Oil surged to a one-week high and gasoline climbed near a four-moth high after Tropical Storm Isaac intensified, weakening output in the Gulf of Mexico, and a fire in the world's 2nd biggest refinery in Venezuela cut part of its output. October-delivery oil advanced $1.57 to $97.72 per barrel in New York, trading at $97.28.
Wall Street turned slightly lower on Friday, as investors are getting more cautious about Eurozone's leaders will ability to handle region's debt crisis. The Dow Jones Industrial Average fell 0.1%, to 13,041.9; the Standard & Poor 500 Index edged 0.2% lower, to 1,399.54, while Nasdaq 100 futures lost 0.3%, to 3,042.89.
The Euro rose to a seven-week high versus the U.S. Dollar as German business confidence dropped less than some analysts estimated, adding signs the economy can survive the sovereign-debt crisis. The Euro gained 0.1% to $1.2529, after surging to $1.2590 on Aug. 23, the most since July 4. It advanced 0.2% to 98.59 Yen, after a rise to 99.18 Yen
German business confidence declined for a fourth consecutive month in August, touching its weakest point since March 2010, Ifo think tank reported on Monday, showing domestic companies are more sensitive to the ravages of the Euro-debt crisis and that Germany may stop being a hedge. Business sentiment index tumbled to 102.3, compared to a downgraded reading of 103.2 in July.
China's blue chips dropped on Monday after the National Bureau of Statistics reported that China's industrial companies profits fell by annualized 5.4% in July. Pushing Chinese stocks lower, HSBC downgraded the country's growth forecast to 8.0% from 8.4% for this year, citing recent weak data releases. The Hang Seng Index slumped 0.41% to close at 19,798.67. Only two in nine
Japanese stocks were slightly higher on Monday, being boosted by hopes that the Fed will embark on asset purchasing program in the nearest future. However, a fall in profits of China's industrial companies in July created notable pressure on the Asian equities. The Nikkei 225 managed to close with a 0.16% gain at 9,085.39. Six out of ten sectors included
The Dow Jones Industrial Average Index advanced by 0.77% to close at 13,157.97 on Friday. The US blue chips were lifted by Ben Bernanke's comments regarding room for further action. Traders interpreted the comment as a sign that the Fed is likely to ease its monetary policy soon. All industries within the index rose. The best-performers were telecommunications and financials.
US equities rose on Friday amid speculation that the Fed will loosen its monetary policy to boost growth. Moreover, an unexpected increase in the US durable goods orders in July lifted US stocks. However, absence of fresh measures from the ECB created pressure on the US shares. The S&P 500 Index gained 0.65% to end the week at 1,411.13. Nine
On Friday, August 24, gold futures retreated from a four-month peak, after soaring 2% on Fed's fresh speculations about another round of quantitative easing. Bullion depreciated by 0.1%, or $1.80, to $1,670.80 per ounce. Other precious metals were mixed, with September silver adding 0.3%, to $30.54 per ounce. In the meanwhile, copper for September delivery lost 0.6%, to $3.48 per pound, and platinum and palladium
Rural commodities except for coffee slid on Friday on hopes that rain in the US will improve harvest conditions. Favorable weather in Brazil and India also weighted down on the farm commodities. Wheat tumbled for the third consecutive session on Friday on speculation that rain will improve soil conditions in the US Great Plaints, boosting prospects for winter crops. Corn was the
Energy commodities plunged on Friday on speculation that the International Energy Agency will release oil reserves as soon as in September in order not to dampen the results of Iranian oil sanctions. However, supply concerns from the Gulf of Mexico restricted the downswing of the commodity group. Crude oil retreated after IEA announced that US strategic oil reserves may be released
Industrial metals were mixed on Friday on speculation that US, China and Eurozone will embark on growth-stimulus measures. An unexpected surge in the US durable goods orders last month also added to gains of the base metals. However, solid US Dollar capped the upswing of the commodity group. Aluminum climbed as positive data flow from the US continued to lend support
Precious metals were mixed on Friday amid persistent hopes for easing in the Eurozone, US and China. Stronger greenback coupled with positive US data releases weighted down on the commodity group. Meanwhile, market participants were cautious ahead of FOMC member, Sandra Pianalto, speech due on Monday. Gold was unchanged as hopes for QE3 in the US were weakened by an unexpected
Asian stocks dropped as Chinese industrial companies' profits declined in July. The MSCI Asia Pacific Index fell 0.1% to 120.22. Hong Kong's Hang Seng Index declined 0.2% and Taiwan's Taiex Index fell 0.1%. Australia's S&P/ASX 200 Index gained 0.2% and Japan's Nikkei 225 Stock Average added 0.5%. South Korea's Kospi Index increased 0.2%.
German 10-year bond yields dropped 0.14 percentage point, the most since the start of July, as concerns over Eurozone growth has weakened and the sovereign debt is escalating increased demand for safer assets. Benchmark yields declined to a 3-week low after PMI indicated the Euro area's service sector contracted in August and German manufacturing declined for a sixth consecutive month.
The Aussie Dollar touched one-month low, extending a 2-week decline, as concern the global economic growth is fading curtailed demand for riskier assets. The Australian Dollar weakened against most of 16 major peers after data showed Chinese industrial companies' profits declined 5.4% in July from the previous year. The Aussie declined 0.1% to $1.0394, after trading at $1.0372, the lowest
Profits of industrial companies in China declined most this year in July, the government reported, adding concern the country's economic slowdown is worsening. Income fell 5.4% to 366.8 billion Yuan ($57.7 billion) in July from a year earlier, the fourth consecutive decline, National Bureau of Statistics said. The data increases pressure on the nation's government to add stimulus measures to
Moody's Investors Service raised South Korea's sovereign debt rating to Aa3, the fourth-highest ranking, as the nation's resilience to external shocks has been strengthened and the collapse risk in South Korea during a transition to a new leadership is receding. South Korea's banks' strength has been increased by improved regulation and reduction in dependence on short-term external financing.
As reported by the Instituto Nacional de Estadistica, Spanish Producer price inflation increased less than expected in July. An Index measuring the change in the price of goods sold by manufacturers rose by 0.8% from -0.5% in the preceding month, and jumped to a seasonally adjusted 2.6 per cent, from 2.5 per cent in June. Meanwhile, analysts had expected a 2.9% increase.
According to the Insituto Nacional de Estadistica Y Geografia, Mexico ran a significant trade deficit in July after five months of surpluses. The nation's trade gap fell to minus $427 million, after a trade surplus of $602 million in the preceding month. The data came less-than-expected, as analysts had predicted a $550 million decline.
The Pound depreciated versus its major counterparts after U.K. GDP posted a less-than-expected decline in the second quarter. On Friday, Sterling traded at 0.7925 versus the Euro, 124.55 versus the Swiss Franc and 1.5830 versus the U.S. Dollar.
Orders for durable goods in the world's biggest economy advanced more than expected in July, as demand for civilian aircraft rose. The Commerce Department's report showed that manufacturers' orders for durable goods added 4.2 per cent to a seasonally adjusted $230.7 billion, from 2.4 per cent increase in the previous month.
Poland's unemployment rate fell to 12.3 per cent in July, down from 12.4 per cent in the previous month, the nation's main statistical office said on Friday, August 24. The results met analysts' expectations. Meanwhile, 1.95 million people registered as unemployed, slightly less than 1.96 million in the preceding month.
Fitch rating agency joined Standard & Poor's rating agency in saying that Spanish credit rating remains stable for now, even despite the fact nation may request for a bailout to help it through the Eurozone's sovereign debt crisis. In the meantime, Madrid has already asked for up to €100 billion ($125.5 billion) as aid for its troubled banks.