On Wednesday, August 15, Brazil's government announced the first pace of an economic stimulus plan to boost the nation's economy. According to the plan, more than $60bn will be aimed at Brazil's infrastructure, particularly roads and railways. Meanwhile, Brazil's economy is expected to grow only 2% in 2012, compared with a 7.5% growth in 2010. Nation's leaders hope that the economy will benefit from the Olympic
Crude oil futures tumbled on Wednesday, as stockpiles rose unexpectedly. Crude with September contract erased 0.2%, to $93.26 per barrel, after jumping 0.8% on Tuesday. The American Petroleum Institute's report showed that inventories added 2.8 million-barrel, while experts predicted a decline. At the same time, gasoline stockpiles dropped by 2.3 million barrels, pushing gasoline for September delivery higher by 0.8%, to $3.02 per gallon.
Builder confidence in the U.S. property market rocketed to a 5-year peak in August, with NAHB Housing Market Index climbing 2 points to 37. Despite the improvement, any reading below 50 indicates that more builders view conditions as poor than good. As the Index rose to its highest reading since February 2007, current sales conditions added 3 points to 39, while the component, which measures
European stocks traded lower on Wednesday, and the rally lost steam, as expectations that the ECB will take bold actions to stimulate economic growth in the Eurozone waned. The Stoxx Europe 600 Index lost 0.1% to 270.23; the U.K's FTSE 100 Index declined by 0.4% to 5,839.15, Spanish IBEX 35 Index erased 0.3% to 7,107.20, and German DAX 30 index tumbled by 0.5% to 6,938.79.
In today's report, the Fed said that U.S. industrial production grew for a third straight month and added 0.6% in July, after jumping 0.1% in June. The improvement in data may influence the Fed's decision whether to launch another quantitative easing or not. Meanwhile, the manufacturing output jumped by 0.5 per cent, while mining output added 1.2%, and utilities output rocketed 1.3%.
Eurozone annual inflation held stable at 2.4% in July, the Eurostat reported on Thursday. Consumer prices declined 0.5% on monthly basis in July. Core inflation rose to 1.7% on year from 1.6% in June. Energy costs surged 6.1%, and food prices increased 2.5%. Housing and clothing price rose 3.8% and 3.1%, respectively. The central bank targets to sustain inflation lower
Swiss economic sentiment advanced unexpectedly to a three-month high in August, the Centre of European Economic Research said on Thursday. The economic sentiment indicator increased 9.2 points to -33.3 in August, compared to a -42.5 reading in July, however still posting a pessimism. Following the data, USD/CHF rose 0.11% to 0.9783.
The Pound rose versus the Euro and cut a fall against the U.S. Dollar as a report posted U.K. retail sales increased unexpectedly in July. On Thursday, the Sterling traded 0.1% up at $1.5704, after falling 0.3% before the data. It gained 0.2% to 78.21 pence per Euro.
U.K. July retail sales surged more than expected and an upwardly revised June data suggest the second quarter downturn wasn't as deep as first estimated, the National Statistics reported on Thursday. Headline retail sales increased 0.3% on month and 2.8% on year in July, compared to estimates of 0.2% decline on month and 1.4% gain on year.
Foreign direct investment in China dropped to the two-year low in July, boosting worries weaker confidence in the nation's improvement prospects can hold back any economic rebound. Investment fell 8.7% on year to $7.58 billion, the eighth drop in last nine months and the weakest flow since July 2010, the Ministry of Commerce said on Thursday.
Germany's employment continued rising in the second quarter, however at a lower pace from a previous quarter, the Federal Statistical Office reported preliminary data on Thursday. The number of employed people surged 1.3% on year to 41.587 million in the second quarter, compared to a 1.4% rise before.
Australia's average weekly earnings rose 0.4% q/q in the first quarter, the Australian Bureau of Statistics reported on Thursday. Weekly wages in the public sector surged 0.7% on quarter, while in private sector it increased 0.3%. Overall earnings rose 3.4% from a year earlier.
Canada's Dollar rose against most of its major peers on prospect nation's economic growth will support the exports. The Loonie gained 0.3% to 98.94 cents per U.S. Dollar, after reaching 98.87, a three-month high. One Canadian Dollar purchased $1.0107, trading above the parity nine days in a row. It surged 0.7% versus the Euro to an all-time strong level of
German 10-year Bund yields gained for a fourth day after Asian stocks rose and before a report expected to affirm the Eurozone's inflation held at 2.4% in July. The two-year security was little changed, holding negative for the 30th straight day. The Bund rate surged to 1.59%, after rising to 1.61%, the highest level since June 29. The price of
U.S. Treasuries dropped for a fourth day before a data expected to show U.S. new-home construction was near the most since 2008. The 10-year yields rose to 1.85%, after touching 1.86%, the highest since May 11. The 1.625% note due in August 2022 slipped in price to 97 29/32. Job, factory and consumption reports this month all signaled growth in
Japan's stocks gained, lead by the Nikkei 225 Stock Average rising to a six-week high, as Chinese Premier Wen Jiabao announced easing inflation will provide more space for monetary stimulus to boost the economy. The Nikkei 225 rose 1.9% to 9,092.76, its strongest level since July 4. The Topix Index gained 1.6% to 759.12.
Australia's and New Zealand's Dollars surged versus most of its major counterparts after commodities climbed on signs of advancement in U.S. economy. On Wednesday, the Aussie gained 0.2% to $1.0505. It increased 0.5% to 82.98 Yen. The Kiwi rose first time in last three days, climbing 0.2% to 80.1 U.S. cents. It surged 0.5% to 63.76 Yen.
The Yen tumbled against all its major peers after Asian stocks climbed and the additional yield investors get from U.S. treasuries rose to the four-month high, reducing the allure of Japan's currency. The Yen dropped 0.4% to 79.29 per U.S. Dollar, after reaching 79.36, the weakest level since July 13. It fell 0.2% to 97.27 per Euro. The MSCI Asia
Gold demand declined 7.1% in the second quarter after investment fell 23% and Asian jewelry consumption dropped 15% on higher local costs and worries about economic growth, reported by the World Gold Council. Gold demand fell to 990 metric tons, compared to 1,065.8 tons a year before. Gold declined 4.3% in the second quarter in London.
Copper rose as Chinese Premier Wen Jiabao commented lower inflation gives a room to change monetary policy, fueling optimism the government will act to boost the economy. Three-month delivery copper gained 0.8% to $7,443.75 per metric ton in London. December-delivery copper increased 0.5% to $3.3765 per pound in New York.
Oil was near the highest level since May as U.S. inventories fell to the four-month low and China added a sign it may step up efforts to boost the economy. On Thursday, futures were little changed after yesterday's 1% gain. Stockpiles dropped 3.7 million barrels and total oil consumption climbed to the nine-month high last week. September-delivery oil fell to
Gold futures edged higher on Wednesday, after early losses, and aimed to break the period of two loss sessions. Bullion for December settlement added 0.3%, to $1605.30 per ounce, before dipping under $1600; September silver jumped 0.3%, to $27.84 per ounce. On the contrary, other precious metals depreciated, with copper, palladium and platinum all for September delivery erasing 0.1%, 0.4% and 0.1%, respectively.
According to the Office for National Statistics (ONS) figures, the unemployment rate in the U.K. fell by 46,000 to 8.0%, or to 2.56 million. The improvement by 0.2% may be explained by the Olympics, which took place in London. Still, the number of people, who are working part-time reached a 20-year peak, and added 16,000 to 1.42 million in the second quarter.
The world's biggest economy is improving, since the Fed's last policy meeting on August 1. Goldman Sachs raised its GDP growth forecast in the third quarter to 2.3%. Additionally, latest better-than-expected fundamentals may influence Fed's decision about launching another massive bond-buying program, or introducing QE3.