Emerging-market equities slid for a second consecutive day and currencies depreciated as commodities fell and investors analyze prospects for a finish for monetary stimulus in the U.S. The MSCI Emerging market gauge dropped 0.6% to 960.49 as of 2:05 p.m. London time. The emerging-nation index has dropped 8.4% since May 22. Russian Ruble weakened 0.4% against the greenback.
Yield on 10-year treasuries reached a one-week high as bookings for durable goods from U.S. increased more than analysts' forecast, fostering bets the economic conditions are good enough for the Fed to begin reducing bond purchase programme. Ten-year bond yield traded at 2.59% as of 8:47 a.m. New York time, while the 30-year return was at 3.65%.
The U.S. Dollar remained stable against the Euro after reports suggested that orders of durable goods climbed in June, while unemployment insurance claims increased in the last week. Versus the 17-nation currency, the greenback remained flat at $1.3208 at 12:31 p.m. GMT. Against the Japanese Yen, it lost 0.41% to 99.81, while the Dollar managed to strengthen 0.22% to 1.5283
The Sterling declined for the second day versus the Dollar after the report indicated U.K. economy expanded in line with economists expectations curbed bets the Bank of England is moving towards ending it bond-buying programme. The Sterling slipped 0.2% to $1.5279 and depreciated 0.1% to 86.32 pence versus the 17-nation currency.
Bookings for durable goods increased more than analysts' expectations in June, indicating higher demand that will foster manufacturing and economic growth in the second half of 2013. Orders for goods lasting at least three years rose 4.2%, mainly driven by transportation equipment, while expected gains was only 1.4%.
European stocks fell by almost the most in three weeks as BASF, the largest chemical company in the world, and ABB published earnings data that were below investor expectations. The Stoxx Europe 600 gauge declined 1% to 298.2 as of 12:06 p.m. London time, the largest loss since July 5. Also the S&P 500 lost 0.5% and the MSCI Asia
Gold continued to decline and reached the lowest level in about three weeks, after recovering in the early morning session, on increasing U.S. housing data released on Wednesday that boosted concerns that the U.S. bond-purchases will soon end. Gold future decreased 0.57% to $1,312.10 per ounce. Spot gold retreated 0.50% to $1,312.41 per ounce.
Japanese Yen advanced against almost all of it 16 major trading partners and falling European and Asian equities push demand for safer assets. The currency appreciated 0.4% yo 99.6 per greenback as of 6:45 a.m. In New York, while versus the common currency, it added 0.5% to 131.75 which was the first gain in three days. The MSCI Asia Pacific
Copper declined for the first time in five sessions, the longest gain since December, amid concern that supply of the copper might exceed demand. Goldman Sachs Group announced that global surplus of the metal might double in two years. Copper for settlement in three month lost 1.4% to $6,953 per ton at 11:06 a.m. on the London Metal Exchange.
Stock prices dropped in Asia and Europe as investors weighted worse-than-expected earnings data from Orange SA, Michelin & Cie and BASF SE. The MSCI world's equity index slid 0.6% to 373.56, while the Standard & Poor's 500 futures decreased 0.6% as well. The Stoxx Europe 600 Index slipped 1%. Crude oil prices and copper lost 0.9% and 1.5% respectively.
The India's central bank is expected to refrain from lowering the interest rates as it puts emphasis on weakening currency. The Rupee fell to the lowest point in history against the U.S. Dollar as it touched 61.21 on July 8. The Reserve Bank of India initiated measures to fight depreciation, which resulted in 1% gains, however, the currency is still
The common currency was positively affected by improving German Ifo Business climate gauge in July, but the Euro weakened after the release of data on U.K. GDP growth for the last quarter. The 17-nation currency dropped 0.1% to $1.3186 versus the U.S. Dollar at 9:11 a.m. GMT. It lost 0.48% to 131.76 versus the Yen. Against the British Pound, the
Stock prices in Asia dropped for a second consecutive day before U.S. economic data announcement, which is expected to indicate further policy decision by the Fed. The MSCI Asia Pacific Index dropped 0.8% to 135.84, while Shanghai Composite lost 0.6% so far today. Japan's Topix and Nikkei 225 slid 1.4% and 1.1% respectively, while Kospi Index slipped 0.1%.
Business confidence in Germany rose for the third consecutive month, indicating that the country's economy is recovering. Business climate index of lfo institute showed an increase from 105.9 to 106.2, while experts predicted a rise to 106.2. Unemployment in Germany fell in June and manufacturing expanded in July.
West Texas Intermediate declined for the second day, prolonging the largest loss in over a month after U.S. crude production advanced to the highest level in 22 years. The September WTI contract decreased to $104.72 per barrel. Brent for September delivery retreated 0.6% to $106.60 per barrel. U.S. output jumped to 7.56 million barrels a day previous week.
Shares in Switzerland dropped as ABB Ltd. reported results that missed analysts' expectations, while German business confidence data were awaited. ABB had the biggest fall in three months as the orders decreased compared to previous year. The Swiss Market Index slipped 0.3% to 7,898.28 as of 9:55 a.m. Zurich time, while the Swiss Performance Index slid 0.3% today as well.
The British Pound erased against the U.S. Dollar as the data showed that country's GDP rose as much as experts predicted. The U.K. economy expanded 0.6% in Q2 after rising 0.3% in Q1. The Sterling was virtually unchanged at $1.5307 after the data was published, erasing gains of 0.5% earlier today. The currency climbed 0.1% to 86.14 pence per Euro
Chinese shares dropped as minor companies fell from the highest levels in more than 24 months and BOE Technology declined on stock selling plans. The Shanghai Composite Index slipped for a second straight day, falling 0.6% to 2,021.17 at the end of the trading day, while the CSI 300 Index retreated 0.5% to 2,246.68. The Hang Seng China Enterprises Index
U.K. shares declined for the third time weekly as mining companies retreated and as the nation's GDP data are awaited by the investors. The FTSE 100 Index fell 0.3% to 6,601.6 as of 8:59 a.m. London time; however, the gauge has risen 9.5% from the lowest level on June 24. The FTSE All-Share Index slipped 0.3% today, while Ireland's ISEQ
Stock prices in Germany declined as BASF SE, the largest chemical company in the world, reported lower-than-expected profits. The company slid 4.4%, while Commerzbank AG dropped 4.1% as a report showed that the bank lent to Detroit. The DAX Index decreased 0.7% to 8,323.07 so far today after rising 0.8% yesterday.
The U.K. economy expanded in line with expectations by 1.4% in the second quarter of 2013 and rose 0.6% between the first and the second quarters, also as expected. The economy grew as all primary areas of the economy showed expansion, but the main driver to GDP growth was from services sector, that provides 78% of overall production to the
Treasury 30-year yields touched the highest point in 23 months ahead of a government data that analysts said will indicate orders for durable goods advanced for the third month. The U.S. 30-year bond yield increased one basis point to 3.66% and the 2.875% bond maturing in May 2043 declined 1/4 to 85 26/32. Benchmark 10-year note yields remained flat at
Gold fell for a second day in a row, prolonging its biggest decline in more than two and a half weeks, as U.S. home report indicated on that the officials will reduce stimulus measures. Spot gold dropped 0.5% to $1,315.30 an ounce, and was at $1,320.02 as of 8:56 a.m. Singapore time. Metal prices slipped 1.7% on Wednesday; the biggest
German government bunds decreased for a third day in a row after data indicated business confidence in Germany advanced more-than-expected in July. German 10-year bund yield increased two basis points to 1.66% and the 1.5% security maturing in May 2023 retreated to 98.525. German business climate index increased from 105.9 in June to 106.2 in July.