampen. Oil prices fell by approximately 1% as Iraq pumps at a record speed of four million barrels per day, while supply of non-OPEC output is expected to be weaker
Asian stocks declined due to an unexpectedly move in Swiss Franc, and the volatility soared to elevated levels. Chugai Pharmaceutical Co. fell 2.5%, Samsung C&T Corp. dropped 6.3%, the MSCI Asia Pacific Index tumbled 0.6% to 137.97, while Shandong Gold Mining Co. and Zijin Mining Group Co. added more than 3.8%.
Oil is poised for the longest weekly decline from March 1986, as OPEC estimates that the crude oil demand might subside, adding to an oversupply that spurred a collapse of oil prices last year. WTI crude for February settlement was at $46.77 a barrel and the contract fell $2.23 to $46.25 yesterday.
European car sales increased for the first in seven years amid demand for low-cost autos from Renault SA and Volkswagen AG. Registrations added 5.4% to 13 million cars, the ACEA reported today. December sales climbed 4.9% to 997,238 in comparison with the previous year. BMV AG, Automobiles NV, Fiat Chrysler, Nissan Motor Co. and Daimler AG were among the companies