US equities extended previous losses on rising pessimism over the QE3. On Wednesday, Federal Reserve Bank of Chicago president Charles Evans hinted that the Fed has to put more efforts to boost national economy. Dismal news from Eurozone also sent US stocks lower. Massive protests over fresh austerity measures lifted Spanish 10-year bond yield above 6%. The S&P 500 dropped
On Thursday, the British Pound pushed higher versus the U.S. dollar on disappointing U.S. and optimistic U.K. data. GBP/USD hit 1.6236 and subsequently consolidated at 1.6224, which was a 0.37% increase for the European afternoon session. The pair's support was likely to be found at 1.6138, while the resistance was prone to be at 1.6310.
The world's biggest economy grew less than predicted during the second quarter of 2012, as consumer spending and business investment declined, the Bureau of Economic Analysis said on Thursday. Nation's gross domestic product increased at a seasonally adjusted annual rate of 1.3%, down from a previous estimate of 1.7%.
The number of Americans who filed jobless benefits claims fell more than expected and reached a two-month low in the week ending September 22, the U.S. Department of Labor reported. Initial jobless claims dropped by 26,000 to a seasonally adjusted 359,000, compared to expectations for a fall of 7,000 to 378,000, while down from 385,000 in the previous week.
The U.S. Census Bureau reported on Thursday that the number of orders for durable goods, which are goods that have a lifespan of more than 3 years, plunged in August. Durable goods orders fell by 13.2% on a seasonally adjusted basis, compared to an increase of 3.3% in the preceding month. Analysts, however, expected that August's reading would be minus 5.0%.
On Thursday, the Euro was traded near a 2-week low versus the U.S. Dollar, as traders awaited a draft of the Spanish budget, which can possibly provide an insight into whether Spain will seek a bailout. The 17-nation currency was traded close to $1.2862, which was just above a 2-week low. Earlier, it hit a session high of $1.2900, and a session low of
On Thursday, futures for copper rebounded from a 2-week low, after the central bank of China injected a vast amount of money into the economy. On the NYMEX, December delivery futures were traded at $3.732 per pound, which was a 0.6% gain in the European morning trading session. Earlier, prices hit a session high of $3.7401 a pound.
On Thursday, gold was higher on speculations that investors will increase purchases after a three-day drop. On the NYMEX, November delivery futures advanced 0.3%, being traded at the level of $1,758.10 per troy once, while spot prices for gold added 0.2% to trade at $1,755.80 per troy once at 10:23 a.m. London time.
On Thursday, Italy witnessed a decrease in its borrowing costs, as its Treasury was selling 5 and 10-year government debt. Italy's Treasury managed to sell 5-year government bonds worth EUR2.71 billion, having a 4.09% average yield, compared to a 4.73% yield in August. The average yield for 10-year bonds worth EUR2.97 billion was 5.24%, down from a previous month's figure of 5.82%.
Farm commodities tumbled on Wednesday on broadly stronger US Dollar and bleak demand prospects amid global economic slowdown. Weakening demand for US supplies also pressurized agricultural commodities. Wheat slumped after Egypt, the world's top importer, bought supplies from France and Romania, rejecting US shipments. Corn was the top-loser as South Africa raised its production forecast by 2.7% this year. Accelerated US harvesting
The U.K.'s Office for National Statistics reported on Thursday that British current account deficit increased unexpectedly in Q2, U.K's current account deficit grew to GBP20.8 billion in the three months from April to June, compared to a reading of 15.4 billion in the preceding quarter, which figure was revised upwards from an initial estimation of GBP11.2 billion.
Energy commodities apart from natural gas plunged on Wednesday amid QE3 fears and concerns over Spain and Greece. Capping the downswing of the commodity group, US crude oil inventories fell more than expected last week. Crude oil was the top-loser on global demand concerns. Worries that QE3 may not provide sufficient stimulus for the US economy created notable pressure on the
The U.K.'s Office for National Statistics reported on Thursday that British GDP decreased in the second quarter less than it was initially estimated. U.K.'s GDP lost 0.4% on a seasonally adjusted basis, whereas initial forecast was that it declined by 0.5%. Despite the data, showing modest recovery, it is still widely expected that the central bank will continue its quantitative easing.
Base metals swung to losses on Wednesday on mixed news from the US and escalated worries over instability in Eurozone. US purchases of new homes attained almost two-year high last month; however, the Fed officials expressed concern that QE3 may be insufficient to boost economy. At the same time, massive protests in Spain sent the yield on 10-year sovereign bonds
Precious metals were mixed on Wednesday, with silver and platinum advancing and gold and palladium slumping. Broadly stronger US Dollar and pessimistic Fed officials' comments on QE3 created heavy selling pressure on the commodity group. Gold hovered near two-week low after some of the Fed officials doubted the success of the QE3. However, the downswing was capped by strong demand from
Treasuries declined on Thursday, paring an almost four-year longest rally, as belief the Chinese government will create further stimulus to boost its economy decreased demand for haven assets. The 10-year yield advanced two basis points to 1.63%. The 1.625 note maturing in August 2022 lost 6/32 to 99 30/32. The U.S. Treasury will sell $29 billion of seven-year bonds during
German import price inflation accelerated more than forecast in August, the Federal Statistical Office said on Thursday. Import prices surged 3.2% on year, compared to a 1.2% rise in June. The annual increase was the fastest since February and outperformed economists' estimate of 2.7% climb. Export prices rose 1.8% on year from 1.4% in the previous month.
U.K. currency advanced versus the U.S. counterpart on Thursday, paring a three-day decline, ahead of a report expected to show the U.K. economy slowed down for a third consecutive quarter in Q2. Sterling gained 0.2% to $1.6195. It traded at 79.55 pence per Euro after falling to 79.37 on Sept. 25, the least since Sept. 7. The Pound added 2%
The U.S. Dollar slipped versus most major peers as Asian stocks prolonged rise, cutting demand for haven assets. On Thursday, the greenback dropped 0.1% to $1.2888 per Euro. It was at 77.70 Yen from 77.75 on Wednesday, when it reached 77.59, the least since Sept. 14. The Aussie added 0.4% to $1.0414.
Chinese stocks jumped to lead an upbeat in Asian markets, after the central bank made a record cash injection into the financial system. On Thursday, the Shanghai Composite surged 2.9%, and the Hang Seng Index advanced 1.2%. Meanwhile, The Nikkei Stock Average and Australia S&P 200 Index both rose 0.5%, and Kospi inched 0.4% up.
Oil rebounded from a two-month low close as traders speculated that earlier declines were exaggerated. Futures gained 0.6% in New York after sliding to almost technical-support levels. November-delivery oil surged 57 cents to $90.55 per barrel and traded at $90.36. Brent oil for the same month added 0.3% to $110.41 per barrel in London.
China's central bank injected the biggest weekly amount of cash into the financial system to ease a liquidity crunch that had raised borrowing costs. The PBC poured 365 bn Yuan ($58 bn), a record high weekly amount, into money markets during the past three days via reverse repurchase agreements. The seven-day repurchase yield immediately dropped 1 percentage point from 4.75%,
European stocks rebounded from the preceding day's steep decline, as banks and commodity firms gained amid a record high liquidity injection from the People's Bank of China. On Thursday, the Stoxx Europe 600 Index advanced 0.5% to 271.98. The FTSE 100 Index added 0.4% to 5,790.24. The DAX 30 Index surged 0.4% to 7,308.89, while the CAC 40 Index inched
German shares slid on Wednesday on rising uncertainty over fresh austerity measures in Spain. On Tuesday, thousands of protestors opposed government spending cuts and tax hikes stipulated in the next year budget. Adding to the losses of the German blue chips index, Asian stock indexed finished Wednesday's session in red territory. The DAX Index lost 1.92% to trade at 7,284.08.