German Federal Constitutional Court cleared the way for Eurozone rescue fund on Wednesday. The European Stability Mechanism of total value of the 500 billion euro aimed to provide financial assistance to Eurozone's countries in financial difficulty. Moreover, German Court gave parliament veto powers over any future increases in the size of the fund.
The major European stocks index Stoxx Europe 50 gained 0.98% to 2,582.84 on early London trading session. Index gained a second day after the top German court approved country's participation in Eurozone's bailout fund with certain conditions. This decision increased confidence in the market that governments will not let economies get worse.
European stock futures were slightly positive as Euro Stoxx 50 index was up by 0.1% to 2,562 on late Asian trading hour. Investors keep positions on hold till German top constitutional court announce decision on the country's participation in the €500 billion Euro region bailout fund. The court announces its verdict at 10 a.m.
U.S. 5-year notes outperformed 2- and 10-year treasuries in terms of price due to the so-called butterfly spread estimate of value. The spread was negative at 54.61 basis points on Wednesday, after slipping to -54.86 points on Sept. 10, the record low since 2006. The Fed has decreased benchmark rates to near zero percent.
Finland's retail sales increased as a pace of 3.8% in July from the previous year, compared to a 5.7% advance in July, Statistics Finland reported on Wednesday. In total trade surged 2.1%, while motor vehicle sales slipped 15.2% on year. In the first half of 2012, retail sales rose 5.1% and wholesale trade 5.2% from a year ago.
Germany's HICP advanced 2.2% in August from 1.9% in the preceding month, Federal Statistical Office said on Wednesday. On monthly basis, the HICP rose upwardly revised 0.4% in July. Meanwhile, CPI added 2.1% on year in August, from 1.7% in previous month and above forecast of 2%. Increase was lead by a 7.6% climb in energy prices.
The BSE India Sensitive Index increased by 0.5% to 17,934.91 on the first half of trading session in Mumbai. Indian index was up for a six day, longest winning period since January, and lifted the benchmark above six-month high. Investors traded with optimism as domestic data showed economic slowdown and fueled speculation that the central bank will cut the key rate. The Indian central bank
The Canadian Dollar rose to a 13-month high against the U.S. peer amid optimism measures taken by policymakers in Europe and the U.S. will reduce volatility. The Loonie strengthened for a fourth straight day ahead of policy meeting of the Fed. Canada's currency gained 0.5% to 97.30 cents per U.S. Dollar. One Canada's Dollar buys $1.02775.
The U.S. Dollar fell to the lowest level in 4 months versus the Euro ahead of the Fed's two-day meeting on speculation it will launch asset-purchase programme to stimulate the nation's economy. The Dollar stayed lower against all of its major peers following a decrease yesterday after Moody's said it may cut the nation's Aaa rating. The greenback lost 0.2%
Australian currency reached a three-week high as belief the U.S. and China will step up efforts to support world's largest economies fueled demand for riskier assets. The Aussie advanced 0.3% to $1.0470, after hitting $1.0480, the highest since Aug.23. It gained 0.5% to 81.52 Yen. Meanwhile, New Zealand's Dollar rose 0.3% to 82 U.S. cents and 0.5% to 63.85 Yen.
Asian stocks showed positive performance as the MSCI Asia Pacific Index was up by 1% to 120.47 in the middle of Tokyo trading session. Today's trading extended gain of last four days and that was the longest winning period since July. Markets moved up after the ECB positive decision on unlimited bond-buying plan and continue to gain on speculation that China's and U.S. policy makers
French annual inflation posted a more-then-estimated increase in August, the Insee reported on Wednesday. The CPI surged 0.7% on month, compared to a 0.4% decline in July and exceeding forecasts of a 0.6% rise. On yearly basis, CPI advanced 2.1% in August after 1.9% in the previous month, rise was mostly due to a climb in energy prices.
Hong Kong stocks opened significantly higher on Wednesday, getting on path to 5th rally day, as Chinese premier announced the country will face its expansion target for 2012, and as stronger closing on Wall Street supported sentiment. The Hang Seng Index surged 1% to 20,061.57 and the Hang Seng China Enterprises Index rallied 1.4% to 9,507.04.
On Tuesday, September 11, Moody's Investors Service warned that it may cut the U.S's AAA rating, if budget negotiations for 2013 do not result in policy measures, which will reduce the nation's debt. According to the Congressional Budget Office, the budget deficit is going to reach $1.1 trillion in 2012, down from $1.3 trillion in the preceding year.
German stocks moved higher on Tuesday despite China's growth cuts and anticipation of the German Constitutional Court decision on whether to leave the ESM. Alarming Spain's PM announcement on extensive intervention of the ECB and EU in its budget deficit cuts capped the upswing of the German stock index. At the same time, hopes for easing in the US provided
UK shares extended previous slump on Tuesday amid lingering concerns over spreading debt crisis in the Eurozone. Spanish PM announced that he will not allow the EU and ECB to decide how the county will narrow its budget deficit. Weighting down on risk sentiment, the German Constitutional Court will decide on whether to halt its participation in the ESM on
Farm commodities were mixed, with sugar and coffee rebounding and grains dropping. Broadly stronger US Dollar coupled with better weather conditions in the US created heavy pressure on agricultural commodities. Wheat futures declined despite crop forecasts' cuts. Rabobank lowered Australian wheat output to 22.79 million MT in 2012-2013, citing unfavorable weather conditions in July. Corn was the worst-performer after USDA reported that
Hong Kong stocks increased slightly on Tuesday despite weaker-than-expected auto sales last month. Adding pressure on the China's stocks, Macquarie lowered China's growth forecast for 2012 to 7.7% from 8.1%. At the same time, fixed-asset stimulus approved by the government continued to lend support for China's shares. The Hang Seng Index gained 0.16% to close at 19,857.88. Six out of
Energy commodities advanced on Monday amid continuous hopes for stimulus in the US and China. Sending the commodity group lower, Saudi Arabia's oil minister announced that high oil prices were a global concern and were not justified. Crude oil ended the day with a mild gain, balancing between US and China's stimulus speculation and reports that high oil prices are
The Dow Jones Industrial Average Index inched down by 0.39% to close at 13,254.29 on Monday. High risk aversion ahead of the German Constitutional Court ruling coupled with weak state of the US labour market weighted down on the US blue chips index. Only two in nine economic sectors included in the index eased up. The top-gainer was health care
Japanese shares closed lower on Tuesday as traders started to decrease their exposure to riskier assets head of the German Constitutional Court decision regarding the ESM due on Wednesday. Weakness of US equity markets as well as anticipation of the Fed meeting on Thursday pushed Japan's shares lower. Only one sector within the index gained. Consumer services added 0.14%. At
Industrial metals prolonged their rally on Monday on escalated hopes for easing measures in the US and China. Meanwhile, market participants anticipated an outcome of the German Constitutional Court hearing regarding the ESM existence. Aluminum climbed on hopes that recent negative headlines from the US and China will force the central banks to implement stimulus measures. Copper rallied to three-month high on
US equities dropped on Monday amid increased cautiousness in the market ahead of the German Constitutional Court decision on whether to suspend the ESM. Recent pessimistic data releases from the US and China also added pressure on the US stocks. Even speculation that the Fed and POBC will loosen their monetary policies failed to buoy US shares. The S&P 500
Precious metals were mixed on Monday, with platinum and palladium extending previous gains and gold and silver retreating. Mounting hopes that the Fed will ease its monetary policy failed to lift gold and silver. Meanwhile, market players were cautious ahead of the German Constitutional Court decision on whether to suspend the ESM. Gold retreated from recent highs despite speculation that US