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
German retail sales data was better-than-expected, which contributes to the recovery in the Europe's biggest economy. The data came after yesterday's unexpected drop in unemployment and increased business and investor confidence. Sales data, adjusted for inflation, increased 0.8% in May from a month earlier, beating experts' expectations of 0.4% rise.
European shares advanced, heading for the largest weekly rise in two months, after the Federal Reserve policy maker said the central bank will maintain low interest rates for a considerable amount of time and Japan's industrial production overshot expectations. The Stoxx Europe 600 Index gained 0.4% to 287.42 and the Standard & Poor's 500 Index futures added 0.5%.
The Sterling remained steady versus the U.S. Dollar as an industry data indicated U.K. consumer confidence rose to the highest level in over two years in June. The Sterling was at $1.5263 and declined 0.2% to 85.60 pence against the Euro. U.K. confidence index jumped to minus 21 and house prices climbed 0.3% in June.
Japanese recovery strengthened in May as macroeconomic data turned out to be positive. Factory output rose 2% from a month earlier, being driven mostly by power companies' demand. Inflation excluding fresh food stayed the same, while consumer prices excluding energy and fresh food dropped 0.4% compared with inflation year earlier. Retail sales increased 1.5% from April.
The Japanese Yen is heading towards a second consecutive week of weakening against the U.S. Dollar and the currency depreciated against 16 of its major peers so far today. The rise in stocks decreased demand for the Yen, which lead it to fall 0.5% and 0.7% against the U.S. Dollar and the Euro respectively. The Asian shares rose as PBoC
Vietnamese central bank devalued the currency and decreased interest rate cap on deposits in dollars in order to increase country's foreign currency holdings and improve the situation of balance of payments. The move came after Vietnam announced that imports were higher than exports by $1.4 billion. The State Bank of Vietnam decreased its reference rate 1% to 21,036 per Dollar.
Hong Kong shares inched up for the third day as slower-than-predicted U.S. economic expansion showed that the record bond purchases may be kept and on speculation the recent fall in the city's stocks has been overdone. The Hang Seng Index advanced 0.5% to 20,440.08 and the Hang Seng China Enterprises Index dropped 0.1% to 9,158.61.