The Bank of England cut the U.K's growth forecast to zero on Wednesday, from the previous estimate of 0.8 per cent. The double-dip recession intensified in the second quarter, leaving more space for possible interest rate cut. At the same time, the report showed no sign of the inflation growth for 2012, from the previous forecast of 2%. Currently, interest rates are at the record
German shares halted the rally on Wednesday on dismal exports data. Germany's exports dropped by 1.5% in June on a monthly basis. The downgrade of Greece's outlook also pushed stocks lower. However, hopes that the ECB will loosen its monetary policy to avoid recession restricted the downswing. German DAX 30 Index retreated by 0.75% to trade at 6,919.15 at the
UK stocks slid on Wednesday after Standard & Poor's cut Greece outlook from stable to negative. Adding pressure on the equities, the Bank of England reduced its UK growth forecast close to zero from 0.8%, citing double dip recession and zero inflation rate. FTSE 100 Index lost 0.63% to trade at 5,811.21. Eight out of ten industries included in the
Agricultural commodities tumbled on Tuesday on more favorable weather conditions in the US, Brazil and India. However, hopes that the ECB and Fed will loosen their monetary policies restricted the downswing. Wheat slid 0.4% despite supply cuts from Russia. Russia's harvest is expected to be less than in 2010 when the country faced the worst drought in more than 50 years
Hong Kong shares were flat on Wednesday, balancing between Greece downgrade and expectations for easing measures from the ECB and Fed. On Tuesday, Standard & Poor's lowered Greece's outlook from stable to negative. Market participants were also cautious ahead of key China's data due on Thursday. Hang Seng Index closed 0.04% lower at 20,065.52. Resources stocks provided strong support for
Nikkei 225 prolonged its rally on Wednesday on building expectations that central banks of the Eurozone and US will launch additional easing measures to boost economy. Fading impact of weak corporate earnings in Q2 also provided support for Japanese equities. Nikkei 225 surged by 0.88% to trade at 8,881.16. On the upside were basic materials and industrials. Nippon Kayaku, Mitsui
Energy commodities soared on Tuesday amid improving demand prospects and potential supply disruptions. Expected easing measures from the ECB and PBOC are likely to boost demand while hurricane may impact oil production in the Gulf of Mexico. Crude oil jumped 1.59%, attaining 12-week high as output from the North Sea continued to fall. Persistent tensions in the Middle East also lent
US blue chips edged higher on Tuesday on expectations that the ECB and Fed will ease their monetary policies. Eric Rosengren, Boston Fed president, said that the Fed has to embark on fresh asset purchasing program to facilitate economic recovery. Dow Jones Industrial Average Index rose by 0.39% to end Tuesday's session at 13,168.60. The largest gains posted industrial and
Industrial metals apart from nickel surged on Tuesday despite weak German factory orders data. Germany's factory orders dropped 1.7% in June while analysts expected a 0.8% decline. However, easing speculation supported base metals' pack. Aluminum was the top-gainer on improved risk-sentiment after the ECB moved closer to fresh bond-purchasing program. Copper balanced between slight decline in inventories and a fall in
S&P 500 continued its upward trend on Tuesday as better than expected quarterly results buoyed US equities. Traders' sentiment was also boosted by easing expectations for the ECB. S&P 500 gained 0.51% to trade at 1,401.35.Oil and gas as well as basic materials were the top-gainers among the industries included in the index. Among oil and gas companies, Alpha Natural
Precious metals advanced on Tuesday despite broadly stronger US Dollar. Speculation that the ECB and Fed are planning to launch easing measures boosted the commodity group. Meanwhile, physical demand from India is expected to remain weak ahead of the festival season. Gold added 0.1% as the ECB is likely to take steps to reduce borrowing costs of Spain and Italy. Sending
Treasuries gained after a three-day drop as S&P revised Greece's debt rating outlook to negative, boosting demand for U.S. bonds as a hedge from Europe's debt crisis. The price of the 1.75% security due in May 2022 increased to 101.25. Benchmark 10-year yields slipped 0.02 percentage points to 1.61%. Yields rose from an all-time low of 1.38%, posted on July
On Tuesday, August 7, the greenback remained lower versus the Euro and other major currencies amid hopes that the ECB will soon make decisive actions to stem the debt crisis in the Eurozone. In order to lower Italian and Spanish borrowing costs, the ECB may soon resume bond-buying program. The shared currency strengthened against the greenback during today's New York trading session, with EUR/USD adding
Gold futures fluctuated on Tuesday, as investors are getting more cautious about actions by the ECB to curb Eurozone's debt crisis. Gold futures with the October contract erased 0.02 per cent to $1,612.75 per troy ounce during today's New York trading session. Meanwhile, other precious metals advanced, with September silver adding 0.54% and copper for September settlement rising by 1.50%.
German factory orders fall more-than-expected in June, as the number of goods, sold to Eurozone's countries tumbled. Orders dropped 1.7 per cent in June, after rising 0.7 in May. Report proves that Eurozone's largest economy is decelerating, hit by global economic slowdown. The demand for German goods eroded, with orders from the Eurozone erasing 4.9 per cent, while domestic orders declined by 2.1 per cent.
Oil futures continued three-day rally on Tuesday, and hit three-month high, as Wall Street edged higher and weaker U.S. Dollar helped oil's gains. Crude oil with September contract jumped 0.7 per cent, to $92.89 per barrel during today's New York trading session. In the meanwhile, investors are waiting for the American Petroleum Institute's report, as inventories are expected to decline, pushing crude higher. Other energy contracts also
The Pound slipped on belief the Bank of England will decrease its forecasts for expansion and consumer prices as it reports the quarterly inflation data. U.K. currency dropped versus most of its major peers. The Sterling slipped 0.2% to $1.5587. It fell 0.5% to Y122.19, and almost didn't change at 79.40 pence per Euro.
Hong Kong stocks dropped, lead by the city's benchmark index falling for the first time in three days, before reports may post the economy is slowing. There were little losses on belief slowing inflation may leave more room for additional monetary easing. The Hang Seng Index slipped 0.2% to 20,032.80 after a 0.6% gain.
On Wednesday, Europe's stocks tumbled from the highest level in four month before a report that may post German industrial output decline. The Stoxx Europe 600 Index fell 0.3%, after gaining to the strongest since March yesterday. The Standard & Poor's 500 Index dropped 0.2%. The MSCI Asia Pacific Index gained 0.3%.
Asian stocks edged up with the benchmark index approaching a 3-month high, on speculation that central banks from China to the U.S. will take measures to spur growth. The MSCI Asia Pacific Index rose 0.4% to 120.01. Japan's Nikkei 225 Stock Average gained 0.9%, while Australia's S&P/ASX 200 Index climbed 0.5%.
The Norwegian Krone advanced to a 6-week high versus the U.S. Dollar as Norway's manufacturing production surprisingly increased in June. The Nokkie appreciated against all 16 most-traded counterparts as factory output rose 0.8% from May.The Krone gained 0.7%to 5.9197 versus the U.S. Dollar, after touching 5.9149, the strongest level since 21 June.
The Canadian Dollar rose to the strongest level in 12 weeks versus the U.S. Dollar as stocks and oil climbed and risk appetite increases. The Loonie gained against all of the 16 most-traded peers except the Nokkie as Canadian business spending gauge rose more than expected. Against the greenback Canada's Dollar gained 0.3% to 99.70 cents and then reached 99.63
Copper dropped after a three-day increase. On Wednesday, copper for September delivery decreased 0.5% to $3.425 per pound in New York, after reaching $3.449 yesterday, the strongest level for a contract since July 31.
The Aussie was 0.6% from its four-month high after report posted home-loan approvals increased 1.3% in June by the most in 2012, increasing signs of boost in the economy. On Wednesday, Australia's Dollar fell to $1.0545 after reaching $1.0604, the highest since March 20. Aussie dropped 0.4% to Y82.68. The Kiwi fell 0.4% to 81.25 U.S. cents. It slipped 0.7%