The Fed will adopt fresh stimulus as needed in order to spur economic recovery and reduce jobless rate, which has been stuck over 8% for more than 3 years. Stocks declined on disappointment Ben Bernanke rejected undertaking action even as employment grows at a slow pace, consumer spending weakens, and manufacturing cools.
The Japanese Yen fell against its major peers as the IMF stated that it is "moderately overvalued". The Yen lost 0.2% versus the common currency, falling to 96.05 per Euro. The Japan's currency was little changed at 78.73 per US Dollar. Finance Minister Jun Azumi will not rule out any possibilities to struggle with the Yen's appreciation.
Standard & Poor's retained a positive outlook for Germany's AAA credit rating, after Moody's Investors Service warned on July 23 that the nation's Aaa rating under threat. S&P said that Germany will be able to combat any potential economic and financial troubles, due to its highly competitive and diversified economy, strong balance sheet as well as public finances.
According to the Bureau of Statistics, Australian retail sales rose by 1% to A$21.6 billion in June, beating economists' expectations. Sales increase has been aroused by 4 interest rate cuts since 2011 as well as benefit checks and carbon rebates paid out. As a result, the Australian Dollar strengthened.
Gold futures hit one-week low on Wednesday, as the employment in the U.S. private sector improved, and amid expectations of the announcement of another quantitative easing during today's Fed meeting. October gold erased 0.33 per cent to $1, 607.15 per troy ounce. October Silver and October copper also declined, with 2.32 per cent and 0.97 per cent respectively.
The Eurozone's manufacturing Purchasing Managers' Index tumbled to 44 from the previous 45.1 in July, the lowest since 2009. Meanwhile, the Euope's biggest economy also contracted, with PMI Index at 43 level. Any reading below 50 signals contraction. The fall may be explained by declined orders, which led to cost cutting and as a result more job losses.
The U.S. dollar edged higher on Wednesday as U.S. manufacturing shrank last month and as Federal Reserve may announce new policy measures. The ICE dollar Index added 0.01 per cent, while more advanced WSJ dollar index rose by 0.07 per cent. The greenback strengthened versus the shared currency and was trading at $1.2304, from yesterday's $1.2314.
On Wednesday, August 1, oil futures soared, as the U.S. Energy Department reported on tumbled supplies. Stockpiles declined by 6.52 million barrels to 373.6 million barrels, six times more than it was expected. Soon after the data, crude oil for September settlement jumped 0.9 per cent, to $88.87 per barrel during today's New York trading session. The boost was also provided by the speculations about
According to the German carmaker BMW quarterly report, the profit fell sharply in the second quarter, mostly, due to increased staff costs, rise in spending on R&D and severe competition in the market. BMW reported on 1.28bn euros net profit, 28 per cent less than the previous year. Meanwhile, revenues jumped 7 per cent to 19.2bn euros. At the same time, vehicle sale increased by
Wall Street turned green in the first day of August on better-than expected labor market data in the U.S. The Dow Jones Index added 0.2 per cent, to 13,034.8, the Standard & Poor's rose by 0.13 per cent to 1,381.1, meanwhile, the Nasdaq Composite Index reversed gains and erased 0.07 per cent to 2,937.5. The Fed is going to announce new policy decisions during today's
As reported by the Automatic Data Processing Inc., the U.S. private sector added 163,000 jobs in July, after adding 172,000 in the previous month. Small businesses added 73,000 jobs, medium businesses rose at 67,000, while large businesses added only 23,000 jobs in July. Despite the fact that less people were hired, compared with June, hiring has improved since spring, when only about 120,000 jobs were added
German stocks were almost flat on Tuesday ahead of the FOMC minutes release due later in the day. Moreover, anticipation of the ECB meeting due on Thursday adds caution in the equity market. Financial shares were mixed. Commerzbank gained 0.87% while Deutsche Bank retreated 0.74%. Basic materials producers followed bullish trend despite disappointing China manufacturing data release. Linde and HeidelbergCement
UK equities rallied on Wednesday on speculation that the ECB will loosen its monetary policy. FTSE soared 1.18% to trade at 5,690.41 at the time of writing. Telecommunications and Financials posted the strongest gains. BT Group and Vodafone surged 0.69% and 2.74% while Barclays and Royal Bank of Scotland rose 0.24% and 1.45%. Meanwhile, Next prolonged its rally, with shares
Hang Seng Index added another 0.12% on Wednesday despite weakness of Asian markets. Financials and basic materials producers supported the index. However, dismal PMI data limited gains of Hong Kong stocks. HSBC Holdings and Bank of Asia gained 0.08% and 0.56%. Gains for basic materials producers came after the China Iron and Steel Association asked the government to restart
Nikkei 225 halted its rally on Wednesday, plunging 0.61% to 8,641.85 on weak China's manufacturing data. Disappointing earnings reports also weighed on Japanese equities. Telecommunications sector posted the largest gain, with KDDI and Softbank rising 0.55% and 5.82%. Softbank climbed after announcing a mid-year dividend plan. Energy companies were the weakest, with Inpex and Showa Shell Sekiyu KK sliding 1.25%
Rural commodities plunged on Tuesday as weather conditions in Brazil started to improve. Adding to the negative mood of farm commodities, livestock producers are forcing the government to increase supplies. Wheat was the top-loser after US livestock producers urged the government to halt an alternative-fuel mandate that is limiting amount of grain allowed to be used as livestock feed. Corn retreated from
Energy commodities moved lower on Tuesday ahead of key central banks' meetings. Hopes that the ECB and Fed will loosen their monetary policies failed to support the commodity group. Crude oil was the worst-performer as support from easing speculation weakened after positive signs from US economy. Brent oil went down on growing caution over hopes for additional monetary stimulus from the Fed
Dow Jones Industrial Average Index declined further on Tuesday as investors remained cautious ahead of FOMC minutes and ECB decision on monetary policy. Disappointing consumer spending data added pressure on US blue chips index. Dow Jones Industrial Average gave back 0.49% to end the session at 13,008.68. Telecommunications industry was the strongest in the index, posting a 0.83% gain. AT&T
US stocks extended previous losses on Tuesday on increasing caution ahead of FOMC minutes, ECB policy decision and US labour market data. Corporate reports also weighted on risk-sentiment among market participants. S&P 500 edged down 0.43% to close at 1,379.32. Telecommunications sector limited losses of the index, with AT&T and Ryder System rising 1.31% and 0.41%. Shares of Goodyear Tire
Industry metals apart from copper declined on Tuesday as Germany strongly opposed to grant a banking license to ESM. Base metals were also balancing between global easing hopes and weak economic data releases. Aluminum fell ahead of China's PMI data due on Wednesday. Meanwhile, widely expected stimulus measures restricted the downside. Copper rose despite potential supply increase as Jiangxi Copper plans to
Precious metals, except for palladium, dropped on Tuesday ahead of highly anticipated the ECB and Fed meetings this week. Precious metals came under notable pressure as positive data from the US weighted down on Fed easing speculation. Even weaker greenback failed to support the commodity group. Gold edged down despite mounting expectations of easing measures from the ECB. Traders are cautious
Treasuries fell for the first time in this week before the announcement which, according to specialist, will show that the US economy returned to growth. This would ease up the pressure on Federal Reserve to introduce additional economic stimulus. Safe securities, such as US and German, dropped after Italian prime minister announced his country will not need a bailout.
The Ruble fell 0.4% to 32.29 per Dollar and local debt yields gained, as oil, Russia's main export, slipped. On Tuesday, Ural's crude oil fell 1.8% to $104.21 per barrel, the biggest drop in a week. The Ruble also declined 0.4% to 39.7625 per Euro. Government debt of 54 billion Rubles ($1.7 billion) due February 2027 tumbled, raising the yield
U.K.'s PMI unexpectedly fell to 45.4 in July from 48.4 in June. It was the weakest rate since May 2009, falling below most pessimistic forecasts. The survey posted that export orders tumbled at the fastest rate since February 2009, while the output index slipped to 43.3 from 51.9. The ongoing slowdown in production boosts weight on the government to find