British retail sales rose slightly in September, a sign consumers are showing more willingness to buy, the Confederation of British Industry reported on Wednesday. CBI realized trades rose to 6 in this month, up from -3 in the previous month. A reading above 0 indicates higher sales volume, while any reading below signals lower volume of sales.
On Wednesday, Mariano Rajoy, Spanish Prime Minister, announced that he was ready for bailout package, but only in case his country witnesses too high borrowing costs for too long. Previously, Rajoy had said that a decrease of yields, caused by ECB's bond-buying plan announcement, may possibly allow not to seek for further support.
Sweden's merchandise trade surplus declined from last year in August, Statistics Sweden reported preliminary data on Wednesday. The trade surplus tumbled to SEK3.3 billion from SEK5.2 billion in August 2011, exceeding economists' estimates of a SEK3 billion reading. Exports of goods fell 5% on year to SEK93 billion, while imports slid 3% to SEK89.7 billion.
On Wednesday, the U.S. Dollar declined versus the Japanese Yen during European trading hours. USD/JPY was traded at 77.72 at 7.:34 a.m. London time, which was a 0.10% decline for the session. The pair's support was likely to be found at 77.66, a Tuesday's low, while the resistance was prone to be at 78.37, a Friday's high.
Bloomberg News survey estimates that the Japanese business confidence will decline to minus 4 in a report on October 1 by the Bank of Japan. This pessimistic prediction is based on China's slowdown and European crisis, which pulled Japanese exports down, making the central bank to announce quantitative easing this month.
Swedish economic confidence tumbled more than estimated in September, National Institute of Economic Research said on Wednesday. The index dropped to 95.8, compared to 96.9 in August and below economists forecast of 96.5. Consumer sentiment slipped to 2, compared to 5.4 in the preceding month, while economists estimated a reading of 5.
Four biggest Australian banks split in their predictions about whether the Reserve Bank of Australia will cut interest rates in October, which are the highest in major developed nations. Westpac Banking Corp. and Australia & New Zealand Banking Group expect that the rates will be cut by quarter, while Commonwealth Bank of Australia and National Australia Bank predict that they will remain at 3.5%
On Wednesday, the British Pound depreciated versus the U.S. Dollar in the European trading session. GBP/USD was traded at 1.6167 at 6:50 a.m. London time, which was a 0.13% decline for the session. The pair's support was likely to be found at 1.6150, a day low, while resistance was prone to be a 1.6310, a Friday's high.
French consumer sentiment weakened modestly to 85 in September, compared to 86 in the preceding month, the Insee reported on Wednesday. Analysts expected the index to stagnate. Overall past economic situation was at -77 on year from -73 in August, while future economic situation tumbled to -56, compared to -51.
On Wednesday, treasuries were higher for the seventh consecutive day, which was the longest rally since December 2008, amid speculations that quantitative easing will take time to boost the economy and inflation will be kept under control. Yields on benchmark 10-year notes were little changed from the yesterday's 1.67% at 6:46 a.m. London time.
On Wednesday, prices for gold declined in Asian trading hours amid disappointing housing data from the U.S. On the NYMEX, December delivery futures for gold were traded at $1,764.65 per troy once, which was 0.10% decrease for the session. Earlier, prices for gold contracts hit a session high of $1,764.95 and a session low of $1,761.55 a troy once.
On Wednesday, futures for crude were declining in Asian trading hours, as profit takers were selling the commodity, sending prices down. On the NYMEX, November delivery futures for light sweet crude were traded at $90.94 per barrel, which was a 0.47% decline for the trading session. Earlier, prices hit a session high of $90.97.
Rural commodities were mixed on Tuesday, with sugar and coffee climbing and grains retreating. Broadly stronger US Dollar and Eurozone's woes continued to weight on potential demand for agricultural commodities. Wheat slumped the most in a week on speculation that Russia, the world's third largest exporter, will not impose export restrictions despite lower crops after drought. Corn closed lower on
The Aussie dropped and government bonds gained as European leaders' disgreements over resolving the debt-crisis cut demand for riskier assets. The Aussie slid 0.4% to $1.0352, after touching $1.0345, the least since Sept. 11. It lost 0.5% to 80.47 Yen, after reaching 80.41 Yen, the weakest since Sept. 6. The 10-year note yield traded at 3.05%, the least since Sept.
Energy commodities except for crude oil climbed on Tuesday amid positive economic releases from the US and encouraging POBC comments. On Tuesday, the POBC injected about USD46 billion into economy through repos and announced that further fine-tuning is possible. However, comments of Fed official that the Fed policies may prove to be inefficient in boosting US economy restricted gains of
Industrial metals rallied on Tuesday amid positive headlines from the US. Supporting the metals, the POBC stated that it will adjust its monetary policy to stimulate slowing economy. Limiting the upswing, Charles Plosser, Fed member, warned that current measures of the Fed may not stimulate US growth and may even jeopardize the bank's credibility. Aluminum added 1.2% on encouraging comments from
Asia stocks tumbled on Wednesday with severe losses in Tokyo amid an ex-dividend trade, while global growth concerns weighed on commodity firms. The Nikkei Stock Average dropped 1.9%, the Hang Seng Index slipped 0.9%, while Kospi and Shanghai Composite both lost 0.6%. Australia's S&P 200 index retreated 0.3%.
Precious metals apart from platinum moved lower amid upbeat data from the US. The US consumer confidence soared to seven-month high while home prices surpassed forecast in July, signaling that US economy is improving. Gold retreated despite demand and supply-side support. AnlgoGold Ashanti suspended production in South African mines amid spreading miners' strikes. Meanwhile, recent IMF data indicated that central
New Zealand's economy posted its largest annual trade deficit in 3 years, with exports declining to a 19-month low due to a fall in diary shipments. Trade balance slid to a deficit of -789 million in August, from upwardly revised 97 million in July and exceeding analysts' estimate of -630 million. Exports slipped to 3.32 billion from 4.05 billion in
The Euro slipped to a two-week low before the data expected to show decreases in Italian retail sales and European consumer sentiment. The common currency tumbled 0.2% to $1.2868, the lowest since Sept. 13. The Euro lost 0.4% and traded at 99.98, after reaching 99.97 Yen, again the weakest level since Sept. 13.
U.S. stocks edged higher on Tuesday, September 25, as reports on consumer confidence and the housing market showed some improvement. The Dow Jones Industrial Average rose 0.40%, to 13,612.84; the Standard & Poor 500 Index added 0.43%, to 1,463.19, while Nasdaq 100 futures jumped 0.47%, to 3,175.76.
Home prices in the U.S. rose more than expected in July, adding signs that nation's property market is improving, the S&P/Case-Shiller said Tuesday. Index of property value increased 1.2%, from a year earlier, while analysts had predicted U.S. house prices to rise by 1.1%.
German shares advanced on Tuesday, erasing previous losses on dismal German Ifo business climate data. However, anticipation of key US data due later in the day capped the upswing of German equities. The DAX Index climbed 0.11% to trade at 7,421.30. Five out of nine sectors included in the index inched up. Leading the gains of German stock index, technology
UK equities are trading slightly higher on Tuesday ahead of the key talks between Angela Merkel and Mario Darghi due later in the day. Persistent worries over spreading debt crisis in the region coupled with increased cautiousness ahead of US consumer confidence data weighted down on the UK shares. The FTSE 100 Index inched up 0.17% and is currently trading