The Markit construction PMI advanced to 50.9 in July from 48.2 in June, exceeding expectations of further drop to 48.0. New orders showed the second-biggest fall since January 2010, but the decline was smaller than in June, and the drop didn't prevent confidence about the next year climbing to at three-month high.
The Stoxx Europe 600 Index gained 0.2% and the Euro climbed before ECB reports policy announcements after the U.S. Federal Reserve promised additional allowances for the U.S. economy. The Euro gained 0.2% to $1.2246. Copper climbed 0.4% and corn increased first time in 3 days.
German 10-year yields close to a three-week high on Mario Monti's yesterday talk about the region's bailout fund, which will get access to ECB money via a bank license. The 10-year note yield was at 1.37%, after climbing to 1.43% on July 30. Germany's 2-year bond yield rose one basis point to -0.062, meaning current bondholders will gain less than
Japan stocks advanced amid Federal Reserve's promise to provide extra support for the U.S. economy. The Nikkei 225 Stock Average climbed 0.5%to 8,6880.2 after the Yen slipped from the strongest in two month versus the Dollar. More explicit Topix Index advanced 0.8% to 735.45, having three stocks rising for each two that dropped.
Spain's registered unemployment decreased in July amid the seasonal boost in tourism sector, the major contributor to the economy. The number of citizens applying for jobless benefits dropped by 27,814 from June to 4.59 million, as reported by the Labor Ministry On Thursday. Last years decline was 42,059 big.
The U.S. Dollar climbed to a week-high versus the Euro after the Fed signaled more steps to support the economy. The Greenback rose 0.7% to $1.2225 per Euro, after touching $1.2218, the highest since June 26. The U.S. Dollar advanced 0.4% to 78.44 Yen, after earlier drop to 77.91, the weakest from June 1.
Canada's currency dropped versus the U.S. Dollar as Federal Reserve's promise to give additional allowance for the economy showed a sign of continuing monetary slowdown. The Loonie tumbled 0.3% to C$1.0055 per U.S. Dollar, one Canadian Dollar purchases 99.45 U.S. cents. The S&P 500 Index turned to a 0.3% drop after gaining 0.4%.
The Fed will adopt fresh stimulus as needed in order to spur economic recovery and reduce jobless rate, which has been stuck over 8% for more than 3 years. Stocks declined on disappointment Ben Bernanke rejected undertaking action even as employment grows at a slow pace, consumer spending weakens, and manufacturing cools.
The Japanese Yen fell against its major peers as the IMF stated that it is "moderately overvalued". The Yen lost 0.2% versus the common currency, falling to 96.05 per Euro. The Japan's currency was little changed at 78.73 per US Dollar. Finance Minister Jun Azumi will not rule out any possibilities to struggle with the Yen's appreciation.
Standard & Poor's retained a positive outlook for Germany's AAA credit rating, after Moody's Investors Service warned on July 23 that the nation's Aaa rating under threat. S&P said that Germany will be able to combat any potential economic and financial troubles, due to its highly competitive and diversified economy, strong balance sheet as well as public finances.
According to the Bureau of Statistics, Australian retail sales rose by 1% to A$21.6 billion in June, beating economists' expectations. Sales increase has been aroused by 4 interest rate cuts since 2011 as well as benefit checks and carbon rebates paid out. As a result, the Australian Dollar strengthened.
Gold futures hit one-week low on Wednesday, as the employment in the U.S. private sector improved, and amid expectations of the announcement of another quantitative easing during today's Fed meeting. October gold erased 0.33 per cent to $1, 607.15 per troy ounce. October Silver and October copper also declined, with 2.32 per cent and 0.97 per cent respectively.
The Eurozone's manufacturing Purchasing Managers' Index tumbled to 44 from the previous 45.1 in July, the lowest since 2009. Meanwhile, the Euope's biggest economy also contracted, with PMI Index at 43 level. Any reading below 50 signals contraction. The fall may be explained by declined orders, which led to cost cutting and as a result more job losses.
The U.S. dollar edged higher on Wednesday as U.S. manufacturing shrank last month and as Federal Reserve may announce new policy measures. The ICE dollar Index added 0.01 per cent, while more advanced WSJ dollar index rose by 0.07 per cent. The greenback strengthened versus the shared currency and was trading at $1.2304, from yesterday's $1.2314.
On Wednesday, August 1, oil futures soared, as the U.S. Energy Department reported on tumbled supplies. Stockpiles declined by 6.52 million barrels to 373.6 million barrels, six times more than it was expected. Soon after the data, crude oil for September settlement jumped 0.9 per cent, to $88.87 per barrel during today's New York trading session. The boost was also provided by the speculations about
According to the German carmaker BMW quarterly report, the profit fell sharply in the second quarter, mostly, due to increased staff costs, rise in spending on R&D and severe competition in the market. BMW reported on 1.28bn euros net profit, 28 per cent less than the previous year. Meanwhile, revenues jumped 7 per cent to 19.2bn euros. At the same time, vehicle sale increased by
Wall Street turned green in the first day of August on better-than expected labor market data in the U.S. The Dow Jones Index added 0.2 per cent, to 13,034.8, the Standard & Poor's rose by 0.13 per cent to 1,381.1, meanwhile, the Nasdaq Composite Index reversed gains and erased 0.07 per cent to 2,937.5. The Fed is going to announce new policy decisions during today's
As reported by the Automatic Data Processing Inc., the U.S. private sector added 163,000 jobs in July, after adding 172,000 in the previous month. Small businesses added 73,000 jobs, medium businesses rose at 67,000, while large businesses added only 23,000 jobs in July. Despite the fact that less people were hired, compared with June, hiring has improved since spring, when only about 120,000 jobs were added
German stocks were almost flat on Tuesday ahead of the FOMC minutes release due later in the day. Moreover, anticipation of the ECB meeting due on Thursday adds caution in the equity market. Financial shares were mixed. Commerzbank gained 0.87% while Deutsche Bank retreated 0.74%. Basic materials producers followed bullish trend despite disappointing China manufacturing data release. Linde and HeidelbergCement
UK equities rallied on Wednesday on speculation that the ECB will loosen its monetary policy. FTSE soared 1.18% to trade at 5,690.41 at the time of writing. Telecommunications and Financials posted the strongest gains. BT Group and Vodafone surged 0.69% and 2.74% while Barclays and Royal Bank of Scotland rose 0.24% and 1.45%. Meanwhile, Next prolonged its rally, with shares
Hang Seng Index added another 0.12% on Wednesday despite weakness of Asian markets. Financials and basic materials producers supported the index. However, dismal PMI data limited gains of Hong Kong stocks. HSBC Holdings and Bank of Asia gained 0.08% and 0.56%. Gains for basic materials producers came after the China Iron and Steel Association asked the government to restart
Nikkei 225 halted its rally on Wednesday, plunging 0.61% to 8,641.85 on weak China's manufacturing data. Disappointing earnings reports also weighed on Japanese equities. Telecommunications sector posted the largest gain, with KDDI and Softbank rising 0.55% and 5.82%. Softbank climbed after announcing a mid-year dividend plan. Energy companies were the weakest, with Inpex and Showa Shell Sekiyu KK sliding 1.25%
Rural commodities plunged on Tuesday as weather conditions in Brazil started to improve. Adding to the negative mood of farm commodities, livestock producers are forcing the government to increase supplies. Wheat was the top-loser after US livestock producers urged the government to halt an alternative-fuel mandate that is limiting amount of grain allowed to be used as livestock feed. Corn retreated from
Energy commodities moved lower on Tuesday ahead of key central banks' meetings. Hopes that the ECB and Fed will loosen their monetary policies failed to support the commodity group. Crude oil was the worst-performer as support from easing speculation weakened after positive signs from US economy. Brent oil went down on growing caution over hopes for additional monetary stimulus from the Fed