As reported by the Automatic Data Processing Inc., the U.S. private sector added 163,000 jobs in July, after adding 172,000 in the previous month. Small businesses added 73,000 jobs, medium businesses rose at 67,000, while large businesses added only 23,000 jobs in July. Despite the fact that less people were hired, compared with June, hiring has improved since spring, when only about 120,000 jobs were added
German stocks were almost flat on Tuesday ahead of the FOMC minutes release due later in the day. Moreover, anticipation of the ECB meeting due on Thursday adds caution in the equity market. Financial shares were mixed. Commerzbank gained 0.87% while Deutsche Bank retreated 0.74%. Basic materials producers followed bullish trend despite disappointing China manufacturing data release. Linde and HeidelbergCement
UK equities rallied on Wednesday on speculation that the ECB will loosen its monetary policy. FTSE soared 1.18% to trade at 5,690.41 at the time of writing. Telecommunications and Financials posted the strongest gains. BT Group and Vodafone surged 0.69% and 2.74% while Barclays and Royal Bank of Scotland rose 0.24% and 1.45%. Meanwhile, Next prolonged its rally, with shares
Hang Seng Index added another 0.12% on Wednesday despite weakness of Asian markets. Financials and basic materials producers supported the index. However, dismal PMI data limited gains of Hong Kong stocks. HSBC Holdings and Bank of Asia gained 0.08% and 0.56%. Gains for basic materials producers came after the China Iron and Steel Association asked the government to restart
Nikkei 225 halted its rally on Wednesday, plunging 0.61% to 8,641.85 on weak China's manufacturing data. Disappointing earnings reports also weighed on Japanese equities. Telecommunications sector posted the largest gain, with KDDI and Softbank rising 0.55% and 5.82%. Softbank climbed after announcing a mid-year dividend plan. Energy companies were the weakest, with Inpex and Showa Shell Sekiyu KK sliding 1.25%
Rural commodities plunged on Tuesday as weather conditions in Brazil started to improve. Adding to the negative mood of farm commodities, livestock producers are forcing the government to increase supplies. Wheat was the top-loser after US livestock producers urged the government to halt an alternative-fuel mandate that is limiting amount of grain allowed to be used as livestock feed. Corn retreated from
Energy commodities moved lower on Tuesday ahead of key central banks' meetings. Hopes that the ECB and Fed will loosen their monetary policies failed to support the commodity group. Crude oil was the worst-performer as support from easing speculation weakened after positive signs from US economy. Brent oil went down on growing caution over hopes for additional monetary stimulus from the Fed
Dow Jones Industrial Average Index declined further on Tuesday as investors remained cautious ahead of FOMC minutes and ECB decision on monetary policy. Disappointing consumer spending data added pressure on US blue chips index. Dow Jones Industrial Average gave back 0.49% to end the session at 13,008.68. Telecommunications industry was the strongest in the index, posting a 0.83% gain. AT&T
US stocks extended previous losses on Tuesday on increasing caution ahead of FOMC minutes, ECB policy decision and US labour market data. Corporate reports also weighted on risk-sentiment among market participants. S&P 500 edged down 0.43% to close at 1,379.32. Telecommunications sector limited losses of the index, with AT&T and Ryder System rising 1.31% and 0.41%. Shares of Goodyear Tire
Industry metals apart from copper declined on Tuesday as Germany strongly opposed to grant a banking license to ESM. Base metals were also balancing between global easing hopes and weak economic data releases. Aluminum fell ahead of China's PMI data due on Wednesday. Meanwhile, widely expected stimulus measures restricted the downside. Copper rose despite potential supply increase as Jiangxi Copper plans to
Precious metals, except for palladium, dropped on Tuesday ahead of highly anticipated the ECB and Fed meetings this week. Precious metals came under notable pressure as positive data from the US weighted down on Fed easing speculation. Even weaker greenback failed to support the commodity group. Gold edged down despite mounting expectations of easing measures from the ECB. Traders are cautious
Treasuries fell for the first time in this week before the announcement which, according to specialist, will show that the US economy returned to growth. This would ease up the pressure on Federal Reserve to introduce additional economic stimulus. Safe securities, such as US and German, dropped after Italian prime minister announced his country will not need a bailout.
The Ruble fell 0.4% to 32.29 per Dollar and local debt yields gained, as oil, Russia's main export, slipped. On Tuesday, Ural's crude oil fell 1.8% to $104.21 per barrel, the biggest drop in a week. The Ruble also declined 0.4% to 39.7625 per Euro. Government debt of 54 billion Rubles ($1.7 billion) due February 2027 tumbled, raising the yield
U.K.'s PMI unexpectedly fell to 45.4 in July from 48.4 in June. It was the weakest rate since May 2009, falling below most pessimistic forecasts. The survey posted that export orders tumbled at the fastest rate since February 2009, while the output index slipped to 43.3 from 51.9. The ongoing slowdown in production boosts weight on the government to find
Italy's seasonally adjusted Purchasing Managers' Index slipped to the lowest level in three month of 44.3 in July, from 44.6 in June, reported by Markit on Wednesday. The survey posted that producers reduced employee number at the quickest pace since October 2009, while output tumbled rapidly in July. Both output and input prices fell in July.
U.K. retail prices advanced 1% from the previous year, after 1.1% rise in June, as reported on Wednesday in London. U.K. retail prices showed the smallest increase since November 2009 as stores decrease prices for groceries and food in July. Food-prices inflation eased to 3.1% from 3.5%, meanwhile non-food prices tumbled an annual 0.3%.
Spain's factory slowdown pace eased in July, while the sector still declined for the 15th month in a row and jobless rate climbed to the two-year high. Spain's PMI rose to 42.3 in July from 41.1 in June, beating forecasts of 40.5. Spain's manufacturing area is based on aerospace and automotive industries, which are both hit by the Eurozone crisis
The Canadian Dollar gains against the U.S. Dollar for a second consecutive month amid speculations that the Fed and the ECB may loosen their monetary policy, which in turn stimulates appetite for high-yielding currencies. The Loonie rose 1.4% in July following a 1.6% gain in June on the ECB's determination to undertake measures in order to lower Spanish and Italian
In order to assure investors that Spain can avoid a full scale bailout amid increasing borrowing costs, the Spanish government introduces regional debt ceiling this year. 13 out of 17 regions supported the initiative of the debt limits, which are 15.1% of GDP for this year and 16% for next year.
Equities, bonds, commodities and the U.S. Dollar gained for the first time since April 2010, as the ECB President Mario Draghi urges to protect the Euro stocks and the corn prices skyrocketed. The ICE Dollar Index gained 1.3%, while all type bonds returned 1.4% on average. The MSCI All-Country World Index of equities rose by 1.4% at the end of
House prices in Australia unexpectedly increased in the previous quarter, following five consecutive quarters of drops, as interest rate cuts by the RBA lured buyers. 125 basis points of rate cuts were aimed at helping strengthen the Australian economy as the Eurozone debt crisis escalates as well as at helping households to pay down debt.
China's home prices showed the biggest rise in a year, reported SouFun Holdings Ltd., the owner of country's major real estate website. Real estate prices gained 0.3% to 8,717 yuan ($1,369) per square meter in July, the second monthly gain and the strongest increase since June 2011. The back-to-back monthly rise posted the "turning point" for China's real estate market.
Oil futures were near two-week low amid fears that central banks will not boost slipping global manufacturing. On Wednesday, crude for September settlement traded at $88.03 per barrel, after closing yesterday at $88.06, the lowest since July 13. September delivery brent oil was down 22 cents to $104.70 per barrel.
The Yen gained versus its major counterparts amid Asian stocks fall on signs that manufacturing around the world declines. Japan's currency rose 0.2% to 95.93 per Euro after China's PMI displayed the slowest manufacturing growth in eight month and earlier than a European manufacturing benchmark proves estimated slid in July. The Yen also gained 0.1% to 8.03 per Dollar.