The Aussie and Kiwi prolonged their climb to a third straight day as commodity prices continued to rise and the volatility dropped supporting higher-yielding asset demand. The Australian currency gained 0.1% to 92.57 U.S. cents at 10:46 a.m. Sydney time after adding 0.9% over the last two days. The Kiwi rose 0.2% to 79.81 U.S. cents after reaching 79.91 previous
The Japanese Yen advanced after the Prime Minister Shinzo Abe won the upper house elections and weaker-than-expected U.S. housing resales data came out. The U.S. Dollar lost 1.02% against the Yen to 99.58 at 3:17 p.m. GMT. Versus the Pound, Japan's currency added 0.45% to 152.91, while against the common currency the Yen advanced 0.64% to 131.31.
The Australian Dollar gained as any hopes of Federal Reserve curbing quantitative easing in the near future were dismissed. The Aussie climbed 0.3% to 91.99 cents at 6:13 p.m. Sydney time, after gaining 1.4% last week. It declined 0.3% to 92.01 versus the Yen. Australian 10-year bond yield dropped two basis points to 3.65%.
British Pound continued to advance versus the greenback as the Prime Minister of U.K. said he may reduce taxes on recovering economy. U.S. housing resale data showed lower-than-expected results, giving additional boost to the currency's appreciation. Sterling rose 0.71% to $1.5369 against the greenback at 2:51 p.m. GMT and it slightly climbed against the Euro, by 0.2% to 0.8584.
The demand for houses declined in the U.S. as prices grow quickly and mortgage rates become more expensive. Resales of previously owned houses dropped 1.2% in June to 5.08 million. Analysts predicted that the number would reach 5.25 million, a gain of 1.4%. Despite slowdown, the resale growth was the second largest since November 2009.
Gold kept to trade above the $1,300 level as investors continue purchasing the metal instead of the greenback. Federal Reserve Chairman Ben Bernanke said not to taper the quantitative easing unless employment data improves, which weakened the Dollar. Gold futures increased 2.21% to $1.321.60 an ounce as of 11:46 a.m. EDT, while silver went up 4.18% to $20.275 an ounce.
Main equity gauges remained flat after opening on Monday as McDonald showed disappointing earnings outlook. The Dow Jones industrial average decreased 0.06%, or 8.75 points, to 15,534.99. The Standard & Poor's 500 gauge gained 0.07%, or 1.15, to 1.693.24. The Nasdaq Composite Index added 0.17%, or 6.2 points, to 3,593.81.
Copper futures increased on Monday amid speculation of China's growing demand and U.S. expanding housing sector, stimulated by depreciating Dollar. Copper futures rose 1.46% and ended at $3.186 per pound on New York Comex. Both China and the U.S. are the largest metal-consumer countries. Commodities expressed in dollars typically rise when the greenback weakens.
The Sterling advanced for a fifth straight day versus the U.S. Dollar after the U.K. Prime Minister David Cameron revealed that economic recovery might allow tax reduction. The Pound increased against major counterparts before this week's report that is expected to show the economy's acceleration in the second quarter. The currency climbed 0.4% to $1.5334.
West Texas Intermediate climbed for a fourth consecutive day as hedge funds rose bullish bets on the WTI crude on decreasing inventories. WTI for August settlement added 65 cents to $108.7 a barrel on New York Mercantile Exchange, while Brent crude for September delivery rose 0.6%, or 59 cents, to $108.66 a barrel on the ICE Futures Europe exchange.
U.S. stock futures were trading higher, signaling high market opening, as several large companies are going to report second quarter earnings. The S&P 500 index futures climbed 0.07% to 1.690.65 at 12:10 p.m. GMT. McDonald's reported quarterly increase in earnings per share from $1.32 to $1.38. Company's revenue rose from $6.92 to $7.08 billion in a year.
The Canadian currency traded near a one month high as oil, the country's biggest export, jumped and the Federal Reserve curbed bets of an imminent end to bond purchases. The Canada's Dollar advanced 0.2% to C$1.0344 against the U.S. currency, after touching C$1.0326 on the second week of July, the highest level since June 20.
Swiss National Bank President Thomas Jordan revealed that he is not going to change a the Switzerland's currency ceiling of 1.2 against the common currency. The Swiss Franc was slightly changed at 1.2370 versus the Euro as of 2:07 p.m. in Zurich, while against the greenback the Franc was at 93.98 centimes. The Swiss Franc has declined 2.4% versus the
Asians stocks climbed after the Prime Minister of Japan Shinzo Abe won in upper-house election, giving him opportunities to make economic reforms. Abe's victory is considered as bullish for the country's economy and equities since nothing prevents the government's growth strategy. The MSCI Asia pacific gauge added 0.5% to 135.65 at 6:31 p.m. Tokyo time.
The greenback depreciated versus most of its trading partners as the the Federal Reserve's idea of pulling back quantitative easing faded away as better economic data needed for such an action. Versus the Euro, the Dollar fell 0.33% to $1.3178 at 11:31 a.m. GMT. Against the Japanese Yen, it lost 0.68% to 99.92. The Sterling added 0.51% to $1.5339 versus
Copper advanced for a third consecutive day before reports on house sales projected to show an increase in sales in the U.S., the second-largest metal consumer country. Copper settlement in three months gained 1% to $6,986 a metric ton at 10:53 a.m. on the London Metal Exchange. September's delivery advanced 0.9% to$3.1695 a pound on the Comex in New York.
Prime Minister of Portugal Pedro Passsos Coelho got the support from the President Cavaco Silva to continue government's work till 2015, the end of the government's term. Cavaco Silva believes that early elections would prevent successful attainment of a bailout programme. The yield on 10-year bonds declined 40 basis points to 6.4% as of 10:39 a.m. in London.
European stocks advanced after some major companies and two Swiss banks reported better-that-estimated earnings. The Euro Stoxx 50 gauge rose 0.46% to 2,728.79. Germany's DAX reached 8.356.23, up 0.3%. The French CAC 40 gained 0.34% to 3.356.23, while Britain's FTSE 100 index declined 0.05% to 6,627.30 as EVRAZ, steel and mining company, lost 2.16%.
Gold increased for a third straight day, touching the highest level in a month of $1,322.70. Demand for the gold recovered following the Federal Reserve Chairman Ben Bernanke's speeches last week. Gold futures jumped 1.64% to $1,314.20 per ounce, adding to signs the gold price remains more than 20% lower this year.
The Sterling touched the highest level in over two weeks versus the U.S. Dollar as U.K. Prime Minister David Cameron announced a growth in the economy may allow the U.K. government to reduce taxes. The Sterling was flat at $1.5288 and remained steady at 86.04 pence against the common currency, adding to signs the Sterling has increased 1.9% in the
The common currency inched up, as G-20 leaders convinced to provide precise communication when the tapering of bond-purchases starts in Japan and the U.S., while China moved towards lending rate liberalization. The 17-nation currency jumped 0.15% to $1.3154 versus the Dollar and rose 0.07% to 0.8607 versus the Pound, however it declined 0.44% to 131.58 versus the Japanese Yen.
Treasuries inched up, prolonging the largest two-week jump in 11 months, after the manager of the world's largest bond fund joined investors speculating that the Federal Reserve will keep bond-purchases to support the economy. The yield on the benchmark 10-year bond declined one basis point to 2.48% and the price of the 1.75% bond maturing in May 2023 rose to
U.K. shares decreased, after FTSE 100 Index advancing for four straight weeks in a row. The FTSE 100 retreated 14.9 points to 6,615.77. The FTSE All-Share Index slipped 0.2% and Ireland's ISEQ Index inched up about 0.1%. European shares remained flat, with the benchmark Stoxx Europe 600 Index near the highest level in seven weeks.
The Australian currency advanced against most of its 16 major counterparts as expectations of tapering the Federal Reserve stimulus were curbed, boosting demand for higher-yielding bonds. The Aussie increased 0.5% to 92.19 against the U.S. currency and declined 0.1% to 92.21 versus the Yen. The New Zealand Dollar jumped 0.1% to 79.32 versus the greenback and fell 0.5% to 79.33