Emerging stocks market declined for a third day due to the drop in technology shares and concerns about slowing Chinese economy. The MSCI Emerging Markets Index slumped 0.4% to 958.78 as of 8:04 a.m. London time, expanding this week's drop to 1.1%. Moreover, China's industrial company gains fell 4.2% early in the year.
The US Dollar appreciated for a second day versus its major counterparts along with the European bonds and stocks amid speculation the US monetary policy will be tight compared to the policies of other major economies. The Bloomberg Dollar Spot Index gained 0.4% at 8:21 a.m. London time, while US crude dropped 2%, trimming its strongest weekly jump.
European stocks recovered from the weakest level in two days, paring their biggest weekly drop of the year. The Stoxx Europe 600 Index rose 0.5% to 396.52 as of 8:08 a.m. London time as a result of Novo Nordisk's gain of 13%. Moreover, the regional benchmark gauge has increased 16% within this year after the ECB's stimulus programme.
Fewer number of unemployment claims due to improved weather conditions started to stabilize labor-market as they did not reach analysts' expectations. Jobless claims plunged by 9,000 to 282,000 during the previous week, showing the lowest level since mid of February. However, analysts predicted them to stay at 290,000. Meanwhile, consumer confidence soared last week matching the second record since July 2007.
Chinese government decided to stimulate overseas projects in order to fasten economic growth, which will lead to extended gains in Chinese companies. As a result, China Communications Construction Co and China Railway Construction Corp soared around 6% on the rumors that government will share more details about its Silk Road plan during the ongoing Boao forum.
Gold headed for its longest run of gains in more than two months due to political tensions in the Middle East, which spurred demand for the precious metal as a safe haven. Bullion for immediate delivery dropped around 0.4% to trade at $1,200.10 an ounce. Meanwhile, the metal climbed to $1,219.79 on March 26, posting the highest level since March
Japanese stocks posted a strong decline, as the Asian currency benefited from broad weakness in the US Dollar. Topix lost 0.4% to trade at 1,575.81, while Nikkei 225 dropped 0.4% to 19,476.56. Meanwhile, the Yen traded at the 120.52 level versus the Dollar after a harsh 1% advance on Wednesday.
New Zealand's GDP grew 3.5% during the final three months of 2014, outperforming the median expectation of 3.4%. An unexpected acceleration took place due to a boost in tourist spending, as well as last week Bank of New Zealand's decision, to maintain interest rates unchanged. Governor Graeme Wheeler reckons that robust GDP growth will eventually translate into higher levels of
Japanese export rose more than expected in the preceding month, eliminating the effect of the previous year's recession. The total amount of overseas shipments advanced 2.4%, compared to the median estimate of a 0.3% increase. Imports dropped 3.6%, but there is still a 424.6 billion yen trade deficit.
The UK unemployment rate remained unchanged at 5.7%, the lowest level since October 2008. At the same time, the number of people seeking jobless benefits fell 31K, which is a smaller change after a 39.4K decline a month earlier. Average earnings grew less than expected, 1.8% instead of 2.2%.
According to the Monetary Policy Committee led by Governor Mark Carney, continued strength of the UK economy may stimulate the Pound to grow and thus lead to deflation. Meanwhile, the Cable, which touched a seven-year high versus the Euro this month, depreciated after weak wage growth.
The biggest iron ore producer and exporter in the world, Australia, lowered its forecasts for the ore prices, as an increase in shipments contributes to a global glut. According to the Department of Industry and Science, prices will reach $60 per ton this year, compared to the $63 in December and $88 in the preceding year. Meanwhile, the price for
Japanese stocks climbed as the central bank supported record monetary stimulus, meanwhile investors are weighing the US interest rates raise timing after poor economic data. The Topix index advanced 0.8% to 1,570.50 during the close in Tokyo, along with around 10 shares climbing for every seven which dropped.
Asian stocks climbed after the US equities rebound, while poor economic data weakened speculation the Fed will raise interest rates as soon as estimated. Tokyo Gas Co. rose 2.3%, along with Hitachi Ltd and Mitsubishi Heavy Industries Ltd that added 1.8%. Moreover, the MSCI Asian Pacific Index climbed 0.7% to 144.87 at 4:08 p.m. in Hong Kong.
Currencies and emerging-market stocks climbed, as the common currency appreciated amid speculation that as a result of poor US economic data the Fed may not raise interest rate as soon as estimated before. The Euro strengthened 0.4% to $1.0608 and a proxy to expected inflation in the United States derived from the debt markets touched the weakest level in six
European stocks fell after the German confidence grew less than it was estimated. The Stoxx Europe 600 Index lost 0.3% to 399.08 as of 10:01 a.m. London time, after the earlier 0.2% gain and the gauge closed at its strongest point since June 2007 yesterday. German investor confidence climbed from 53 to 54.8 in February, compared to the economists' forecast
The Standard & Poor's 500 Index reached its five-week high, while Treasuries advanced and the US Dollar fell, when weaker than expected economic data reinforced the view the Fed may not hike interest rates as previously anticipated. The S&P 500 rose 1.4% as of 4 p.m. in New York, touching to the highest level since February 3.
Government bonds in the UK set for their weekly gain, with 10 yields falling the most within this year, since the ECB's plan to start 1.1 trillion-euro bond purchasing programme pulled down rates in Europe. UK 10-year bonds dropped on Friday, enhancing the yield by 0.04%, or 4 bps, to 1.78% at 9:42 a.m. in London.
The Pacific Investment Management Co., announced its gloomy forecasts on the future demand for Chinese steel, since the real-estate market is slowing, thus affecting on the iron ore prices. Meanwhile, China is producing around half of a global steel production and is the major consumer of iron ore, which plunged to its record lows, since 2008 during this week.
European shares traded in a tight range, with the Stoxx Europe 600 Index setting for a weekly gain, while drops in energy stocks offset advances in industrial companies. The Stoxx 600 lost 0.1% to 395.01 as of 10:08 a.m. London time, while the equity gauge is setting to its weekly rise of 0.2%, since the weaker Euro currency spurred exporters.
The total amount of carbon dioxide, in China, decreased by 2% in the preceding year, showing the first decline since 2001, and giving hopes, that air pollution preventing measures are working. Moreover, the demand for coal is decreasing, while other fuels are consumed more, these reasons, also help to curb level of pollution.
A record glut in US oil inventories may stretch the world's largest economy's storage capacity, enhancing a drop in prices and curbing its output, the International Energy Agency reported. West Texas Intermediate oil, the US benchmark, erased earlier gains falling 0.8%, or 38 cents, to $46.67 a barrel during the New York Mercantile exchange as of 9:53 a.m. in London.
The US Dollar is experiencing its best gains in six and a half years, since investors have time to speculate, before the possible Fed's interest rate hike in June. The Dollar managed to rebound on Friday, before Fed policy makers meeting, which is scheduled for the next week. Meanwhile, the US currency climbed 0.5% to trade at $1.0577 per Euro;
The Nikkei 225 added 1.4% to 19,254.25 level, showing the record highs, since April 2000, as the stocks of leading Japanese supplier of robotic automation, Fanuc Corporation, soared 13%. Meanwhile, the Topix climbed 0.9% to trade at 1,560.33 level, also demonstrating the highest gains, since December 2007.