The Euro block's currency was slightly lower as the U.S. Dollar rebounded after declining last week on Ben Bernanke's comments about maintaining bond purchases. The Euro retreated 0.14% to $1.3047 before the U.S. releases data today. The common currency remained steady at £0.8647 against the Sterling and at ¥129.66 versus the Yen.
The British currency was little changed versus the greenback as U.K. housing data showed that the prices have increased for a seventh straight month in July. The Sterling was at $1.5101 at 7:43 a.m. London time after falling to $1.4814 on previous Tuesday, the weakest since June 2010. The Pound traded at 86.47 pence per Euro and it touched 86.94
The U.S. Dollar held gains versus the Japanese Yen and the common currency from the end of previous week ahead of U.S. report on retail sales due today that may boost the case for the Federal Reserve to taper bond purchases. The greenback jumped 0.1% to 99.28 against the Yen and was at $1.3070 versus the Euro.
The U.S. Dollar gained against its major trading partners today despite lower-than-expected U.S. consumer sentiment. The greenback appreciated 0.31% to $1.3055 versus the 17-nation currency as Euro zone's industrial output data were negative. Versus the Japan's currency, it gained 0.29% to 99.23 on decision of Bank of Japan to maintain stimulus unchanged.
U.S. stocks gained little after the University of Michigan published consumer sentiment data for July. S&P 500 advanced 0.07% to 1,676.13 at 2:20 p.m. GMT, and Dow Jones Industrial Average rose 0.17% to 15,488.29. The consumer confidence report showed a decline to 83.9 from 84.1 in June, while experts' forecast was a climb to 84.7.
WTI futures rose after yesterday's decline as the greenback strengthened today. WTI futures for settlement in August gained 0.42% to $105.36 a barrel, while futures of Brent crude advanced 0.50% to $108.27 a barrel. Oil fell yesterday after a disappointing U.S. labour market report that showed unemployment insurance claims increased by 24,000.
India's factory output plunged surprisingly in May. It fell 1.6% from a year earlier, while the median estimate was for a 1.4% increase in output. Another report on inflation showed that the CPI increased to 9.87% in June from 9.31% in May. The Rupee appreciated 0.1% to 59.63 per Dollar. The S&P BSE Sensex gauge advanced 1.4%.
Copper retreated in New York amid signals Chinese government will adopt a further weakening of economic expansion, adding to worries about a stagnation in the world's largest metal consumer country. The September copper contract decreased 0.5% to $3.162 per pound. Copper for settlement in three months dropped 0.5% to $6,967 per metric ton.
The U.S. Dollar advanced versus the common currency as investors believe the Fed will withdraw expansionary policy sooner than the European Central Bank. The greenback gained 0.4% to $1.3039 per Euro as of 8:43 a.m. in New York after falling to $1.3207 yesterday, the lowest level since Jun 21. A report showed that American manufacturer prices climbed in June more
German government bunds inched up for the second day on speculation central banks globally will keep bond purchases, fueling demand for fixed-income securities. German 10-year bond yield declined five basis points to 1.57%, the lowest since June 19, and the 1.5% bond maturing in May 2023 jumped 0.455 to 99.345.
The Loonie dropped from yesterday's 3-week high as the U.S. bonds had 12 basis point yield advantage over Canadian debt. The Canadian Dollar decreased 0.2% to C$1.0385 per greenback at 7:57 a.m. Toronto time, while it hit C$1.0326 per Dollar yesterday. The Loonie declined as consumer sentiment in the States is expected to climb to a 6-year high.
The Australian currency traded moderately lower versus the Dollar on Friday, as the U.S. Dollar rebounds from the previous declines on comments from the Federal Reserve Chairman Ben Bernanke, who said the U.S. economy has not grew enough to allow the Fed to cut its bond purchase programme. The Aussie fell 1.72% to $0.9029 versus the U.S. Dollar, reaching the
West Texas Intermediate oil headed towards a third weekly advance, the longest period of climbs since May, and is expected to inch up next week on speculation the Fed will maintain bond purchases. The August WTI contract was at $104.79 per barrel and Brent for August delivery jumped to $107.75 per barrel.
London home prices helped to reach country's record high in June. House prices, over the country, grew 0.2% compared to May and 2.5% compared to last year, according to real-estate researcher's report. It has been 10 straight months with gains with the average price of 232,801 Pounds. For comparison, London's house prices have been two and a half times more
European stocks advanced on early Friday's trading session, after sentiment rallied on expansion in the U.S. economy and the central bank said that it will scale back bond purchases only if reports will continue to indicated growth. The FTSEurofirst 300 Index advanced 0.37% to 6,567.45, while the Dow and S&P 500 closed at record highs on Thursday.
Industrial output in the Euro block retreated 0.3% on monthly basis in May, matching the preliminary estimates, after jumping 0.5% in April. The decrease was driven by a 1.5% slip in capital goods production and 2.3% decline in durable consumer goods. Year-on-year the industrial output dropped 1.3%, in line with economists expectations.
South Korean Won posted its largest weekly advance in about five months and government bonds rallied as the central bank increased its growth predictions on optimism U.S. lawmakers will keep bond purchases. The South Korean currency jumped 1.6% to 1124.47 versus the U.S. Dollar this week. The yield on the 2.75% government bonds maturing in March 2018 dropped to 3.13%
U.K. 10-year government gilts climbed for the fifth day, the longest duration of decline since March, ahead of the data today that economists expect to indicate U.K. construction production declined in May. The benchmark 10-year U.K. bond yield dropped five basis points to 2.33% and the 1.75% note expiring in September 2022 jumped 0.37 to 95.22.
German shares gained for a fifth day in a row, with the benchmark DAX Index heading for the biggest one-week advance since November, on optimism that all major central banks will keep theirs policies unchanged. The DAX Index added 0.5% to 8,197.85 as of 9:43 a.m. Frankfurt time and it has risen 5% weekly, while the HDAX Index climbed 0.5%
Prices of gold were slightly higher on Friday, as they were set for the biggest weekly gain since the end of 2011 on higher sentiment fueled by the Federal Reserve Chairman Ben Bernanke's about maintaining bond purchases. Gold futures gained 0.02% to $1,280.20 per ounce, adding to signs the futures are 5.6% higher this week.
Shares in Switzerland rose for a fifth straight day, prolonging the Swiss Market Index's highest level in one and a half month, as pharmaceutical companies gained. The SMI increased 0.4% to 8,020.96 as of 10:14 a.m. Zurich time; moreover, the equity-benchmark is set for a 3.1 advance, while the Swiss Performance Index rallied 0.4%.
U.K. stocks rose due to increased optimism that the central banks will continue accommodative monetary policies. The FTSE 100 Index jumped 0.4% to 6,566.52 today, while it increased 3% this week, heading the biggest weekly gain since November. The FTSE All-Share Index rose 0.3%, while ISEQ Index climbed 0.4% so far today.
The U.S. Dollar appreciated against the Euro due to mounting political instability and its implication for euro-zone's economy. The Euro dropped before the data release, which is expected to show that industrial output in the region declined. The Greenback rose 0.2% to 1.3066 per Euro after falling to 1.3207 yesterday. The currency slid 1.9% this week so far.
The Japanese Yen retreated on early Friday's trading session, as the Dollar advanced, after declining on Ben Bernanke's comments about stimulus and the labor market. The Japanese currency fell from ¥99 to ¥99.06 versus the U.S. Dollar. The Yen remained flat versus the Pound and was at ¥150.25, and also was flat against the common currency at ¥129.50.