The New Zealand and Australian Dollar depreciated versus greenback as surging Spanish yields fuelled investor worries about Europe outlook. Spain is holding bond auction tomorrow. Aussie shed 0.1% versus US Dollar to USD 1.0182 and Kiwi sank 0.4% to USD 0.7952. Currently AUD/USD is trading at 1.0187 and NZD/USD is trading 0.7953.
The 17-nation currency weakened on Wednesday ahead of Spanish bill auction tomorrow as European officials keep struggling to tackle region's debt turmoil. Demand for Dollar was lower as investors awaited the results of Fed two day meeting which concludes today. Euro slipped 0.1% versus greenback to USD 1.2672. Currently EUR/USD is trading at 1.2675.
European officials are adding pressure on Cyprus to accept a full rescue package worth around EUR 10 billlion (USD 12.7 billion). In contrast Cyprus currently is interested in restricting any external help to its financial system. Cyprus also is in talks with Russia about possible loan. Cyprus does not want to accept bailout money since it will be required to fulfil the
Greece's political leaders today are entering the third day of talks about forming a coalition that would fulfil EU obligations and secure rescue funds for the indebted nation. The leader of Socialist Pasok party Venizelos expects the new government might be created today. Antonis Samaras is aiming to create a strong coalition with 179 seats of 300 merging three parties: New Democracy
The Japanese trade gap widened in May due to Spain's and Greece's debt crisis which harmed European region's demand for exports. The total shortfall amounted to JPY 907.3 billion (USD 11.5 billion) data showed today in Tokyo. Although exports have climbed 10% on yearly basis the imports also have exceeded estimates. Shipments to European Union declined 0.9% while added 38%
The Euro held steady on Tuesday versus the Japanese Yen, as investors were focused on Greek attempts to form a coalition government and on upcoming Federal Reserve meeting. EUR/JPY peaked at 99.67 in European afternoon trading hours, and later consolidated at 99.56, gaining 0.05%. The support is likely to be found at 98.69, while resistance may be at 100.34.
Eurozone's production of construction sector contracted by 2.7% in April on a seasonally adjusted basis. Meanwhile, output from construction sector in the EU declined by 6.6% in April. Among the members of the single currency union, construction production contracted in nine and increased in five. In April, the largest fall was posted by the UK and Portugal where production fell
Crude oil dropped in European morning session on Tuesday as soaring Spanish bond yields weighted down on risk-appetite among market participants. Light, sweet crude oil futures for July delivery traded at 82.88 US Dollars per barrel, falling by 0.15%. Meanwhile, Brent oil futures for delivery in August traded at 95.60 US Dollars per barrel on the ICE Futures Exchange, losing
Gold prices rose in the European morning session on Tuesday, trading close to two-week high. Recent rise in Spanish borrowing costs returned safe-haven appeal of the yellow metal while FOMC meeting may result in the third round of QE in the US. COMEX gold August contract traded at 1,632.95 US Dollars per troy ounce on the New York Mercantile Exchange,
Wholesale sales in Canada increased more than expected in April, rising for the third month in a row, reported Statistics Canada. Wholesale sales surged by 1.5% in April as compared to a 1% jump expected. The country's wholesale sales amounted 49.3 billion Canadian Dollars mostly due to a 12.8% increase in miscellaneous sector. After the data release, the Canadian Dollar
U.S. Census Bureau reported on Tuesday that the amount of building permits that were issued in May rose 7.9% comparing to the April's figure of 0.723 million and reached 0.780 million on a seasonally adjusted basis. Analysts expected that this figure would gain 1%, reaching 0.728 million. Moreover, this is the highest level for almost five years.
Rural commodities were mixed on Monday as Eurozone's instability continued to dent demand prospects. At the same time, deteriorating weather in the top-growing regions worldwide provided fresh stimulus for the commodity pack.Wheat soared as Russian harvest is expected to fall by 7.2 MT this year because of drought. However, Rabobank's report that global supplies are likely to be ample while
Energy commodities apart from natural gas declined on Monday as inspiring results of Greek elections failed to ease worries about spreading Eurozone crisis.Crude oil fell on bleak demand outlook; however, talks between Iran and six major economies that are due to start on Tuesday in Moscow may bolster the price.Brent oil was top-loser despite possible easing measures by the Fed
Industry metals dropped on Monday as promising results of Greek elections were outweighed by surging Spanish yields. Yields on 10-year sovereign bonds rocketed above 7%, the level considered to be unsustainable in long-term.Aluminum fell as China's production remains under pressure because of weak prices.Copper was almost unchanged as positive data from the US homebuilding sector limited losses caused by economic
Precious metals were flat on Monday ahead of two-day long FOMC meeting that starts on Tuesday. Broadly stronger US Dollar and eased concerns over political situation in Greece continued to weight on the commodity group.Gold was almost unchanged, lacking clear direction amid mixed signs from the Eurozone and US. Meanwhile, holdings of the SPDR Gold Trust rose by 0.33% over
Despite a sharp drop in Zew sentiment index German DAX index managed to trade higher on Tuesday. The nation's benchmark index soared after Spain managed to sell the planned amount of bonds, though at significantly higher yields than in previous month. Moreover emerging market economies pledged to boost IMF firepower during G-20 meeting. Engineering company MAN SE led the gains
UK FTSE 100 climbed on Tuesday lifted by investor hopes for additional stimulus from Bank of England. Financial stocks prized the news with HSBC Holdings adding 1.7% and Royal Bank of Scotland Group soaring 1.6%. Whitbread surged 6.3% as the UK hotel and restaurant company said its first-quarter same-store sales improved 4.5% while total sales accelerated 14%. Engineering-solutions provider Weir
Spain witnessed an increase in borrowing cost as it was selling its debt on Tuesday. Spain's Treasury sold 12-month bonds worth EUR2.4 billion at the average yield of 5.074%, which was a sharp increase from May's 2.985%. 18-month bonds, worth EUR64 million, were sold at the average yield of 5.107%, which is more than May's 3.302%.
U.K. Office for National Statistics reported on Tuesday that the consumer price inflation slipped to 2.8% in May from April's 3.0%. Analysts, however, expected that CPI would remain unchanged and remain equal to 3.0%. Core CPI, which does not include products like tobacco and alcohol, climbed to 2.2% on a seasonally adjusted basis, whereas it was expected to be 2.3%.
Japan's Nikkei Stock Average retreated from yesterday's gains and slipped on Tuesday as Spain's financial turmoil amid surging yields worsened the outlook of European economy. Nikkei 225 index fell 0.75% or 65.15 points and closed at 8,655.87. Nomura Holdings fell 0.7% after Reuters reported the firm was not chosen to assist a state sale of its Japan Tobacco Inc stake.
Hong Kong's equities declined on Tuesday as Spanish yield accelerated and optimism diminished that Greek election outcome will curb European turmoil. Hang Seng index gave up 0.25% or 48.57 points finishing at 19,385.35. Tsingtao Brewery Co fell 8% after Dow Jones Newswires reported the main shareholder was trading 32 million shares in the company at discount between 4% and 7%.
Dow Jones Industrial Average edged modestly lower on Monday driven as blue chip stocks diminished. Dow main index slipped 0.20% or 25.35 points and finished at 12,741.82. 11 stocks of 30 posted gains for the session. Bank of America gave up 1.8% as Spanish 10-year borrowing costs hit Eurozone record high of 7.13%. Retail shares supported the index on the
S&P 500 index traded slightly higher on Monday, posting gains for a third straight day as optimism over Greek austerity supporting coalition offset the worries about surging Spanish yields. US benchmark added 0.14% or 1.94 points and closed at 1,344.78. The world's biggest online trader EBay Inc. rallied 4.5% after the company was upgraded to outperform in new coverage at
On Tuesday, the Australian Dollar held steady versus the Greenback, as traders were focused on soaring borrowing costs for Spain ahead of the sale of its government debt later this day. AUD/USD reached a session low at 1.0105 in the late Asian trading hours, and later the pair consolidated at 1.0124, which was a slight 0.02% decrease for that trading session.