U.S. share futures traded steady after retail sales data for August was posted, while investors are preparing for the Federal Reserve meeting next week. Standard & Poor's 500 futures advanced 0.03% to 1,679.20. U.S. retails sales increased for the fifth month in a row in August, jumping 0.2% and missing economists' expectations of a 0.5% rise.
The Sterling appreciated to the highest level in seven months versus the greenback ad a government data indicating construction production advanced in July, boosting the case the U.K. economy is recovering at a faster pace. The Sterling advanced 0.3% to $1.5854 and 0.3% to 83.93 pence versus the 17-nation currency.
Olli Rehn, the economics chief of the EU said on Friday that Italian economy still faces a lot of economical risks, as the economy continues to decline. Manufacturing in the country lost 1.1% this July on the annual basis, while the GDP slump eased to 0.2% in Q2. Analysts point out that political instability may push 10-year bonds' yields even
The U.S. retail sales are anticipated to advance in August for the fifth time amid increasing demand for cars and a moderate fall in gas prices. Based on economists' expectations, American shopping appetite inched up 0.5% last month. The U.S. gasoline prices plummeted 1% per gallon and the average gas price was at $3.57 per gallon in August.
One of the main sectors of the U.K. economy continued the up-trend, adding signs to that the country's economy is recovering and expanding growth. Construction industry added 2.2% in July from a month earlier, while on the annual basis an increase was 2%. The output rose in all major construction sector like housing and commercial work. The industry accounts for
U.K. government gilts declined with U.S. Treasuries as Japanese Nikkei newspaper posted former Treasury Secretary in the U.S. Lawrence Summers potentially may be named the next Federal Reserve chairman. The yield on the U.K. benchmark 10-year bonds increased two basis points to 2.96% and the 2.25% bond maturing in September 2023 slipped 0.15 to 93.90.
The economic decline in Sweden reached 0.2% in the second quarter of this year, while the first report suggested the 0.1% decline. The annual growth shrunk even more deeply, while the economy added only 0.1% from the same period of 2013, down from the latest estimate of a 0.6% advance. Analysts explain the economic slump with weak exports data and
Taking into account the latest Bloomberg survey, investors expect from the Bank of England to increase the key interest rate in the first six months of 2015. Nowadays, the benchmark rate stand at 0.5%. BoE officials say that the easing program will continue until the unemployment rate reaches 7%. Alongside, economists think that they will have to wait at least until 2016
Japanese Yen declined against the U.S. Dollar, correcting previous profit-taking advances, following worries over the Federal Reserve may begin to taper its bond purchases next week. The Yen dropped 0.14% to ¥99.66 versus the greenback and plummeted 0.13% to ¥132.46 against the 17-nation currency, and slipped 0.18% to ¥157.55 versus the Sterling.
Economic growth in the United Kingdom will increase this year and in 2014, according to the analysts' median estimates. In 2013 British economy is expected to advance 1.3%, while previously economists waited for a 1% expansion, but the next year GDP growth will reach 2%, which will be the highest pace of expansion since 2007. Moreover, in 2015 economy is
Japanese industrial output in July jumped 3.4% on a monthly basis, while increasing 1.7% year-on-year, adding to the case that the economy in Japan is recovering at a faster pace. Japan's shipments from factories inched up 2.0% on a monthly basis and rose 1.4% from a year ago in July, while inventories rallied 1.6% compared to the June.
Asian shares declined, with the regional benchmark index halting an 11-day gain, as the U.S. and Russia discuss situation in Syria and investors expect the result of a Federal Reserve meeting in the following week. The MSCI Asia Pacific Index retreated 0.6% to 136.90, with Japanese Topix index jumping 0.1% and Taiwan's Taiex index falling 0.7%.
European shares decreased, cutting the Stoxx Europe 600 Index's second weekly advance, as investors anticipated data on retail sales from the U.S., while America and Russia discussed the situation in Syria. The Stoxx 600 plummeted 0.3% to 309.83, while the Standard & Poor's 500 Index futures maturing in December dropped 0.2% and the MSCI Asia Pacific Index slipped 0.6%.
The U.S. Dollar appreciated ahead of data analysts said will indicate U.S. retail sales advanced in August, fueling speculation the Federal Reserve will begin stimulus tapering next week. The greenback inched up 0.2% to 99.69 against the Yen and remained steady at $1.3288 versus the common currency, while the Japanese Yen dropped 0.1% to 132.47 against the Euro.
Gold future prices declined to the lowest level in five weeks, as investors expect from the Federal Reserve to possibly start the stimulus tapering next week. Gold futures dropped 1.61% to $1,309.30 per ounce and the silver decreased 3.00% to $21.485 per ounce, while the U.S. Dollar index advanced 0.15% to 81.610.
The manufacturing sector in the Eurozone remains weak, despite the overall economic recovery in the region. According to the data, the output in July lost 1.5% on a monthly basis, while analysts predicted a drop of 0.3%, five times slower. The annual production slashed 2.1%. The economy of the Eurozone returned to growth of 0.3% in Q2, while in the
One of the policy makers in the Bank of England, David Miles, point out that the economic recovery in the country may not influence the unemployment rate positively in the nearest future. Yesterday the data showed the U.K. unemployment dropped to 7.7%, while the goal for BoE is 7%. Nevertheless, the economic growth in the U.K. will continue to strengthen,
The Central bank of the Philippines kept the main interest rate at the lowest level after the meeting on Thursday, as inflation the country is easing, while the economic growth is estimated to slower. The key rate was held at 3.5%, the lowest value for the seventh consecutive meeting. Consumer price index may reach 3% to 5% the next year,
Experts from one of the largest banks in the world, Goldman Sachs Inc., expect the demand for commodities in China to rebound till the end of 2013. Investors in the country are going to provide more financial resources for infrastructure projects, as well as for fixed-asset investments. Nowadays, China is the largest consumer of copper, tin and iron, and the
Russian shares gained value for the last nine days, as oil prices stayed flat during that period and the country declined any military action in Syria. Today, the first time in nine days, the benchmark Micex Index slumped this morning 0.2% to 1452 points at 8:00 GMT, while the utility companies lost the most in value. Recently the government announced
The biggest telecommunications operator in the world, China Mobile, has signed a contract with Apple Inc. to offer their clients' new smartphones. After the deal, the American giant will have access to 37% of China's smartphone users. During the presentation of new iPhones, Apple announced China as one of the first markets to sell new devices, while the contract with
According to the report of Goldman Sachs Group Inc., gold prices will decrease in 2014, as the U.S. economy improves and global perspectives are positive. Moreover, the Fed will probably start tapering the next week, putting more pressure on gold quotes. Prices on the precious metal have already lost 18% this year, while they were in up-trend for the previous
Swedish analysts point out that it is necessary for Swedes to amortize household mortgages to protect themselves from increasing debt amounts. Housing prices have already doubled since the beginning of the century and now it takes on average 140 years to fully repay a mortgage. Moreover, only 40% of borrowers for a house purchase in Sweden are able to pay
The manufacturing industry in South Africa surged 5.4% in July of this year, while the factory output added 0.5%. Economists expected the output to advance 1.6%. Manufacturing progress can be explained by the shrinking exchange rate of the rand, which boosted exporters' revenues. This year the national currency of South Africa has already lost 15% against U.S. dollar.