The Standard & Poor's 500 Index, that has dropped 2.5% from its highest level on May 21, gained an average 16% over two years the previous four times the Fed started raising its interest rates. The S&P shares declined weekly for the third time in last month, falling 1% to 1,626.73 previous week, after Chinese industrial production missed the expectations.
Treasuries cut a two-day climb after investors awaited whether U.S. economy has grown enough to taper stimulus. U.S. 10-year note yields were steady at 2.14% and the price of the 1.75% security maturing in May 2023 fell 94 cents per $1,000 nominal value to 96 1/2. The benchmark yield rose to 2.29% on June 11, the highest in over a
Global shares advanced, while the Japanese Yen declined after its biggest one-week rise in 48 months as investors are waiting for the Fed policy meeting that starts on Tuesday. The MSCI All Country World Index gained 0.3% to 364.17 at 8:23 a.m. London time as the Stoxx Europe 600 Index added 0.5% and the MSCIA Asia Pacific Index grew 1.2%.
Gold futures prices advanced on Monday as part of the investors expect that the Fed will leave the bond-buying programme unchanged this week. The yellow metal futures for August delivery added 0.1% to $1,388.80 an ounce, in spite of the U.S. Dollar gain. Bullion futures on Friday climbed 0.7% after a report, which calmed worries that Bernanke will taper the
Asian shares gained, with the MSCI Asia Pacific Index set for the biggest two straight day rise since September, before the two-day Fed policy meeting that will start tomorrow. The MSCI Asia Pacific Index added 1.3% to 132.43 at 3:14 p.m. Tokyo time; the index has fallen 3% this month to date. Japan's Topix index and benchmark Nikkei 225 both
The Sterling remained steady against the U.S. Dollar and the Euro after an industry data indicated U.K. property sellers increased asking prices for the sixth month in June. The Pound touched the strongest level in four months against the Dollar last week and was trading at $1.5696 today. The U.K. currency was at 84.94 versus the Euro.
The Aussie advanced, prolonging its first one-week gain versus the U.S. Dollar in six weeks, on speculation that its retreat may be exaggerated. The Australia's Dollar climbed 0.4% to 96.1 U.S. cents as of 2:42 p.m. Sydney time from June 14, when it fell 0.7%, while it advanced 1.2% to 91.08 Yen. The kiwi rose 0.4% to 80.81 U.S. cents
The U.S. Dollar rose against the 17-nation currency and the Yen ahead of the Fed policy meeting that will start tomorrow and will last for two days. The greenback grew 0.4% to 94.72 Yen at 6:14 a.m. London time, following a 3.3% one-week retreat, while it advanced 0.2% to $1.3319 against the Euro. The Dollar Index gained 0.2% to 80.799.
Inflation in India dropped to the lowest level in 43 months in May, leading to speculations that the central bank might cut interest rates further. Wholesale prices rose 4.7% last month, while experts predicted an increase of 4.88%. As inflation provides room for rate cuts, the depreciating Rupee, which reached the lowest point of 58.9850 per Dollar on June 11,
Norway will add stimulus to its economy if situation in Western Europe continues deteriorating, which has already harmed Norway's exports. The government increased spending by 19% as an election is approaching. The Krone jumped 0.33% today so far, reaching 7.6536 per Euro. The currency has been rising since the crisis, which harmed Norwegian businesses as it makes them less competitive.
U.S. stock futures remained steady as the Standard & Poor's 500 Index rose the most for the second time this year. Investors are expecting a report on industrial output and consumer sentiment. The S&P 500 futures maturing in September dropped 0.1% to 1,629.2. The Dow Jones Industrial Average delivery declined 12 points to 15,105.
The U.S. Dollar remained weak versus the Japanese Yen on Friday, however a rebound in shares pushed the Dollar up from the lowest level in two months. The greenback declined 0.4% and was at 95.00 versus the Yen. The U.S. Dollar index climbed 0.1% to 80.85, rebounding from 80.500, the weakest level in four months.
European government bonds climbed, pushed by the bonds of countries with higher-yielding as Italy and Spain, on bets the Fed and other central banks will keep QE to maintain low borrowing costs. Spanish 10-year yield declined eight basis points to 4.54% and Italy's 10-year yields fell nine basis points 4.27%.
Bond yields decreased as investors speculated that the Fed will continue its bond-purchasing program. Yields on German 10-year bunds and similar maturity Treasuries decreased 3 basis point to 1.53% and 2.12% respectively. Spain, Italian and Portuguese 10-year government securities' yields dropped 7, 11 and 21 basis points, respectively.
Stocks were leaning towards forth consecutive week of declines amid worries that central banks, most notably the Fed, might unwind their bond buying programs. The U.S. retail sales release beat market expectations yesterday, which lead to rise in global stocks. FTSE EuroFirst 300 jumped 0.3% tracking the 2% rebound in Nikkei 225, which has lost more than 15% since mid-May.
German shares rose, ending the past week's decline for the benchmark DAX Index, as investors were watching the changes in the U.S. economy and in the stimulus measures from central banks. The DAX Index gained 0.7% to 8,149.21 as of 10:42 a.m. Frankfurt time; however, the index has slipped 1.3% weekly on concern that the Federal Reserves might curb the
Treasuries were set for their first weekly rise since April after investors claimed that speculation was excessive that the Fed could soon signal to pare easing. Ten-year yields headed towards the highest level in 14-months this week. U.S. 10-year bond yields remained flat at 2.15% and the price of the 1.75% security maturing in Many 2023 was at 96 14/32.
U.S. shares rose, with the Standard & Poor's 500 Index climbing the most since January, amid better-than-expected economic report and bets the Federal reserve will provide plans to keep record low interest rates. The S&P 500 advanced 1.5% to 1,636.36 and the Dow Jones Industrial Average gained 1.2% to 15,176.08.
Asian currencies declined this week, with Indian rupee reaching a record low, amid concern U.S. officials will taper bond-buying programme that has spurred inflows into emerging markets. The Philippine peso declined 1.4% to 42.850 against the Dollar and the rupee plummeted 1.2% to 57.78, and the South Korean currency slipped 1.2% to 1,130.40.
The Dollar Index slipped to its four-month low on bets that the Fed will not increase lending rates. The Dollar Index, which is used to monitor changes of the U.S. Dollar versus six major U.S. trade partners, dropped 0.3% to 80.674 after touching the lowest point since February 19. The Fed officials' next meeting is scheduled on June 18-19.
The Sterling is set for a third straight weekly advance against the U.S. Dollar, its longest streak of weekly gains since September 2012, as the U.K. home prices increased in May. The British Pound was at $1.5699 at 7:42 a.m. in London after rising to $1.5738 on Thursday, the highest point since February 11; the currency has appreciated 0.9% weekly.
The Aussie is set for its first one-week advance in six weeks on bets that its almost 9% fall in the last eight weeks was excessive. The Australia's currency slipped 0.3% to 96.11 U.S. cents as of 9:50 a.m. Sydney time from yesterday, after reaching 96.66, the highest level in two weeks, and it is set for 1.2% advance weekly.
German government bunds rallied, with 10-year notes advancing for the fourth day, ahead of the data on consumer-price inflation in the Euro block. Experts predict the report to show an increase in inflation rate.The yearly inflation rate inched up 1.4% from 1.2% in April. The 10-year German bond yield declined three basis points to 1.54%.The two-year security yield contracted to
Hong Kong shares advanced, with the benchmark index bouncing off the lowest level in almost nine months, as U.S. economy topped expectations and analysts claim the Fed will leave interest rates unchanged. The Hang Seng Index gained 1.2% to 21,145.42 at 10:09 a.m., with almost all stocks climbing, while the Hang Seng China Enterprises Index jumped 1.2%.