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.
China is set to boost investments as well as competition in banking and financial sector. The country increased the amount that foreign money managers are allowed to invest in China's economy to 80 billion US Dollars. The monopoly of the state-banks has to be broken, said Wen Jiabao, China's PM. The move is also likely to stimulate growth and internationalize
The greenback advanced against 17-nation currency on Tuesday as Federal Reserve cooled speculations for extra monetary stimulus. The US Dollar added 0.3% versus Euro to USD 1.3199 and slipped 0.2% versus Yen to JPY 82.64. Currently EUR/USD is trading at USD 1.3205 and USD/JPY is trading at JPY 82.68.
Australian currency fell against most of its peers on Wednesday as data showed nation unexpectedly faced a trade shortfall in February. Aussie lost 0.5% versus greenback to USD 1.0278, close to the lowest since reading January 16. Meanwhile Kiwi gave up 0.3% to USD 0.8168. Currently AUD/USD is trading at USD 1.0289 and NZD/USD is trading at USD 0.8173.
Crude prices declined for a second straight day as US oil supplies expanded and Fed signalled no additional accommodation currently is needed. May oil gave up USD 0.41 to USD 103.6 a barrel. Yesterday the contract dropped 1.2% to USD 104.01 a barrel. Brent oil to be delivered in May shed USD 0.23 to USD 124.63 per barrel. Oil supplies rose by 7.8 million
Precious metal futures fell in electronic trading on Wednesday as Federal Reserve erased hopes for additional monetary stimulus. Gold to be delivered in June slumped 1.6% or USD 27.50 to USD 1,644.30 an ounce while May silver fell 2.9% or USD 0.97 to USD 32.30 per ounce. June palladium lost 1.1% or USD 9.6 to USD 650.00 per ounce. Platinum
Australian trade gap unexpectedly widened in February as metal and coal exports tumbled, putting extra pressure on RBA to consider further interest rate cuts. Imports surpassed exports by AUD 480 million (USD 493 million) in February. In contrast analysts have predicted a surplus of AUD 1.1 billion. Australia's exports declined to AUD 24.4 billion in February.
US stock markets headed South on Tuesday after Federal Reserve minutes indicated reduced need for additional monetary stimulus. S&P 500 index fell 0.4% or 5.66 points to 1,413.38, Dow Jones Industrial Average slipped 0.49% or 64.94 points and closed 13,199.55 and Nasdaq Composite lost 0.2% or 6.13 points to 3,113.57.
European markets closed down on Tuesday as banks pushed major stock indices lower amid surging Italian and Spanish borrowing costs. Stoxx Europe 600 index fell 1.1%, German DAX lost 1% and UK FTSE index shed 0.6%. French CAC 40 index fell 1.6%, Spanish IBEX 35 gave up 2.7% and Italian FTSE MIB index tumbled 2%.
The gauge measuring British construction activity through a number of new orders unexpectedly surged in March, stimulating hopes UK has avoided recession. Construction PMI soared from 54.3 in February to 56.7 in previous month, the sharpest growth in almost two years. Analysts had predicted the reading to decline to 53.6.
Federal Reserve board claim the recovering US economy reduces the urgency for additional stimulus. FOMC explained the new accommodation may be implemented only in case if economy slows sharply. Fed also reiterated it still plans to keep its key interest rate close to zero by the end of 2014. US stock indices declined on the news.
USD/CHF bounced off the resistance level at 0.9003 and formed a falling wedge pattern on the 1H chart. The formation has 72% quality along with 53% magnitude within 125 bars.Greenback has been depreciating against Swiss Franc during last two weeks, and decreased to 0.9038. The price was capped twice at 0.9092, then at 0.9071, and dropped to the resistance around
Rural commodities were mixed on Monday with growing coffee and corn prices and falling wheat and sugar futures. The commodity group was supported by the upbeat PMI data from the US and China; however, firmer US Dollar created some pressure. Wheat was lower as Russia exports are expected to be higher than initially estimated during current marketing season. At the
Australia's retail sales improved less than initially expected in March, according to Australian Bureau of Statistics. Australian retail sales increased by 0.2% on a seasonally adjusted basis as compared to a 0.3% gain in February. Experts had predicted the retail sales to advance by 0.3% in March.
The Euro Zone's rate of unemployment hit record high in February, reported Eurostat. The jobless rate in the region hit 10.8% on a seasonally adjusted basis in February as compared to a January reading of 10.7%. The figure was mostly in compliance with expectations. The number of individuals without job in the region attained 24.55 million people. The lowest jobless
Canadian currency strengthened versus its US peer on Monday on report which showed US manufacturing index climbed to 53.4% in March. Loonie added 0.8% versus greenback to CAD 0.9906 and advanced 1% against the Euro to CAD 1.3351. Currently USD/CAD is trading at CAD 0.9895 and EUR/CAD is trading at CAD 1.3197.
The American dollar traded flat against the Swiss Franc on Tuesday as the pair is still being confronted by 0.9000 and 0.9100 levels.
USD/JPY moved lower today as the annual average cash earnings in Japan rose more than expected (0.7% act./0.2% est.).
USD/JPY moved lower today as the annual average cash earnings in Japan rose more than expected (0.7% act./0.2% est.).
The Cable slumped today versus the greenback as the U.S factory orders rose 1.3% in February on capital goods.
The shared European currency moved lower against the Japanese Yen as the EU quarterly GDP data (-0.3% act./-0.3% est.) revealed a contraction of the region's economies.
Samsung announced it plans to invest about 7 billion US Dollars to set up a chip production in China. The initial investment will be 2.3 billion US Dollars to establish the plant that will manufacture chips for tablets, smartphones and MP3 players. The company will increase investments gradually. Samsung was willing to penetrate China's market but had a reservation on
Crude oil price dropped during Asian trade on Tuesday despite inspiring US manufacturing data release. Investors continued to worry about high crude oil inventory level in the US that is expected to rise further. Light, sweet crude oil futures for May delivery traded at 104.17 US Dollars per barrel on the New York Mercantile Exchange, decreasing by 0.28% from the
UK manufacturing PMI strengthened in March, indicating the fastest growth in the last 10 months. The manufacturing PMI in the UK added 0.6 points to 52.1 on a seasonally adjusted basis last month as compared to a February reading of 51.2, according to Markit research group. Experts had predicted the figure to lose 1.0 point, approaching 50.5 in March.