Gold price rose after the Fed announced it will maintain its highly accommodative monetary policies. The metal traded at $1,286.20 yesterday, dropping to $1,282.21 today. Gold appreciated 4.8% so far this week, heading towards the best weekly performance since October last year. Analysts expect the prices to increase next week as well.
The British Pound is heading towards the first weekly increase against the U.S. Dollar in a month, before U.K. construction data, which is expected to show that the construction industry shrank 2.8%. The Sterling was virtually unchanged today at $1.5169, while it has appreciated 1.9% so far this week, the most since June 7. The currency rose 1.1% yesterday.
China's Finance Minister said that the second-largest economy in the world might expand less than authorities targeted. The government set a target of 7.5% in March, while currently it is expected that the economy will grow 7% this year. The Finance Minister said he is confident that 7% expectations will be met, however, noted that the economy might grow as
Treasuries gained, heading towards the biggest weekly drop in yields in 13 months after the Fed indicated that it will not taper its monetary stimulus. The yield on 10-year Treasuries dropped 1 basis point to 2.56% so far today, while it decreased 18 basis points this week, the biggest decrease since June 1, 2012. Treasuries have lost 3.6% this year.
Asian currencies gain after the Fed indicated it is not planning to cut its stimulus earlier and that highly accomodative policies will be necessary. The Bloomberg-JPMorgan Asian Dollar Index jumped 0.7% this week, however, it is still 1.1% below its level on May 22 when Bernanke said that the Fed might taper its QE.
Copper reached highest level in three weeks amid speculation the Federal Reserves and the People's Bank of China will continue monetary expansion. Copper futures for September settlement advanced 2.3% to $3.161 per pound as of 11:10 a.m. on the Comex in New York as China and the U.S., the largest metal consumers in the globe, maintain dovish stance.
The Indian Rupee is poised for the first weekly increase since May as authorities are trying to reduce speculation and expand Dollar supply. The currency was also helped by the Fed's and BoJ's indication of continued monetary stimulus. The Rupee has jumped 0.6% to 59.89 per U.S. Dollar so far this week, while it slid 0.3% today.
Spreads on UK 10-year gilts declined 1.41% to 2.383 as of 13:25 p.m. GMT, reflecting the International Monetary Fund's improved outlook for the economy, and the Fed Chairman's announcement to continue quantitative easing programme. Moody's upgraded the UK banking system from negative grade to stable.
WTI dropped from a highest level in 15 months as more individuals filed for unemployment insurance claims in the U.S. and the International Energy Agency projected global supply will outreach demand growth in 2014. Oil for August settlement fell 1.1% to $105.38 a barrel as of 9:34 a.m. on the New York Mercantile Exchange.
Developing countries' stocks gained after Bernanke said that the Fed will continue its stimulus program. The MSCI Emerging Markets Index jumped 2.6% to 939.04 so far today, however, the gauge is still 10% below its level on May 22 when the Fed indicated it might start tapering its stimulus. However, markets still remain significantly driven by liquidity.
The U.S. Dollar depreciated after a report showing that the number of claims for unemployment insurance has increased more than expected in the last week. The greenback declined 0.7% to 1.3063 at 8:31 a.m. EDT, reflecting problems in the labour market. Against the Pound, the currency lost 0.78% to 1.5124, whereas versus the Yen it lost 0.47% to 99.20.
The number of people seeking unemployment benefits in the previous week increased to the two-month high, however the rise could reflect provisional changes in summer jobs patters in large industries like autos and education. Jobless claims jumped by 16,000 to the seasonally adjusted 360,000, last week ending on July 6.
The Swiss Franc reached a three-week high after the Federal Reserve Chairman Ben Bernanke said that quantitative easing is still necessary for the U.S. economy as the labour market has not recovered enough. The currency gained 0.8% to 0.9500 versus the U.S. Dollar as of 11:28 a.m. CET. Against the Euro, it climbed 0.27% to 1.2396, with the common currency
The Italy's government auctioned medium- and long-term government securities on Thursday, increasing short of the targeted amount, after S&P's lowered Italian sovereign dept rating by two notches over junk territory. Italy sold 3-,5- and 10-year notes and floating rate bonds on primary market for €6.35 billion, gaining less than €6.5 billion maximum expected.
据悉，季节性调整后，澳大利亚6月就业人数增加了约1.03万人至1166.9万人；而预期为减少0.25万人，前值增加0.11万人。其中全职就业人口减少约0.44万人，前值减少0.53万人；兼职就业人口增加约1.48万人，前值增加0.64万人。
German shares gained to the highest level in three weeks after the Fed's Chairman Bernanke indicated that U.S. economy is not ready to start tapering monetary stimulus. The DAX Index rose 1.2% to 8,164.78 as of 10:53 a.m. Frankfurt time, advancing for a fourth straight day, making it the longest streak of gains in almost two months. The HDAX Index
German government bunds advanced, sending 10-year note yields towards the lowest level in three weeks, following the Federal Reserve Chairman Ben Bernanke's comments on maintaining bond purchases to provide U.S. economy with more signs of growth, fueling demand for bonds. The German 10-year bund yield dropped to 1.61% and the 1.5% note maturing in May 2023 rose 0.425 to 99.005.
The Indian Rupee was the worst performing currency last month, but is heading for a rebound on speculations that the fall was too fast and too big. The currency dropped 5.6% since May 31 due to the Fed's comments that it might unwind its stimulus. The weakening Rupee pose problems for the Reserve Bank of India to cut interest rates
Asian shares soared, sending the regional benchmark index towards the largest jump in 10 months, s the Federal Reserve Chairman Ben Bernanke announced that the U.S. will maintain bond purchases and amid speculation China will take action to fuel growth. The MSCI Asia Pacific Index climbed 1.8% to 134.90.
West Texas Intermediate oil inched up from the highest point in 15 months as U.S. supplies declined for the second week in a row. Brent's premium to WTI decreased to the lowest since November 2010. The August WTI contract advanced to $107.45 per barrel, after the contract jumped to $106.52 yesterday, the highest level in over a year.
U.K. shares gained third time weekly after the Fed's Bernanke stated that monetary stimulus will remain unchanged as U.S. economy still needs this programme. The FTSE 100 Index gained 1.1% to 6,575.47 as of 8:48 a.m. London time; moreover, the equity-benchmark has advanced 3.1% weekly. The FTSE All-Share Index rose 1% today, while Ireland's ISEQ Index increased less than 0.1%.
Gold futures advanced by almost $50 per ounce as Ben Bernanke announced that the Federal Reserve will maintain U.S. interest rates low to cure economic growth. The August old contract jumped $39.40 to $1,286.60 per ounce, adding to signs before the Fed minutes August old settlement was at $1,247.40 per ounce.
Japan's government bonds jumped, sending the benchmark 10-year note yield to the lowest level in three weeks, after the comments from the Bank of Japan and the Federal Reserve underlined outlook for prolonged monetary accommodation. Japan's 10-year bond yields retreated to 0.82% and the price of the 0.8% security maturing in June 2023 gained to 99.816 yen.
Chinese shares inched up for their largest two-day advance in 18 months, after a rate of financial companies rallied towards the largest gain in four years amid bets the government will take action to boost economic growth. The Shanghai Composite Index increased 3.2% to 2,072.99, after jumping 2.2% yesterday.