Crude oil cut losses and advanced, as Europe released a set of optimistic preliminary Purchasing Managers Index report in manufacturing and services for August, with German manufacturing jumping to 52.0, the highest level in more than two years. WTI futures increased 0.61% to $104.46 per barrel, while Brent rose 0.08% to $109.91 per barrel.
Australian currency remains higher against the greenback, leaving session highs after the Dollar strengthened, following the Federal Reserve official support for the Ben S. Bernanke's plan to reduce stimulus this year. The Aussie declined 0.15% to 0.8980 versus the greenback and advanced 0.29% to 1.4840 versus the common currency.
Asian shares plummeted, with the regional gauge near to cut this year's rises as it heads towards its longest losing period since November, as the Federal Reserve minutes provided signs on starting to reduce stimulus this year. The MSCI Asia Pacific Index slipped 0.7% to 129.67, with Japanese Topix declining 0.2% and South Korean Kopsi index sliding 1%.
U.K. 10-year bonds decreased for the second day as the Federal Reserve officials supported Ben Bernanke's plan to reduce stimulus this year, curbing demand for government debt. The benchmark 10-year U.K. bond yield advanced four basis points to 2.75% and the 1.75% note maturing in September 2022 retreated 0.325 to 92.05.
The common currency was sent higher versus the U.S. Dollar, as Germany posted optimistic manufacturing and services PMI report, which grew more than expected in August. The Euro dropped 0.06% to $1.3346 against the Dollar and jumped 0.49% to 131.10 against the Yen, while advancing 0.25% to 0.8550 versus the Sterling.
Copper increased in London, heading towards the largest advance in two weeks, as manufacturing grew more than expected in China, the world's biggest consumer of copper. Copper for settlement in three months rallied 2% to $7,388 per metric ton, while copper for settlement in December inched up 1.8% to $3.3715 per pound.
German government bunds declined for the second day as the Federal Reserve minutes indicated most lawmakers agreed with Chairman Ben Bernanke's plan to scale back stimulus this year. German 10-year note yield jumped seven basis points to 1.94% and the 1.5% security expiring in May 2023 dropped 0.59 to 96.14.
Chinese manufacturing index rose in August from the lowest level in 11 months, boosting the case that nation's economy is growing after two-quarter slowdown. The preliminary reading of PMI is 50.1, after it reached 47.7 month earlier, according to HSBC Holdings Plc. This expansion is mostly impacted by China's domestic demand and some economists say that it is capable to
U.K. shares gained, halting three day losing streak for the benchmark FTSE 100 Index, after Germany's and China's manufacturing data topped the expectations. The FTSE 100 added 0.6% to 6,431.5 as of 8:34 a.m. London time; however, the equity-benchmark has declined 5.9% from the highest level since May 22. The FTSE All-Share Index rose 0.6%, while Ireland's ISEQ Index climbed
European shares advanced, bouncing off from their three-week low, as Germany's manufacturing and services industries increased at a faster pace. The Stoxx Europe 600 Index gained 0.7% to 302.84 as of 9:38 a.m. London time. Standard and Poor's 500 Index futures rose 0.4% today, while the MSCI Asia Pacific Index declined 0.7%.
The Fed officials supported the idea to start tapering its bond-buying programme this year if the nation's economy expands, according to FOMC last meeting minutes. Almost all members of the committee stated that to slow down the monetary stimulus programme would not be appropriate at this moment. These debates on when to taper have impacted all markets over the world.
The Aussie gained versus most of its 16 most-traded counterparts after a report that showed increase in China's manufacturing for the first month out of last four. The Australian Dollar added 0.2%% to 89.87 U.S. cents as of 4:42 p.m. Sydney time, after declining 2.4% in the last three sessions, while it climbed 0.2% to NZ$1.1456 after reaching NZ$1.1483 and
The Loonie declined to the lowest level in six weeks after the Fed meeting minutes indicated on that officials support the plan to start winding down central banks stimulus programme this year. The Canadian Dollar slid 0.8% to C$1.0474 per U.S. Dollar as of 5 p.m. Toronto time, after reaching C$1.0483, the lowest level in more than a month.
The British currency declined for a second straight day versus the greenback after the Fed officials supported the plan to cut their monetary stimulus programme this year. The Sterling fell 0.4% to $1.5604 as of 7:42 a.m. in London after reaching $1.5718 day earlier, the strongest level in a month, while it slipped 0.3% to 85.51 pence per Euro.
The U.S. Dollar rose against almost all of its most-trade peers ahead of housing employment claims that may indicate if the nation is continuing its recovery, increasing speculation that the Fed will start tapering in September. The greenback gained 0.6% to 98.24 Yen at 6:35 a.m. London time, after reaching 98.34 earlier, the strongest since August 15, while it added
Treasury 10-year note interest rates reached two-year high before the Fed releases minutes from July meeting, which may include signs of when policy makers intend to pare monetary stimulus. The treasury 10-year yield added 0.04% to 2.85% as of 9:45 New York time, while the 30-year yield gained four basis points to 3.89%.
Soybeans and corn increased in Chicago as predictions for dry weather in the U.S. Midwest caused distress over yields after rain reduced crop growth this year. Soybeans for November delivery added 1.3% to $13.0675 per bushel as of 7:10 a.m. on the Chicago Board of Trade, while corn for December delivery climbed 0.8% to $4.7925 a bushel and wheat for
Copper decreased in New York amid speculation data will indicate manufacturing prolonged to plummet in August in China. Copper for settlement in December slipped 0.7% to $3.3175 per sterling, prices have dropped 1.5% this week, adding to signs copper for settlement in three months retreated 0.5% to $7,280 per metric ton.
U.S. stock-index futures declined, indicating the S&P's 500 Index will retreat for the fifth time in last six days, while investors awaited the release of minutes from the Fed's July meeting. September S&P 500 futures lost 0.3% to 1,646.2 as of 7:27 a.m. New York time, while contracts on the Dow Jones Industrial Average slid 0.2% to 14,951.
Production in U.K. factories advanced the most in two years in the second quarter, and the CBI forecasts that the output will also expand in the next quarter. With regards to total orders balances, 25% of companies posted above normal total order books and 26% reported they were below normal, providing the balance of zero, the highest level since August
Shares is Switzerland were little changed, after regional benchmark index reported the longest streak of losses in almost three months, as the Fed's last meeting minutes were awaited by investors. The Swiss Market Index slid 0.1% to 7,930.9 as of 9:23 a.m. Zurich time; however, the equity-benchmark has advanced 16% this year to date, while the Swiss Performance was little
The Canada's Dollar reached the lowest level since July 10 versus its U.S. counterpart before the Federal Reserve releases it meeting minutes, driven lower by disappointing wholesale and retail report. The Canadian currency declined 0.44% to C$1.04453 against the U.S. Dollar. Canadian wholesales sales unexpectedly fell 2.8% in June and retail sales are forecast to drop 0.4% in June.
U.K. posted its first budget shortfall in July in three years after lawmakers increased its spending and that led to outstripping tax revenue. For comparison, net borrowing was 488 million Sterling from year earlier 823 million Sterling, according to the Office for National Statistics. It is expected that fiscal deficit will increase to 120 billion Sterling yearly or 7.5% of
Gold decreased in London ahead of the Federal Reserve posts minutes from its previous meeting that could provide hints on when officials plan to scale back stimulus. Gold for immediate settlement slipped 0.6% to $1,363.29 per ounce and the December Bullion contract plummeted 0.7% to $1,362.60. Silver for immediate settlement retreated 0.6% to $22.8661 per ounce.