Manufacturing activity index in the U.K. jumped from 50.2 in April to 51.3 in May - the highest level in 14 months, while economists predicted an increase to 50.3. The level above 50 indicates expansion of the sector. The economy in the U.K. is recovering, although not fast enough, according to Mervyn King, the Governor of the Bank of England.
U.K. shares declined, with the benchmark FTSE 100 Index falling to near one month low, led by weak China's manufacturing numbers and a decline in the U.S. stocks. The FTSE 100 slipped 0.8% to 6,532.42 as of 8:48 a.m. London time, reaching the lowest level in almost a month, while the FTSE All-Share Index also slid 0.8%.
Experts said that there would be little progress in U.S. manufacturing sector before today's official data release. Index above 50 indicates expansion and the prediction stood at 50.7. Growth in factory activity has been slowing since it reached almost a 24-month high in February 2013. It is expected that growing demand for cars and residential construction will lead to higher
The measure of manufacturing activity in the Eurozone increased from 46.7 to 48.3 in May and beat the expectations of 47.8. The gauge below 50 indicates contraction and it has not been above that level since July 2011. Better than expected manufacturing data lead to 0.3% appreciation of the Euro against the U.S. Dollar as of 10:11 a.m. Brussels's time.
According to IMF, the Swedish Krona's strength is not a threat to Sweden's economy and its strengthening shows the country's economic success. The Krona rose 9.7% in the year of 2012 and this appreciation was the biggest among 10 most-traded currencies. The Swedish economy grew 0.6% in the first three months of this year, beating expectations.
U.S. crude-oil prices declined on Monday as the report about China's manufacturing data didn't meet the expectations. Crude oil for July delivery dropped 0.2% reaching $91.81 a barrel on pressure coming from the appreciating U.S. Dollar. The ICE Dollar index strengthened to 82.237 from 82.297 on last week's Friday, the index gained approximately 2% in May.
European shares retreated for a second straight day, prolonging a one-month low; on concerns the Fed will scale back its stimulus and as the Chinese manufacturing dropped. The Stoxx 600 slipped 0.9% to 298.23 as of 8:11 a.m. London time, the lowest level in one month, while Standard and Poor's 500 Index futures gained 0.1% after a 1.4% fall on
The British Sterling rose versus the U.S. Dollar ahead of a report that is expected to show growth in U.K. manufacturing for the first time in four months. The British currency gained 0.3% to $1.5246 as of 7:50 a.m. in London after touching $1.5249 earlier, while the Pound appreciated 0.1% to 85.44 pence per Euro. The Sterling has depreciated 2.4%
Gold gained, prolonging its first back-to-back weekly rally in four months, as the U.S. Dollar's strengthening stopped and the outflows in investor stakes slowed. Spot gold rose 0.7% to $1,397.90 an ounce and was at $1,395.95 as of 2:08 p.m. Singapore time. The yellow metal for August delivery rose 0.2% to $1,395.30 an ounce on the Comex, New York.
Asian shares declined after regional benchmark index fell for a third day in a row as the improving U.S. economic data raised worries that the Fed will wind down the stimulus. The MSCI Asia Pacific Index dropped 0.8% to 133.76 at 1:22 p.m. Tokyo time. Japan's Topix index slipped 2.3%, while the Hong Kong's Hang Seng Index gained 0.5%.
The Japanese Yen extended a three-day advance versus the U.S. Dollar as regional shares fell on worries that the Fed may reduce the stimulus. The Japanese currency appreciated 0.1% to 100.33 per Dollar at 7:52 a.m. London time after gaining 1.9% in the last three sessions, while the Yen traded at 130.64 per Euro.
The 17-nation currency prolonged the last month's drop as the Eurozone's manufacturing data is expected to decline for a 22nd straight month. The Aussie rose from the lowest level in more than 18 months as an official China's manufacturing index showed an uptrend. The Euro bloc currency slipped to $1.3012 at 1:33 p.m. Tokyo time, last month it fell by
UK bonds climbed for the second day as shares declined and the Bank of England data indicated home loan slowdown in the previous month that increased the demand for the safest gilt assets. The UK's currency strengthened 0.3% to 85.44 versus the Euro and declined 0.3% to $1.5192. Ten-year bond yields fell 0.04 percentage point to 1.93% after the FTSE-100
The US currency dropped to the weakest level in three weeks versus the Japanese Yen on Friday following a combination of improved Japan's report and lower US data and amid month-end flows. The greenback declined 0.3% to 100.30 against the Japanese Yen, the weakest level since May 9. According to the traders it continued to slip, as stop-loss sell orders
The South Korean currency fell for a fourth week in a row amid speculations that the Fed will slow down the stimulus that have urged the money flows, while the South Korea's importers bought the U.S. Dollars to pay the monthly bills. The Won depreciated 0.2% today and also weekly to 1,129.64 per Dollar in Seoul and it has plunged
U.K. shares retreated as the FTSE 100 declined for the second straight week, making it the first time since last year's November. The FTSE 100 fell 50.34 points, or 0.8%, to 6,606.64 as of 8:51 London time. However, the index is set for a 2.8% gain in May, climbing for the 12th month in a row. The FTSE All-Share Index
Germany's Government bunds increased for the second day after the data indicated retail sales in the country dropped more than expected in April, rising demand for the safest bond assets. German 10-year Government bonds slipped 0.05 percentage point to 1.46%. Retail sales in the Nation fell 0.4% from March, when the sales decreased 0.1%.
The shared currency dropped from the three-week high against the greenback after Germany's retail sales slid and the Eurozone's unemployment level climbed. The Euro depreciated 0.6% to $1.2976 as of 6:19 a.m. New York time after it gained to $1.3061 on Thursday, while the 17-nation currency fell 0.7% to 130.54 Yen. German's retail sales slipped 0.4% in March.
US shares advanced, after the Dow Jones Industrial Average's reached a four-week low, as lower than predicted GDP rate and jobless claims increased speculation the Fed will keep stimulus. The S&P 500 Index climbed 0.4% to 1,654.41 and the Dow gained 0.1% to 15,321.53. The US gross domestic product grew at a 2.4% annual percentage rate in the first quarter,
European shares declined to the lowest level in three weeks as the American consumer confidence and business activity reports were expected by investors, while U.S. index futures and Asian stocks slid. The Stoxx 600 slipped 0.9% to 300.83 as of 9:37 a.m. London time, the lowest level in almost a month as the index is set for a weekly retreat of
The Australian currency headed towards its biggest monthly slide in over two years amid speculation a stagnation in China will have a negative impact on the economy, inducing the Reserve Bank to cut key interest rates this year. The Australian Dollar has declined 5.2% in the past month, among the 10 developed-market currencies. The Aussie fell 0.2% to 96.47 versus
Gold is set for the best week since April, on bets that the Fed will not slow down the stimulus to spur the economic growth. The yellow metal for immediate delivery reached $1,414.95 an ounce as of 8:25 a.m. Singapore time. The prices touched $1,418.25 on Thursday, making it the highest level in two weeks, and have added 2% weekly.
The unemployment rate in the 17-nation currency area has reached a record high and inflation stays well under the European Central Bank's goal, indicating the challenge that EU officials is facing to recover the economy. The joblessness rate in the Eurozone increased to 12.2% in April, indicating a record high since 1995.
The Japanese currency appreciated versus the U.S. Dollar as European shares declined after Germany's retail sales dropped for a third straight month in April missing the expectations. The Japanese Yen is set for weekly gains versus almost all of its 16 most-traded peers as a slip in Japanese shares boosted the pressure on Prime Minister Shinzo Abe. The Japan's Yen