Precious metals dropped on Friday as persistent fears over spreading debt crisis in eurozone and worries over global economic outlook increased safe-haven appeal of the US Dollar. Spain announced that it was not ready to apply for a bailout while two-day EU summit failed to produce positive results. Gold reached one-month low, coming under heavy pressure from strong greenback and
On Friday, October 19, U.S. stocks tumbled, as quarterly reports from industry heavy hitters proved that the global economy is slowing. The Dow Jones Industrial Average dropped 1.2%, to 13,388.86; the Standard & Poor 500 Index inched lower 1.3%, to 1,438.14, while Nasdaq 100 futures fell 1.9%, to stand at 3,014.05.
European stocks turned lower on Friday, October 19, as market sentiment remained bearish after as European Union leaders failed to discuss further aid for Spain. The Stoxx Europe 600 Index erased 0.76 per cent to 274.08. Germany's DAX Index fell 0.76 per cent to 7,380.64 and France's CAC 40 Index declined 0.87 per cent to 3,504.56.
On Monday, the Pound was traded higher versus the 17-nation currency, following the report, which showed that U.K. budget deficit was the lowest since 2008. The Sterling increased by 0.1% to trade at €1.2290 by 2:22 p.m. in London. Earlier in the day, the British Pound hit a session high of €1.2311 and a session low of €1.2274.
On Friday, the Euro edged lower, reaching a 3-day low, versus the U.S. counterpart as investor sentiment was driven by ambiguity over Spanish bailout. EUR/USD hit a session low of 1.3038 and consolidated at 1.3051, which was a 0.12% fall for the European morning trade. The pair's support was likely to be found at 1.2993, while the resistance was prone to be at 1.3129.
On Friday, futures for natural gas were higher, since bargain hunters started to buy the commodity after Thursday's fall in prices. On the NYMEX, November delivery futures for natural gas added 1.55% for the European morning trading session and reached the level of $3.630 per million Btu. Earlier, prices for the contracts declined by 1.5%, trading at $3.413.
The European Central Banks reported on Friday that Eurozone current account increased less than expected in August. Current account grew to €8.8 billion on a seasonally adjusted basis, compared to a revised down reading of €8.1 billion in the preceding month. Analysts, however, expected that current account would be equal to €10.5 billion.
Statistics Canada reported on Friday that consumer prices increased less than expected in September. Canadian CPI remained unchanged from the reading for a preceding month at the level of 0.2% on a seasonally adjusted basis. Economists, however, expected that the cost of living in Canada would grow by 0.3%.
On Friday, Spanish government bonds were lower, as Mariano Rajoy, Prime Minister of Spain, said that he was under no pressure to seek for bailout. The yield on Spain's 2-year notes added 8 basis points, reaching 2.79% by 12:39 p.m. in London. The benchmark 10-year notes yield fell to 5.26%, which was the lowest since Apr. 2.
On Friday, treasuries were traded higher, ending a 4-day long streak of losses, as investors eyed an upcoming report, which is widely expected to show a decline in existing home sales. The yield on 10-year government bonds decreased by 3 basis points and reached the level of 1.18% by 6:56 a.m. in New York.
On Friday, copper was traded lower, but is likely to end the week with a 0.6% gain, as Chinese data showed that the economy is stabilizing. On the London Metal Exchange, three-month copper was traded at $8,180 per metric tonne by 04:52 a.m. London time, which was a 0.49% decline for trading session, following a flat trade during the preceding session.
On Friday, gold was traded lower and likely to witness the second weekly decrease, as optimistic data from China damped speculation about further stimulus, undermining demand for the precious metal. On the NYMEX, December delivery futures for gold declined by 0.6% and reached $1,734.70 per troy ounce at 7:47 a.m. New York time. Earlier, it hit a session low of $1,733.85.
German equities dropped on Friday on lack of progress in decision on Spanish bailout. Adding to the negative mood of the shares, US jobless claims soared last week. The DAX Index declined by 0.40% and is currently trading at 7,407.83. Only one in nine sectors included in the index managed to climb. Consumer goods sector added 0.60%, with Adidas inching
UK shares are trading lower on Friday as the EU leaders failed to reach agreement over Spanish bailout. However, officials continued to pursue the goal of setting up a supervisor for euro-area. The leaders will agree on the framework on making the ECB the main supervisor by January 1, 2013. Meanwhile, UK public sector net borrowings climbed less than expected
Hong Kong stocks gained for the seventh consecutive session on Friday amid mixed data from the US. US employment data disappointed investors while upbeat news from the US manufacturing sector boosted market sentiment. China's FDI dropped by 3.8% in the first nine months of the year, thus weighing down on China's equities. However, the Hang Seng Index managed to add
The Office for National Statistics reported on Friday that budget deficit of the U.K. was lower than expected. Budget deficit excluding support for banks declined to £12.809 billion, which is approximately $20.5 billion, compared to a budget deficit of £13.501 billion a year earlier. The figure for the last month is the lowest September's reading since 2008. Economists, however, expected that it would be equal to
Japanese equities extended previous gains on Friday on mounting hopes that the Bank of Japan will ease its monetary policy to stimulate faltering economy. Encouraging news from the US manufacturing sector as well as weaker Yen also boosted Japanese stocks. However, hints that the POBC is not going to provide large stimulus capped the upswing. The Nikkei 225 Index climbed
The Dow Jones Industrial Average Index eased down by 0.06% to close at 13,548.94. Disappointing data from the US labour market coupled with vanishing hopes for large stimulus in China created heavy selling pressure on the US stocks. At the same time, upbeat manufacturing data from Philadelphia-region supported US equities. Philadelphia-region manufacturing activity indicated expansion for the first time in
US shares halted their rally on Thursday on disappointing US jobs data. US jobless claims rose to three-month high last week, indicating that the national labour market is still facing downside risks. Moreover, rising cautiousness during the two-day EU summit created additional pressure on the US equities. However, positive news from the US manufacturing sector restricted the downside. The S&P
Agricultural commodities were mixed on Thursday amid broadly stronger US Dollar and easing concerns over China's demand. At the same time, upward revisions of Brazilian crop estimates created heavy pressure on farm commodities. Wheat was the top-performer, advancing by 2.05% on falling global supplies. Rabobank cut its estimate of Australian wheat crop by one million ton this year, citing dry
Energy futures apart from natural gas retreated on Thursday on stronger greenback and dismal headlines from the US job market. US jobless claims climbed to three-month high last week, signaling that recovery of the US labour market is fragile. However, positive manufacturing numbers from the US were supportive for the commodity group. Crude oil was steady amid worrying signs from
European stocks retreated on Friday, as traders were cautious amid the second day of EU summit, and awaited the U.S. existing house sales due later. The Stoxx Europe 600 slid 0.2% to 275.57 on banks and oil decline. The DAX 30 dropped 0.3% to 7,417.37, the CAC 40 slipped 0.2% to 3,529.20, while the FTSE 100 was little changed at
Industrial metals were mixed on Thursday, with zinc and copper remaining unchanged and nickel and aluminum climbing. Encouraging manufacturing data from the US pushed base metals higher. Philadelphia-region's manufacturing activity indicated an expansion for the first time in six months in October.Aluminum rose on larger-than-expected increase in manufacturing activity in Philadelphia. However, disappointing comments from POBC adviser that China will
Precious metals tumbled on Thursday on broadly stronger US Dollar ahead of the EU summit. Mixed US data and fading hopes that the POBC will provide essential stimulus for China's economy weighted down on the commodity group. Gold halted a three-day rally amid increased cautiousness ahead of the EU summit results. Encouraging manufacturing data from the US also sent the