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.
The U.K. public sector borrowed 14.4 billion Pounds in August, posting record deficit since the records begun, the Office for National Statistics said Friday. Analysts had predicted U.K's public sector borrowing to rise 15.0 billion. Overall, public sector's net debt reached 1,039.5 billion Pounds, and composes 66.1% of the U.K. GDP.
Spanish government is in talks with European Commission about the details of a new rescue plan. Up to 60 billion euros will be needed to bail out Spanish banks, the country's second biggest lender, BBVA, said on Friday. As nation's banking system needs recapitalization, money would, mostly, come from 100 billion euros Spanish bailout fund pledged by Eurozone finance ministers in June.
German equities rose on Friday on hopes that Spain will unveil its reform plan that will allow the country to apply for another bailout. However, recent weak PMI releases and poor data from the US job market capped the upswing of the German stock index. The German DAX Index added 0.25% and is trading at 7,446.82. Five out of nine
UK equities extended previous losses despite speculation that Spain will announce a reform program that will enable the country to apply for a new bailout. However, reports on less-than-expected increase in the national public sector borrowing last quarter sent the UK shares lower. The FTSE 100 Index slid 0.12% and is currently trading at 5,853.21. A half of sectors within
Hong Kong stocks advanced on Friday, boosted by a rebound in basic materials and energy sectors. However, dismal manufacturing PMI releases from China and Europe coupled with weakness of the US jobs market continued to create a heavy pressure on Chinese equities. The Hang Seng Index advanced 0.70% to close at 20,734.94. All but one business sectors included in the
Japanese shares bounced off Thursday's lows on Friday, supported by stronger utility sector. However, global growth concerns after weak PMI releases coupled with escalated territorial tensions with China continued to create heavy pressure on Japanese equities. The Nikkei 225 Index added 0.25% to end the week at 9,110.00. Seven out of ten sectors within the index rose. Utilities and oil
The Dow Jones Industrial Average Index added 0.14% to close at 13,596.93 on Thursday. Mixed data from the US coupled with weak manufacturing figures from Eurozone and China weighted down on the US blue chips index. Disappointing consumer confidence data from the Eurozone added pressure on the US stocks. Six out of nine sectors included in the index advanced. The