Hong Kong stocks retreated on Monday despite speculation that policymakers will embark on easing measures after China's benchmark index approached three-year low. Persistent tensions with Japan as well as lingering worries over Eurozone's financial instability weighted down on China's blue chips. The Hang Seng Index declined by 0.19% to close at 20,694.70. Only three in nine sectors included in the
The Dow Jones Industrial Average Index lost 0.13% to close at 13,579.47 on Friday. US blue chips rallied in the beginning of the session on hints that the Fed may ease its policy further and hopes that Spain is close to receive the bailout. However, equities faced sharp losses at the end of Friday's session as stock options and futures
US equities inched down on Friday despite hints that the Fed may loosen its monetary policy further. John Williams, San Francisco Federal Reserve Bank president ,said that when the Operation Twist ends in December, the Fed may extend the outright purchases of Treasuries. However, stocks closed lower as index futures and stock options expired. The S&P 500 Index eased down
The Aussie and Kiwi tumbled amid belief discord among European leaders about ways of resolving the recession is restraining growth prospects, cutting demand for higher-yielding assets. The Aussie slipped 0.4% to $1.0415 and fell 0.6% to 81.28 Yen. The Kiwi slid 0.6% to 82.39 U.S. cents and dropped 0.7% to 64.32 Yen.
The 10-year Bunds advanced, with yields falling to a more-than-a-week low, as discord among Eurozone's leaders about the ways to end up the debt recession fueled demand for the area's safest assets. The 10-year yields dropped four basis points to 1.56%, after touching 1.55%, the least since Sept. 13. The 1.5% note maturing in September 2022 added 0.38 to 99.5.
Hong Kong's current account posted a deficit in the second quarter, due to a surge in visible trade shortfall, a rise in the outflow of secondary income and a decline in the primary income inflow, the Census and Statistics Department showed in preliminary data on Monday. The current account represented a deficit of HK$9.346 billion from a surplus of HK$5.653
On Monday, the U.S. Dollar was lower versus the Japanese Yen, being traded close to a 7-day low, amid uncertainty over whether the Spanish government will request a bailout. USD/JPY was traded at 78.03, which was a 0.16% decline for the European morning trading session. Earlier, the pair hit a 78.02, which was a ten-day low.
U.S. stock futures slid on Monday as global growth concerns weighing on confidence, turning commodities down and the greenback up. Dow Jones futures dropped 35 points to 13,465, while those for the S&P 500 slipped 4.1 points to 1,447.80. Nasdaq 100 Index futures fell 5.75 points to 2,846.74. The Dollar Index climbed to 79.715 from 79.323.
On Monday, the British Pound was traded lower versus the U.S. Dollar, amid renewed concerns over Spanish debt crisis. GBP/USD hit a lowest since Thursday, which was 1.6189, and consolidated at 1.6195, which was a decrease of 0.19% for the European morning trading session. The pair's support was likely to be at 1.6142, while the resistance was prone to be at the level of 1.6249.
Austria's industrial output climbed working-day adjusted 1.1% on year in July, Statistics Austria showed on Monday. Meanwhile, construction output posted a 5.4% year-on-year increase. The total production index rose 2% annually, while on monthly basis it slipped 0.1%, with a 0.7% fall in industrial production and 3.8% gain in construction.
On Monday, the U.S. Dollar was traded higher versus the Euro, as traders' sentiment was determined by a disappointing report from Germany, which showed that its business confidence declined to the lowest since 2010. EUR/USD fell by 0.53% in European morning trading hours and reached the level of USD1.2911.
Asia stocks slipped on Monday, as commodity firms weighed markets that were still trading off their weakest levels of the session. The Nikkei Stock Average dropped 0.4%, the Kospi slipped 0.1% and Australi's S&P 200 Index lost 0.4%. The Hang Seng Index declined 0.1%, while the Shanghai Composite Index reversed earlier losses and added 0.3%.
On Monday, futures for crude declined sharply, as investors' sentiment was determined by concerns over growth of the global economy. On the NYMEX, November delivery futures for light sweet crude were traded at $91.70 per barrel, which was a 1.3% decline in the European morning trade. Earlier, prices for contracts hit a day-low of $91.61 per barrel.
S&P rating agency lowered economic growth expectations for Asia Pacific amid a downtrend in China, further problems in the euro area and a slower recovery in the U.S. S&P reported on Monday that the real growth forecasts were downgraded for Japan to 2%, Hong Kong to 1.8%, Singapore to 2.1, India to 5.5% and China to 7.5%. Meanwhile, S&P raised
On Monday, gold retrieved from a near 7-month high, however, the support for the metal from the stimulus measures is expected to remain. On the NYMEX, December delivery futures for gold declined by 0.9%, and reached $1,760.70 per troy once at 9:35 a.m. London time. Earlier in the day, it hit a day-low of $1,759.200 an once.
Europe stocks declined on Monday after German magazine Der Spiegel showed that Greece posted a 20 billion Euro budget deficit, fueling concerns over Greece crisis; European banks faced losses amid the data. The Stoxx Europe 600 Index slipped 0.4% to 274.75. The CAC 40 Index lost 0.7% to 3,505.94. The FTSE 100 Index fell 0.4% to 5,829.89. The Dax 30
Investors from the U.S. were buying treasuries in bigger amounts than foreigners, which happened for the first time since 2010. Treasury notes held domestically added 10.7% during the first 7 months of 2012. Last week, yields on benchmark 10-year notes declined by 11 basis points, reaching 1.75%, and were little changed today by 1 p.m. Tokyo time.
On Monday, the 17-nation currency was lower versus the Japanese Yen for the fifth consecutive day, as investors were focused on upcoming report on German business confidence, which is expected to be the lowest in two years. The Euro fell 0.3% and reached 101.19 Japanese Yen by 8:23 a.m. London time. Earlier, it hit a level of 100.87 Yen, which was the lowest since September 14.
German business sentiment dropped to the weakest since March 2010 in September on further concerns over the Eurozone's recession, Ifo said on Monday. The Business Climate Index fell to seasonally adjusted 101.4, after 102.3 in August. Analysts had forecast a reading of 102.5. The Current Assessment Index slid 0.8 points to 110.3, while the Business Expectations Index lost 1.0 point
Rural commodities rallied on Friday amid falling Russia's and Brazil's supplies. Adding to the positive mood of the commodity group, the US Dollar retreated on speculation that the Fed will ease its policy further in December. Wheat soared after Andrei Belousov, Russia's Economy Minister, said that Russia may restrict exports in the autumn in case domestic prices skyrocket. Corn gained 0.30%
Energy commodities were bullish on Friday amid lingering concerns over instability in Libya and falling North Sea production. Speculation that the Fed will loosen its policy further in December and weakness of the greenback also lifted energy prices. Crude oil rose on hopes that global stimulus measures will spur demand for energy. Escalating tensions in Libya also supported the commodity price. Brent
Base metals moved higher on Friday, erasing previous losses on weak fresh PMI releases from the US, China and Eurozone. At the same time, inability of Eurozone's leaders to agree on measures to solve spreading debt crisis weighted down on the industrial metals. Aluminum posted mild gain despite higher inventories at the LME warehouses and softer global shares. Copper inched up
Precious metals apart from silver rose on Friday on encouraging comments from John Williams, San Francisco Federal Reserve Bank president. John Williams said that when the Operation Twist ends in December, the Fed may extend the outright purchases of Treasuries. Gold ended the week on the positive note, boosted by hints on further easing measures from the Fed after Operation
Mexico's jobless rate rose more than expected in August, after declining during five straight months. As reported by the Insituto Nacional de Estadistica Y Geografia seasonally adjusted unemployment rate was 4.93% last month, up from 4.79% in the prior month. Analysts had predicted nation's unemployment rate to rise to 4.8% in August.