The Japanese government cut its outlook for the world's third-biggest economy, as some economists expect that GDP will fall this quarter. The government downgraded the economic assessment on home-building, personal consumption, imports, exports and industrial production. During the next meeting of the Bank of Japan, which is scheduled on September 18 and 19, monetary policy will be reviewed.
According to the Housing Industry Association, Australian new-home sales declined 5.6% to 5,682 in July, adding to signs the central bank's interest rate cuts did not stabilize the housing market as expected. Sales of detached houses fell 5.5% to the lowest since 2000 and sales of apartments fell 6.4%.
Oil declines on belief Tropical Storm Isaac will cause less damage to oil production than first forecast. October-delivery oil dropped 1% to $35.19 per barrel after Isaac was downgraded to a Category 1 hurricane, the weakest on scale. October-settlement Brent oil fell 0.8% to $112.71 per barrel.
U.K. house price index tumbled 0.1% on monthly basis in August, according to a real estate tracking website Hometrack. Th reading matched both economists' forecast and the rate of decrease from the preceding month. Prices in London posted no change. On year-on-year basis, Britain's property prices declined 0.5%.
U.S. stock futures increased, following the first weekly fall of benchmark indexes in almost two months, after Apple Inc. surged amid a $1 billion jury's decision and investors awaited signs on further Fed stimulus. Apple climbed 2.3% to $681.94. S&P 500 Index futures due in September gained 0.3% to 1,414. Dow Jones Industrial Average futures rose 0.1% to 13,167. Nasdaq-100
On Monday, August 27, natural gas futures dropped to a seven-week low, as the U.S. National Hurricane Center downgraded Tropical Storm Isaac to a Category 1 hurricane. Natural gas futures with October contract tumbled 1.1% to $2.707 a million British thermal units. In the meanwhile, meteorologists predict that Isaac will spur short-term shutdowns of 85 per cent of the U.S. offshore oil production capacity and
The Federal Reserve may start another round of quantitative easing or launch a bond-buying program soon, while new moves from the Fed are in question. Meanwhile, the Fed has already bought $2.3 trillion of long-term securities, in order to push nation's borrowing costs down and boost the economic recovery. Minutes released by the Fed on August 22 point at a higher possibility of a next
Treasury prices advanced for the sixth day in seven on Monday, while no important economic data is expected and trading volumes remain low. The benchmark 10-year note rate fell by 2 basis points to 1.67 per cent, and the yields on five-year notes dropped 2 basis points to 0.70 per cent. In the meanwhile, Ben Bernanke's speech is scheduled on Friday, August 31.
On Monday, August 27, European stocks edged higher, as shares of telecommunications equipment makers and banks rose. The German DAX 30 Index gained 0.9 per cent to 7,031.48; the French CAC 40 Index jumped 0.6 per cent to 3,453.12, while the Spanish IBEX 35 Index soared 0.78 per cent to 7,367.30.
Canadian housing affordability fell in the second quarter, as home prices and mortgage rates rose modestly. The cost of owning a home edged up to 43.4 per cent for a detached bungalow, to 49.4 per cent for a two-story home, while the measure for condos remained unchanged at 28.8 per cent, showed by the RBC Housing Affordability index on Monday, August 27. A reading of
Swedish retail sales advanced more than estimated in July. A report made by Statistics Sweden today indicated consumers are continuing to support economic growth, with retail sales rising 0.3 per cent over the month and by 2.4 per cent over the year. Analysts had predicted a 1.7 per cent increase y/y or 0.2 per cent m/m.
Import prices in Europe's biggest economy rose by 0.7% in July, after a 1.5% drop registered in the previous month. Export prices jumped 1.4% in July, measured on a year-on-year basis, while import prices rose by 1.2% in the same month over a year. The results met analysts' expectations.
U.K. mortgage bonds are at the highest level since 2008 as purchasers brush off the impact of a slowdown in the economy and look for top-rated substitutes for benchmark government notes. Investors demand 95 basis points more than the rate on five-year notes supported by prime U.K. mortgages, offered by the Euro interbank. That's the first time in 4.5 years
European stock futures climbed after Germany's Finance Minister Wolfgang Schaeuble reported Germany and France will create a union to enhance Eurozone's fiscal and monetary union. The Stoxx Europe 600 Index advanced 0.3% to 268.77, after declining 0.2% earlier.
German shares moved higher on Monday on speculation that the Fed will ease its monetary policy. However, dismal Ifo Business Climate Index data capped the upswing of the German equities. Meanwhile, market participants are cautious ahead of annual economic symposium in Jackson Hole due in later in the week. The German DAX Index edged up by 0.26% to trade at
Australian equities retreated on Monday despite hopes that the Fed will start new round of QE soon. Disappointing China's data coupled with lack of actions from the ECB weighted down on Australia's tocks. The S&P/ASX 200 Index lost 0.12% to end Monday's session at 4,221.5. Resources firms were mixed, with Interpid Miners falling by 9.09% and Aquila Resources gaining 11.56%.
Oil surged to a one-week high and gasoline climbed near a four-moth high after Tropical Storm Isaac intensified, weakening output in the Gulf of Mexico, and a fire in the world's 2nd biggest refinery in Venezuela cut part of its output. October-delivery oil advanced $1.57 to $97.72 per barrel in New York, trading at $97.28.
Wall Street turned slightly lower on Friday, as investors are getting more cautious about Eurozone's leaders will ability to handle region's debt crisis. The Dow Jones Industrial Average fell 0.1%, to 13,041.9; the Standard & Poor 500 Index edged 0.2% lower, to 1,399.54, while Nasdaq 100 futures lost 0.3%, to 3,042.89.
The Euro rose to a seven-week high versus the U.S. Dollar as German business confidence dropped less than some analysts estimated, adding signs the economy can survive the sovereign-debt crisis. The Euro gained 0.1% to $1.2529, after surging to $1.2590 on Aug. 23, the most since July 4. It advanced 0.2% to 98.59 Yen, after a rise to 99.18 Yen
German business confidence declined for a fourth consecutive month in August, touching its weakest point since March 2010, Ifo think tank reported on Monday, showing domestic companies are more sensitive to the ravages of the Euro-debt crisis and that Germany may stop being a hedge. Business sentiment index tumbled to 102.3, compared to a downgraded reading of 103.2 in July.
China's blue chips dropped on Monday after the National Bureau of Statistics reported that China's industrial companies profits fell by annualized 5.4% in July. Pushing Chinese stocks lower, HSBC downgraded the country's growth forecast to 8.0% from 8.4% for this year, citing recent weak data releases. The Hang Seng Index slumped 0.41% to close at 19,798.67. Only two in nine
Japanese stocks were slightly higher on Monday, being boosted by hopes that the Fed will embark on asset purchasing program in the nearest future. However, a fall in profits of China's industrial companies in July created notable pressure on the Asian equities. The Nikkei 225 managed to close with a 0.16% gain at 9,085.39. Six out of ten sectors included
The Dow Jones Industrial Average Index advanced by 0.77% to close at 13,157.97 on Friday. The US blue chips were lifted by Ben Bernanke's comments regarding room for further action. Traders interpreted the comment as a sign that the Fed is likely to ease its monetary policy soon. All industries within the index rose. The best-performers were telecommunications and financials.
US equities rose on Friday amid speculation that the Fed will loosen its monetary policy to boost growth. Moreover, an unexpected increase in the US durable goods orders in July lifted US stocks. However, absence of fresh measures from the ECB created pressure on the US shares. The S&P 500 Index gained 0.65% to end the week at 1,411.13. Nine