German equities rallied on Thursday after encouraging data from the US labour market. Restricting the upswing, the S&P cut Spanish debt rating to one level above ‘junk' status. However, Spanish concerns eased after the IMF head Christine Lagarde stated that indebted eurozone's nations should be granted more time to lower their budget deficit. The DAX Index surged 1.16% and is
UK shares moved higher on Thursday after US jobless claims fell more than expected last week. However, UK equities were depressed by unexpected Spain's debt rating cut by the S&P. Moreover, global growth concerns continued to weight on the riskier assets. The FTSE 100 Index soared 0.79% to trade at 5,822.46. Seven out of ten sectors within the index gained.
Hong Kong shares rebounded on Thursday amid rising hopes that the POBC will ease its prudent monetary policy to stimulate faltering economy. However, Hong Kong equities came under heavy pressure after S&P downgraded Spanish debt rating to one level above ‘junk' status. The Hang Seng Index gained 0.38% to end the session at 20,999.05. Five out of nine sectors included
Japanese equities prolonged their slump on Thursday amid mounting concerns that the firms will report weaker than expected results in the last quarter. Moreover, persistent global growth fears continued to weight down on the Japanese shares. The Nikkei 225 Index dropped 0.58% to close at 8,546.78. Only three in ten sectors within the index climbed. The top-gainers were technology firms
Number of first-time claims for jobless benefits dropped more than expected last week. According to Labour Department, applications for unemployment benefits decreased 30 000 to 339 000, the fewest since 2008, while economists projected 370 000 claims. The report "is consistent with a labour market that is gradually getting better,"Guy Berger, a U.S. Economist at RBS Securities Inc. "Layoffs are at
The U.S. trade deficit expanded in August due to weakening global economic growth, which decreased demand for U.S. exports. According to Commerce Department, the gap increased 4.1% from $42.5 billion in July to $44.2 billion. Exports fell to the lowest since February. Debt-stricken Europe, China's and other emerging economies' slower growth may curb demand for U.S. products. "For the first
The Dow Jones Industrial Average Index plunged 0.95% to close at 13,344.97 on Wednesday. US blue chips came under continuous pressure after the UMF cut its global growth forecast. Pushing the Dow Jones index lower, companies within the index are expected to report weaker than expected results as global economic problems hit sales. Only two in nine sectors included in
US equities extended previous losses on Wednesday as global growth concerns continued to dampen market sentiment. Moreover, disappointing reports from Alcoa and Chevron spurred speculation that US companies will announce losses for Q3. Meanwhile, traders remained cautious ahead of US unemployment claims numbers scheduled for Thursday. The S&P 500 Index tumbled 0.63% to close at 1,432.56. All but one sector
Rural commodities apart from wheat fell on Wednesday amid speculation that favorable weather conditions in Brazil and US may boost crops. At the same time, broadly stronger US Dollar created heavy pressure on farm commodities. Meanwhile, market players awaited the USDA global crops report due on Thursday. Wheat was the only gainer on speculation that lower crops worldwide will boost demand
Energy futures were mixed on Wednesday, with heating oil and natural gas climbing and crude and Brent oil falling. Escalated tensions between Turkey and Syria and a possibility that Iran will support Syria in the dispute sent energy prices higher. However, stronger US Dollar weighted down on the commodity group. Crude oil dropped in a volatile trade as investors attempted to
Australian consumers slightly raised their expectations of inflation to 2.6% in October, the Melbourne Institute Survey of Consumer Inflationary Expectations reported on Thursday. Still, the average expected inflation rate stayed within the RBA's target of 2-3%. Analysts are concerned that further acceleration of inflation expectations might translate into a real inflationary pressure on the RBA.
Base metals, excluding copper, prolonged their slump on Wednesday. The commodity group came under persistent pressure after the IMF lowered its global growth forecast. However, unexpected increase in Italian, French and Swedish industrial production last month restricted the downswing of industrial metals. Aluminum was the top-loser after the world's largest aluminum producer, Alcoa, cut its global demand growth forecast from 7%
Germany's EU harmonized index of consumer prices deteriorated in September, in line with preliminary expectations, the Federal Statistical Office released final data on Thursday. The HICP slipped to 2.1%, compared to 2.2% in August. On a month-on-month basis, the index stayed unchanged at 0.4%. Meanwhile, the CPI added 2% on year in September from 2.1 in the previous month.
Precious metals except for silver plunged on Wednesday as global growth fears pushed the US Dollar higher. The IMF reported that crisis in eurozone remained the biggest threat to the world's economy, thus spurring demand for safe-haven greenback. Meanwhile, market participants anticipated jobless claims data from the US due on Thursday. Gold sank as solid greenback created heavy pressure on the
Japan's household sentiment slightly weakened in September, after an improvement in the preceding month, the Cabinet Office said on Thursday. The seasonalized consumer sentiment index slipped to 40.1 from 40.5 in August, compared to 39.7 in July. Income growth expectations advanced to 39.7 in August from 39.6 in the previous month.
Australia's jobless rate climbed to a seasonalized 5.4% in September, the Australian Bureau of Statistics showed on Thursday. Economists expected a reading of 5.3%, while last month figure was at 5.1%. However, Australian economy increased the number of jobs by 14,500 in September, way above previous estimates of 5,000 jobs after a decline of 8,000 jobs in August.
Asian stocks fluctuated after Standard & Poor's cut Spain's debt rating and as Japan's machinery output declined after data showed orders decreased. The MSCI Asia Pacific Index lost 0.2% to 120.45, after gaining 0.1%. South Korea's Kospi Index fell 0.9% and Japan's Nikkei 225 Stock Average plummeted 0.7%. China's Shanghai Composite Index decreased 0.3% and Hong Kong's Hang Seng Index
China's currency strengthened beyond 6.28 per U.S. Dollar for the first time since 1993 on speculation officials will take steps to ensure a recovery of the nation's economy and as the central bank increased the Yuan's fixing by the most in 7 weeks. The currency's reference rate was set 0.09% stronger, the most since August 22, to 6.3391 versus the
The Australian Dollar rose to one-week high as data showed employment increased last month more than expected. Australia's Dollar gained 0.5% to $1.0285, after earlier climbing to $1.0287, the highest level since October 2. The Aussie strengthened 0.3% to 80.25 yen. The New Zealand Dollar traded at 81.81 U.S. cents from 81.63 a day earlier.
The Dollar Index reached the highest level in one month as Standard & Poor's downgraded Spain's credit rating to one notch above junk, spurring demand for the U.S. Dollar as a safe have asset. The Index rose to 80.205, the highest level since September 11. It climbed 0.1% to 80.012 at 6:21 a.m. in London. The Euro fell versus most
South Korea followed Brazil with interest rate cut as economies around the globe are trying to protect themselves from risks of a deeper economic slowdown by austerity measures in Eurozone and China's weakness. Governor Kim Choong Soo lowered the benchmark 7-day repurchase rate from 3% to 2.75%. Brazil's Selic rate was also decreased by 0.25 percentage points to a historic
Standard & Poor's cut Spain's debt rating to one notch above junk, citing increasing political and economic risks as the nation's government considers a second bailout. Spain was downgraded 2 levels from BBB+ to BBB-. The downgrade comes with a negative outlook to the long-term rating. Besides, S&P cut the short-term sovereign level from A-2 to A-3.
U.S. stocks turned lower on Wednesday, as market sentiment deteriorated ahead of the earnings season, which is expected to be the worse since 2009. The Dow Jones Industrial Average fell 0.8%, to 13,363.9; the Standard & Poor 500 Index declined 0.57%, to stand at 1,433.20, while Nasdaq 100 futures lost 0.47%, to 3,051.37.
On Wednesday, October 10, European stocks extended losses amid deepening the global economic slowdown is deepening, while investors are waiting for highly anticipated meeting of EU finance ministers on Thursday. The Stoxx Europe 600 Index erased 0.55 per cent to 268.71. Germany's DAX Index inched lower 0.41 per cent to 7,205.23 and France's CAC 40 Index lost 0.50 per cent to 3,365.87.