Canada's shares declined, after climbing for two days in a row, as the Federal Reserve announced that it could slow the pace of asset purchases in this year as U.S. economy shows more signs of growth. The S&P/TSX retreated 0.8% to 12,268.29, adding to signs the index has jumped 1.5% in the last two trading sessions.
European shares declined after the Fed's Chairman Bernanke said that the central bank could end stimulus next year if the economy will continue to grow. The Stoxx Europe 600 Index dropped 1.5% to 287.86 as of 8:05 a.m. London time, the biggest retreat in a week; moreover, the equity benchmark has fallen 7.3% since May 22, when was the previous
Australian currency declined to the weakest level in three years against the U.S. Dollar as manufacturing dropped unexpectedly in China. The Aussie plummeted 0.5% to 92.53 against the greenback, after it fell 2% yesterday. Chinese manufacturing Purchasing Managers' Index decreased from 49.2 in May to 48.3 in June.
The British Pound fell for a third straight day against the greenback after the Fed's Bernanke stated that U.S. officials could stop the monetary stimulus at the end of the next year. The Sterling depreciated 0.3% to $1.5433 as of 7:46 a.m. in London after slipping to $1.5427, the weakest since June 6. The British currency was at 85.61 pence
Asian shares declined the most in almost 24 months on worries the Fed could scale back the monetary stimulus programme if the U.S. economy will continue to improve. The MSCI Asia Pacific Index fell 3.6% to 128.29 at 3:28 p.m. Tokyo time and is set for the biggest retreat since September 2011, while Japan's Topix index slid 1.3% and Nikkei
The U.S. Dollar advanced to the strongest level in over a week versus the Japanese Yen ahead of U.S. housing and manufacturing report that may signal that the Federal Reserve may scale back its stimulus. The greenback jumped 0.7% to 97.08 against the Japan's Yen and appreciated 0.4% to $1.3248 versus the 17-nation currency.
The Canadian currency slipped as its U.S. counterpart appreciated against most of the major currencies after the Fed's Bernanke said that officials could start tapering the bond-buying programme at the end of this year. The Canadian Dollar depreciated 0.6% to C$1.0273 per U.S. Dollar as of 5 p.m. Toronto time after advancing 0.4%; moreover, it reached C$1.0287, the lowest level
The U.S. Dollar loses 0.4% of its value against the Yen as investors await the decision by the Fed on its stimulus. The economic data releases in the U.S. gives a mixed picture of the condition of the economy, which might lead the Fed to not change its ultra-loose monetary policy. Investors, however, expect to get a hint on the
The Japanese Yen appreciated against the U.S. Dollar for the first time in three days. The currency increased against majority of its major peers and rose 0.2% to 95.12 per greenback, while oil price jumped 0.4% to USD 98.82 a barrel. The Topix index rose 1.9% following a surge in Japanese export in May, while MSCI Emerging Markets Index decreased
Shares in Switzerland fell, erasing earlier gains, ahead of the Fed policy meeting. The SMI slipped 0.3% to 7,674.84 as of 9:36 a.m. Zurich time, erasing an advance of 0.4%; moreover, the equity benchmark has dropped 8.7% since May 22, when the Fed's Bernanke announced that they could start to taper stimulus if the economy grows. The Swiss Performance Index
As investor are waiting for the decision of the Fed on the end of its monetary stimulus, the U.K. stock prices are barely changed, with the FTSE 100 Index rising less than 0.1% to 6,376.47. The gauge is still 6.8% below its value on May 22 when Bernanke said that the Fed might unwind its QE earlier. The FTSE All-Share
Norges bank will most likely leave interest rates unchanged as the country's inflation has fallen closer to its goal. According to economists, Norway's central bank will remain its overnight deposit rate at 1.5% in tomorrow's meeting. The Norwegian Krone has fallen 4.9% this year to date against the Eurozone's currency after the central bank stated in March that rates might
The British Pound dropped against its major peers after BoE minutes showed that 6 out of 9 officials supported the continuation of its GBP 375 billion monetary stimulus. The sterling depreciated 0.2% against the Euro and the U.S. Dollar. The yields on 10-year government bonds dropped 2 basis point to 2.12 after increasing 8 basis points in the last two
The U.S. inflation of consumer goods and services, excluding energy and food, rose only 1.1% this year through April. It was the smallest increase in the gauge since the recording began in 1960. This might give incentives to Ben Bernanke to continue with the Fed's stimulus as inflation falls far below its target of 2%. The speech by the head
Oil prices were little changed at the Tuesday's close before the Fed policy meeting, which could indicate whether the Fed officials will start tapering stimulus at its meeting today. Brent crude oil futures for August delivery rose 55 cents at $106.02 per barrel after reaching $106.24, while U.S. crude oil futures gained 67 cents at $98.44 per barrel, after touching
Westpac and Melbourne Institute reported on Wednesday that a leading index of the country's economic performance signalled above-trend growth of the economy. The annualized development of the index reached 5.4% in April, which was significantly higher than the long-term trend that is equal to 3%.
On Wednesday, Statistics Sweden revealed that unemployment rate declined unexpectedly in May. The figure for May declined down to 8.2%, compared to a reading for the preceding month that was equal to 8.7%. Economists, however, expected that jobless rate in Sweden will increase to 8.8% last month.
On Wednesday, members of the English central bank overturned Mervyn King's call for further stimulus during his last meeting as a governor. 3 members voted for additional increase of 25 billion pounds in quantitative easing, while 6 voted against the decision. Meantime, Monetary Policy Committee decided to keep record low interest rates at 0.50%.
BoJ governor Kuroda said that central bank's monetary stimulus might be adjusted upwards or downwards depending on economic situation. These comments counter the April's statement that the BoJ has done everything it can to fight deflation. Two month ago Japanese central bank promised to double country's monetary base within 2 years, expanding it 60-70 trillion yen per year.
Japanese Yen jumped against the U.S. Dollar on speculation the Federal Reserve Chairman Ben Bernanke will not provide certain information about the central banks movement towards tapering stimulus. The Japan's Yen advanced 0.4% to 94.94 versus the greenback, after dropping 1.1% in the previous trading sessions. The Yen rallied 0.4% to 127.22 against the Euro.
Treasury 10-year note gains held in the narrowest range in approximately four weeks ahead of the Fed's Bernanke statement about the outcome of the policy meeting today. The benchmark 10-year yield traded at 2.18% as of 8:10 a.m. London time, according to Bloomberg Trader prices. Treasuries have given a 1.1% decline for the investors this year to date.
German government bunds advanced as investors awaited Ben Bernanke's comments on the Federal Reserve bond-purchase programme. German 10-year bond yield declined two basis points to 1.55% and the 1.5% note maturing in May 2023 jumped to 99.515. Germany plans to auction 5 billion Euros of 10-year notes.
European shares were little changed before the Fed policy meeting that could indicate whether the Fed will reduce stimulus. The Stoxx Europe 600 Index stayed steady at 293.02 at 8:17 a.m. London time, reversing earlier gains, while Standard & Poor's 500 Index futures advanced less than 0.1% after it gained 1.5% over the previous two days.
Gold extended losses close to the lowest level in almost a month ahead of the Fed's policy meeting outcome that could indicate if the officials will start winding down its stimulus. Spot gold was at $1,367.05 an ounce as of 2:06 p.m. Singapore time after it reached $1,367.65 on Tuesday, when the yellow metal fell to $1,361.08, the lowest since