Precious metals fell on Friday despite mounting hopes that global central banks will loosen their monetary policies further. Even weaker US Dollar failed to support the commodity group. Gold dropped by 0.74% despite potential increase in inflation amid global easing measures. Meanwhile, hedge funds raised their positions in the yellow metal to the most bullish in more than a year.
The IMF Managing Director Christine Lagarde urged Eurozone leaders to deploy the Euro bloc's bailout funds and the European Central Bank's bond-buying scheme as a part of aggressive plan to solve the Eurozone's debt crisis. Although the head of IMF did not mention any particular country, Spain is the only member on the currency union that is considering whether and
Asian stocks fluctuated as concern that world economic slowdown is putting pressure on earnings was offset by China's exports and inflation data. The MSCI Asia Pacific Index lost 0.1% to 120.70. Japan's Nikkei 225 Stock Average gained 0.4%, while South Korea's Kospi Index declined 0.3%. Hong Kong's Hang Seng Index slipped 0.1% and Taiwan's Taiex Index fell 0.6%.
U.S. retail sales probably increased in September as demand for cars kept improving, economists said before the data this week. The 0.8% gain would follow a 0.9% increase in August, according to economists' projection. Other data may indicate manufacturing stabilized and fuel prices pushed up the cost of living.
China's exports grew more than expected in September, adding to signs the world's second-biggest economy is stabilizing following a slowdown that started in Q1 of 2011. Overseas shipments rose 9.9% from the previous year, according to the customs administration. A central bank showed that M2 money supply increased 14.8%, the fastest pace since the mid of 2011.
The Australian Dollar stayed lower after a drop at the end of last week ahead of the RBA minutes of the October meeting, which will be realised tomorrow. The Aussie Dollar was close to a 3-month low after the RBA Governor Glenn Stevens said there is scope to further borrowing costs cut. The Aussie traded at $1.0219, after falling 0.3%
The Euro weakened against most of the major counterparts on uncertainty whether Spain will request a bailout and before data that may show investor confidence declined in Germany, the Euro bloc's biggest economy. The common currency lost 0.4% to $1.2902 and fell 0.4% to 101.24 Yen. ZEW Index is due to publish figures on Tuesday, October 16.
China's inflation cooled almost to the slowest pace in 2 years in September, providing the government with a room for policy easing if the economy weakens further after import reported showed domestic demand weakness. Consumer prices increased 1.9% from the previous year, while the producer price index declined 3.6%, according to the National Bureau of Statistics.
Confidence among U.S. consumers rose surprisingly in October, reaching the highest level since December 2007, a sign that retailers may see sales improvement soon. U.S. consumer sentiment jumped to a seasonally adjusted 83.1, up from 78.3 in the prior month, beating analysts' expectations of a fall to 78.0. "People expect the economy is going to be healthier next year, they expect their job prospects to
On Friday, the Cable was traded higher versus the U.S. Dollar, amid the stronger Euro. However, concerns about the U.K. economy weigh, and the Sterling underperformed other currencies that are perceived to be riskier. GBP/USD hit a session high of 1.6071 and a session low of 1.6020, subsequently consolidating at 1.6066 by 12:17 a.m. London time.
On Friday, Spanish bonds were gaining, amid speculation that the country will soon ask for bailout, which will trigger ECB's bond buying program. The yield on benchmark 10-year notes fell by 7 basis points, reaching 5.69% by 11 a.m. in London. 2-year bonds declined 10 basis points, having the yield of 3.11%.
On Friday, treasuries edged lower, as demand for safe assets decreased on speculation that Eurozone debt crisis may be resolved soon, and that the U.S. economy is also improving. The yield on benchmark 10-year notes added 2 basis points, reaching 1.69%. The 30-year notes yield added 2 basis points and reached 2.87% by 11:14 a.m. in London.
Wholesale prices rose in the world's biggest economy rose more than initially expected last month, as fuel costs jumped. According to the Labor Department, U.S. PPI climbed to a seasonally adjusted 1.1% in September, after a 1.7 per cent gain in the preceding month. The rate came better than a consensus estimate of analyst' who has predicted a 0.8% gain. "In regards to inflation, we
On Friday, the Euro was traded higher versus the U.S. Dollar on speculation that Spain will soon request for bailout, starting ECB bond purchasing program. The 17-nation currency grew by 0.3% versus the greenback, reaching $1.2964 by 10:10 a.m. in London. Earlier in the week, it fell to $1.2826 on Thursday, which was the lowest since October 1.
On Friday, oil edged higher and was likely to end the week with gains for the first time in a month, as OPEC production declined to the lowest in eight months, and on increased tensions in Middle East. On the NYMEX, November delivery futures for light sweet crude eased $0.21, being traded at $91.86 in electronic trading. November delivery for Brent fell $0.72, reaching $144.98
On Friday, gold prices edged higher for the second day in a row, as demand for the metal was supported by the weaker U.S. Dollar. Spot prices for gold increased by 0.1%, and reached $1,769.25 per ounce at 9:35 a.m. London time. On the NYMEX, December delivery contracts for gold were little changed to trade at $1,770.90 per ounce.
On Friday, copper was traded lower, witnessing the biggest fall in two months, on global growth concerns. On the London Metal Exchange, three-month copper declined by 0.5%, reaching $8,196.25 per metric tonne at 08:03 a.m. in London, trimming small gains for the preceding session, when prices retreated from a 2-month low of $8,105 per tonne.
Eurostat reported in Friday that industrial production in Eurozone increased unexpectedly in September. Eurozone's industrial production grew to 0.6% on a seasonally adjusted basis, compared to a 0.6% growth in August. Analysts, however, expected that industrial production in Eurozone would fall by 0.4% last month.
Asian stocks increased as jobless claims in the U.S. declined more than expected and Japan and China agreed to resolve a territorial dispute, which has impacted trade. The MSCI Asia Pacific Index rose 0.4% to 120.83. Hong Kong's Hang Seng gained 0.6%, China's Shanghai Composite Index and Australia's S&P/ASX 200 Index advanced 0.1%.
European stocks fell on concerns world economic growth remains weak and before a data that may indicate industrial output in Eurozone declined in August. The Stoxx Europe 600 Index lost 0.3% to 270.05, falling 1.5% this week as the IMF lowered its world growth forecast and EU officials met to discuss the crisis in the Euro bloc.
South Korea's Won rose and government bonds fell for a second straight day as data indicated the U.S. unemployment claims declined to the lowest level in four years, boosting demand for riskier assets. The won gained 0.3% to 1,111.30 per U.S. Dollar. The Bank of Korea cut its benchmark interest rate to 2.75% yesterday and lowered its forecast for economic
Greece unemployment rate reached a record high of 25.1% in July, while the jobless rate among young people hit 54.2%. According to Greece's statistical authority, 1.26 million Greeks were unemployed in July, with roughly 1000 jobs lost daily over the past year. With further austerity measures and another year of recession, the jobless rate may increase further.
The Australian Dollar strengthened, trading 0.1% from one-week high as commodity price gains increased demand for the nation's currency. The Aussie Dollar gained 0.2% to $1.0283 from $ 1.0264 yesterday, when the currency touched $1.0294, the highest level since October 2. It rose 0.4% to 80.69 Yen. The New Zealand Dollar added 0.3% to 82 U.S. cents and it bought
The Japanese Yen weakened versus the major peers amid signs that the U.S. economy is gaining momentum curtailed demand for haven assets. The Yen lost 0.1% to 78.40 per U.S. Dollar from 78.34 yesterday, when the Yen fell 0.2%. Japan's currency declined 0.1% to 101.37 per Euro, after falling 0.6% to 101.27.