Japanese equities moved higher ahead of the FOMC meeting results. Persistent speculation that the POBC will loosen its prudent monetary policy also supported Japan's stocks. The Nikkei 225 Index moved higher by 0.39% to trade at 8,995.15. Eight out of ten sectors included in the index soared. Utilities and industrials were the top-performers, climbing by 1.23% and 1.15%. Chubu Electric
South Korea has unveiled its second stimulus plan in four days, in order to revive nation's economy. Today's announcement involves plans for the central bank to inject 1.5tn won ($1.3bn) into the banking sector, which will be used to provide low interest loans to small businesses. In the meanwhile, the Bank of Korea's held its base rate steady at 3.00%, while analysts had predicted a
According to the Labor Department, the Producer Price Index rose 1.7% in August,above estimates for a 1.4% increase, as energy prices soared 6.4%. On a yearly basis, the producer price index rose at an annualized rate of 2.0% last month, above expectations for a gain of 1.4%. The core PPI added 0.2% in August, meeting analysts' expectations, after jumping 0.4% in July.
The number of people who filed unemployment benefit claims in the U.S. last week rose more than expected, the U.S. Department of Labor said on Thursday. Applications for U.S. jobless benefits jumped by 15,000 to a seasonally adjusted 382,000 in the week ended Sept. 8, up from 367,000 in the previous week. Analysts had predicted initial jobless claims to rise by 3,000 to 370,000.
The Bank of England published its 2012 Q3 issue of the Quarterly Bulletin today, saying it expects the inflation rate to be much more volatile in the coming years than it has been in the past. The report noted that investors' uncertainty about inflation rose substantially during the financial crisis, and that inflation expectations have become less anchored to the BOE's 2% target.
The Swiss National Bank left the target range for the three-month Libor rate unchanged at 0.0-0.25% on Thursday, in line with analysts' expectations. Moreover, the SNB trimmed its growth forecast. Bank expects an inflation rate of -0.6% for 2012, 0.2% for 2013, and 0.4% for 2014. Nation's GDP is to grow by 1% in 2012, down from 1.5% projected in the June forecast.
Irish EU harmonized inflation advanced for the second consecutive month in August, the Central Statistical Office said on Thursday. The HICP surged to 2.6% from 2% in July. The index rose 0.8% on month in August, rebounding from a 0.1% slid in preceding month. Meanwhile, the CPI grew to 2% from 1.6% in July, gaining 0.6% compared to a 0.1%
Italian EU harmonized inflation slowed more than initially measured in August, Istat posted the final data on Thursday. The HICP rose 3.3% on a yearly basis, lower than preliminary estimate of 3.5% growth and below a 3.6% increase in July. On monthly basis, HICP stayed stable, after a 1.7% rise in July. The CPI rose to 3.2% in August, after
Oil futures advanced on Thursday in European trading hours, before the outcome of a two-day monetary policy meeting in U.S. October-delivery crude inched 16 cents higher to $97.17 per barrel in New York, after trading mostly flat in Asian session. Gasoline for October delivery fell 1 cent to $3 per gallon, while same month heating oil was unchanged at %3.21
European stocks opened weaker on Thursday, as traders grew cautious before the results of a two-day Fed monetary policy meeting. The Stoxx Europe 600 Index lost 0.1% to 272.65. The CAC 40 Index declined 0.4% to 35,31.24. The DAX 30 Index slid 0.1% to 7,335.12, while the FTSE was little changed at 5,751.41.
U.S. stock futures declined on Thursday, following falls in Asia and Europe, as traders await the outcome of the two-day Fed meeting. Dow Jones futures slipped 23 points to 13,338, after closing at the highest level since December 2007 yesterday. S&P's 500 futures dropped 3.4 points to 1,436.10, while Nasdaq 100 futures depreciated 9.25 points to 2,787.
On Thursday, the Euro was broadly higher versus its major counterparts in European morning trade, amid another Fed's round of monetary stimulus and optimism about debt crisis in Eurozone. EUR/USD edged up 0.06% to trade at 1.2906, which was close to a 4-month high. EUR/GBP added 0.01%, being traded at 0.8010. EUR/JPY slipped 0.13%, and was traded at 100.29.
On Thursday, treasuries grew, trimming losses from a 2-day decrease, amid expectations that Fed will announce a further round of quantitative easing later in the day. The benchmark 10-year yield declined by two basis points to reach 1.74% at 10:33 a.m. London time. The 30-year yield also dropped two basis points and reached 2.91%.
On Thursday, the Greenback was mixed versus its counterparts, ahead of a speech by Fed's Chairman. EUR/USD added 0.20% to trade at 1.2924 in the European morning trade. Cable edged higher versus the Greenback, with GBP/USD up 0.07%, being traded at 1.6118. USD/CHF eased up 0.02%, and was traded at 0.9373. USD/CAD grew 0.05%, to trade at 0.9767.
On Thursday, futures for copper edged lower in European morning trade, ahead of the upcoming Fed chairman's speech later in the day. On the NYMEX, December delivery futures were traded at USD3.685, which was a 0.2% decline for that trading session. The contract's daily low was USD3.673, while a session high was USD3.700.
The Swiss Federal Statistical Office reported on Thursday that Switzerland's PPI increased in August, which was the first gain of the index for the last five months. Producer price index grew to 0.5%, whereas analysts expected that it would decline to minus 0.4%. Year over year, the index fell to 0.1%, confounding economist's expectations of a 0.7% decline.
The Swiss National Bank announced on Thursday that it will continue to defense the Franc via purchases of foreign currencies in 'unlimited quantities', maintaining the EUR/CHF floor at 1.20. The Swiss central bank will also hold the benchmark interest rate unchanged at the level of 0%, which is in compliance with expectations.
France is making a pressure on Spain to ask help from the European Union and scatter German concerns. French representatives want Spain to request the EU's bailout fund in order to consolidate bond rates of the troubled countries. French pressure is the only way to make sure that Spain will not backtrack and delay domestic reforms till the deals will be done as it was
Economists doubt that another round of quantitative easing by the Fed may provide economic benefits, though the majority expect that the central bank will introduce stimulus today. Economists projected that bond buying plan of $500 billion would diminish unemployment rate by 0.1% and would increase the nation's GDP by 0.2%.
Wholesale inventories increased by most in 5 months, overshooting expectations and indicating the Q3 economic growth started on better footing than forecasted. The inventories rose 0.7% in July to $485.2 billion, the Commerce Department reported. Sales unexpectedly dropped 0.1%. Another report showed import prices increased in August on a jump of oil prices, weighing on consumers and boosting inflation.
New Zealand kept unchanged it record-low interest rates and signalled the rates might endure through mid-2013 to spur the economy undermined by a global slowdown. The New Zealand Dollar bought 82.01 U.S. cents from 82.07 cents immediately before the announcement. The Kiwi has appreciated 5.6% this year versus the U.S. counterpart, the best performance among G10 currencies.
The Australian Dollar was 0.3% from a three-week high amid speculation the Federal Reserve will announce further stimulus, which traditionally debases the U.S. Dollar. Australia's and New Zealand's currencies maintained 2 days of advance after Germany's constitutional court cleared the way for ratification of the Eurozone's bailout fund. The Aussie traded at $1.0470, while the Kiwi Dollar was at 82.14
Gold is set for gain amid speculation the Fed will announce stimulus to prop up economic growth. Palladium is poised for the longest rally since February 2008. Gold traded at $1.731.63 an ounce following a 0.3% gain earlier. The metal touched the highest level in six months of $1.746.90 yesterday, while the U.S. Dollar traded at 4-month low versus the
Oil futures for October settlement added 9 cents to $97.10 on the mid trading session in Singapore on Thursday. Oil price made slight correction after yesterday's fall, when the U.S. crude oil stockpile unexpectedly increased versus estimations of falling. Analysts say that currently oil price cannot go higher due to a stockpile data, but the FED meeting today will have an essential impact on reaching the