Chinese shares declined to the lowest level in approximately 20 days as companies related to the free-trade zone in Shanghai dropped on worries that gains were excessive. The Shanghai Composite Index slipped 1.9% to 2,155.81, the lowest since the beginning of September, while the CSI 300 Index retreated 1.8% to 2,384.44.
U.K. economy expanded in the second quarter of the year, as the consumer spending rose after the first quarter that topped estimates. Country's GDP grew 0.7%, making the expectations, while household expenditure increased 0.3% and disposable income rose 1.5%, according to the Office for National Statistics.
Spain's Prime Minister Mariano Rajoy may take the OECD advice and carry out more intense adjustments in the labor code to overhaul current jobless rate of 26%. Country's economy is recovering from recession and is expected to satisfy budget deficit goal in 2013, yet there is a need to decrease borrowing costs in order to avoid austerity measures.
Latvia will become the 18th member of the Eurozone next year and the President of Latvia Andris Berzins says that it is a practical decision and the country will benefit from that. The biggest part of Latvians are against Euro adaptation; however, Berzins stressed that the reason behind that is the past experience, when the Soviet Union broke and a
European shares were little changed before the U.S. unemployment data that are expected to show a rise. The Stoxx Europe 600 Index grew 0.2% to 313.57 as of 8:05 a.m. London time; however, the equity-benchmark has fallen 0.3% weekly on worries that U.S. lawmakers could fail to agree on federal budget for the upcoming financial year.
The Australia's currency fell versus the U.S. Dollar and majority of its counterparts as debates around the U.S. government shutdown put pressure on the Aussie. The U.S. nation is about to face shortage of cash by October 17 and impossibility to handle payments due November 1. Yet, the Australian Dollar has advanced 5.3% versus the greenback this month and 2.6%
Asian shares rose, impacted by Japanese stocks, on speculation that Japan's government will discuss a corporate tax cut and support riskier assets for public pension funds. The MSCI Asia Pacific Index gained 0.2% to 140.65 at 2:29 p.m. Hong Kong time and the gauge has advanced 7.8% monthly, while Japan's Topix index erased decline of 1.6%.
The British currency was little changed, approximately 0.5% from its eight-month high against the greenback, ahead of U.K. economy data that are expected to show growth. The Sterling was at $1.6075 at 7:37 a.m. in London after appreciating to $1.6163 on September 13, the strongest since January 11. The Pound traded at 84.07 pence per Euro after rising to 83.53
Composite Consumer Sentiment Index in South Korea went down in the month of September, a report released by the Bank of Korea showed on Thursday. The index recorded 102.0 in September compared to a score of 105.0 in August, while the consumer confidence on current living standards dropped by 2 points from 91 recorded in August to 89 in September.
Unemployment in France declined in the month of August for the first time in more than a two-year period, the latest data released by the labour ministry revealed on Wednesday. The total number of people claiming for initial unemployment benefits decreased by 50,000 or 1.5% on a monthly basis in August, when the number of unemployed people totalled 3.24 million.
The Japanese currency weakened on Thursday trimming its four-day advance against the U.S. currency amid speculations that the country's government will intend to cut corporate tax and make changes in pension funds towards riskier assets. The Yen fell 0.3% to 98.76 per U.S. Dollar at 1:27 p.m. Tokyo time and it declined 0.3% to 133.57 per Euro.
West Texas Intermediate oil continued to fall on Thursday falling for the sixth day in a row extending its series of losses on 16 months after the U.S. government showed in a report that inventories increased surprisingly as demand fell. WTI futures for delivery in November dropped 46 cents to $102.20 a barrel on the NYMEX and were traded at
Asian shares declined for the third straight session on Thursday snapping its largest monthly gain on the local index since January 2012, when the fall was led by health care and industrial sector companies. The MSCI Asia Pacific Index slipped 0.3% to 139.97 at 11:34 a.m. Hong Kong time and it advanced 7.8% in September by yesterday.
Deals on newly built single-family houses advanced 7.9% in August reaching 421,000 units annualized, yet being around lowest in 2013. Increase in the sales met economists' expectations, but was not enough to balance out the sharp decrease experienced in July 2013. Alongside, new homes' inventory to be sold rose 3.6% last month compared to July attaining highest since March 2011.
The U.K.'s currency has inched up 0.3% to $1.6046 getting close to the eight-month high amid increase in retail sales index. The diffusion index, the customer spending indicator, advanced to 34 compared to 27 in August, which signals improvements in the U.K. economy. Over last 6 months the Sterling gained 5.8% versus the greenback becoming the best performer so far.
U.K. shares dropped as U.S. lawmakers continued discussions on a nation's budget to prevent the government from shut down upcoming month. The FTSE 100 Index declined 0.5% to 6,536.32 as of 3:06 p.m. London time; however, the gauge has climbed 1.9% monthly, prolonging its quarterly advance to 5.2%, while the FTSE All-Share Index slid 0.5%.
U.S. durable-goods report indicated that the demand increased 0.1% after declining 8.1% a month earlier. The growing demand for autos and houses is supporting the stabilization process for factories after the overseas markets have struggled. The political issues in Washington could impact manufacturing sector that accounts for approximately 12% of the nation's economy.
The U.S. nation loses belief in strong economic recovery claiming the country to be in recession still, yet economists anticipate growth to advance. Less people remain optimistic about labor and housing markets, and more are impatient with the pace of the country's economy. Alongside economic conditions, Americans are distressed over political situation and increased level of bureaucracy.
Statistical bureau of Norway announced a surprising surge in country's unemployment rate, which increased to 3.6% in July against 3.4% a month earlier, which is still much lower than EU average at 11%. Analysts forecasted the rate to decline to 3.3%. Moreover, economists forecast the Norway's GDP to add only 1.75% in 2013, while in 2012 the economic growth was
Jacob Lew, U.S. Secretary of Treasury, told investors that they are too optimistic about perspectives of the U.S. debt ceiling deal. He pointed out that risks are much higher than analysts expect, and U.S. government will probably have only about $50 billion in free cash by the middle of October. Alongside, Barack Obama refused to negotiate with Republicans on raising
World Bank officials said on Wednesday that the Russia's government has to support small firms and manufacturers by stimulating its citizens to open their own businesses. Currently the government actively supports the medium-sized companies. Meanwhile, the World Bank decreased Russia's economic expansion outlook to 1.8% this year, while the next year the economy will add 3.1%.
Shares in Switzerland were little changed, after retreating for two straight days, as U.S. durable-goods and housing data were awaited by investors. The Swiss Market Index slid 0.1% to 8,041.63 as of 12:14 p.m. Zurich time, paring gains of 0.4%; however, the gauge has gained 3.8% monthly. The Swiss Performance Index declined less than 0.1%.
U.K. shares declined before the U.S. durable-goods and housing reports and on the political situation in U.S. as the officials discuss the budget. The FTSE 100 Index fell 0.3% to 6,551.92 as of 11:42 a.m. London time, paring 0.3% gain; however, the gauge has gained 2.2% in September. The FTSE All-Share Index slid 0.3%, while Ireland's ISEQ Index fell 0.1%
Japan's government will have to increase the VAT tax rate substantially by 2020 Olympic Games, as the country's external debt exceeds 200% of GDP, while the aging population will ask for more welfare costs. Analysts estimate that VAT surge to 20% will raise enough money to pay for bonds that Japan will issue before the Olympics to cover costs, while