On Wednesday, futures for natural gas experienced a fall for the first time during the last 7 days after hitting a ten-month high on cold weather forecasts. On the NYMEX, November delivery futures eased 3.5 cents, or 1 %, to trade at 3.496 per MMBtu. Yesterday, futures added 1.5%, being traded at $3.531 per MMBtu, which was the highest since December 2.
On Wednesday, the U.S. Dollar was traded higher versus the Japanese Yen, amid uncertainty over Spanish bailout and disappointing Chinese data, which boosted the safe haven demand. USD/JPY hit 78.30, which was the lowest since September 20, and later consolidated at 78.21, which was a 0.07% gain for the European morning trading session.
Markit, a market research group, reported on Wednesday that German service activity decreased at the most rapid rate since March 2009 on a quick drop in employment. German services PMI was revised down to 49.7 in the previous month from a preliminary estimate of 50.6. Following the release of the data the Euro dipped 0.08% versus the U.S. Dollar to trade at $1.2908.
French service sector tumbled at a faster-than-expected pace in September, Markit Economics revealed final data on Wednesday. The seasonallized composite output index slipped to a 42-month low of 43.2, compared to 48 in August and below preliminary estimate of 44.1. The service sector PMI was at 45 from 49.2 in the preceding month, and up from initial 46.1. The activity
On Wednesday, the New Zealand Dollar was significantly lower versus the U.S. counterpart, amid concerns over Spanish bailout and Chinese economic growth. NZD/USD hit the lowest since Sept. 26, which was 0.8206, and subsequently consolidated at 0.8210, which was a 0.79% drop for the European morning trading session.
On Wednesday, copper was traded lower, following a 4-day rally, amid uncertainty over Spanish bailout plan and holidays in China, which is a top copper consumer. On the London Metal Exchange, three-month copper fell by 0.85% to trade at $8,255.00 per tonne at 08:15 a.m. London time. Earlier, the metal hit a 4-month high on September 19.
Markit Financial Information Services reported on Wednesday that Spanish service sector activity witnessed a steeper decline in September than it was expected. Services PMI declined to 40.2 on a seasonally adjusted basis, compared to a preceding month's reading of 44.0. Analysts, however, expected that the index would be equal to 42.5.
On Wednesday, gold was traded near an 11-month high, amid uncertainty over Spanish bailout plan and upcoming U.S. unemployment report. Spot prices for gold were little changed, being traded at $1,772.69 per troy ounce at 2:24 a.m. in New York. Earlier this week, gold hit a level of $1,791.20, which was the highest since November 2011.
On Wednesday, treasuries were traded higher for the fourth day in a row, following the announcement of disappointing Chinese non-manufacturing data, and amid speculations that an upcoming report will show a similar decrease in the U.S. The yield on 10-year notes decreased 2 basis points, and reached 1.60% by 8:20 a.m. London time.
European stocks declined on Wednesday amid worries Spain may postpone a bailout and weak China sentiment. The Stoxx Europe 600 Index slid 0.3% to 270.90. The DAX 30 Index tumbled 0.2% to 7,294.86, the FTSE 100 Index slipped 0.3% to 5.,794.37 and CAC 40 Index dropped 0.4% to 3,400.73.
German bonds surged on Wednesday ahead of a report expected to show a 39-month low output in euro area's services and manufacturing industry. The 10-year yield lost 2 basis points to 1.43%, while the 1.5% note maturing in September 2022 added 0.195 to 100.59. The 2-year yield was little changed at 0.04%.
Oil tumbled for a second day on Wednesday as U.S. crude inventories jumped for the fourth consecutive week and China consumer sentiment slipped. November-delivery oil lost 46 cents to $91.43 per barrel in New York and traded at $91.44. Same month Brent oil declined 0.06% to $110.90 per barrel in London.
China's consumer sentiment declined for the third consecutive month in September, reaching the weakest level since December, Deutsche Boerse's MNI showed on Wednesday. The index came out at 89.3 from 90.4 in August. Future income expectations surged to 88.2 from 87.9 in the previous month. Housing market confidence fell back after improvement in August, while the stock market sentiment rose
The Australian Dollar dropped to almost 1-month low following the government report on the nation's trade deficit, which was the widest since 2008. The Aussie Dollar traded at $1.0211, the weakest level since September. Australia's Dollar also traded close to a 1-year low versus the New Zealand Dollar. The currency fetched NZ$1.2432, after touching NZ$1.2372, the lowest level since September
The annual inflation rate in developed countries climbed for the first time in a year in August, with the main reason being a sharp increase in energy prices. Figures released by the OECD indicated that consumer prices in 34 member states rose by 2% in 12 months to August. The inflation rate also surged in some large developing countries, such
Farm commodities apart from wheat moved higher on Tuesday amid broadly lower US Dollar. However, speculation that improved weather conditions in the top-growing regions are likely to boost global supplies created pressure on agriculture. Wheat slumped for the sixth session as demand for US supplies in slowing. USDA expected US wheat exports to total 344.7 million bushels between June 1 and
U.K. service sector output advanced at a weaker-than expected rate in September, as economy posted the first net decline in employment in last ten months, Markit Economics said on Wednesday. The seasonalized Services Purchasing Managers Index dropped 1.5 points to 52.2, compared to 53.7 in August. Analysts had forecast a reading of 53.1."With no Bank Holidays until Christmas and the
According to official data of the Australian Bureau of Statistics, trade deficit in Australia widened in August, with the balance on services and goods at deficit of $2.027 billion, compared with July's figure of $1.53 billion. It is the biggest trade deficit since March 2008 and the country's 8 consecutive deficit. During August, exports declined 3%, whereas imports fell 1%.
Energy commodities, excluding natural gas, dropped on Tuesday amid renewed eurozone woes. Market participants were confused as Spain may delay applying for the next bailout. However, broadly weaker US Dollar as well as slightly improved manufacturing activity limited the downswing. Crude oil shed 0.64% ahead of the weekly EIA report on US inventories due on Wednesday. US stockpiles are expected to
Asian stocks declined after China's non-manufacturing sector expanded at the slowest pace since March 2011 and Spain's PM said bailout request is not unavoidable. The MSCI Asia Pacific Index fell 0.4% to 121.58. Japan's Nikkei 225 Stock Average slipped 0.5% and Taiwan's Taiex slid 0.5%. Australia's S&P ASX 200 Index climbed 0.1%.
Base metals except for copper erased previous gains on Tuesday on signs that Spain may delay a request for the next bailout. Weaker global equities coupled with higher risk-aversion among investors also created heavy selling pressure on industrial metals. Aluminum dropped despite slight decline in the LME inventories and positive manufacturing data releases. Copper was the only gainer, approaching seven-day
The Euro traded 0.8% from a 3-week low amid signs of economic slowdown and built up pressure on central bank officials to consider fresh measures at a meeting this week. The 17-nation currency fell 0.2% to $1.2901, after touching $1.2804 on 1 October, the weakest level since 11 September. The Euro was at 100.88 yen down from 100.97.
Precious metals apart from palladium dropped on fading support from inflation concerns amid global stimulus measures. At the same time, broadly weaker US Dollar created an upward pressure on the commodity group Gold retreated from 11-month high on rising uncertainty over Spain's bailout. On Tuesday, Spanish news agencies reported that Spain's PM told his political party that the country will probably
China's non-manufacturing purchasing manager index fell 2.6 percentage points to 53.7% in September, according to the official data on Wednesday. PMI reading above 50% indicates an expansion from a month earlier, whereas reading below 50% signals a contraction.