Treasuries dropped as less Americans applied for unemployment insurance last week. Reports showed that the number of claims is at the lowest level since 2008. Expectation of tomorrow's reports showing improving manufacturing sector is an additional factor for 10-year treasury yields gaining five basis points to 2.62% as of 8:35 a.m. in New York.
The common currency remained lower versus the greenback as the European Central Bank decided to maintain the key interest rate unchanged, while investors expect the ECB Governor Mario Draghi's press conference. The Euro declined 0.44% to $1.3242 against the Dollar, adding to signs the Euro fell from the strongest level in one and a half months.
Claims for unemployment benefits surprisingly decreased to a five-year low in the U.S. The number of Americans filling jobless claims declined by 19,000 to 320,000 in July 27 from 245,000 a week before. Surveyed economists expected 345,000 new claims. The data may indicate that employers are more optimistic about the nation's recovery.
The British Pound climbed slightly versus the U.S. Dollar after the Bank of England announced not changing monetary stimulus course. Additional factor for the gain was encouraging manufacturing data for July. The British Pound rose 0.17% to $1.5233 against the greenback at 11:02 a.m. GMT. The BoE made a decision of keeping key interest level at 0.5% and asset purchases
U.K. manufacturing expansion accelerated more than analysts predicted last month, adding to signs Britain's economy is recovering at a faster pace and boosting the case for the Bank of England to maintain stimulus paused. The factory measure increased from 52.9 in June to 54.6 in previous month, the highest level in 28 months.
Stocks in the U.K. appreciated, led by Lloyds Banking Group Plc and commodity producers. Country's mining companies gained after unexpected expansion in Chinese manufacturing, while Lloyds rose to the highest point since October 2010. The FTSE 100 jumped 0.3% to 6,643.55, while the FTSE All-Share Index gained 0.4% so far today. The ISEQ gauge rallied 0.8%.
German bunds rose most in almost 3 weeks as investors speculated that the ECB will keep rates at record lows. Yield on 10-year government securities decreased 6 basis points to 1.61%, the biggest drop since July 12. Similar-maturity France's bonds yield slid 0.06 percentage points to 2.18%, while Austria's yield slipped 0.05 percentage points to 2.03%.
European shares jumped for the fourth day as banks inched up on better-than-expected earnings at Societe Generale and Lloyds Banking Group Plc while China's manufacturing report fueled mining companies. The Stoxx Europe 600 Index added 0.8% to 302.09. Societe Generale rose 7.7% and Lloyds jumped to the highest level since October 2010.
Gold was seen climbing on Thursday as the Federal Reserves maintained its current monetary stimulus programme unchanged, meaning that the central bank will continue asset purchases in total of $85 billion per month. The yellow metal rose 0.78% to $1,323.30 per ounce, while silver was traded 0.46% higher at 19.720 per ounce.
The British Pound has appreciated for the first time in more than a week against the Euro after manufacturing in the U.K. rose more-than-expected. The Sterling rose 0.4% to 87.14 pence per Euro, while it dropped 0.1% to $1.5198 after dropping 0.5% earlier today. The factory output index increased from 52.9 to 54.6, while experts predicted a drop to 52.8.
Japanese bonds were virtually unchanged after a rise in demand at a government debt auction, while stocks surged. The yield on 10-year official securities stood at 0.795%. Japanese authorities sold $22.3 billion of 10-year bonds with demand 3.51 times higher than an amount offered. The Topix gauge jumped 2.8% after a drop of 1.5% yesterday.
Stocks in Asia rose after data showed that China's manufacturing beat market expectations and the Fed claimed to maintain its QE at current level. The MSCI Asia Pacific Index jumped 1.3% to 133.94, however, the gauge is still heading towards 1.1% loss this week. Manufacturing index expanded from 50.1 to 50.3 this month, while experts predicted a drop to 49.8.
The common currency declined versus the greenback, falling from the strongest level in one and a half months, when the Federal Reserve announced its monetary policy future. Markets now await for the interest rate decision from the European Central Bank. The Euro slipped 0.35% to $1.3254 versus the Dollar and jumped to 0.8752 versus the Sterling, and climbed 0.49% to
The Federal Reserve stated that low inflation level could negatively impact the economic expansion and will continue with its bond-buying programme. According to the FOMC, in case the inflation remains below its 2% target for a longer term that could hamper the country's economic growth. The Fed's Chairman Bernanke and other officials said that the growth so far has been
The Australian Dollar reached the weakest level in approximately 36 months on speculations that the nation's central bank will cut interest rates the following week. Australia's currency fell 0.2% to 89.67 U.S. cents at 4:41 p.m. Sydney time, after slipping 0.6% to 89.27, the lowest since September 2010. The Kiwi slid 0.2% to 79.68 U.S. cents after depreciating 1.3% in
West Texas Intermediate oil increased for the second day, prolonging the largest monthly rise since previous August as manufacturing expanded more-than-expected in China. The September WTI settlement advanced to $105.72 per barrel and Brent for September delivery inched up 0.4% to $108.15 per barrel.
The Canadian currency rose versus almost all of the most-traded peers as the U.S. economy continued its recovery and that raised bets the Bank of Canada may tighter monetary policy this year. The Canadian Dollar gained 0.3% to C$1.0277 as of 5 p.m. Toronto time after reaching C$1.0212 earlier, the highest level since June 19.
The Greenback strengthened even more versus the Australian Dollar after positive U.S. economic data. The Aussie was down to 35-month low and, depending on the Fed's policy decision, the currency might be pushed even lower. The Aussie lost 1.14% to $0.8960 after touching a low of $0.8940. The currency has fallen more than 15% since the beginning of April.
Better-than-expected U.S. macroeconomic sent the S&P gauge and the Dow Jones Industrial Average to the highest levels of all time. The Standard & Poor's 500 gauge climbed 0.54% to 1,695.04 and the Dow Jones index added 0.14% to 15,603.42. The Nasdaq Composite index gained 0.51% to 3,634.87, the highest level since 2000. Investors are waiting for FOMC statement at 6:00
The Hungary's currency headed for a monthly decline for the first time in four months after the nation's central bank revealed that it would continue interest rate cuts and the government intends to phase out forex loans. The Forint fell 0.2% to 299.78 per Euro at 1:07 p.m. Budapest time, declining for the seventh consecutive day and accumulating the loss
European stocks traded flat, the Stoxx Europe 600 gauge increased slightly to 299.55. Investors wait for the U.S. report on GDP growth in the second quarter, and investors seek some hints form the Federal Reserves about monetary policy plans. Markets struggled to interpret mixed data. Retail sales unexpectedly dropped in Germany, while unemployment rate fell in June, the first decline
The benchmark ten-year yield gained six basis points to 2.67% as of 8:50 a.m. New York time. The 30-year treasury yields were at 3.74%, the highest levels since August 16, 2011, after reports showed U.S. Economy expanded 1.7% in the second quarter and employers provided additional 200,000 jobs this month, while economists expected only 180,00 new positions.
The Canadian Dollar dropped after the nations released disappointing economic data on GDP growth in May, boosting speculation that the Bank of Canada will not stop monetary stimulus anytime soon. The loonie declined 0.27% to C$1.0333 per U.S. Dollar as of 8:31 a.m. Toronto time. Canada's economy expanded 0.2% in May, while analysts expected a 0.3% increase.
Canada's economy continued expansion in May, yet at lower rate than economists predicted. The GDP advanced 0.2% in May, while on year -to-year basis it rose 1.6%. Analysts projected a 0.3% increase. The main drivers behind the growth was retail and wholesale industries, while resource extraction sector plummeted 1.7%. Energy sector production fell 2% in May.