Precious metals were weak on Wednesday as soft physical demand from India weighted down on the commodity group. However, speculation that the ECB and Fed will loosen their monetary policies limited losses of the precious metals. Gold inched up despite weak demand from India. A hot and dry weather in India curbed crops, thus weighting on household revenues. Silver was the
The international food price index, that estimates the monthly change in the global prices of major food commodities, surged 6%, rebounding from preceding three months decline, Food and Agriculture Organization said on Thursday. The reverse was lead by a 12% rise in sugar prices and increase in grain prices. Maize gained 23% in price. Global wheat prices rose 19%. International
The Sterling posted mixed trading versus its major peers as U.K.'s trade deficit expanded to GBP4.3 billion, exceeding economists' expectations of GBP3.1 billion deficit. The Pound traded at 0.7883 versus the Euro, 1.5245 versus the Swiss Franc, 1.5655 versus the U.S. Dollar and 122.86 versus the Yen.
China's industrial-output rise unexpectedly eased to the lowest in three years in July while retail sales and investment missed estimates, boosting weight on Premier Wen Jiabao to act to support growth. Factory production rose 9.2% in previous month from July 2011, below analysts' estimates, the National Bureau of Statistics reported on Thursday.
China's car sales added 11% in July despite downtrend elsewhere in the economy. Passenger vehicle sales increased to 1.12 million in July, as reported by China Association of Automobile Manufacturers on Thursday. The rise is bigger than that of the U.S. and Europe but has declined since a boom in 2010.
The U.K.'s trade balance decreased to a seasonally-adjusted -10.1 billion in July, from -8.4 billion in the previous month, as reported by the National Statistics on Thursday. Analysts had awaited U.K.'s trade balance to tumble -8.6 billion last month.
Italy's excess of exports over imports advanced to a seasonally-adjusted 2.52 billion in July, from 1.01 billion in the previous month, according to Istat's industry report published on Thursday. Analysts had estimated Italian trade balance surplus to gain 0.37 billion last month.
U.S. 10-year bond yields rose to the highest level in five weeks as a $24 billion auction of the notes created the least demand in three years, making the Wall Street required to appear at government auction with their biggest volume of the offering since October. On Thursday, the Fed's 21 dealers purchased 54.2% of offering, the biggest share since
German bonds slipped, with 10-year yields climbing to a one-month high, on belief central banks may act to boost growth after China's industrial production and inflation slowed. On Thursday, the 10-year yield gained to 1.45%. The 1.75% bond due date July 2022 dropped 0.275 to 102.735. The 2-year yield advanced to -0.4%. German debt returned 3.3% in 2012 through yesterday.
Hong Kong stocks advanced, lead by the city's benchmark index expected to reach the strongest close since May, amid a four-month long slowdown in Chinese inflation providing a room for additional stimulus. The Hang Seng Index rose 1.1% to 20,277.21. The Hang Seng China Enterprise Index gained 1.2% to 9,970.42.
Japan's stocks prolonged a three-day rise after China's inflation eased a fourth month, expanding the scope for slowdown in Japan's major export market amid increasing expectations for global monetary stimulus. The Nikkei 225 Stock Average gained 1.1% to 8,978.60, the strongest since July 6.
Gold climbed to one-week high as China's inflation cooled and before data that may post a rise in U.S. unemployment claims, supporting optimism that central banks may act to boost the global economy. Immediate-delivery gold rose 0.4% to $1,618.80 per ounce, the strongest since July 31. Gold for December delivery surged 0.3% to $1,620.30.
New Zealand's jobless rate increased to 2-year high in Q2 indicating a slow economic recovery. According to Statistics New Zealand, the unemployment rate rose to from 6.7% in Q1 to 6.8%, while employment declined by 0.1% or 2000 jobs from Q1, when it rose 0.4%. The Kiwi fell to 81.11 U.S. cents.
Crude gained 0.3% in New York after a report showed China's inflation eased for a fourth consecutive month, leaving more room to weaken a growth downturn in the world's second-major oil consumer. On Thursday, September-delivery futures rose 0.2% to $93.53 per barrel, after falling 0.1% earlier.
China's CPI eased to 1.8% year-on-year in July, while PPI declined 2.9%, bigger than the expected fall of -2.5%, reported by the National Bureau of Statistics on Thursday. Food prices advanced 2.4% from July 2011 and non-food prices rose 1.5%. During the first seven month of the year the CPI climbed 3.1% year-on-year.
Australia's jobless rate unexpectedly declined and employers spurred payrolls in July. According to the statistics bureau in Sydney, employment increased by 14000 last month, while the unemployment rate decreased to 5.2%. The positive news sent the Australian Dollar close to a 4 month high.
The BOJ refused to loose its monetary policy and decided to keep the 45 trillion yen asset-purchase fund unchanged 25 trillion yen lending facility unchanged. Japan's central bank kept its interest rate between 0 and 0.1% and monthly bond purchases at 1.8 trillion Yen.
The shared currency weakened versus the most-traded peers as German industrial production decreased, U.K. growth forecasts lowered increased concerns that the region's debt crisis is escalating. The Euro declined 0.3% to $1.2365, after climbing to $1.2444 on 6 August, the strongest since July. The common currency lost 0.5% to 96.67 Yen.
The Japanese Yen rebounded after the BOJ refused to add stimulus at its policy meeting. The Yen gained 0.1% to 78.35 per U.S. Dollar after losing 0.2% earlier, while climbing from 96.97 to 96.99 per Euro. The BOJ decided to keep the asset-purchase fund at $573 billion (45 trillion Yen) and lending facility at 25 trillion Yen.
The Swedish Krona is expected to reach a record level versus the common currency. The Krona will strengthen to 8.0480 per Euro, as Sweden is one of 12 countries with AAA rating ranked by 3 biggest credit-rating agencies. Its currency has been strengthening after becoming a haven from the Eurozone's debt turmoil. The Krona climbed 0.8% to 8.2732 per Euro
The Australian Dollar strengthened versus the New Zealand Dollar for a third day as data indicated Australia's payrolls picked up in July, whereas unemployment increased in New Zealand. The Aussie gained 0.4% to NZ$1.3021, after touching NZ$1.3028 earlier, the highest level since 26 July. Australia's Dollar climbed to $1.0613, the strongest level since 20 March, while the Kiwi declined 0.2%
The shared currency fell on Wednesday, as BoE cut its growth forecast, and German exports and imports declined. The Euro erased 0.3 per cent to $1.2367, after rising to $1.2444 on Monday. The single currency depreciated against the yen as well, by losing 0.5 per cent to 96.95 per yen. Meanwhile, the Swedish Krona advanced versus the Euro, and reached twelve-year high at 8.2546.
On Wednesday, August 8, crude oil rocketed to a three-month high, as crude oil stockpiles dropped more-than-expected. Crude oil for September settlement soared 05.51 per cent to $94.15 per barrel during today's New York trading session. At the same time, Brent oil with September contract jumped 0.71 per cent to $112.80 per barrel. Inventories fell by 3.7 million barrels during the previous week.
On Wednesday, August 8, gold futures edged higher on better-than-expected U.S. productivity data. Gold for December settlement jumped 0.2%, to $1,616.80 during today's New York trading session. Among other metals, copper with September contract dropped 0.5 per cent, to $3.42 per pound, September silver erased 0.1 per cent, to $28.04 per ounce, while platinum and palladium also declined, by 0.3 per cent both.