The inflation rate in the Eurozone's 17 countries that have the Euro in circulation rose to a six-month high in September, the EU's statistics office, Eurostat said on Friday. Consumer price inflation jumped to a seasonally adjusted annual rate of 2.7%, up from 2.6% in the prior month, while analysts had estimated the annual rate of inflation fell to 2.4%.
On Friday, the Euro declined versus the U.S. Dollar, following the release of the Chicago PMI and consumer sentiment data, which both showed optimistic trend of the U.S. economy. The 17-nation currency declined by 0.5% to trade at $1.2852 by 10:30 a.m. in New York. Earlier, it gained 0.4%, hitting a session high of $1.2960.
On Friday, the greenback was higher versus the Canadian Dollar, following optimistic reports from the U.S. USD/CAD hit 0.9821, and subsequently consolidated at 0.9815, which was a 0.09% gain during the European afternoon trading session. The pair's supports was likely to be found at 0.9757, while the resistance was prone to be at 0.9854.
University of Michigan reported on Friday that the final reading of its consumer sentiment index in September added to 78.3 from a previous month's reading of 74.3. Although the figure was the highest sine May, it was still lower than the analysts' forecast of 79, and below the level of the initial estimate of 79.2.
On Friday, the 17-nation currency was higher versus the greenback for the second day, following Spain's government announcement about its austerity package. The Euro gained 0.2% versus the U.S. Dollar to trade at $1.2934 by 9.22 a.m. in New York. Earlier it hit a session high of $1.2960 and a session low of 1.2904.
Kingsbury International, a research group, reported on Friday that its Chicago purchasing managers' index fell more than expected. The September's figure was equal to 49.7, which was a significant decrease from the previous month's reading of 53.0. Economists, however, predicted that the September's figure would be unchanged from the August's reading and equal to 53.0.
Commerce Department reported on Friday that the income of the U.S. consumers gained 0.1% in the previous month, matching a July's gain. Economists predicted that there would be a more significant increase of 0.2%. Disposable income, however, declined by 0.3% after adjustments for inflation, which was the worst reading since November.
Statistics Canada reported on Friday that the adjusted for inflation Canadian gross domestic product added 0.2% in July, compared to a June's increase of 0.1%, which was revised down from an initial estimate of a 0.2% growth. Analysts expected that the real GDP gain in July would remain unchanged from the June's reading.
German stocks fell on Friday ahead of Spanish bank's stress test results. Pessimistic news from the US also created heavy pressure on German equities. Adding to the negative mood of German blue chips, the country's retail sales rose 0.3% last month compared to a forecast of a 0.5% increase. The DAX Index lost 0.75% to trade at 7,235.05. All sectors
UK shares are trading slightly lower on Friday amid increased cautiousness among market participants ahead of the results of Spanish banks' stress tests due later in day after the market close. Mixed news from Germany and Italy also weighted down on the UK stock index. The FTSE 100 Index slid 0.25% and is currently trading at 5,764.83. Six out of
Hong Kong equities extended previous gains on Friday ahead of 10-day long holiday. Chinese stocks continued to draw strength from recent injection of liquidity by the POBC. Moreover, positive headlines from eurozone pushed Chinese blue chips higher. The Hang Seng Index advanced by 0.38% to close at 20,840.38. Eight out of nine sectors included in the index surged. The biggest
Japanese equities tumbled on Friday amid concerns that revenues of Japanese firms in China are falling amid territorial tensions between two countries. Limiting the downswing, Spain announced fresh spending cuts presenting its budget for 2013. Moreover, slightly better than expected figures from the national real estate and job markets supported Japanese stocks. The Nikkei 225 Index lost 0.89% to end
The Dow Jones Industrial Average Index jumped 0.54% to close at 13,485.97 despite weak figures from the US labour and real estate market. US jobless claims dropped less-than-expected last week while US economic growth for Q2 was revised downward to 1.3% from 1.7%. Moreover, demand for durable goods dropped 13.2% in September compared to a forecast for a 4.7% decline.
US stocks rallied on Thursday despite negative economic data from the US. US equities were boosted by positive news from Spain. Spanish government approved severe austerity measures thus convincing investors that the country will be able to meet its financial obligations. The S&P 500 Index gained 0.96% to close at 1,447.15. All but one sectors within the index climbed. The
German 10-year bonds poised for a sixth straight quarter of increase before Spain announces the outcome of banks stress tests on belief the country will seek an economic bailout. The 10-year yield traded at 1.45% on Friday after dropping to 1.44% yesterday, the least since Sept. 5. The 1.5% note maturing in September 2022 was at 100.505. The yield has
French President Francois Hollande announced his first budget which cut spending and increased tax on the rich to 75%. The government plans to trim its budget shortfall to 3% of GDP in 2013 from 4.5% this year. GDP is estimated to add 0.8%. The spending cut is expected to save 10 billion Euro. Meanwhile, Agence France Tresor reported a reduction
Treasuries gained on Friday, increasing a second weekly advance, ahead of U.S. activity reports expected to show the economy mislays momentum. The 10-year yield slipped four basis points to 1.62%, after declining to 1.61%, the lowest since Sept. 7. The 1.625% note maturing in August 2022 added 11/32 to 100 1/6.
Gold advanced in London, extending the largest quarterly gain since June 2010 amid belief central banks' stimulus will boost investor demand. On Friday, immediate-delivery gold surged 0.2% to $1,780.810 per ounce in London, prices increased 11% from the end of June. Bullion at the morning "fixing" rose to $1.781 from $1.763 yesterday. Futures for December delivery added 0.1% to $1,783.10
Oil soared for a second day in New York and poised for the highest quarterly advance this year ahead of a report expected to post U.S. personal spending rise. On Friday, futures gained 0.9%, after adding 2.1% yesterday, the strongest in eight weeks. November-delivery oil rose86 cents to $92.71 per barrel and traded at $92.49. Same month Brent crude was
Commerce Department reported on Friday that spending of U.S. consumers rose just a bit in August, which showed that the U.S. economy still struggled to recover. Purchases of households increased by 0.5%, in line with analysts' expectations. However, after adjustment for a 0.4% increase in prices, the data shows that real spending added only 0.1%.
Most Asian stocks advanced on Friday amid Spain's budget decisions and belief Chinese policy makers will use additional stimulus measures to boost the economy. The Shanghai Composite Index rose 1.5%, while the Hang Seng Index, the Kospi and Taiex each increased 0.4%. Australia's S&P 200 Index added 0.1%, but Japan's Nikkei dropped 0.9% on low monthly industrial output.
U.S. stock futures were little changed on Friday, as investors were cautious on Spain's budget and ahead of reports on U.S. consumer income, spending and confidence. Dow Jones futures were steady at 13,414. Futures on the S&P 500 rose 0.04% to 1,442, while those on the Nasdaq Composite added 0.11% to 2,817.50.
European stocks inched up on Friday, after Spain announced spending cuts and tax rise costing 13 billion Euro, while traders awaited the Spanish bank stress test results later today. The Stoxx Europe 600 Index added 0.3% to 272.51. The IBEX 35 Index outperformed other Spanish indexes and rose 1%. The CAC 40 and DAX 30 indexes each advanced 0.4%, while
German equities advanced on Thursday after encouraging export prices data. German export prices climbed 1.3% in September compared to a forecast of 0.9% increase. However, persistent uncertainty over Spain's austerity measures capped the upswing of the index. The DAX Index added 0.14% and is currently trading at 7,286.94. All but one sectors included in the index surged. The top-gainers were