Housing starts in the U.S. unexpectedly decreased in June to the lowest since August 2012. Number of construction starts dropped 9.9%, a larger decline than any expert expected. The decline in activity in June came even as home builders sentiment index increased from 51 to 57 in July, a seven-year high. The rate for a 30-year mortgage advanced 4.51%.
Ben Bernanke, the Chairman of the Federal reserve, revealed today the Fed still has intention to begin reducing its QE programme later this year, yet he left open the possibility of alternating the plan if economic projections changed. The Chairman said economic recovery is improving steadily due to stronger housing sector, and he pointed out that risks associated with the
The British currency rose versus the greenback and the Eurozone's currency, erasing earlier retreat, after England's central bank minutes from previous meeting were released. The Sterling appreciated 0.3% to $1.5204 as of 11:18 a.m. in London after sliding to $1.5079 earlier. At the same time, it strengthened 0.4% to 86.47 pence per Euro after reaching 87.11 pence, the lowest since
EU stocks advanced, erasing previous losses, before Fed Chairman Ben Bernake's speech to the Congress later this day which may provide investors with information about the Fed's stimulus plans. Euro Stoxx climbed 0.38% to 2,675.61. Germany DAX increased 0.27% to 8,223.38 and the French CAC 40 added 0.40% to 3,866.39.
German 10-year government bunds contracted as the Germany auctioned 3.19 billion euros of the securities. German 10-year note yield advanced three basis points to 1.58% and the 1.5% security maturing in May 2023 decreased 0.255 to 99.29. Two-year bund yields jumped one basis point to 0.1%. Germany auctioned bonds at an average 1.57% yield.
Japan's stocks inched up, with the Topix index rising for the third day, as the Japanese Yen depreciated versus the U.S. Dollar and investors expected speech by the Federal Reserve Chairman Ben Bernanke. The Topix advanced 0.2% to 1,213.24 and the Nikkei 225 Stock Average gained 0.1% to 14,615.04. The yen slipped 0.3% to 99.37 against the greenback.
U.K. shares dropped, reversing an earlier advance, after England's central bank minutes indicated that Mark Carney united lawmakers to vote against further bond purchases and to remain the benchmark interest rate at 0.5%. The FTSE 100 Index slipped 0.2% to 6,542.1 as of 9:46 a.m. London time after advancing 0.5% earlier, while the FTSE All-Share Index also slid 0.2%.
Gold futures declined from the highest delivery in three weeks in the last session, as investors await a key speech from the Federal Reserve chief Ben Bernanke. The August gold contract decreased $1.30 to $1,289.10 per ounce, following a jump of $6.90 yesterday. Silver for September delivery declined 0.3% to $19.88 per ounce and copper for September settlement gained to
European shares declined, prolonging their biggest fall in more than seven days, on BoE minutes that showed the England's central bank officials voted in favor of holding bond purchases in the future. The Stoxx Europe 600 Index declined 0.5% to 293.95 as of 10:15 a.m. London time, reversing a gain of 0.3%. The equity-benchmark slid from its near six-week high;
Spain's 10-year securities retreated, with the yield on the country's bonds expiring in October 2023 advancing 0.04 percentage point, or four basis points, to 4.72% in London at 9:33 a.m., and Italian 10-year bond yield climbed two basis points to 4.48%. Germany's 10-year security yields inched up two basis points to 1.57%.
U.K. June's jobless claims dropped the most in three years, adding to evidence that nation's economy is improving. Unemployment claims declined 21,200 to 1.48 million compared to May, making it the biggest fall since June 2010, according to London based Office for National Statistics. The number of people out of work in dropped 57,000 reaching 2.51 million in previous three
The Pound advanced as the Bank of England released it minutes from the July 4 meeting with increased jobs report, as investors await the speech from the Federal Reserve chief Ben Bernanke. The Bank of England officials voted to maintain bond purchases unchanged at £375 billion this month. The Sterling added 0.45% to $1.5234 versus the greenback and jumped 0.50%
The Japanese currency declined versus its major counterparts, as investors were expecting the speech from the Federal Reserve Chairman Ben Bernanke on quantitative easing, which may provide signals on when the Fed plans to begin reducing its bond-buying programme. The Yen retreated 0.25% to 99.33 versus the greenback and dropped 0.18% to 130.54 versus the 17-nation currency.
The Canadian the currency snapped two days of declines versus U.S. Dollar on bets the Fed's Chairman Bernanke could state that they are in no rush to wind down monetary stimulus programme. Canada's currency strengthened 0.6% to C$1.0369 per U.S. Dollar as of 5 p.m. Toronto time and one Canadian Dollar buys 94.44 U.S. cents.
The Aussie pared its biggest two straight day climb in almost two years on bets that the Australia's central bank might cut interest rates to the lowest level ever next month. The Australian Dollar dropped 0.3% to 92.29 U.S. cents at 3:11 p.m. Sydney time after it rose 2.3% two past days, while the Aussie was at 91.68 Yen. The
The greenback advanced versus most of its major peers before the Fed's Bernanke testimony today. The U.S. Dollar gained 0.3% to 99.37 Yen at 7:06 a.m. London time after falling 0.8% on Tuesday, while it climbed 0.2% to $1.3136 per Euro. Eurozone's currency added 0.1% to 130.52 Yen and the Sterling slipped 0.1% to 86.94 pence per Euro after reaching
Poland has the weakest economics growth since the 90s. Policymakers revealed plans to loosen the deficit by $4.95 billion (16 billion Zloty) to stop the stagnation. The Zloty rose 1% to 4.2467 versus the Euro as of 4:54 p.m. in Warsaw, reaching a four-week high. The returns on 10-year bond increased one basis point to 3.93%.
The Aussie gained after the Reserve Bank of Australia released the minutes of its recent monetary policy meeting. The RBA decided to maintain the lending rate of 2.75% as it is now. The currency gained 1.35% to $0.9220 at 11:17 a.m. EDT. Versus the 17-nation currency, the Aussie climbed 0.8% to 1.4239 after the ZEW survey. Versus the Yen. it
The main U.S. stock averages remained flat as investors struggle to interpret recent economic reports. Data shows increasing price growth, significant gain in manufacturing output in last few months, while retails sales were weaker than projected. The S&P 500 gauge slid 0.06% to 1,681.43, the Dow Jones gauge dropped 0.02% to 15,480.44 and the Nasdaq stayed at 3,606.42.
Industrial output in the U.S. climbed the most since February. Output gained 0.3% in June, which matches the economist forecast, after a 0.2% increase in May. Manufacturing growth is quite low as slow-growing foreign markets hinder export activity, but it is expected to pick up in the second half of 2013. Manufacturing accounts for 12% of the U.S. economy.
West Texas Intermediate advanced to a three-day high amid speculation U.S crude stockpiles decreased for a a third week, indicating growing demand in the U.S., the world's largest consumer of oil. WTI for August settlement gained 86 cents to $106.91 a barrel as of 8:47 a.m. on New York Mercantile Exchange. Inventories most likely fell to a five-month low. Official
U.K. gilts climbed and returns on two-yield securities dropped to almost two-month low on speculation low inflation rate will encourage the Bank of England to continue its monetary stimulus. The returns declined five basis points to 0.32% at 12:19 p.m. in London. The bonds also increased before the BOE reveals the minutes of its recent monetary policy meeting.
U.S. consumer price index rose 0.5% in June after an increase of 0.1% the month before. Markets expected a 0.3% advance. On 12-month basis ending in June, the CPI reached 1.8% in June, matching expectations. Core consumer price index, which excludes food and energy goods and services, rose 1.6% from June 2012.
European auto sales fell to the lowest level in two decades, German investor sentiment surprisingly decreased and Eurozone's exports dropped for a second straight month, rising worries that the region's economy is struggling. Car registrations fell 6.3% to 1.18 million autos in June compared to previous year, while the ZEW index missed the expectations by dropping to 36.3 this month.