German shares gained to the highest level in three weeks after the Fed's Chairman Bernanke indicated that U.S. economy is not ready to start tapering monetary stimulus. The DAX Index rose 1.2% to 8,164.78 as of 10:53 a.m. Frankfurt time, advancing for a fourth straight day, making it the longest streak of gains in almost two months. The HDAX Index
German government bunds advanced, sending 10-year note yields towards the lowest level in three weeks, following the Federal Reserve Chairman Ben Bernanke's comments on maintaining bond purchases to provide U.S. economy with more signs of growth, fueling demand for bonds. The German 10-year bund yield dropped to 1.61% and the 1.5% note maturing in May 2023 rose 0.425 to 99.005.
The Indian Rupee was the worst performing currency last month, but is heading for a rebound on speculations that the fall was too fast and too big. The currency dropped 5.6% since May 31 due to the Fed's comments that it might unwind its stimulus. The weakening Rupee pose problems for the Reserve Bank of India to cut interest rates
Asian shares soared, sending the regional benchmark index towards the largest jump in 10 months, s the Federal Reserve Chairman Ben Bernanke announced that the U.S. will maintain bond purchases and amid speculation China will take action to fuel growth. The MSCI Asia Pacific Index climbed 1.8% to 134.90.
West Texas Intermediate oil inched up from the highest point in 15 months as U.S. supplies declined for the second week in a row. Brent's premium to WTI decreased to the lowest since November 2010. The August WTI contract advanced to $107.45 per barrel, after the contract jumped to $106.52 yesterday, the highest level in over a year.
U.K. shares gained third time weekly after the Fed's Bernanke stated that monetary stimulus will remain unchanged as U.S. economy still needs this programme. The FTSE 100 Index gained 1.1% to 6,575.47 as of 8:48 a.m. London time; moreover, the equity-benchmark has advanced 3.1% weekly. The FTSE All-Share Index rose 1% today, while Ireland's ISEQ Index increased less than 0.1%.
Gold futures advanced by almost $50 per ounce as Ben Bernanke announced that the Federal Reserve will maintain U.S. interest rates low to cure economic growth. The August old contract jumped $39.40 to $1,286.60 per ounce, adding to signs before the Fed minutes August old settlement was at $1,247.40 per ounce.
Japan's government bonds jumped, sending the benchmark 10-year note yield to the lowest level in three weeks, after the comments from the Bank of Japan and the Federal Reserve underlined outlook for prolonged monetary accommodation. Japan's 10-year bond yields retreated to 0.82% and the price of the 0.8% security maturing in June 2023 gained to 99.816 yen.
Chinese shares inched up for their largest two-day advance in 18 months, after a rate of financial companies rallied towards the largest gain in four years amid bets the government will take action to boost economic growth. The Shanghai Composite Index increased 3.2% to 2,072.99, after jumping 2.2% yesterday.
European shares rose after the Fed's Chairman Bernanke said that U.S. economy is not ready to stop monetary stimulus. The Stoxx Europe 600 Index added 0.9% to 297.41 as of 8:06 a.m. London time; moreover, the gauge advanced to its highest in approximately four weeks. Standard & Poor's 500 Index futures gained 1%, while the MSCI Asia Pacific Index increased
Indian rupee inched up to the strongest level in over a week as the Federal Reserve Chairman Ben Bernanke announced that the U.S. economy requires to prolong asset purchases, fueling the outlook of the capital flow in emerging markets. The Indian currency rallied 0.4% to 59.4250 against the U.S. Dollar.
The British currency rose for a second straight day versus the greenback after the Fed's Bernanke stated that U.S. will maintain accommodation. The Sterling climbed 0.7% to $1.5112 as of 7:40 a.m. in London after advancing 1% on Wednesday; moreover, it slipped to $1.4814 on Tuesday, the weakest since June 23, 2010. The Pound traded at 86.56 pence per Euro.
Australian currency advanced to the highest level in last two weeks after the Fed's Bernanke indicated that the monetary stimulus programme will remain unchanged in the nearest future. The Aussie rose 1.1% to 92.75 U.S. cents at 4:42 p.m. Sydney time from Wednesday, after earlier reaching 93.06. The Kiwi climbed 1.3% to 79.40 U.S. cents, after touching 79.69, while it
The South Korean Won advanced the most in over 18 months and government bonds surged as the Federal Reserve Chairman Ben Bernanke announced that the U.S. economy still needs monetary stimulus, and South Korea maintained interest rates flat. The South Korea's currency jumped 1.2% to 1,122.39 versus the U.S. Dollar, the largest rise since December 2011.
The Canadian currency advanced for the third day as the Federal Reserve meeting minutes indicated division among officials about the time frame for ending bond purchase programme. The Canada's Dollar inched up 0.6% to C$1.0465 versus the U.S. Dollar, adding to signs the loonie has jumped 1% in the last three months versus nine developed nations currencies.
The Fed's Chairman Bernanke is willing to continue with Quantitative Easing programme, even though the minutes of officials' June meeting indicated that they talked about winding down stimulus. The minutes from last meeting showed that approximately half of the FOMC participants wanted to start tapering by the end of this year.
The U.S. Dollar retreated against most of its major counterparts as the Federal Reserve Chairman Ben Bernanke announced that inflation and unemployment rates indicate the U.S. economy still needs very accommodative quantitative easing programme. The greenback fell 1.1% to $1.3116 against the Euro and declined 1% to 98.73 versus the Japanese Yen.
The U.S. Dollar depreciated against six main trading partners as yen strengthens. The U.S. Dollar Index declined 0.5% to 84.16, dropping from yesterday's 3-year high. The S&P gauge decreased 0.2% after fluctuation before the release of the Fed's minutes. The S&P commodity gauge rose for a seventh straight day.
WTI crude gained after U.S. crude stocks decreased for a second straight week. Crude for August settlement climbed 1.6% to $105.17 a barrel as of 9:49 a.m. on the New York Stock Exchange, after reached $105.62, the 14-month high. The market is into backwardation, futures for later deliveries are becoming less expensive compared to those with closer expiration.
French industrial output declined less than experts expected in May. It fell 0.4% after a 2.2% gain in April while economists estimated a 0.8% drop. The Eurozone's currency advanced 0.3 % to $1.2817 at 11:29 a.m. in London. The Bank of France reported this week that a factory executive confidence gauge rose to 96 in June, the highest since September
Gold advanced for a third straight day amid speculation previous quarter's plunge is stimulating physical demand, and the greenback declined from a three-year record level. Gold for August settlement advanced 0.8% to $1,255.80 per ounce at 7:46 a.m. on the Comex in New York. Immediate deliveries gained 0.6% to $1,258.46 in London.
The Japanese Yen advanced the most in about a month versus the U.S. Dollar as clues of recovery in Japan's economy curbed prospects that the Japan's central bank will ease policy this year. The Yen strengthened 1.1% to 100.04 against the U.S. Dollar and jumped 0.8% to 128.28 versus the common currency.
Italy's one-year borrowing costs advanced to the highest level in four months at an auction, a day after the Standard & Poor's snapped Italian sovereign credit rating to two notches over junk. The Treasury auctioned one-year bonds worth of 7 billion euros, paying a yield of 1.078%. Italy's sovereign debt was cut from BBB-plus to BBB by S&P on concerns
German government bunds increased as the data indicated consumer prices, estimated by using a harmonized European Union method, inched up 1.9% in June from the previous year, in line with analyst expectations. The yield on the 10-year bond retreated two basis points to 1.63%, decreasing for the third day in a row.