West Texas Intermediate crude fluctuated before U.S. report which may show that the nation's crude stockpiles dropped to the lowest level in six months, while prices gained after Germany, the largest economy in the EU, showed an increase industrial output in June. WTI for September settlement was at $105.50, up 20 cents, on the New York Mercantile Exchange at 11:31
Swiss shares were little changed, after the regional benchmark SMI almost reached a three-week high, as Swisscom AG results topped the estimates. The Swiss Market Index added 0.1% to 8,005.41 as of 11:27 a.m. Zurich time and it has increased 2.1% previous week, while the Swiss Performance Index also rose 0.1% today.
Treasuries gained as the Japanese Yen appreciated to a near seven-week high versus the greenback and equities fell, fueling demand for safer assets as government bonds. Yield on 10-year treasuries lost one basis point to 2.64% as of 11:00 a.m. in London. Both the MSCI Asia Pacific gauge and the S&P 500 declined by 0.6% and 0.4%, respectively.
U.K. shares retreated after the Bank of England stated that it will remain interest rates unchanged until the jobless rate reaches 7%. The FTSE 100 Index slid 0.7% to 6,556.52 as of 10:47 a.m. London time, after adding 0.3%; however, the gauge has increased 8.9% from the lowest level on June 24. The FTSE All-Share Index dropped 0.6% today, while
The common currency remained flat versus the greenback, as industrial output in Germany increased in June. The 17-nation currency appreciated 0.07% to 1.3316 versus the U.S. Dollar, as German industrial output jumped 2.4% in June measured month-over-month, after dropping 0.8% in the previous month. The Euro also retreated 0.23% to 0.8650 versus the Pound.
German industrial production grew 2.4% in June month on month, following a 0.8% decline in May, while economists had forecast a 0.3% increase. The German output rallied 2.0% in June on a yearly basis, revising a 1.2% slip in May. The factory orders in country advanced 3.8% in June, after dropping 0.5% in May.
The Sterling weakened versus the U.S. Dollar, after the Bank of England released Inflation data, which affects the Monetary Policy Committee decision on its interest rate. The British currency declined dramatically to $1.5204. The official central bank rate remains unchanged at 0.5% and the first rise of the rate is set until late 2015.
European share markets declined, sending both U.S. and Asian shares lower, as the Federal Reserve lawmakers announced that the bond purchase tapering is likely to start later this year. The Stoxx Europe 600 index contracted 0.5% to 301,99. The FTSE 100 index slipped 0.4% to 6,576.70, while the German DAX 30 index decreased 0.4% to 4,018.06.
Gold declined to a three-week low, retreating for a third straight day, on bets that the Fed will start to taper its monetary stimulus this year as the U.S. economy will continue its recovery. Spot gold slid 0.8% to $1,273.55 an ounce, the lowest in approximately three weeks, and traded at $1,283.28 as of 2:42 p.m. Singapore time, while the
Asian shares declined, with Japan's stocks leading drops across the Asia as the Japanese Yen advanced for the fourth day and metal prices retreated. Japanese Nikkei 225 Stock Average decreased the most in about two month as Yen appreciated to 96.87 versus the U.S. Dollar. Japan's Topix index slipped 3.2%, while South Korean Kospi index and Taiwan's Taeix index both
The British currency was little changed versus the greenback and Euro ahead of the BoE's Governor Carney statement on the future of nation's interest rates. The Sterling was at $1.5339 by 7:42 a.m. in London, after appreciating to $1.5392 on Tuesday, the strongest since July 29, while the Pound traded at 86.73 pence per Euro, after falling to 87.70 pence
The Australian currency declined against its 16 major peers before the unemployment claims that will be released tomorrow and the report is expected to show a rise to four year high. Australia's Dollar slipped 0.2% to 89.65 U.S. cents at 2:33 p.m. Sydney time, when it reached 90.05, the strongest since July 31, while the Kiwi stayed flat at 79
Japan's currency reached the highest level in six weeks as the nation's central bank started a policy meeting today and it is expected that the officials will not add to stimulus. The Japanese Yen appreciated 0.6% to 97.20 per Dollar by 6:38 a.m. London time after trading at 97.09, while the currency gained 0.6% to 129.29 per Euro.
Spanish and Italian government bonds advanced as factory orders increased in Germany, the Eurozone's biggest economy, boosting demand for higher-return assets. Italian ten-year bond yield dropped two basis points to 4.25% as of 3:41 p.m. in London, while yield on similar maturity Spanish bonds also fell two basis points to 4.57%.
U.S. stocks declined after opening on Tuesday on worries about the Federal Reserve monetary stimulus tapering. Investors hope for signals in speech by FOMC later this day. Conern began when Dallas Fed chairman Richard Fisher said that QE tapering is very close now. The Standard & Poor's declined 0.57% to 1,697.36. The Dow Jones Industrial Average decreased 0.64% to 15,512.05.
Gold fell for a second consecutive day as Dallas Federal Reserve President Richard Fisher makes hawkish announcements, and as series of positive U.S. data concerns investors about stimulus tapering. The yellow metal futures lost 1.68% to $1,280.40 per ounce on Comex. Silver traded 1.19% lower at $19.485 per ounce.
The U.S. trade gap narrowed more than expected in June. The deficit decreased 22.4% to $34.2 billion, which is the lowest level since the end of 2009. Exports climbed 2.2%, while imports fell 2.5%. Main drivers were improving sales of engines, telecommunications equipment and petroleum goods. Economist forecast ranged between $38 and $48.3 billion, the median was 43.5.
The greenback rose moderately versus the common currency as investors reacted to better-than-forecast trade balance data ahead of the Fed's Charles Evans speech on further insight into U.S. stimulus. The U.S. Dollar traded around $1.3280 versus the common currency and declined 0.41% to $1.5350 against the Sterling.
WTI crude advanced after several European reports showed positive economic figures, signaling the euro area economy's recovery. Analysts expect the U.S. oil and fuel stockpiles have shrunk this week. WTI futures added 0.48% to $107.07 per barrel, while the North European futures rose 0.25% to 108.98 U.S.Dollars in London.
The 17-nation currency touched the strongest level in seven weeks versus the greenback as data indicated German factory orders recovered in June, overshooting economists expectations. The Euro added 0.1% to $1.3273 and remained steady at 130.28 versus the Yen. The U.S. Dollar dropped 0.2% to 98.15 versus the Yen.
The 17-nation currency appreciated as British industrial output and factory orders in Germany grew more than expected in June, and Italy's economy contracted less than predicted in the second quarter, signaling Europe's recovery. The Euro climbed 0.2% to $1.3281 as of 6:31 a.m. New York time. Copper gained 1.2% and crude traded 0.2% higher. The Stoxx Europe 600 gauge rose
European stocks mostly advanced, fueled by the latest better-than-forecast data from Germany, Italy and the U.K., and optimistic earnings reports. The European Euro Stoxx 50 index jumped 0.17% to 2,814.02 and German DAX advanced 0.20% to 8,415.30. German factory orders rose 3.8% in June, while French company Credit Agricole posted net income of €696 million in the second quarter.
U.K. 10-year note yields advanced to a one-month high as a government data indicating industrial output rose in June curbed demand for safer assets on speculation the economy is recovering at a faster pace. The U.K. benchmark 10-year bond yield climbed to 2.49% and the 1.75% note maturing in September 2022 retreated to 94.05.
Asian shares outside Japan declined as better-than-forecast expansion in U.S. service sectors boosted speculation the Federal Reserve may soon begin to scale back bond purchases. The MSCI Asia Pacific excluding Japan Index dropped 0.5% to 440.95, while Japanese Topix index added 0.8%. South Korean Kospi index decreased 0.5% and New Zealand's NZX 50 Index fell 0.3%.