The yields on Treasuries decreased after 3 days of surging as some investors claimed that they offered higher value after reaching highest point in almost 2 years. The yield on 10-year U.S. government securities dropped 4 basis points to 2.71%. The relative strength index of 10-year yields stood at 73, which is considered to be an indication that a reversal
Gold was flitting between gains and losses as better-than-predicted U.S. employment report pushed the U.S. Dollar to the strongest level since July 2010 and fueled speculation that the U.S. Federal Reserve may taper bond purchases. Gold for immediate settlement remained flat at $1,223.53 per ounce in Singapore following a jump and decrease of 0.6%.
European shares rallied, after the Stoxx Europe 600 Index advanced for two weeks in a row, while investors awaited for Alcoa Inc. start the U.S. earnings season and for the Euro block finance ministers' meeting in Brussels. The Stoxx 600 inched up 0.7% to 290.39 and the equity benchmark gained 1% on July 5 following better-than-expected employment data.
European stocks jumped before euro-zone's finance ministers' meeting, while Asian shares fell due to better-than-expected U.S. jobs data, which added to concerns that the Fed might unwind its QE and led to capital outflow. The Stoxx Europe 600 Index increased 0.8% so far today after gaining 1.2% last week. The MSCI Asia Pacific Index dropped 1.5%
Chinese shares fell the most in 14 days as energy and industrial company indexes dropped to the lowest level in almost five years. The Shanghai Composite Index declined 2.4% to 1,958.27 at the close, after gaining 1.4% previous week, while the CSI 300 Index slipped 2.8% to 2,163.62. The Hang Seng China Enterprises Index slid 1.1% in Hong Kong.
The British Sterling was little changed against the U.S. currency and the 17-nation currency ahead of the industrial production data that are expected to expand, according to economists. The Pound traded at $1.4896 at 8:07 a.m. in London; moreover, it fell to $1.4858 on July 5, the weakest since March 12. The British currency traded at 86.12 pence per Euro
Asian shares decreased the most in two weeks on concern a credit crunch in China will damp expansion and following a better-than-predicted U.S. Employment data boosted worries that the Federal Reserve may start to taper bond purchases this year. The MSCI Asia Pacific Index slipped 1.6% to 129.28.
German government securities rose before the country's data release, which will show that industrial production activity declined, according to economists' predictions. Weakening economic activity in Germany is expected to push the ECB towards cutting the rates. Yields on 10-year German bunds dropped 2 basis points to 1.70%, while Italian bond yield decreased 4 basis points to 4.39%.
U.S. shares advanced, with the Standard & Poor's 500 Index jumping the most in three weeks, as government report indicated the United States created more jobs than predicted last month. The S&P 500 added 1% to 1,631.89, the biggest gain since June 13. The Dow Jones Industrial Average inched up 1% to 15,135.84.
The Stoxx 50 Index future contracts, expiring in September, jumped 0.6% to 2,614 so far today. Futures on the FTSE 100 Index and S&P 500 Index rose 0.5% and 0.1% respectively. It is believed that European stocks might be set to rise before Mario Draghi's hearing and European finance ministers' meeting.
Emerging market stocks decreased for a second consecutive day as investors speculate that the Fed might unwind its monetary stimulus due to better-than-expected U.S. jobs data. The MSCI Emerging Market Index dropped 1.4% to 904.91 so far today. The gauge remains 14% below its value on May 22 when Bernanke signaled a possibility of an early exit of QE.
The Dollar Index increased to the highest point in 3 years as investors speculate that signs of recovery will lead to the Fed tapering its monetary stimulus. The gauge reached 84.588, the 3 year high, but then dropped to 84.532, which is 0.1% higher than the close last week. The Euro decreased 0.1% to 1.2817 U.S. Dollars, while the greenback
Gold funds' value dropped to a record low of $44.7 billion in Q2 as the gold is heading towards its first annual loss in 13 years. However, if history repeats itself, then gold should do better in the second half of the year. Gains in gold averaged 1.3% in 1981-2000 period in the second half, compared to 3.9% loss in
Indian bonds that will mature in 2022 saw their yields rise as the Rupee dropped to record lows and investors worried about rising oil prices limiting the central bank's ability to cut rates. The Indian currency dipped to an unprecedented low of 61.2125 per U.S. Dollar due to better-than-expected U.S. jobs data, which indicates that the Fed might end its
The Australian Dollar dropped to the lowest level in almost 3 years versus the U.S. Dollar amid speculations that the Reserve Bank of Australia might cut rates next month due to stagnating labor market. The Aussie decreased 0.2% to 90.46 U.S. cents. The yield on 10-year government bonds increased 11 basis points to 3.928%.
澳大利亚工业集团（AIG）7月5日给出的数据显示，澳大利亚6月AIG建筑业表现指数由上月的35.3改善至39.5，虽然依旧处于50荣衰分水岭之下，但其萎缩幅度在缓慢收窄。
Gold declined for the second day in London and the U.S. Dollar appreciated ahead of U.S. employment report that may signal the economy is growing, boosting speculation the Federal Reserve will taper bond purchases. Gold for immediate settlement slipped 1.3% to $1,234 per ounce. The August Bullion contract decreased 1.4% to $1,234.
Treasuries decreased for the second day ahead of the government data that economists predicted will indicate U.S. employers added jobs in June and the unemployment rate declined. The benchmark 10-year note yield jumped two basis points to 2.53% and the 1.75% bond maturing in May 2023 retreated 6/32 to 93 1/4.
Japanese consumers expect inflation to rise 3% in the next 12 months in June, indicating that country's reflationary policies might be working. The survey excludes the effect of a planned 3% increase in sales tax. The monetary stimulus is expected to increase spending and borrowing, however, the central bank has not yet achieved its target of 2%.
German shares advanced, prolonging yesterday's biggest rise for the DAX Index in almost three months, ahead of U.S. non-farm payrolls data that may impact the Fed's monetary stimulus. The DAX gained 0.2% to 8,012.65 as of 9:46 a.m. Frankfurt time, prolonging its climb in the previous two days to 2.3%, while the HDAX Index rose 0.2% today.
The Pound declined to the lowest point in more than a quarter as the BOE announced that it would keep monetary policy accommodative for longer than was expected. The Sterling dropped 0.4% to 1.5005 after it reached 1.4999, the lowest level since March 14. The currency also depreciated 1.4% yesterday. The Pound has slid 2% this year so far.
U.K. shares rose, with the benchmark index heading for the biggest one week advance in more than half year, before the U.S. jobs report. The FTSE 100 Index gained 0.3% to 6,438.75 as of 8:38 a.m. London time; moreover, the gauge added 3.1% on Thursday, the most in almost two years. The FTSE All-Share Index climbed 0.2%, while Ireland's ISEQ
Japan's stocks inched up, with the Topix index capping the largest rise in three weeks since April 2009, as the Japanese Yen depreciated and the European Central Bank and Bank of England underlined their determination to maintain interest rates low. The Topix jumped 1.5% to 1,188.58 and the Nikkei 225 Stock Average rallied 2.1% to 14,309.97.
Spanish and Italian 10-year government securities rose as the ECB indicated yesterday that it will keep its monetary policy accomodative. Yield on Spain's 10-year government bonds dropped 3 basis points to 4.62% after it decreased 12 basis points yesterday. Yield on similar maturity Italian government securities dipped 3 basis points as well to 4.37%. German yields increased 2 basis points.