The pace of growth of the United Kingdome's economy might lose momentum due to a high level of the country's current account deficit, Capital Economics Chief UK Economist Vicky Redwood said on Thursday. A report released by the Office for National Statistics showed that current account deficit of the U.K. was upwardly revise to GBP 21.8 billion in the Q1.
Unemployment of the second largest economy in South America recorded further decline in the month of August and touched the lowest level in a eight-month period, a data published by the statistical office IBGE revealed on Thursday. Brazil's jobless rate fell from 5.6% recorded in July to 5.3% in August, the lowest figure since December 2012.
Performance of the U.S. economy advanced at unrevised rate in the Q2, the latest report published by the Commerce Department showed on Thursday. According to the report, gross domestic product of the world's largest economy rose by 2.5% matching previous estimates, while economists had projected the rate of growth to be upwardly revised to 2.6%.
Performance leading indicator of the 17-nation bloc economy advanced for the third consecutive month in August suggesting that the economic situation in the area is improving, a data released by the Conference Board showed on Thursday. The leading economic index added 0.9% on a monthly basis to 108.9 in August, following a 0.8% gain and 0.6% in July and June
Less contracts for previously owned houses were signed in August, adding to the case of slowing housing market momentum due to increasing mortgage rates. The pending home sales index dropped 1.6%, while economists had expected 1% reduction. The average rate of a fixed mortgage for 30 years was 4.58% as of August 22, the highest level since July 2011.
The Federal Reserve is considered to lose face, if decides to taper in October after its unexpected decision in mid-September, yet experts consider stimulus cut plausible. Alongside investors' ambiguity around the Fed asset purchasing program, the central bank's promise of close-to-zero rates may harm confidence in future economic growth and hurt economic activity today.
Wall street is expected to open a bit higher as jobless claims fell unexpectedly, however, uncertainty poured onto trader sentiment as discussion about U.S. debt ceiling became hot topic. The initial jobless claimed dropped by 5,000 to 305,000, overcoming the expected reading of 325,000.The S&P 500 futures added 0.2% to 1,689 as of 8:58 a.m. EDT.
The U.S. nation considers it reasonable to request spending cuts in exchange for the debt ceiling rise, though the default risk is at stake. Yet the U.S. President Barack Obama insists that the question of borrowing limit should come without any conditions and negotiations. It is anticipated that the consensus may be achieved only if the U.S. government faces shutdown.
The number of people that are jobless in U.S. unexpectedly fell previous week, indicating on nation's economic recovery. Unemployment claims reached 305,000 in the past week, according to the Labor Department, while the economists predicted an advance to 325,000.
Chinese shares declined to the lowest level in approximately 20 days as companies related to the free-trade zone in Shanghai dropped on worries that gains were excessive. The Shanghai Composite Index slipped 1.9% to 2,155.81, the lowest since the beginning of September, while the CSI 300 Index retreated 1.8% to 2,384.44.
U.K. economy expanded in the second quarter of the year, as the consumer spending rose after the first quarter that topped estimates. Country's GDP grew 0.7%, making the expectations, while household expenditure increased 0.3% and disposable income rose 1.5%, according to the Office for National Statistics.
Spain's Prime Minister Mariano Rajoy may take the OECD advice and carry out more intense adjustments in the labor code to overhaul current jobless rate of 26%. Country's economy is recovering from recession and is expected to satisfy budget deficit goal in 2013, yet there is a need to decrease borrowing costs in order to avoid austerity measures.
Latvia will become the 18th member of the Eurozone next year and the President of Latvia Andris Berzins says that it is a practical decision and the country will benefit from that. The biggest part of Latvians are against Euro adaptation; however, Berzins stressed that the reason behind that is the past experience, when the Soviet Union broke and a
European shares were little changed before the U.S. unemployment data that are expected to show a rise. The Stoxx Europe 600 Index grew 0.2% to 313.57 as of 8:05 a.m. London time; however, the equity-benchmark has fallen 0.3% weekly on worries that U.S. lawmakers could fail to agree on federal budget for the upcoming financial year.
The Australia's currency fell versus the U.S. Dollar and majority of its counterparts as debates around the U.S. government shutdown put pressure on the Aussie. The U.S. nation is about to face shortage of cash by October 17 and impossibility to handle payments due November 1. Yet, the Australian Dollar has advanced 5.3% versus the greenback this month and 2.6%
Asian shares rose, impacted by Japanese stocks, on speculation that Japan's government will discuss a corporate tax cut and support riskier assets for public pension funds. The MSCI Asia Pacific Index gained 0.2% to 140.65 at 2:29 p.m. Hong Kong time and the gauge has advanced 7.8% monthly, while Japan's Topix index erased decline of 1.6%.
The British currency was little changed, approximately 0.5% from its eight-month high against the greenback, ahead of U.K. economy data that are expected to show growth. The Sterling was at $1.6075 at 7:37 a.m. in London after appreciating to $1.6163 on September 13, the strongest since January 11. The Pound traded at 84.07 pence per Euro after rising to 83.53
Composite Consumer Sentiment Index in South Korea went down in the month of September, a report released by the Bank of Korea showed on Thursday. The index recorded 102.0 in September compared to a score of 105.0 in August, while the consumer confidence on current living standards dropped by 2 points from 91 recorded in August to 89 in September.
Unemployment in France declined in the month of August for the first time in more than a two-year period, the latest data released by the labour ministry revealed on Wednesday. The total number of people claiming for initial unemployment benefits decreased by 50,000 or 1.5% on a monthly basis in August, when the number of unemployed people totalled 3.24 million.
The Japanese currency weakened on Thursday trimming its four-day advance against the U.S. currency amid speculations that the country's government will intend to cut corporate tax and make changes in pension funds towards riskier assets. The Yen fell 0.3% to 98.76 per U.S. Dollar at 1:27 p.m. Tokyo time and it declined 0.3% to 133.57 per Euro.
West Texas Intermediate oil continued to fall on Thursday falling for the sixth day in a row extending its series of losses on 16 months after the U.S. government showed in a report that inventories increased surprisingly as demand fell. WTI futures for delivery in November dropped 46 cents to $102.20 a barrel on the NYMEX and were traded at
Asian shares declined for the third straight session on Thursday snapping its largest monthly gain on the local index since January 2012, when the fall was led by health care and industrial sector companies. The MSCI Asia Pacific Index slipped 0.3% to 139.97 at 11:34 a.m. Hong Kong time and it advanced 7.8% in September by yesterday.
Deals on newly built single-family houses advanced 7.9% in August reaching 421,000 units annualized, yet being around lowest in 2013. Increase in the sales met economists' expectations, but was not enough to balance out the sharp decrease experienced in July 2013. Alongside, new homes' inventory to be sold rose 3.6% last month compared to July attaining highest since March 2011.
The U.K.'s currency has inched up 0.3% to $1.6046 getting close to the eight-month high amid increase in retail sales index. The diffusion index, the customer spending indicator, advanced to 34 compared to 27 in August, which signals improvements in the U.K. economy. Over last 6 months the Sterling gained 5.8% versus the greenback becoming the best performer so far.