Spain's service sector activity advanced unexpectedly in June, industry data posted on Friday. Markit Financial Information Services reported that Spain's services PMI increased to a seasonally-adjusted 43.7% last month, from 43.4% in June. The rise exceeded analysts' expectations of decline to 43.0%.
On Friday, Chinese authorities, trying to stop a 14% drop in the nation's stock market, diminished transaction payment on equities trading by 20%. The China Security Regulatory Commission reported that the effect of reduction will be seen Sept. 1 and investors will save 600 million Yuan ($94 million) on transaction fees in the last quarter of the year.
On Friday, National Institute of Economic and Social Research reported that the British economy will tumble 0.5% this year, resulting in miss of George Osborne's budget-deficit target. Osborne will acquire 12.5 billion Pound ($19.5 billion) loan, which is more than projected in the year till March 2013, Niesr announced.
U.S. treasuries continued to top-perform among world's bonds over three straight month before U.S. jobs data, which is expected to show an unemployment rate stagnation at 8.2%. 10-year and longer government securities regained 9.8% in the period, the rise was the biggest among 144 bond indexes. Average 10-year yields were 1.47%, after a record low of 1.38% on July 25.
The common currency weakened against most of its major counterparts after the ECB President Mario Draghi did not offer sufficient steps to curb the Eurozone debt crisis. The Euro lost 0.6% dropping to 95.30 Yen and fell 0.4% to $1.2180. The Pound rose for the first time in 3 days against the Euro after the BOE decided to keep its
The Australian Dollar headed towards 5-day loss before the U.S unemployment report, which might show that employers failed to lower the jobless rate, thus curtailing demand for higher-yielding assets. The Aussie lost 0.1% to 81.84, while declining from $1.0465 to $1.0465 against the US Dollar. On the contrary, the Kiwi gained 0.3% to 81.26 US cents and 0.2% to 63.53
The Canadian Dollar declined against the U.S. counterpart for a third day in a row as the ECB failed to take decisive actions to combat the Euro bloc's debt crisis, hence weighing on investors' risk appetite. The Loonie fell versus most of its 16 counterparts amid declines in crude oil and stocks, weakening 0.2% to C$1.0074 per U.S. Dollar, while
The Japanese Yen rose versus most of its major counterparts, due to escalating Eurozone debt crisis and weakening global growth, which spurred demand for safe haven assets. The Yen gained against the US Dollar for a sixth consecutive week as Asian stocks declined before the U.S. unemployment rate, which expected to show jobless rate above 8%. Demand for the Euro
Oil recovered from the lowest level in almost 3 weeks before job creation report, which might show increased hiring in the US. Analysts expect employers to add 100 000 work places in July. Oil futures gained as much as 0.5%, with Brent crude for September delivery rising 0.3% or 28 cents to $106.18 per barrel.
According to the Commerce Department's report, the number of order to U.S. factories unexpectedly fell in June, signalizing that demand for business equipment in the world's biggest economy contracted. After adding 0.5 per cent in May, the bookings tumbled by 0.5 per cent; while demand for durable goods increased by 1.3 per cent. At the same time, factory inventories rose by 0.1 per cent, while
On Thursday, August 2, European stock turned lower as Mario Draghi's comments failed to meet markets expectation. The Stoxx Europe 600 Index tumbled 0.8 per cent to 260.45 during today's London trading session. At the same time, the U.K.'s FTSE 100 Index declined by 0.6 per cent, Germany's DAX Index erased 1.4 per cent and France's CAC 40 Index fell by 1.6 per cent.
The U.S. Dollar turned higher versus the shared currency as Mario Draghi announced no new decisive action to support his last week's pledge to do whatever it takes to save the Euro. The ICE Dollar index jumped 0.10 per cent to 83.233 from 82.545 just before the press conference. Meanwhile, the Euro erased 0.22 per cent to $1.2201.
German shares rose in early European session amid hopes for easing from the ECB. However, the ECB decision to refrain from easing measures at the moment dragged German blue chips index sharply lower. German DAX Index has already lost 1.82% to trade at 6,638.30 at the time of writing. All industries in the index sank. Utilities and basic materials posted
UK stocks started the day on the positive note as the BoE announced that it will maintain its bond-purchasing program. Moreover, positive construction PMI data both bolstered UK equities. However, after the ECB stated that fresh measures to preserve the Euro will be considered only in the coming weeks, UK stock index moved sharply lower. FTSE 100 Index tumbled 0.61%
On Wednesday, August 1, European stocks edged higher amid speculations about decisive actions from central banks to support the economy. The Stoxx Europe 600 Index soared 0.5 per cent to 262.57. At the same time, the U.K.'s FTSE 100 rose by 1.4 per cent, while Germany's DAX, on the contrary, erased 0.3 per cent. Next Plc added 6.5 per cent, Arkema SA jumped 5.7
Chinese equities plunged on Thursday ahead of the ECB monetary policy decision. Hang Seng Index declined by 0.6% to close at 19,690.20. Only one sector in the index, utilities, managed to climb 0.16%. Hong Kong & China Gas and Power Assets rose 0.67% and 0.9%. At the same time, consumer services and telecommunications industries were the weakest. Sands China, China
Farm commodities, excluding coffee, dropped on Wednesday on broadly stronger US Dollar and lack of easing measures from the Fed. Long-awaited rains in US also pushed rural commodities lower. Wheat was the top-loser, falling to one-week low amid signs that US spring crop yields may rise after rains. However, reports that Russia's output is likely to fall by more than 16%
Japanese stocks erased some of the previous losses on Thursday as hopes for decisive action from the ECB bolstered Asian equities. Moreover, shares that tumbled on Wednesday on disappointing quarterly results managed to recover on Thursday. Nikkei 225 Index added 0.13% to trade at 8,653.18.Utilities and technology sectors provided strong support for Japanese stock index. Tokyo Electric Power and Osaka
Energy commodities apart from natural gas moved higher on Wednesday as market participants hoped for easing from the Eurozone. However, gains of the commodity pack were partly capped by weak PMI data and lack of monetary stimulus from the Fed. Crude oil went up after the EIA reported that US crude oil inventories declined much more than expected last week. Brent
Dow Jones Industrial Index inched down 0.29% to end Wednesday's session at 12,971.06. Investors were disappointed by the Fed decision not to embark on additional easing measures. Adding pressure on the US blue chips, ISM manufacturing PMI rose much less than expected in July. However, positive non-farm employment data restricted the downswing. Only three sectors from nine included in the
Base metals plunged on Wednesday amid weak manufacturing data releases across the globe. US manufacturing sector activity declined to 49.8 while experts predicted the PMI to approach 50.3. Meanwhile, euro-area PMI contracted to three-year low of 44 last month. Aluminum dropped on bleak PMI data from the EU and US. Additionally, high China's aluminum output weakened the light metal further. Copper tumbled
US equities edged down on Wednesday on disappointing Fed monetary policy statement. The Fed decided to stick to the current policy but pledged to hold record low interest rates till 2014. Meanwhile, mixed corporate reports also weighed on the US stocks. S&P 500 lost 0.3% to close at 1,375.32. Oil and gas industry posted the strongest gains. Exxon Mobile and
Precious metals tumbled on Wednesday as Fed meeting resulted in absence of significant changes in the current monetary policy. Moreover, strengthening US Dollar and weaker global equities weighted down on the commodity group. Gold attained one-week low after upbeat ADP non-farm employment data. However, news that the US manufacturing sector continued to contract in July provided slight support for the yellow
On Thursday, Spain sold 3.1 billion Euro of debt, but low expectations of ECB's decisive action pressured the country to pay bigger yields compared to a month ago on its 10-year notes. Demand dropped, with bid-to-cover ratio at 2.4 from 3.2 in previous month. A bond maturing July 30, 2014 sold 1.1 billion Euro at 4.774% yield. A bond due