On Thursday, Spain witnessed a decrease in its borrowing costs as it was selling the government debt. Spain's Treasury managed to sell 5-year bonds worth EUR710 million at the average yield of 4.766%, which was a sharp fall from a figure of 6.456% in the last month. The yield on 2-year bonds also declined from 2.798% to 2.282%, whereas 3-year bond yield rose to 3.956% from
On Thursday, European stocks experienced a decline, as Spain sold its government debt and traders eyed an upcoming ECB policy meeting. The Stoxx Europe 600 Index declined by 0.2% and reached 270.77 by 9:59 a.m. London time. Earlier it rose by 0.5%. The index slipped 2.7% last week, as France and Germany disagreed on terms of banking union.
On Thursday, the British Pound was traded higher versus the U.S. Dollar, as investors eyed the upcoming BoE decision on interest rates. GBP/USD hit a session high of 1.6134, and later consolidated at 1.6112, which was a 0.22% gain for the European morning trading session. The pair's support was likely to be at 1.6065, while the resistance could be found at 1.6174.
On Thursday, oil retreated from a 2-month low, as the 17-nation currency appreciated versus the U.S. counterpart before the upcoming ECB meeting, supporting demand for commodities. On the NYMEX, November delivery futures for light sweet crude hit a session high of $88.76 per barrel, and consolidated at $88.60 by 8:46 a.m. in London.
The ECB Governing Council held its minimum bid rate stable at 0.75% for the third consecutive month during a monthly meeting on Thursday. Markets posted only a 3% probability of a rate decrease today. For now the 0.75% bid is the rate at which refinancing agreements are established for all participants.During the meeting the Council also decided to leave its
On Thursday, the Euro grew to a 2-week high versus the Swiss Franc, as traders' sentiment was buoyed by speculation that Spain's request for a bailout will happen soon. The 17-nation currency added 0.2%, to trade at 1.2133, which was highest level since the middle of September. Moreover, the ECB is expected to leave interest rates unaltered on Thursday.
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