The U.K. public sector borrowed 14.4 billion Pounds in August, posting record deficit since the records begun, the Office for National Statistics said Friday. Analysts had predicted U.K's public sector borrowing to rise 15.0 billion. Overall, public sector's net debt reached 1,039.5 billion Pounds, and composes 66.1% of the U.K. GDP.
Spanish government is in talks with European Commission about the details of a new rescue plan. Up to 60 billion euros will be needed to bail out Spanish banks, the country's second biggest lender, BBVA, said on Friday. As nation's banking system needs recapitalization, money would, mostly, come from 100 billion euros Spanish bailout fund pledged by Eurozone finance ministers in June.
German equities rose on Friday on hopes that Spain will unveil its reform plan that will allow the country to apply for another bailout. However, recent weak PMI releases and poor data from the US job market capped the upswing of the German stock index. The German DAX Index added 0.25% and is trading at 7,446.82. Five out of nine
UK equities extended previous losses despite speculation that Spain will announce a reform program that will enable the country to apply for a new bailout. However, reports on less-than-expected increase in the national public sector borrowing last quarter sent the UK shares lower. The FTSE 100 Index slid 0.12% and is currently trading at 5,853.21. A half of sectors within
Hong Kong stocks advanced on Friday, boosted by a rebound in basic materials and energy sectors. However, dismal manufacturing PMI releases from China and Europe coupled with weakness of the US jobs market continued to create a heavy pressure on Chinese equities. The Hang Seng Index advanced 0.70% to close at 20,734.94. All but one business sectors included in the
Japanese shares bounced off Thursday's lows on Friday, supported by stronger utility sector. However, global growth concerns after weak PMI releases coupled with escalated territorial tensions with China continued to create heavy pressure on Japanese equities. The Nikkei 225 Index added 0.25% to end the week at 9,110.00. Seven out of ten sectors within the index rose. Utilities and oil
The Dow Jones Industrial Average Index added 0.14% to close at 13,596.93 on Thursday. Mixed data from the US coupled with weak manufacturing figures from Eurozone and China weighted down on the US blue chips index. Disappointing consumer confidence data from the Eurozone added pressure on the US stocks. Six out of nine sectors included in the index advanced. The
US stocks ended Thursday's session slightly lower on dismal manufacturing data from China and Europe. Smaller-than-expected drop in US jobless claims last week also created pressure on the US stock index. However, a jump in Philly Fed manufacturing index limited losses of the US equities. The S&P 500 Index eased down by 0.05% to close at 1,460.26. Six out of
On Friday, the British Pound was higher versus the U.S. Dollar, following the release of the data that showed that the net borrowing of British public sector was less than expected. GBP/USD hit 1.6294, and subsequently consolidated at 1.6294, which was a 0.49% increase for the European morning trading session.
On Friday, the U.S. Dollar was lower versus the Japanese Yen, as traders' sentiment improved on reports of Spanish bailout. USD/JPY hit a daily low of 78.13, and subsequently consolidated at 78.15, which was a 0.10% fall for the European afternoon trading session. The pair's support was likely to be at 78.02, while the resistance could be at 78.37.
On Friday, the 17-nation currency was higher versus the U.S. Dollar. The Euro appreciated by 0.5% at 9:45 a.m. in London and was traded at USD1.3030. Earlier in the day, the Euro hit a session high of USD1.3047. The pair's support was likely to be at 1.2920, while the resistance was prone to be at 1.3172.
On Friday, prices for gold were higher, following forecasts of analysts from Bank of America and Deutsche Bank AG that the commodity will hit a record high by the next year. Futures for gold were traded at $1,776.200 per once at 05:30 a.m. London time, which was a $6.00 or 0.34% increase for the trading session.
Office for National Statistics reported on Friday that the net borrowing of public sector increased to 14.41 billion Pounds in August, compared to the reading of 14.37 billion Pounds in the preceding month. The figure is the highest since 1993, when the records began, but lower than the analysts' forecast of 15 billion British Pounds.
German 10-year Bunds slid, trimming almost a month-high weekly gain, amid a report saying EU policy makers are announce a financial bailout plan for Spain next week. The 10-year yield's surged three basis points to 1.61%, after falling 10 basis points this week, the strongest drop since Aug.24. The 1.5% note maturing in September 2022 lost 0.27 to 99.055.
Treasuries declined for the first time in five days amid belief EU authorities will create a financial rescue plan for Spain next week, decreasing demand for the safest assets. On Friday the 10-year yield surged 0.02 percentage points to 1.78%. The 1.625% bond maturing in August 2022 slipped 5/32 to 98 19/32.
UK's real estate prices sentiment remained weak, with households saying prices tumbled for the twenty-seventh straight month in September, however at a lower pace, Markit Economics reported on Friday. The property price sentiment was at 46.8 in September, from 44.5 in the preceding month, posting the slowest price decline since July 2010.
On Thursday, the Conference Board held leading index for Australia's economy unchanged at 124.9 in July, after two consecutive climbs. The indicator pointed to a slight near-term increase in economic activity. It posted a 0.5% rise in June and May. In July, the advances in stock prices and money supply were outweighed by losses in rural goods' exports, building approvals
European stocks advanced on Friday after the Financial Times posted a report saying that EU authorities are developing a new rescue program for Spain. The Stoxx Europe 600 surged 0.5% to 275.95, with gains in bank and energy sectors. The DAX 30 Index added 0.4% to 7,416.71. The CAC 40 Index climbed 0.7% to 3,532.55, while the FTSE 100 Index
Farm commodities, excluding sugar, moved lower on Thursday, being pressured by broadly stronger US Dollar and escalated concerns that slowdown in China will cut global demand for agriculture. Wheat edged down on signs that slowdown in global economy is likely to weight down on demand for grains. Corn slumped on demand concerns. Limiting the downswing, Brazil, the third largest global producer,
Asia stocks inched higher on Friday amid the launch of the newest iPhone supporting the telecom sector in the end of a rough week. The Hang Seng Index added 0.9% and the Shanghai Composite Index surged 0.3%. The Nikkei Stock Average advanced 0.3%, while the Kospi gained 0.5% and Australia's S&P 200 Index climbed 0.4%.
Energy commodities rebounded on Thursday as market players started to book profits after sharp fall over two previous sessions. The commodity group also found support on news that fire damaged El Palito refinery located in Venezuela. Adding to gains of energy prices, investors continued to monitor persistent tensions in the Middle East. Crude oil was slightly higher despite larger-than-expected increase
Australian currency gained against major counterparts amid expectations the U.S. Fed will boost growth and Eurozone is progressing in resolving its debt crisis, fueling traders' interest for higher-yielding assets. The Aussie surged 0.3% to $1.0465. It purchased 81.80 Yen, 0.2% up from yesterday's close. New Zealand's Dollar rose 0.1% to 82.96 U.S. cents.
Industrial metals apart from nickel tumbled on Thursday on weak manufacturing PMI data from the US and Europe. The US and Europe reported that PMI numbers were slightly higher this month but remained below 50, level that separates contraction from expansion. Broadly stronger US Dollar also weighted down on the commodity group. Aluminum retreated on weak fundamentals. Slight increase in PMI
Oil futures advanced on Friday, with most commodities gaining amid declining U.S. Dollar. October-delivery crude surged 0.7% to $93.04 per barrel in New York, the rise cut oil's weekly fall to below 6%. October-delivery heating oil rose 0.4% to $3.10 per gallon, while natural gas for the same month added 0.7% to $2.82 per million Btu. The ICE Dollar Index