The Fed has lowered its forecast for the US economic expansion from 2.9% to 2.4% in 2012. The central bank also expects the unemployment rate to attain 8.2% as compared to an April's forecast of 8%. The Fed announced it would continue Operation Twist, the program of swapping short-term debt for the long-one. The project is aimed at reducing long-term
The leader of Greek New Democracy Party was approved as PM after greek politicians managed to form a coalition. New Democracy will merge forces with socialist Pasok party and Democratic left party gaining in total 179 of 300 seats in parliament. European leaders have kept possibility to relieve fiscal austerity after Greek election showed nation's willingness to stay in the Eurozone.
The Canadian Dollar depreciated versus US Dollar on Wednesday after Fed reduced its estimates for this year's growth. The Federal Reserve also suggested it expects weak improvement in labour market this year. Loonie gave up 0.1% against greenback to CAD 1.0183. Currently USD/CAD is trading at 1.0214.
The 17-nation currency depreciated on Thursday as investors awaited Spanish bond auction. Moreover report on Eurozone manufacturing and service activity is going to be released today and it is predicted to show contraction. Euro fell 0.3% versus greenback to USD 1.2670. Currently EUR/USD is trading at 1.2675.
German Chancellor Merkel denied using direct countries' debt purchases via Eurozone rescue fund as a measure to fight turmoil. Merkel admitted that such a tool is legally possible. However, Merkel considers this measure as purely theoretical and hasn't express any interest in committing to sovereign bill purchases. French Socialist President Hollande in contrast suggests that it would be a reasonable way how to lower surging
The Euro inched higher versus the U.S. Dollar on Wednesday, after Greek announcement about coalition formation, while investors eyed Fed's meetings. EUR/USD peaked at 1.2723 in U.S. morning trade, and later consolidated at 1.2702, inching 0.13%. The pair's support was likely to be found at 1.2567, while resistance was prone to be at 1.2746.
Futures for crude held losses in U.S. morning trade, after the U.S. government reported that oil supplies gained more than expected. On the NYMEX, July delivery futures for light sweet crude were traded at USD82.89 per barrel, easing 1.3% during European morning trade. While contracts for August lost 1.35%, reaching the level of USD83.22 a barrel.
The British Pound held gains versus the U.S. Dollar, after the leader of Greek pro-bailout party announced that they managed to form a coalition, while traders were focused on Federal Reserve meeting outcomes. GBP/USD peaked at 1.5778, which was one-month high, and consolidated at 1.5741, gaining 0.10% in the U.S. morning trading session.
Futures for natural gas retreaded from a four-week high in the U.S. morning hours, as investors focused on upcoming natural gas supplies report by the U.S. government. On the NYMEX, July delivery futures were traded at USD2.546 a MMBtu, gaining 0.15% in U.S. morning trading session. Earlier, natural gas rallied 4.2% and was traded at USD2.676 per MMBtu.
Futures for gold came under pressure in U.S. early trade, falling to an almost one-week low, as markets were focused on the outcomes of a Federal Reserve policy meeting. On the NYMEX, August delivery futures were traded at USD1,604.55 per troy once, losing 1.15%. Earlier, contracts for gold lost 1.2%, being traded at USD1,601.05.
German DAX index edged higher on Wednesday as Greece moved closer a pro-austerity coalition and investors looked forward the results of FOMC meeting. Index was supported by Bank of England who announced asset purchase program. Utility firms rallied within the index. RWE AG surged 2.3% after Nomura raised the stock's rating from reduce to neutral. E.ON AG added 2.5% after
Farm commodities rallied on Tuesday on unfavorable weather conditions in North and South America.Wheat rocketed to four-week high on speculation that worse crops in the US and China will stimulate wheat demand as livestock feed.Corn surged by over 5% as hot and dry weather in Midwest of the US is expected to erode crops yield potential.Sugar soared to one-month high
Energy markets were mixed on Tuesday amid weaker US Dollar and stronger equities. Expectations for the next round of QE in the US continued to dominate market sentiment.Crude oil was top-gainer on easing hopes. At the same time, global growth fears continued to dent energy demand prospects thus pressurizing the price. Brent oil fell despite lack of clear result from
Industry metals except for aluminum advanced on Tuesday as hopes for easing measures in the US and solid world equities supported the base metals pack.Aluminum was the only loser amid weak demand in China. Meanwhile, China's smelters continued to reduce capacity because of low prices and delivery problems.Copper gained momentum on global easing hopes. FOMC meeting is expected to result
Precious metals fell on Tuesday ahead of key Fed statement due on Wednesday. The Fed decision will determine commodity price moves in the nearest term.Gold lost 0.6% after Span's borrowing costs surged to unsustainable level. Silver dropped despite stronger global equities that gained a spree after G-20 members hinted for easing bailout term for Greece.Platinum eased down on potential supply
Swiss economic sentiment deteriorated significantly, approaching five month-low in June. ZEW indicator that measures economic sentiment plunged by 39.4 points, attaining minus 43.4 this month as compared to minus 4.0 in May. Experts predicted the indicator to lose 11.0 points to 15.0 this month. A reading above zero signals optimism while a reading below zero indicates pessimism.
UK jobless rate stood at 8.2% in April, near three-year low, as businesses created sufficient number of new jobs to compensate public sector job cuts. The private sector managed to create 205,000 new jobs in three months before April. The data are highly appreciated by government officials who expect the private sector to employ 740,000 individuals by 2017 as public
China announced that its rare earth resources in top-mining areas are falling with accelerating pace while the most of the original reserves are almost depleted. China's officials attributed the fall to illegal mining and excessive exploitation. Meanwhile, China attempts to protect rare earths exports by imposing quotas but increasing demand for electrical goods production creates a threat for China's resources.
Italian new industrial orders fell in April, after posting an increase in March, according to STAT. New industrial orders dropped by 1.9% in April on a seasonally adjusted basis as compared to a 3.5% gain in the preceding month. Experts predicted the industrial orders to drop by 3.5%. After the data release, the Euro depreciated against the greenback by 0.08%,
Australia's real estate sector shank by 25% in Q1 on an annual basis, reported Australian Bureau of Statistics. The sector posted contraction for fourth quarter in a row. Instable global economy and poor domestic demand both contributed to a weakness of the property sector. Experts claim that housing sector is the weakest sector in the country's economy.
Crude oil declined in European morning session on Wednesday as market participants await outcome of FOMC meeting due later in the day. Moreover, traders anticipate EIA report on US stockpiles also due later in the day. Light, sweet crude oil futures for July delivery traded at 83.59 US Dollars per barrel on the New York Mercantile Exchange, dropping by 0.45%.
Gold prices were slightly lower in European session on Wednesday ahead of key decision from the Fed due later in the day. Traders also eye developments across Greece‘s and Spain's economic situations. COMEX gold August contract traded at 1,618.25 US Dollars per troy ounce on the New York mercantile Exchange, inching down by 0.3%.
Italian and Spanish bond yields have declined after G-20 summit participants hinted that Eurozone members have to lower borrowing costs in the single currency union. However, G-20 leaders provided no further details on the issue. The yields on Spanish and Italian 10-year sovereign bonds dropped to 6.96% and 5.85%, respectively.
Japan's Nikkei Stock Average followed US market trend and posted a strong gains on Wednesday on hopes for stimulus for the world's largest economy. Nikkei 225 index surged 1.11% or 96.44 points 8,752.31. Financial firms rallied most in the Asia. Daiwa Securities Group jumped 4.5% and Nomura Holdings added 4%. Sumitomo Mitsui Trust Holdings ascended 4.3% on news its plans