Futures for gold were growing in the early U.S. trading session, as both expected disappointing U.S. economic data and Eurozone fears triggered the demand for the precious metal. On the NYMEX, August delivery futures were traded at USD1626.25 per troy ounce, adding 0.41% during the early trade. Support was prone to be at USD1583.05, while resistance could be at USD1628.95.
Mervyn King in his speech announced that the central bank and the government will flood the banking system of the U.K. with 100 billion Pounds through providing the banks with low-cost long-term funding. The Bank of England and the ministry of finance have designed a scheme that will offer banks loans at below market rates, but demanding the banks to increase lending to households
In a report on Friday, Eurostat said that the trade balance for Eurozone was EUR5.2 billion. This is a decrease comparing to the March's EUR7.5 billion on a seasonally adjusted basis. However, this is an increase comparing to the same month in the previous year, when the trade deficit was EUR4.5 billion. In April, exports tumbled 1.3% and imports slumped 3.0% compared to the previous month.
The pound lost ground on Friday on the country's Central Bank speculations on purchase of government debt in order to support U.K. economy as European debt crisis worsens. Sterling fell 0.1 per cent to $1.5549, a 0.1 per cent decline to 81.22 against the euro.
On Friday, Eurostat reported that the Eurozone employment level declined by 0.2% during the first three months of the year, in line with expectations, whereas it remained stable in the whole European Union. Comparing to the same quarter in the previous year, employment level dropped 0.5% in the single currency bloc, and fell by 0.1% in 27 EU countries.
European stocks jumped on Friday, on contingency plans reports of governments and central banks that will start to fall into place after elections in Greece. The Stoxx Europe 600 index added 0.4 per cent to 242.70 and Spain's IBEX 35 index climbed 1 per cent. The German DAX 30 index and the French CAC 40 index inched higher 0.5 per cent and 0.7 per
The euro gained versus the greenback on Friday ahead of weekend's Greek elections. The single European currency ticked higher from $1.2613 to $1.2631. The ICE dollar's index, which shows currency's relation to its six major counterparts, edged lower to 81.770, compared to 81.917 on Thursday.
The yen rose versus the euro and the dollar on Friday after the Bank of Japan decided to keep monetary policy measures. Japan's currency gained 0.4 per cent to 79 per U.S. dollar and climbed 0.5 per cent to 99.79 against the single European currency.
Futures for natural gas declined in the European trading session on Monday. On the NYMEX, July delivery futures for natural gas were traded at USD2.513 a MMBtu, shedding 0.70% by 09:00 GMT. Earlier, natural gas was traded at USD2.498, a session low. The support for natural gas futures were likely to be found at USD2.170, whereas resistance may be at USD2.543.
According to official data, the trade balance in the U.K. fell more than it was previously expected. On Friday, National Statistics reported that the British trade balance declined to minus 10.1 billion Pounds on a seasonally adjusted basis from the preceding month's minus 8.7 billion. Analysts' forecast, however, was that the trade balance would be minus 8.5 billion Pounds.
Japan's Nikkei Stock Average fluctuated between gains and losses on Friday. On the upside the index was supported by Reuters report which said national banks are ready to ensure liquidity if necessary. Nikkei 225 index traded almost flat adding 0.43 points and finishing at 8,569.32. On the downside heavyweight machinery companies dropped with Sumitomo Heavy Industries losing 2.2% and Kawasaki
Hong Kong's stocks led the Asian markets on Friday with a notable rally as investors expected further stimulating actions from national banks. Hang Seng index jumped 2.26% or 452.54 points and finished at 19,233.94. Esprit Holdings partly rebounded from previous sessions' slump and gained 9.6%. Commodities accelerated on weaker US Dollar sending mining shares higher. Aluminum Corp. of China and
Despite worse than expected jobless claims, Dow Jones Industrial Average surged on Thursday lifted by hopes about possible expansionary monetary policy. Blue chip index added 1.24% or 155.38 points to 12,651.91. 28 stocks out of 30 posted gains. Home improvement retailer Home Depot jumped 2.3% and entertainment company Walt Disney advanced 2.1%. Bank of America rallied 2.1% and The Travelers
S&P 500 index experienced a strong session on Thursday on signals global policy makers may apply extra measures to boost slowing economies. US benchmark jumped 1.08% or 14.22 points and closed at 1,329.10. International Game Technology rallied 14%, Casino machines maker announced a $1 billion share buyback plan in an effort to reward investors after a 23% share drop in
Farm commodities were mixed as weather conditions in the US improved while global demand remains uncertain.Wheat advanced on speculation that lower Russia production is likely to boost demand for US grains. Russia output is expected to fall by annualized 5.7% over 12 month, starting from June 1.Corn rose on expected increase in demand for US supplies. However, recent rains in
Energy commodities rallied on Thursday after OPEC members agreed to leave current production ceiling at 30 million barrels per day for the second half of 2012. The decision implies output reduction by 1.6 million barrels per day.Crude oil gained over 1% after the outcome of the OPEC meeting. At the same time, looming Greek elections continued to cap the upswing.Brent
Industry metals were mixed on Thursday amid pessimistic economic data from the US and Eurozone.Aluminum declined despite expected deficit in the market next year as producers tend to cut output in view of low prices.Copper managed to add 0.41% on speculation that the Fed is ready to take additional steps to accelerate sluggish economic recovery. Nickel was the top-loser amid
Precious metals except for silver were solid on Thursday on broadly stronger equities and weaker US Dollar.Gold extended its rally as negative CPI data from the US fueled hopes for new round of QE in the country.Silver was the only loser, being pressured by sharply higher Spanish bond yields that lingered concerns over health of the Eurozone's economy.Platinum advanced by
US stocks ended Thursday with a substantial gains on reports saying global central banks may intervene to boost growth. Dow Jones Industrial Average added 1.24% or 155.38 points to 12,651.91. S&P 500 index jumped 1.08% or 14.22 points and closed at 1,329.10. Nasdaq Composite soared 0.63% or 17.72 points to 2,836.33.
Asian markets advanced on Friday, as investors expected policy easing before the upcoming election in Greece. The Hang Seng Index inched higher 1.3 per cent and the Shanghai Composite index jumped 0.2 per cent. Australia's Standard & Poor/ASX 200 index and Japan's Nikkei Stock Average climbed 0.3 per cent and 0.2 per cent respectively.
Gold ticked higher on Friday, as expectations of new monetary stimulus boosted demand for the precious metal. Gold futures for August delivery climbed $6.00, a 37 cents increase, to $1,625.70 an ounce in trading session of the New York Mercantile Exchange's Comex division. Silver futures for July delivery grew 24 cents, a 0.8 per cent rise, to $28.61 an ounce.
Five Dutch banks including Rabobank Nederland and ING Groep were downgraded by Moody's Investor Service on fears the recession and dependence on global markets makes lenders more vulnerable. Debt grade for ABN AMRO Bank NV, Rabobank Nederland, LeasePlan Corporation NV and ING were cut by two notches. Belgium largest insurer and bank KBC Groep NV also was reduced by two levels.
The New Zealand and Australian currencies approached weekly gains on expectations global leaders will have to take more steps to stimulate growth and halt European debt turmoil. Aussie has climbed 1.1% this week and currently is trading at USD 1.0009. Kiwi has appreciated 1.7% on weekly basis and currently is trading at USD 0.7826.
The U.S. Dollar depreciated for the second straight day versus Euro and Japanese Yen on speculation slowing country's economy will put pressure on Federal Reserve officials to apply more measures to stimulated growth. The greenback gave up 0.2% against Yen to JPY 79.35 and fell 0.6% versus Euro to USD 1.2633.