The British Pound rebounded from a 3-year low on speculation that recent decline was excessive. The currency dropped yesterday as the data showed that U.K. manufacturing shrank, indicating weakening recovery. The Sterling jumped 0.1% to 1.4881 per U.S. Dollar, while it was virtually unchanged against the Euro and traded at 85.94 pence.
European stock-index futures declined, showing the Stoxx Europe 600 Index will retreat from its highest level in about a month, as data indicated Chinese overseas sales and inbound shipments declined more-than-predicted. Euro Stoxx 50 Index futures maturing in September dropped 0.2% to 2,655.
Stock prices in China rose as investors expect the authorities to support the economy after an unexpected 3.1% slump in exports. The Shanghai Composite Index increased 1.7% to 1,997.87, leaning towards the biggest rise since April 19. The CSI 300 Index jumped 2.1% to 2,208.79, while the Hong Seng China Enterprise Index gained 1.4%.
Imports and exports unexpectedly declined in China indicating severity of the impacts of decreasing credit growth. Imports dropped 0.7%, while experts predicted a rise of 6%. Exports plummeted 3.1%, the biggest decline since the Great Recession, compared to the market expectation was an increase of 3.7%. The trade surplus in May was $27.1 billion, while analysts' estimate was $27.8.
The Japanese Yen appreciated against its major peers on speculation that the BoJ will not increase its monetary stimulus amid recovering economy. The Japanese currency rose 0.7% to 100.44 per U.S. Dollar after touching the lowest point since May 30 two days ago. The Yen appreciated 0.7% to 128.42 per Euro so far today. The currency has lost 21% of
Asian stocks advanced after the data showed that China's exports dropped most significantly since 2009. The MSCI Asia Pacific Index rose 0.2% to 131.68 after advancing 0.8% earlier today with 7 out of 10 industries soaring. Japan's Topix jumped 0.6% before dropping 0.5% later in the day. S&P/ASX 200 increased 0.2%, while NZX 50 climbed 0.7%.
Yield on 10-year Treasuries relative to 2- and 30-year government securities was near the highest point since 2011 before $21 billion auction today. The difference between yields was 1.25%, while it reached 1.39% last week. Yield on 10-year government bonds was 2.63%, while it is expected that the yield might rise to 3% next week.
Share prices in India rose for a second consecutive day. The S&P BSE Sensex index jumped 0.2% to 19,485.55, led by ICICI Bank and State Bank of India, which rose 0.7% as well as Tata Consultancy Services, which increased 0.9%. The gauge is still 2.9% below its level on May 22, when Ben Bernanke said that the Fed might unwind
Future contracts on S&P 500 jumped, which indicates that the index itself will extend its gains as it rose for 3 previous days. The futures expiring in September rose 0.4% to 1,641.90, while future contracts on Dow Jones Industrial Average climbed 0.3% to 15,200 so far today. The S&P 500 soared 1.6% in previous 3 days.
Share prices in the U.K. increased to the highest point in 5 weeks despite worse-than-expected manufacturing data. The FTSE 100 jumped 1.1% to 6,519.63 today after increasing 1.2% yesterday, while the index soared 2.6% last week. The rally was supported by a rise in mining companies' stocks and by central bank's commitment to maintain growth.
The yield on three-year U.S. government notes more than doubled from their level in May as investors speculate that the Fed might start unwinding its QE. The yield increased from 0.29% in May to 0.68% today before the $32 billion auction. The yield on 10-year Treasuries was little changed and stood at 2.63% after rising 24 basis points on July
WTI crude oil traded at almost highest price in fourteen months before a data release, which is expected to show that the U.S. crude oil supplies dropped for a second consecutive week. Crude inventories dropped 3.1 million barrels previous week, according to experts' predictions. Prices also increased due to deadly unrest in Egypt. WTI for delivery in August traded at
The Canadian Dollar rose after Alcoa announced better-than-expected performance, increasing demand for riskier investments. The Loonie remained higher after housing data turned out to beat experts' expectations. The currency jumped 0.1% to 1.0547 per U.S. Dollar today, while S&P 500 Index future contracts increased 0.4%.
Stock prices rose around the world after Alcoa, starting U.S. earnings season, showed better-than-expected financial results in Q2. FTSEurofirst 300 index of European stocks dropped due to profit-taking after reaching the highest point in a month. Japanese Nikkei 225 gauge soared 2.6%, almost reaching 6-week high.
U.K. shares inched up and reached the highest level in five weeks as Alcoa Inc. began the U.S. earnings-reporting with outcome that overshot analysts expectations, as investors maintained their optimism that central banks will support expansion. The FTSE 100 climbed 66.07 point to 6,516.14 and the FTSE All-Share Index rose 1%, and Ireland's ISEQ Index added 0.4%.
Greece will receive 3 billion euros of financial aid, European authorities confirmed. The aid is intended to prevent another debt crisis in the country. Greece will received 2.5 billion euros in July, while the rest in October, if the government manages to cut spending and implement required reforms. Yields on 10-year Greek government bonds decreased 31 basis points to 10.6%.
The Franc fell to the lowest level in five weeks against the Euro as euro-zone's authorities approved financial aid to Greece, which reduced demand for safe-heaven assets. The Swiss currency slid 0.4% to 1.24544 per Euro, while it also dropped 0.5% against the U.S. Dollar to 96.83 centimes per greenback. The Switzerland's central bank still maintain a limit above which
Share prices jumped around the world on profit expectations as Alcoa started earnings season in the U.S. with better-than-expected results. The MSCI All-Country World Index jumped 0.5% to 361.24 so far today, while future contracts on S&P 500 Index increased 0.4%. The Stoxx 600 Index soared 0.6%.
Manufacturing in the U.K. fell as pharmaceuticals and metal producers' output decreased, falling short of experts' forecasts. Factory production dropped 0.8% in May, while economists predicted an increase of 0.4%. This data suggests that economic recovery in the U.K. might be weaker than previously expected as industrial output increased only 0.2% in the last 3 months.
West Texas Intermediate was trading near its 14-month high ahead of report forecast to indicate U.S. Crude supplies declined for the second week, and as unrest in Egypt boosted worries that Middle Eastern overseas sales may be stopped. The August WTI contract was at $102.97 per barrel and Brent for August settlement declined to $107.16 per barrel.
The Pound declined to the lowest point in almost 4 months as data showed that U.K. manufacturing shrank in May, falling short of expectations. The Sterling dropped against its major peers. The data showed that factory output decreased 0.8%, while experts predicted a 0.4% rise. The currency dropped 0.4% to 86.44 pence per Euro and to 1.4892 per U.S. Dollar.
Industrial output in the U.K. remained steady in May from April, and manufacturing production declined more-than-expected by 0.8%. Economists predicted that industrial production will advance 0.2% in May following a decline of 0.1% in April. On annual basis the industrial output retreated 2.3% on 2.9% decline in manufacturing and 3.5% fall in mining and quarrying production.
The South Korean Won advanced the most in over five months on bets South Korean overseas sellers took advantage of the two-day fall in the Won to repatriate earnings from abroad. The South Korea's currency inched up 0.9% to 1,141.73 versus the U.S. Dollar, the largest increase since February 4, and the yield on the 2.75% notes maturing in June
European shares advanced for a second day in a row as Alcoa Inc. began the U.S. earnings-reporting season and the data have beaten the analysts' estimates. The Stoxx Europe 600 Index added 0.5% to 293.81 as of 8:06 a.m. London time; moreover, the equity-benchmark gained 1.4% on Monday and it advanced 1.2% previous week.