The U.S. inflation of consumer goods and services, excluding energy and food, rose only 1.1% this year through April. It was the smallest increase in the gauge since the recording began in 1960. This might give incentives to Ben Bernanke to continue with the Fed's stimulus as inflation falls far below its target of 2%. The speech by the head
Oil prices were little changed at the Tuesday's close before the Fed policy meeting, which could indicate whether the Fed officials will start tapering stimulus at its meeting today. Brent crude oil futures for August delivery rose 55 cents at $106.02 per barrel after reaching $106.24, while U.S. crude oil futures gained 67 cents at $98.44 per barrel, after touching
Westpac and Melbourne Institute reported on Wednesday that a leading index of the country's economic performance signalled above-trend growth of the economy. The annualized development of the index reached 5.4% in April, which was significantly higher than the long-term trend that is equal to 3%.
On Wednesday, Statistics Sweden revealed that unemployment rate declined unexpectedly in May. The figure for May declined down to 8.2%, compared to a reading for the preceding month that was equal to 8.7%. Economists, however, expected that jobless rate in Sweden will increase to 8.8% last month.
On Wednesday, members of the English central bank overturned Mervyn King's call for further stimulus during his last meeting as a governor. 3 members voted for additional increase of 25 billion pounds in quantitative easing, while 6 voted against the decision. Meantime, Monetary Policy Committee decided to keep record low interest rates at 0.50%.
BoJ governor Kuroda said that central bank's monetary stimulus might be adjusted upwards or downwards depending on economic situation. These comments counter the April's statement that the BoJ has done everything it can to fight deflation. Two month ago Japanese central bank promised to double country's monetary base within 2 years, expanding it 60-70 trillion yen per year.
Japanese Yen jumped against the U.S. Dollar on speculation the Federal Reserve Chairman Ben Bernanke will not provide certain information about the central banks movement towards tapering stimulus. The Japan's Yen advanced 0.4% to 94.94 versus the greenback, after dropping 1.1% in the previous trading sessions. The Yen rallied 0.4% to 127.22 against the Euro.
Treasury 10-year note gains held in the narrowest range in approximately four weeks ahead of the Fed's Bernanke statement about the outcome of the policy meeting today. The benchmark 10-year yield traded at 2.18% as of 8:10 a.m. London time, according to Bloomberg Trader prices. Treasuries have given a 1.1% decline for the investors this year to date.
German government bunds advanced as investors awaited Ben Bernanke's comments on the Federal Reserve bond-purchase programme. German 10-year bond yield declined two basis points to 1.55% and the 1.5% note maturing in May 2023 jumped to 99.515. Germany plans to auction 5 billion Euros of 10-year notes.
European shares were little changed before the Fed policy meeting that could indicate whether the Fed will reduce stimulus. The Stoxx Europe 600 Index stayed steady at 293.02 at 8:17 a.m. London time, reversing earlier gains, while Standard & Poor's 500 Index futures advanced less than 0.1% after it gained 1.5% over the previous two days.
Gold extended losses close to the lowest level in almost a month ahead of the Fed's policy meeting outcome that could indicate if the officials will start winding down its stimulus. Spot gold was at $1,367.05 an ounce as of 2:06 p.m. Singapore time after it reached $1,367.65 on Tuesday, when the yellow metal fell to $1,361.08, the lowest since
Hong Kong shares declined on low trading volume ahead of the Fed policy meeting, which could indicate whether the Fed will start scaling back its bond-buying programme. The Hang Sheng Index slipped 0.4% to 21,132.26 at 9:55 a.m. Hong Kong time as approximately four stocks fell for each one that advanced. The Hang Seng China Enterprises Index retreated 1.2% to
European stock-index futures gained before the Fed policy meeting, which could indicate whether the Fed officials will start tapering stimulus at its meeting today. Futures on the Euro Stoxx 50 Index climbed 0.3% to 2,707 as of 7:41 a.m. London time, while the Standard & Poor's 500 Index futures gained 0.2% after the U.S. equity benchmark advanced 1.5% over the
Canada's shares advanced to the highest level in one week as energy producers rose with oil costs and investors expect the concluding Federal Reserve meeting. Tim Hortons Inc. jumped 4% to C$56.05, the largest climb since August 2011. The Standard & Poor's/TSX Composite Index increased 0.6% to 12,367.46.
The British currency was little changed against the greenback and the Eurozone's currency ahead of the release of England's central bank minutes of its last meeting. The Sterling was at $1.5644 as of 7:17 a.m. in London after reaching $1.5566 on Tuesday, while the currency traded at 85.62 pence per Euro, after touching 85.85 day earlier, the lowest since May
U.S. shares climbed for the second day, with the Standard & Poor's 500 Index jumping to the highest level in June, as investors expected the conclusion of a Federal Reserve policy meeting. The S&P 500 advanced 0.8% to 1,651.81, after it inched up 1.5% yesterday, and the Dow Jones Industrial Average rallied 0.9% to 15,318.23.
Asian shares advanced after Japan's overseas sellers inched up amid the nation's shipment rise and the lower Yen. The MSCI Asia Pacific Index gained 0.4% to 132.29. The Japanese Topix Index rallied 1.2% and the benchmark Nikkei 225 Stock Average advanced 1.3%. The Taiwan's Taiex index increased 0.3%, while Australian S&P/ASX 200 Index rose 0.8%.
Australia's currency prolonged losses for the fourth day versus the U.S. Dollar before the Federal Reserve holds the final meeting today. The Aussie contracted 0.1% to 94.76 against the greenback after falling 0.6% yesterday, adding to signs the currency has retreated 9.9 % in the previous three months, the biggest decline among its 10 developed-market peers.
Canada's Dollar remained weak for the third day in a row against its U.S. counterpart on speculation the Federal Reserve may show when it is going to start reducing asset purchases in the U.S. The Canadian currency depreciated 0.3% to C$1.0212 versus the greenback, while the futures on crude oil climbed 0.9% to $98.65 per barrel.
The U.S. Dollar remained higher for the second day against the Japan's Yen on bets the Federal Reserve Chairman Ben Bernanke will provide more signals on when U.S. officials will begin to scale back bond purchases. The greenback appreciated 0.1% to 95.42 versus the Yen and was at $1.3387 against the common currency.
The Russian Ruble depreciated 1.1% today against dollar-euro basket of the central bank, the biggest drop since April 17. The currency also dropped 0.8% against the U.S. Dollar and is currently trading at 31.3997. Decreasing oil prices and the Finance Ministry's support for a weaker currency and talks about intervention were responsible factors for the Ruble's debasement.
Future contracts on U.S. stocks were stable before today's building permits data release and the start of Fed's meeting, which will be followed by Bernanke's press conference on Wednesday. The rise in S&P 500 index futures was smaller than 0.1%, while Dow Jones Industrial Average futures increased 0.1%. The future indexes are currently trading at 1,634.8 and 15,131 respectively.
The Japanese Yen fell 0.9% against the U.S. Dollar today, reaching 95.37 Yen per Dollar. This is the second consecutive day of depreciation for the currency. Yields on 10-year German government bonds rose 0.04 percentage point to 1.56%, while yields on similar maturity British gilts rose 6 basis points to 2.14%. These moves occurred as investors are waiting for indications
The Chinese Yuan depreciated the most in approximately two weeks as the China's central bank stopped five days of strengthening the currency's fixing on bets that the Fed will scale back its stimulus. The China's currency dropped 0.6% to 6.1285 per Dollar in Shanghai, making its the biggest fall since June 6; however, it has gained 1.7% this year to