US stock markets ended down on Wednesday as weak Spanish bond auction returned investor worries about global economic perspectives. S&P 500 index fell 1.02% or 14.42 points to 1,398.96, Dow Jones Industrial Average shed 0.95% or 124.80 points to 13,074.75 and Nasdaq Composite index gave up 1.46% or 45.48 points to 3,068.09.
USD/JPY was consolidating during last two days and formed a triangle pattern on a 1D chart. The formation has 73% quality along with 50% magnitude in a 34-bar period.The pair eased after it touched the resistance around 84.17 on March 15, and now is trading in 82.00 to 82.30 range. The formation would not last long, so traders may expect
The central bank of Poland warned it may raise the benchmark interest rates in case decelerating economic growth will not manage to restrict inflation. The Narodowy Bank Polski left its key rate unchanged yesterday at 4.5% and claimed its is considering to increase it. Inflation in Poland keeps fluctuating above maximum allowed rate of 3.5%.
Spain managed to auction EUR 2.6 billion (USD 3.4 billion) of notes or the amount close to the planned minimum. As result Spanish yields surged as the positive effect from ECB cheap cash faded. The Spanish borrowing costs for 10-year notes advanced from 5.45% to 5.64% yesterday compared to 4.87% on March 1, before PM Rajoy said Spain would fail to meet
European markets closed substantially lower on Wednesday as soaring Spanish and Italian borrowing costs weighed on investor sentiment. Stoxx Europe 600 index fell 2.1% or close to a one-month record low. FTSE 100 index plunged 2.3% and German DAX lost 2.8%. French CAC 40 index dropped 2.7% and Spanish IBEX 35 tumbled 2.1%.
Morgan Stanley projects the gold's price to average at 1,845 US Dollars per ounce this year whereas oil prices are likely to average at 105 US Dollars per barrel. The yellow metal's price is expected to rise to 2,175 US Dollars per ounce next year. However, the oil market is likely to follow bearish trend and may even decline to
USD/CHF traded above the 0.9100 though it slipped back to this level from 0.9182 today after the ISM non-manufacturing PMI declined more than it was expected (56.0 act./56.9 est.).
The greenback appreciated versus the yen today, breaching the forecast mean at 82.55, after the FOMC announcement yesterday that the US economy is picking up.
The British pound traded below the 1.5900 level today against the US dollar and left the daily forecast mean untapped (1.5939) as yesterday's FOMC comments on the US economy inspired optimism among investors the world-largest economy is on the right track to recovery.
The euro slipped further against the Japanese Yen after hitting the daily market participant's target (109.41) as German monthly Factory orders showed a contraction (0.3% act./1.2% est.) and monthly retail sales declined more than expected (-0.1% act./0.1% est.).
The common European currency advanced lower versus the American dollar after the FOMC announced yesterday that there is no need for the continuation of the Quantitative Easing; thus, the daily forecast mean at 1.3260 remained unttaped.
Rural commodities were mixed as grains moved higher while coffee and sugar declined amid stronger US dollar. Wheat was backed up by speculation that more wheat will be used as animal feed in the US because corn prices are growing. However, the upward move was blocked as favorable weather in the US Great Plaints and in Europe is likely to
Energy commodities apart from natural gas were lower on Tuesday following the news on absence of any changes in the US monetary policy. However, US growth remains sluggish thus, from the demand side, the commodity group did not gain a fresh spree. Geopolitical tensions also eased after Western nations and Iran agreed to meet on April 13-14 to discuss Iran's
Industry metals were mixed on Tuesday amid broadly stronger US Dollar and weaker equities. Vanishing hopes for quantitative easing from both sides of the Atlantics weighted down on the base metals pack. Fed minutes indicated its unwillingness to provide additional monetary stimulus while the Bank of England and the ECB are expected to keep their policies unchanged. Copper and aluminum
Precious metals tumbled on Tuesday amid fading hopes for new rounds of quantitative easing in the world's largest economies. Fed minutes from the last meeting indicated that stronger economic recovery of the US has put officials off any easing of the current policies. Moreover, today's meetings of the Bank of England and the ECB are not likely to result in
German DAX index plunged on Wednesday as disappointing economic data sent shares sharply lower. Final Euro Zone PMI for March affirmed contraction across the region amid climbing Spanish borrowing costs. Moreover ECB left its benchmark rate steady at 1%. German car makers and financials contributed most to the downside. Volkswagen AG lost 1.1% and Daimler AG declined 1.2%. Commerzbank AG
FTSE 100 index extended losses on Wednesday driven by miners as commodity prices tumbled. Fresnillo PLC slipped 5.2%, Evraz PLC lost 4.1% and Xstrata PLC edged down 2.4%. Insurer Resolution Ltd. dropped 1% after UBS downgraded the share from buy to neutral. Next Plc tumbled 3% on news its CEO Simon Wolfson sold 125,000 stocks in the firm. Financials also
USD/JPY rebounded twice from the resistance level at 83.02, then at 82.99, forming a Channel Down pattern on the 1H chart. The formation has 61% quality along with 88% magnitude in a 67-bar period.The price skyrocketed to the pair's resistance level at 82.99 on April 3, and eased afterwards. The RSI indicator jumped above 70% level, and eased, which can
Japan's Nikkei Stock Average plunged under 10,000 on Wednesday posting the biggest daily drop since November 1 on Fed decision. Nikkei 225 index tumbled 2.29% or 230.4 points and settled at 9,819.99. Clothing retailer Fast Retailing fell 5.7% after Credit Suisse Group said company's sales failed to rebound from the March 11 earthquake. Asahi Group Holdings advanced 2% after the
Japanese automobile sales soared by 78.2% in March on a yearly basis, reported the Japan Automobile Dealers Association. The government's subsidies for 'green' cars essentially contributed to the sales increase. Toyota was the leading company in sales of the new cars while Nissan and Honda occupied second and fourth place, respectively.
Australia's S&P/ASX 200 index slightly declined on Wednesday as country posted a trade deficit instead of predicted surplus in February. S&P/ASX 200 index dropped 0.07% or 3.10 points and closed at 4,333.90 with miners posting major losses as copper and gold futures declined. BHP Billiton lost 1.3% and Fortescue Metals edged down 1%. The main gainers were Ardent Leisure and
Dow Jones Industrial Average index dropped on Tuesday after Fed executives expressed concerns about slower hiring and refused to purchase more bills to boost economy. Blue chip index lost 0.49% or 64.94 points and finished at 13,199.55 with all nine sectors posting loss. Financials provided the main downside effect with Bank of America slipping 2% and JP Morgan & Chase
S&P 500 index retreated on Tuesday as Federal Reserve muffled the hopes for extra monetary stimulus. US index fell 0.4% or 5.66 points and closed at 1,413.38. Molson Coors Brewing tumbled 5.4% on news the company made an USD 3.5 billion investment in 9 European breweries. Express Scripts Inc. rallied 3.9% after completing its USD 29.1 billion acquisition of Medco
The primary reading of the Euro Zone's composite PMI indicated further contraction of the economic activity in the region. However, the final estimate of the PMI was above the preliminary reading of 48.7. The final PMI in the Euro Zone attained 49.6 in Q1, signaling on the mild contraction as compared to the preceding quarter reading of 47.2.