Asian currencies were close to 7-month high as data showed the U.S. employment increased more than economists projected, alleviating market concerns about global slowdown and boosting demand for riskier assets. The Taiwan Dollar gained 0.3% to NT$29.322 versus the U.S. Dollar, while the Philippines peso rose 0.1% to 41.555.The Malaysian Ringgit climbed 0.1% to 3.0575.
The Japanese Yen fell versus its major counterparts amid speculation central banks will take more measures to prevent further economic slowdown, curtailing demand for haven assets. Japan's currency lost 0.2% to 78.67 per U.S. Dollar after touching 78.72, the lowest level since September 19. The Yen fell 0.4% to 101.68 per Euro, heading for a sixth-consecutive decline.
The Bank of England kept the base rate of interest at the record low of 0.25% for the 44th consecutive month and decided to hold off any further economy-boosting measures. Economists had widely forecast such outcome. Analysts expect no further quantitative easing until November, when the latest investment of 50 billion Pounds is used up. The total commitment in bond-purchasing
On Thursday, the British Pounds was at a 2-week low versus the Euro, as traders eyed the upcoming results of BoE meeting. Although, the central bank is expected to leave its policy unchanged, soft data in the U.K. kept alive speculation about another monetary stimulus. The Euro added 0.1% and was traded at £80.375, which was the highest since September 20.
Halifax, a mortgage lender, reported on Thursday that its house price index declined unexpectedly, as demand was influenced by the weak economy. In September, British house prices lost 0.4%, following an unexpected August's 0.5% increase. Economists, however, predicted that U.K. house prices would add 0.2% last month.
Australian Bureau of Statistics reported on Thursday that Australia's retail sales increased less than expected in September. Retail sales grew by 0.2% on a seasonally adjusted basis, compared to a preceding month's decrease of 0.8%. Economists, however, expected that retail sales would witness a more optimistic growth of 0.4%.
The Canadian Dollar declined to almost one-month low versus the U.S. Dollar as a decrease in China's non-manufacturing industrial growth offset data that showed U.S. employment rose more than expected. The Loonie lost 0.4% to 98.76 cents per U.S counterpart. The Canadian Dollar touched 98.84, the lowest since September 6.
The Asian Development Bank slashed its forecast for China's GDP growth in 2012 to 7.7% from 8.5% projected in April, while the Chinese government will assure a soft economic landing. According to economists of ADB, the downside risks to the Chinese economy possibly will intensify in the short run due to weak global demand and concerns surrounding China's largest trading
The Australian Dollar was close to 1-month low as data showed retail sales rose at a slower pace than expected. The Aussie was little changed at $1.0218 after touching $1.0182, the weakest level since September 6. Australia's currency climbed 0.2% to 80.35 Yen. The New Zealand Dollar gained 0.2% to 82.09 U.S. cents and increased 0.4% to 64.55 Yen.
Asian stocks rose as data on U.S. employment and service sector overshot expectations, calming concerns the world's biggest economy is slowing. The MSCI Asia Pacific Index rose 0.6% to 122.25. The Nikkei 225 Stock Average gained 1.3% and Australia's S&P/ASX 200 Index climbed 0.4%. Hong Kong's Hang Seng Index rose 0.2% and South Korea's Kospi Index added 0.1%.
Portugal decided to raise taxes to meet necessary requirements to receive an international bailout. Average rate of income tax will be increased by 2 percentage points from 9.8% currently to 11.8%. The government's measures, including income and property taxes hikes, a new tax on financial transactions and spending cuts, will amount to 3% of GDP next year.
On Thursday, copper was traded lower on Chinese economy slowdown and a worsening outlook for European economies. Traders eyed the upcoming ECB meeting later in the day and U.S. non-farm payroll data. On the London Metal Exchange, three-month copper reached $8,274 per tonne, losing 0.19%, by 04:30 a.m. in London.
On Thursday, treasuries were traded lower amid speculation that quantitative easing could boost the U.S. economy, stoking inflation. 10-year notes trimmed 4-day gains as increased Asian stocks, sapped safer assets demand. 30-year notes yield added 2 basis points and reached 2.84% by 7:07 a.m. London time.
On Thursday, crude oil declined on soft Chinese output and uncertainty over Spanish bailout. On the NYMEX, November delivery futures for light sweet crude were trade at $88.11 per barrel, which was a 0.03% decrease for the Asian trade. Earlier, it hit a session low of $88.09 and $88.34 per barrel, which was a session high.
On Thursday, gold prices were higher, after traders started to sell the U.S. Dollar. On the NYMEX, December delivery futures for gold were traded at $,781.35 per troy ounce, which was a 0.09% increase for the Asian trading hours. Earlier it hit $1,780.55, which was a session low, and a session high of $1,782.15 per troy once.
Australian trade deficit widened to its highest level in more than four years, as exports from industrial commodities shrank, the Australian Bureau of Statistics said on Wednesday. Nation's trade balance dropped to a seasonally adjusted -2.03B, down from -1.53B in the previous month. Analysts had predicted Australia's trade balance to narrow -0.70B last month.
UK shares rebounded on Wednesday on positive news from the US labour market. US ADP non-farm employment rose more than expected last month. However, weak data from the domestic market limited gains of the UK stocks.UK services PMI fell more than expected last month. Meanwhile, uncertainty over Spain's bailout continued to weight. The FTSE 100 Index gained 0.17% to trade
German equities advanced on Wednesday on encouraging headlines from the US jobs market. Boosting German equities further, eurozone's retail sales grew 0.1% in August, confronting expectations of a 0.1% decline. However, dismal data from German services sector created heavy pressure on the stock index. German services PMI contracted to 49.7 last month compared to a preliminary reading of 50.6. The
Hong Kong shares inched up despite negative data from national economy. China's services PMI tumbled to the lowest level in two years. Moreover, Asian Development Bank downgraded China's GDP growth estimate by almost one per cent point to 7.7% compared to 8.5% previously expected. The bank also warned that downside risks will persist in the short term. The Hang Seng
Japanese equities declined on Wednesday as concerns whether Spain will request the bailout started to dent market sentiment. Meanwhile, market players awaited key meetings of the ECB and BoJ. The Nikkei 225 Index tumbled 0.45% to close at 8,746.87. Only four in ten sectors within the index gained. Financials and oil and gas companies were among the top-gainers. Shares of
The Institute for Supply Management's index of U.S. non-manufacturing sector increased to the highest level in six months. The figures rose to 55.1 in September from 53.7 in the prior month, beating analysts' expectations of 53.4. The reading follows factory data, which showed that manufacturing rose in September for the first time in 4 months. The ISM factory index increased
The Dow Jones Industrial Average Index slid 0.24% to close at 13,482.36. Rising concerns over Spain's bailout weighted down on the US blue chips. However, recent positive data from the US capped the downswing. Only three in nine sectors included in the index gained. The top-performers were oil and gas sector and health care companies. Chevron moved higher by 0.61%
US stocks inched up on Tuesday on persistent support from upbeat manufacturing data. Stronger-than-expected vehicle sales also lifted US stocks. However, the market sentiment was weakened by disappointing news from eurozone. Spain is still uncertain whether to apply for a new bailout this weekend. S&P 500 Index added 0.09% to close at 1,445.75. Seven out of ten sectors within the
On Wednesday, the British Pound was traded close to a 3-week low versus the U.S. Dollar, after the U.K. data showed that its services PMI fell last month. GBP/USD reached the lowest since Sept. 13, which was 1.6084, and later consolidated at 1.6001, which was a 0.17% decrease during the European morning trading hours.