U.K. government gilts decreased for the second day as industry data indicated U.K. house prices advanced in June, curbing demand for safer assets. The 10-year bond yield climbed three basis points to 2.47% and the 1.75% note maturing in September 2022 declined 0.205 to 94.125. Home prices in England and Wales climbed 0.4% in June.
South Korean Won advanced for the fifth day, continuing the longest period of climbs in two months, as manufacturing in China grew matching the preliminary estimates, fueling optimism about China's economic outlook. The South Korea's currency jumped 0.5% to 1,136.73 against the U.S. Dollar. Chinese Purchasing Managers Index came in at 50.1.
Activity in the U.K. manufacturing sector surged to 25-month highest level and reached 52.5 points in June. Moreover, the PMI Index for May was upgraded to 51.5 points as well. Economists expect both the manufacturing sector and economy to grow 0.5% in the Q2. The second and third quarters of the year have traditionally represented the biggest economic expansion during
Spanish 10-year government securities rose for a fifth consecutive day after better-than-expected manufacturing data release. The report showed an increase from 48.1 in May to 50 last month, whereas 50 is the dividing line between expansion and contraction. Yield on 10-year Spanish bonds decreased 8 basis points to 4.69%, while yield on similar maturity Italian bonds dropped 5 basis points
European shares gained, following the benchmark Stoxx Europe 600 Index first one-week advance in more than a month, as the Eurozone's factory output data are awaited. The Stoxx Europe 600 Index added 0.6 to 286.59 as of 8:49 a.m. London time; moreover, the gauge rose 1.7% previous week. Standard & Poor's 500 Index futures advanced 0.5% and the MSCI Asia
U.K. shares gained, prolonging the biggest one-week advance for the benchmark FTSE 100 Index since April, as Japanese manufacturing reports improved confidence in countries economy. The FTSE 100 Index rose 0.9% to 6,268.44 as of 8:57 a.m. London time, prolonging previous week's 1.6% gain. The FTSE All-Share Index added 0.8% and Ireland's ISEQ Index climbed 0.1%.
Treasuries fell as experts predict that this week's data releases will show that the U.S. economy added as many jobs last month as in May, which resulted in limited demand for safe-haven assets. The yield on 10-year government securities increased 2 basis points to 2.5%. It is expected that the Treasuries' yield will reach 3% by the end of the
German shares advanced slightly, after the DAX Index posted a one-month decline, as the Eurozone's and the U.S. manufacturing data are awaited by investors. The benchmark DAX Index gained 0.1% to 7,969 as of 9:48 a.m. Frankfurt time. The equity-benchmark retreated 4.7% in June as the Fed indicated that it could start tapering monetary stimulus if the U.S. economy grows.
Gold gained for a second straight day as the fall to the lowest level since 2010 previous week lured investors to stay steady. Spot gold advanced 1.1% to $1,248.12 an ounce and was at $1,244.52 as of 2:49 p.m. Singapore time, after retreating 0.7%. The yellow metal prices slid to $1,180.50 on June 28, reaching the 34-month low.
The data showed that Chinese manufacturing slowed in June, indicating a general slowdown in the economy. Purchasing Managers Index dropped from 50.8 in May to 50.1 in June, the weakest in 4 months. PMI gauge was 48.2, the lowest since September. 50 is a diving line between expansion and contraction. Experts predict that economic growth slowed down for a second
Large Japanese manufacturers showed aggregate optimism in June, indicating trust in Abe's stimulus programs to bring Japanese economy out of stagnation. The Tankan gauge rose to +4 from -8 in March, while experts predicted a rise to +3. A positive number in the survey means that optimistic manufactures outnumbered pessimistic ones. Big companies plan to expand investment by 5.5% this
The British Pound remained almost unchanged versus the U.S. Dollar after announcement of data, which showed that U.K. house prices increased for a fifth consecutive month. The report showed a rise of 0.4% in June. The Pound stood at 1.5224 U.S. Dollar as of 7:35 a.m. in London. Carney will replace current BoE governor King today to lead his first
Asian shares outside Japan dropped due to worse-than-expected manufacturing activity data in China, which showed slowest growth in 4 months. The MSCI Asia Pacific Excluding Japan Index decreased 0.3% to 403.7. S&P/ASX 200 Index lost 2%, while NZX 50 Index dipped 0.6%. The Shanghai Composite Index slipped 0.4% as Japanese Topix rose 1%.
The U.S. Dollar rose to its three-week high against the Yen before the U.S. ISM factory data, which is expected to show factory output growth. The Yen fell as report showed that Japanese manufacturers' optimism was strongest in two year, increasing risk-appetite, which decreased demand for safe-haven assets. The greenback rose 0.3% to 99.47 Yen.
The Aussie rebounded from its lowest point since September 2010 due to speculations that the RBA will not cut the interest rates tomorrow and amid bets that quarterly decline was excessive. The Australian Dollar's one-month implied volatility was near the highest point in 1.5 years. The currency jumped 0.5% to 0.9185 per U.S. Dollar after weakening 4.5% in June and
Gold traded at the lowest level in almost three years in London after the biggest three-month fall since 1920 following the Fed's comments on scaling back its monetary stimulus. The yellow metal price slipped 28% this year to date and is headed for the biggest one-year fall since 1981. Bullion for immediate delivery gained 0.2% to $1,202.70 an ounce at
Japanese shares gained for a second straight day, with all Topix groups rising, as the Japanese Yen depreciated versus the greenback and amid signs the Japanese and the U.S. economies are growing. The Topix gained 2.2% to 1,122.99 at 9:30 a.m. Tokyo time, with weekly 2.1% advance, while the Nikkei 225 Stock Average added 1.7% to 13,434.22.
The Australian currency is heading for its biggest three-month decline in five years on speculation that the Fed will start tapering its stimulus and that trimmed the demand for Australia's assets. The Aussie traded at 92.77 U.S. cents at 4:18 p.m. Sydney time and it has declined 3.1% monthly. The Kiwi appreciated 0.2% to 78.14 U.S. cents and the New
Asian shares advanced, with the MSCIA Asia Pacific Index set for its biggest rise since September, on signs that Japanese and U.S. economies are growing and on the Fed's stimulus tapering talks. The MSCI Asia Pacific Index added 1.9% to 130.73 at 3:50 p.m. Tokyo time and it is set for its biggest rise in nine months.
U.K. shares remained flat, sending the FTSE 100 Index for the weekly rise, after the Federal Reserve policy maker announced that the central bank will maintain low interest rates and Japan's industrial production overshot estimates. The FTSE 100 Index inched up 0.1% to 6,250.57. The equity benchmark is set for a weekly climb of 2.2%.
West Texas Intermediate jumped for the fifth day and was set for the second quarterly rise after signals of economic growth in the U.S. fueled the demand for world's biggest oil consumer. The August WTI contracts increased to $97.53 per barrel. Brent for August delivery inched up 0.4% to $103.21 per barrel.
The Russian currency appreciated for the second day, damping the largest quarterly fall in a year, after Brent oil climbed and companies in Russia bought the domestic currency to cover taxes. The Ruble advanced 0.2% versus the U.S. Dollar to 32.7265, heading towards a 5.4% drop in the quarter. The Russian currency jumped 0.2% versus the Dollar-Euro basket to 37.2225.
The price of European government bonds increased amid speculations that the Fed and the ECB will prolong their monetary stimulus. Yields on 10-year Spain government securities decreased 4 basis points to 4.74%, while yields on similar maturity Italian government bonds dropped 7 basis points to 4.49%. Germany's 10-year yield on bunds slid 2 basis points to 1.71%.
The Indian Rupee is heading for its worst performance since 1992 as investors worry about the impact on country's balance of payments when the Fed starts unwinding its monetary stimulus. The currency fell to 60.765 per U.S. Dollar on June 26 - its lowest point in history. The Rupee sank due to Bernanke's speech on June 19 when he said