S&P 500 continued its rally on Friday, ending the day with a 1.91% gain. US equities caught momentum after Angela Merkel pledged to put any efforts necessary to save the single currency. Meanwhile, slower than expected US GDP growth pace in Q2 failed to halt stocks' rally. Traders perceived GDP data as a prerequisite for additional stimulus from the Fed.
Farm commodities, except for coffee, rallied on Friday as drought in the US continued. Meanwhile, dry weather in Russia has already curbed output. From the demand side, easing speculation lifted the commodity group.
Energy commodities apart from natural gas posted slight gains on Friday as decelerating US GDP growth spurred speculation that the Fed may provide additional monetary stimulus. Optimism over Eurozone also boosted the commodity group.
Industry metals closed on the positive note on Friday as risk-sentiment improved after EU policymakers pledged to do everything necessary to preserve the single currency. Meanwhile, market players were cautious ahead of key PMI data due this week.
Precious metals rose on Friday on Fed easing speculation after US economy posted slower than expected expansion in Q2. Moreover, hopes that the ECB will ease its monetary policy further spurred precious metals.
Swedish GDP unexpectedly advanced in the second quarter, rising at the fastest speed since the end of 2010 amid increased spending and exports' volumes. GDP increased 1.4% through June, the estimated expansion was 0.2% in the quarter and 0.6% in the year.
China's power-station coal fell in price for a 12th week to the lowest since 2009 as demand for electricity shrank and hydropower production rose. On Sunday, coal tumbled to a range of 620 Yuan ($97) to 635 yuan per metric ton. The midpoint was 0.8%, the lowest value since October 2009. Thermal coal inventories dropped 1.2% in July, staying beyond
George Osborne, Chancellor of the Exchequer, was called for the U.K.'s austerity strategy reconsideration by businesses and political opponenents, as economists predict possible "triple-dip" recession, stating that deepening Euro bloc's debt crisis and probable Greek exit from Eurozone might push the U.K. into recession again next year.
The first official numbers show that Spain's recession is worsening amid growing concerns over the Euro debt-crisis. GDP level decreased 0.4% from the first quarter of the year. Consumer prices advanced 2.2% year-on-year. Spain stepped in the second crisis since 2009 and is awaited to continue to weaken until 2013.
On Monday, copper tumbled amid uncertainty about EU authorities' ability to control the debt crisis, which cut investors interest for industrial metals. Three-month copper lost 0.4% to $7,537 per metric ton in London. The September-delivery metal decreased 0.3% to $3.417 per pound in New York. Copper inventories dropped for the first time in six weeks.
U.K. house values declined for the first time this year and may tumble further as stronger recession cuts demand for real estate. Prices slipped 0.1% from June. In London home-price inflation pace tumbled to 0.1%. This week data showed U.K.'s economy dropped 0.7% in January-March quarter, the most in almost four years.
The Euro fell back versus its major counterparts before today's report that could increase concerns over the Eurozone's crisis influencing consumer sentiment. On Monday, the Euro tumbled 0.2% to $1.2294, cutting last weeks 1.4% climb. The European Commission report will most likely prove the household sentiment index slipping close to a three-year low of -21.6 and unemployment rate rising to
South Korea's currency increased 0.3% to 1,134.65 per dollar amid Angela Merkel's and Mario Monti's promise to do whatever needed to protect the Euro. On Monday, the Won reached 1,132.45, the strongest level since May 4. Three-year government bonds slipped to 105.83 and one-year interest rate swap rose to 2.91%.
German Chancellor Angela Merkel and Italian Prime Minister Mario Monti assured that both countries will do whatever is necessary to protect Eurozone. After a phone conversation, leaders agreed that conclusions made at the EU's summit last month have to be implemented "as quickly as possible".
Japan's industrial output unexpectedly fell, while confidence of South Korean manufacturers declined to a 3-year low, indicating further implementation of fiscal and monetary measures. Production declined by 0.1% in June from the previous month, when it fell 3.4%, said Japan's Trade Ministry. According to the South Korean central bank, the confidence index decreased to 70 for August from 81 for
Oil futures climbed to the week high in New York upon belief that U.S. and European authorities will boost economic growth and worries about Middle East unrest spreading and slowing down the supply. On Monday, September delivery oil rose 0.9% to $90.95 per barrel, overall advancing to the first monthly increase in three months.
The Euro advanced versus the greenback on Friday, and touched its highest level in three weeks. The boost was provided by German and French leaders' joint statement, providing hopeful news for the single currency. The Euro jumped 0.7 per cent to $1.2369 from yesterday's $1.2284. On the contrary, the ICE dollar Index erased 0.41 per cent and fell to 82.529.
On Friday, July 27, gold futures jumped on growing optimism for Eurozone's future and improved U.S. GDP. Gold for August delivery rose by 0.24 per cent to $1618.95 per ounce during today's New York trading session. Meanwhile, other precious metals also advanced, with September silver by 0.01% to $27.500 per ounce and copper for September settlement by 0.58 per cent to $.412 a pound.
The loonie advanced versus its U.S. counterpart to a 10-week high on Friday, as markets and oil turned green. The Canadian dollar added 0.4 per cent to C$1.0065 cents a U.S. dollar and moved closer to parity. Meanwhile, the benchmark Canadian 10-year yield increased by 6 basis points, or 0.06 percentage point, to 1.70 per cent.
European Central Bank announced its readiness to buy government debt from the Eurozone's countries, and the U.S. growth data came better-than-expected, providing a boost for European stock markets. The Stoxx Europe 600 Index jumped 1.05 per cent to 259.26, after adding 2.5% on Thursday, July 26. At the same time, the Italian FTSE MIB index rocketed 2.6% to 13,561 and Spain's IBEX 35 Index also soared
Oil futures edged higher On Friday, as European leaders pledged to save the shared currency. Crude oil for September settlement jumped 0.63%, or 20 cents to $89.59 per barrel during today's New York trading session. Meanwhile, August gasoline soared 1.52 per cent to $2.86 per gallon, heating oil for August delivery advanced by 0.76 per cent to $2.89 per gallon while August natural gas reversed gains
On Friday, July 27, U.S. stocks edged higher as Germany and France claimed their readiness to do whatever is needed to save the Eurozone. The Dow Jones Index jumped 0.7 per cent, to 12,978.14, the Standard & Poor 500 soared 0.9 per cent, to 1,371.70 and the Nasdaq Composite added 0.7 per cent, to 2,913.20.
European policymakers are trying to keep Greece in the Eurozone, while ECB and central banks are ready to accept losses in further Greek national debt restructuring. While the total Greece's National Debt is around 220-230 billion euros, second restructuring of national debt may be a last chance to keep Greece solvent. One of the options, offered by ECB is a writedown of 30 per cent
As reported by the Commerce Department, the world's biggest economy expanded by 1.5 per cent in the second quarter, as Americans are getting more cautious on spending, because of the softening job market. While major forecasts were around 1.4 per cent increase in gross domestic product, still the economy grew by 0.5 per cent less, than in the prior quarter.