The Euro inched lower versus other major currencies, as Eurozone fiscal outlook weighed on market sentiment. In European morning trade, EUR was dropping versus the USD, reaching the level of 1.2666. EUR/GBP dropped 0.29%, and consolidated at 0.8060, while EUR/JPY eased up 0.18% and was traded at 101.24.
Japan's Nikkei Stock Average breached the negative trend of Asian stock markets and finished higher on Thursday. Although the Asia overall sentiment was negative on China PMI data and Fed decision, Japanese shares pared losses helped by weaker Yen which sent exporters higher. Nikkei 225 gained 0.82% or 71.76 points and finished at 8,824.07. Honda Motors surged 3.5% after Credit
Shares in Hong Kong fell sharply on Thursday after Chinese HSBC manufacturing PMI dropped to 48.1 indicating further contraction. Moreover investors did not received awaited news from Fed. Hang Seng index tumbled 1.3% or 253.78 points and closed at 19,265.07. Only two companies managed to end into positive area. Resource and financial shares declined most. Tencent Holdings fell 4.4% and
Dow Jones Industrial Average slipped on Wednesday after Reserve disappointed investors lowering growth forecast for 2012 and expanding only Operation Twist program instead of expected quantitative easing. Blue chip index dropped 0.1% or 12.94 points and closed at 12,824.39. Procter & Gamble fell 2.9% after the world's largest consumer-goods enterprise cut its earnings and revenue outlook for the second time
S&P 500 index traded lower on Wednesday after the Federal Reserve lowered its forecast for the US economic expansion from 2.9% to 2.4% in 2012 and said it expects the jobless rate to attain 8.2% in June. US leading index slipped 0.17% or 2.29 points and closed at 1,355.69. Adobe Systems the biggest producer of graphic-design software, dropped 2.7% after
Futures for copper dropped in early European trade on Thursday, following weak data about global economy, and Fed's decision on monetary policy. On the Comex, July delivery futures for copper were traded at USD3.344 per pound, losing 1.3% in European morning trading session. Earlier, contracts were traded at USD3.333, which was a 1.75% fall.
Spain witnesses an increase in costs for borrowing as it was selling its government debt on Thursday. Spain's treasure managed to sell five-year government bonds worth EUR602 million at the average 6.072% yield, which was a sharp increase from the last month's 4.752%. Whereas three-year and two-year bonds were sold having the average yield equal to 5.547% and 4.706%.
Markit, a market research group, reported that manufacturing PMI for Germany dropped 0.5 points in June, reaching 44.7, whereas in May it was 45.2. Analysts' forecast was that the figure for the last month would be 45.2. June's PMI reached the lowest level for the last three years on market's concern about the impact of Eurozone debt crisis on the German economy.
Markit reported that French manufacturing PMI added 0.6 in June, from the May's 44.7, and reached 45.3 on a seasonally adjusted basis. This is more than expected, since analysts predicted that the figure would be 44.5. French service sector activity also gained more than expected in June, reaching 47.3, from the May's 45.1, whereas initial forecast was that it would be at 45.0.
U.K. retail sales gained more than expected, after a sharp fall in April. U.K. Office for National Statistics reported that retail sales grew by 1.4% in May on a seasonally adjusted basis, whereas initial forecast was that it would rise only by 1.2%. The figure for April was revised down from a 2.3% decline, reaching a 2.4% fall.
On Thursday, Switzerland's Federal Statistics Office reported that the Swiss trade surplus increased to CHF2.48 billion in the last month from the April's figure of CHF1.26 billion, which is a revised down figure from CHF1.33 billion. Analysts, however, expected that the May's trade surplus would be CHF1.97 billion.
US equities ended modestly lower on Wednesday after Federal Reserve disappointed investors lowering growth forecast for 2012 and expanding only Operation Twist program instead of expected quantitative easing. S&P 500 index slipped 0.17% or 2.29 points and closed at 1,355.69, Dow Jones Industrial Average gave up 0.1% or 12.94 points and closed at 12,824.39. Nasdaq Composite ended marginally higher adding
European markets pared losses on Wednesday evening after the Bank of England's Monetary Policy Committee said it plans to enlarge the USD 511 billion asset buying program. Stoxx Europe 600 added 0.4%, FTSE 100 gained 0.6% and German DAX edged 0.4% higher. French CAC 40 index ascended 0.3%. In contrast Spanish IBEX 35 dropped 1.2%.
The Federal Reserve announced on Wednesday it will extend its Operation Twist program to prolong maturities of its assets and pledged intervention in labour market if situation worsens. The central bank will extend the program by the end of 2012 through selling shorter-term assets worth USD 267 billion and purchasing same size longer-term securities in order to cut borrowing costs.
Gold futures slid in Asian trade on Tuesday as Fed announced it would continue its Operation Twist and did not plan to ease the monetary policy further. COMEX gold for delivery in August traded at 1,605.05 US Dollars per troy ounce on the New York Mercantile Exchange, falling by 0.67%. Meanwhile, COMEX silver for delivery in July traded at 27.945
Crude oil prices dropped in Asian session on Thursday as EIA reported a 2.86 million barrels increase in crude oil inventories last week, confronting the expectations of a 1.11 million barrels fall. Moreover, Fed decided not to implement the next round of QE thus weighting on the demand prospects. Light, sweet crude oil futures for August delivery traded at 80.76
China's manufacturing activity contracted again in June as new export orders and overall output both posted losses. The results of the survey conducted by HSBC indicated that China's PMI shank to 48.1 in June as compared to 48.4 in the preceding month. China's analysts claim that essential decline in prices and stagnation of new orders both suggest that domestic demand
The GDP of New Zealand expanded at faster pace than initially expected in Q1, reported Statistics New Zealand. The economy of the country grew by 1.1% on a seasonally adjusted basis in Q1 as compared to a 0.3% gain in the preceding quarter.Experts predicted the GDP to grow by 0.5% in Q1. Following the data release, the New Zealand Dollar
The Fed has lowered its forecast for the US economic expansion from 2.9% to 2.4% in 2012. The central bank also expects the unemployment rate to attain 8.2% as compared to an April's forecast of 8%. The Fed announced it would continue Operation Twist, the program of swapping short-term debt for the long-one. The project is aimed at reducing long-term
The leader of Greek New Democracy Party was approved as PM after greek politicians managed to form a coalition. New Democracy will merge forces with socialist Pasok party and Democratic left party gaining in total 179 of 300 seats in parliament. European leaders have kept possibility to relieve fiscal austerity after Greek election showed nation's willingness to stay in the Eurozone.
The Canadian Dollar depreciated versus US Dollar on Wednesday after Fed reduced its estimates for this year's growth. The Federal Reserve also suggested it expects weak improvement in labour market this year. Loonie gave up 0.1% against greenback to CAD 1.0183. Currently USD/CAD is trading at 1.0214.
The 17-nation currency depreciated on Thursday as investors awaited Spanish bond auction. Moreover report on Eurozone manufacturing and service activity is going to be released today and it is predicted to show contraction. Euro fell 0.3% versus greenback to USD 1.2670. Currently EUR/USD is trading at 1.2675.
German Chancellor Merkel denied using direct countries' debt purchases via Eurozone rescue fund as a measure to fight turmoil. Merkel admitted that such a tool is legally possible. However, Merkel considers this measure as purely theoretical and hasn't express any interest in committing to sovereign bill purchases. French Socialist President Hollande in contrast suggests that it would be a reasonable way how to lower surging
The Euro inched higher versus the U.S. Dollar on Wednesday, after Greek announcement about coalition formation, while investors eyed Fed's meetings. EUR/USD peaked at 1.2723 in U.S. morning trade, and later consolidated at 1.2702, inching 0.13%. The pair's support was likely to be found at 1.2567, while resistance was prone to be at 1.2746.