German bonds slipped for the first time in three days on Friday as the ECB and Federal Reserve said they will continue to boost their economies, cutting demand for the safest assets. The 10-year yield jumped 2 basis points to 1.147%, after touching 1.49% yesterday, the highest since Sept. 26. The 1.5% note due in Sept. 2022 dropped 0.17 to
Gold was near 11-month high on Friday amid belief that central banks' stimulus from U.S. to Europe and Japan will fuel demand for the metal. Spot gold traded at $1,791.48, after surging 0.3% to $1,796.10 per ounce, the strongest intraday since Nov. 14. December-delivery gold slid 0.1% to $1,739.90 per ounce in New York. Platinum added 0.7% to $1,730.50 per
The Swiss central bank's foreign currency reserves expanded to an all-time high in September amid continuing weight on the franc ceiling. Reserves advanced to 429.3 billion Francs ($460.5 billion), compared to 420.8 billion Francs in August, the Swiss National Bank reported on Friday. Thomas Jordan, SNB President, has promised to impose the Franc ceiling of 1.20 per Euro enforced in
The Bank of Japan left its key interest rate unchanged between zero and 0.1% and monthly bond-buying at 1.8 trillion Yen. A fund that broadens credit to banks was kept at 25 trillion Yen. The bank revised down its evaluation of the economy for the second straight month, saying "economic activity is leveling off more or less".Junko Nishioka, a former
The Bank of Japan decided to refrain from more stimulus and remain its asset-purchase programme at 55 trillion Yen ($702 billion). This was largely expected by economists. Focus now turns to the meeting on October 30 as Credit Agricole and Morgan Stanley expect two consecutive quarters of contraction through the end of the year. "I see a very high chance for easing at the next meeting,"
The ECB President Mario Draghi said the central bank is prepared to start buying government bonds as soon as the requirements are met, forcing Spain to decide whether it request bailout. The European Central Bank stands ready to implement Outright Monetary Transactions, after the benchmark rate was left at 0.75%. "With the OMT, the ECB has tackled and exorcised fears of
German stocks retreated after the ECB left its benchmark interest rate unchanged. Spanish borrowing costs rose during today's auction, thus sending German blue chips index lower. However, positive data from the US labour market limited losses of the stock index. The DAX Index lost 0.30% and currently is trading at 7,299.77. Five out of nine sectors included in the index
UK equities rose on Thursday as the ECB and BoE decided to left the core interest rates unchanged. The ECB left its key interest rate at record low of 0.75% while the BoE left the benchmark interest rate at 0.5% and maintained its debt-purchase target at GBP375 billion. Adding to the negative mood of the UK equities, Spain's borrowing costs
Hong Kong equities inched up on Thursday on upbeat data from the US jobs market and services sector. However, traders remained cautious ahead of the ECB policy decision due later in the day. Sending Hong Kong shares lower, Asian Development Bank reduced its China GDP expansion forecast from 8.5% to 7.7% for 2012. The Hang Seng Index gained 0.09% to
Japanese shares climbed on Thursday on better-than-expected economic data releases from the US. Weakness of the national currency also sent exporters higher, thus adding to gains of the stock index. However, market players remained cautious ahead of the key US labour market figures release due on Friday. The Nikkei 225 Index surged 0.89% to end Thursday's session at 8,824.59. Seven
US blue chips climbed on inspiring US data releases. Market sentiment was boosted by positive reports from US labour markets and services sector. Meanwhile, investors await key jobs market data due on Friday. The Dow Jones Industrial Average Index gained 0.09% to lose at 13,494.61. Six out of nine sectors included in the index climbed. The biggest gains posted telecommunications
US equities advanced on Wednesday on encouraging economic data. US services PMI attained 55.1 last month compared to estimates of 53.4. Moreover, US non-farm employment increased more-than-expected in September. However, dismal services PMI releases from eurozone and China capped the upswing of the US stock index. The S&P 500 Index gained 0.36% to close at 1,450.99. Eight out of ten
U.S. unemployment claims increased last week, indicating an uneven labour market improvement. According to the Labour Department figures, the number of applications for unemployment benefits rose 4000 to 367 000, while economists projection was 370 000 claims. "We're not going anywhere quickly in the jobs market," said Ryan Sweet, Senior Economist at Moody's Analytics Inc. "The job market is just more
The ECB President Mario Draghi said the central bank is prepared to start buying government bonds as soon as the requirements are met, forcing Spain to decide whether it request bailout. The central bank stands ready to implement Outright Monetary Transactions, after the benchmark rate was left at 0.75%. "With the OMT, the ECB has tackled and exorcised fears of an imminent Eurozone break-up," said Carsten Brzeski,
The worldwide food price index surged in September after two months of stagnation, the Food and Agriculture Organization reported on Thursday. The index added 1.4% on month to 216, compared to 213 in August. Meanwhile, FAO cut its expectations of cereal output in 2012 to 2,286 million tones, 2.6% down from the preceding year's record harvest, compared to previous forecast
Spain raised 3.99 billion Euro in the debt auction on Thursday on continuing uncertainty over the necessity of a bailout. The benchmark yield on a new 3-year note surged to 3.956%, compared to 3.845% at the preceding auction on Sept. 20. The bid-to-cover ratio advanced to 2 times, compared to 1.56 last time. Demand for 2014 debt exceeded supply 2
Hong Kong's retail sales growth accelerated in August, however at a lower-than-expected expansion rate, the Census and Statistics Department said on Thursday. Retail sales soared 3.2% on year, compared to an upwardly revised 1.4% rise in July. Economists estimated sales volume to increase 3.5%. On a seasonalized basis retail sales slid 0.1% in the three months through August.
U.S. stock futures advanced ahead of Wall Street's opening on Thursday, as traders awaited weekly unemployment claims, manufacturing orders and results of the ECB meeting. Dow Jones futures rose 0.2% to 13,4518 and those on S&P 500 added 0.2% to 1,447.80. Nasdaq 100 futures surged 0.3% to 2,815. Economists expect 370,000 unemployment claims for the latest week, from 359,000 in
On Thursday, Spain witnessed a decrease in its borrowing costs as it was selling the government debt. Spain's Treasury managed to sell 5-year bonds worth EUR710 million at the average yield of 4.766%, which was a sharp fall from a figure of 6.456% in the last month. The yield on 2-year bonds also declined from 2.798% to 2.282%, whereas 3-year bond yield rose to 3.956% from
On Thursday, European stocks experienced a decline, as Spain sold its government debt and traders eyed an upcoming ECB policy meeting. The Stoxx Europe 600 Index declined by 0.2% and reached 270.77 by 9:59 a.m. London time. Earlier it rose by 0.5%. The index slipped 2.7% last week, as France and Germany disagreed on terms of banking union.
On Thursday, the British Pound was traded higher versus the U.S. Dollar, as investors eyed the upcoming BoE decision on interest rates. GBP/USD hit a session high of 1.6134, and later consolidated at 1.6112, which was a 0.22% gain for the European morning trading session. The pair's support was likely to be at 1.6065, while the resistance could be found at 1.6174.
On Thursday, oil retreated from a 2-month low, as the 17-nation currency appreciated versus the U.S. counterpart before the upcoming ECB meeting, supporting demand for commodities. On the NYMEX, November delivery futures for light sweet crude hit a session high of $88.76 per barrel, and consolidated at $88.60 by 8:46 a.m. in London.
The ECB Governing Council held its minimum bid rate stable at 0.75% for the third consecutive month during a monthly meeting on Thursday. Markets posted only a 3% probability of a rate decrease today. For now the 0.75% bid is the rate at which refinancing agreements are established for all participants.During the meeting the Council also decided to leave its
On Thursday, the Euro grew to a 2-week high versus the Swiss Franc, as traders' sentiment was buoyed by speculation that Spain's request for a bailout will happen soon. The 17-nation currency added 0.2%, to trade at 1.2133, which was highest level since the middle of September. Moreover, the ECB is expected to leave interest rates unaltered on Thursday.