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.
UK stocks plunged on Wednesday amid mounting concerns over instability in Spain. Spanish 10-yer bond yields jumped above 6% after thousands of protestors gathered in Madrid to oppose fresh austerity measures. Pessimistic comments from the Federal Reserve Bank of Philadelphia President, Charles Plosser also send the UK equities lower. Charles Plosser said on Tuesday that QE3 may fail to boost
Hong Kong equities fell on Wednesday as market participants booked profits ahead of the end of Q3. Weak Asian and US stocks and persistent worries over Eurozone added pressure on the China's blue chips. Sending the Hong Kong shares lower, the POBC stopped speculation over further easing measures, reiterating that it will stick to the prudent monetary policy. The Hang
Japanese shares plunged on Wednesday as the majority of stocks were traded ex-dividend. Depressing the Japan's stocks further, global growth concerns escalated on protests in Spain over fresh austerity measures and disappointing comments from the Fed official. Moreover, analysts expect the BoJ Tankan report to indicate that business confidence deteriorated for the fourth quarter in a row in Q3. The
The Dow Jones Industrial Average Index tumbled 0.75% to close at 13,457.55 on Tuesday. The US blue chips came under heavy pressure after the Federal Reserve Bank of Philadelphia President, Charles Plosser, dented risk-sentiment, stating that the QE3 will fail to boost faltering economy and may impact credibility of the US central bank. Capping the downward move of the US
US stocks dropped despite upbeat national data. US home prices rose more-than-expected in July while consumer confidence surged to seven-month high in September. Pushing the US stocks lower, the Federal Reserve Bank of Philadelphia President, Charles Plosser, warned that QE3 may prove to be insufficient in boosting growth in the country and may undermine credibility of the Fed. The S&P
New home sales in the U.S. dropped surprisingly last month, but remained near two-year high, while prices soared to the highest level since 2007, a report by the Census Bureau showed Wednesday. Sales of new single-family homes in the U.S. fell to 373,000 last month, down from 374,000 in July. The average sales prices rocketed 11.2% to $256,900, posting the single biggest monthly increase ever
Germany failed to raise 5 billion euros of debt in an auction on Wednesday, as investors were reluctant to buy bonds at a record-low yield of 1.5%. Germany sold just €3.951 billion directly to investors, pushing yields on 10-year bonds up to 1.52% from 1.42%. Demand was weak, with bids exceeding supply only 0.79 times, compared to 1.57 at the last auction.
British retail sales rose slightly in September, a sign consumers are showing more willingness to buy, the Confederation of British Industry reported on Wednesday. CBI realized trades rose to 6 in this month, up from -3 in the previous month. A reading above 0 indicates higher sales volume, while any reading below signals lower volume of sales.
On Wednesday, Mariano Rajoy, Spanish Prime Minister, announced that he was ready for bailout package, but only in case his country witnesses too high borrowing costs for too long. Previously, Rajoy had said that a decrease of yields, caused by ECB's bond-buying plan announcement, may possibly allow not to seek for further support.
Sweden's merchandise trade surplus declined from last year in August, Statistics Sweden reported preliminary data on Wednesday. The trade surplus tumbled to SEK3.3 billion from SEK5.2 billion in August 2011, exceeding economists' estimates of a SEK3 billion reading. Exports of goods fell 5% on year to SEK93 billion, while imports slid 3% to SEK89.7 billion.
On Wednesday, the U.S. Dollar declined versus the Japanese Yen during European trading hours. USD/JPY was traded at 77.72 at 7.:34 a.m. London time, which was a 0.10% decline for the session. The pair's support was likely to be found at 77.66, a Tuesday's low, while the resistance was prone to be at 78.37, a Friday's high.
Bloomberg News survey estimates that the Japanese business confidence will decline to minus 4 in a report on October 1 by the Bank of Japan. This pessimistic prediction is based on China's slowdown and European crisis, which pulled Japanese exports down, making the central bank to announce quantitative easing this month.
Swedish economic confidence tumbled more than estimated in September, National Institute of Economic Research said on Wednesday. The index dropped to 95.8, compared to 96.9 in August and below economists forecast of 96.5. Consumer sentiment slipped to 2, compared to 5.4 in the preceding month, while economists estimated a reading of 5.