The European Central Bank announced that Latvia can join the Eurozone, although officials are worried that the country might struggle with keeping the economy afloat. Latvia plans to introduce the Euro on January 1, 2014 and it will become the 18th country of the Euro block. Inflation rate in the Nation was 1.3% in the 12 month period through April, well under the reference measure of
The Japanese currency appreciated against the U.S. Dollar and the Euro after Japan's shares decreased as Prime Minister Shinzo Abe did not provide any additional information amid QE measures, increasing demand for safer assets. The Japan's Yen gained 0.5% to 99.58 against the U.S. Dollar and 0.6% to 130.08 versus the Eurozone's currency.
U.K. shares retreated amid speculation that the Fed may wind down its stimulus programme at the end of the summer. The FTSE 100 Index dropped 0.7% to 6,515.83 as of 9:19 a.m. London time. The index has declined by 4.8% since the Fed Chairman's Bernanke's testimony on May 22, when he talked about scaling back stimulus if the U.S. economy
The British Pound appreciated versus the greenback and shared currency as the U.K. services output expanded last four weeks by the most in almost 13 months. The Sterling rose 0.3% to $1.5355 as of 9:55 a.m. in London after advancing to $1.5376 on June 3, while the British currency jumped 0.4% to 85.06 pence per Euro.
U.S. stocks retreated, ending the streak of 20 Tuesday gains in a row for the Dow Jones Industrial Average, as economists expect the Fed to wind down stimulus at the end of the summer. The Standard & Poor's 500 dropped 0.6% to 1,631.38 as of 4 p.m. New York time, reversing a gain of 0.4%, while the Dow slipped 0.5%
European shares declined, following the U.S. equities retreat, on speculations that the Fed officials may wind down stimulus programme. According to economists at Deutsche Bank AG, the Fed is likely to start scaling back its stimulus package at the end of the August. The Stoxx Europe 600 Index fell 0.4% to 298.48 as of 8:39 a.m. London time, while the Standard
Gold bounced off and traded above $1,400 an ounce as equities tumbled and the greenback's advance halted, spurring demand for the metal. Spot gold climbed 0.7% to $1,408.50 an ounce and touched $1,405.06 as of 2:12 p.m. Singapore time. The yellow metal for August delivery added 0.5% to $1,404.20 an ounce on the Comex.
Asian shares declined, impacted by Japanese equities after Shinzo Abe's testimony, where he talked about his economic growth model. Stocks also slid on expectations that the Fed may taper the stimulus package as the U.S. economy grows. Japan's Topix index slipped 1.4%, erasing a gain of 1.2%, while the MSCI Asia Pacific Index fell 0.9% to 133.44 at 1:59 p.m.
The Aussie fell for a second day in a row versus the kiwi after Australia's growth slowed to the lowest level in almost 24 months, boosting the Reserve Bank borrowing cost cut expectations. The Australia's currency slipped 0.5% to NZ$1.1983 at 3:02 p.m. Sydney time, while it lost 0.1% to 96.42 U.S. cents. The New Zealand's Dollar appreciated 0.3% to
The U.S Dollar remained above 100 against the Yen for a second straight day, after advancing from the lowest in more than three weeks, ahead of the U.S. jobless claims that may influence the Fed's stimulus programme. The greenback rose 0.2% to 100.18 Yen as of 11:04 a.m. Tokyo time, compared to yesterday, when it appreciated 0.5%.
The Fed is likely to start unwinding its monetary easing already in September and end it completely by the end of the year, Deutsche Bank says. Earliest cut will consist of $10 billion of mortgages and $15 billion of U.S. government bonds, totaling $25 billion. The current size of bond-purchasing programme is $85 billion per month. The cut is expected
Canada's shares were steady after energy producers climbed, while wireless providers and gold producers decreased. The Standard & Poor's/TSX Composite Index gained less than 0.1% to 12,611.63, the index has advanced 1.4% this year. Niko Resources Ltd., Petrominerales Ltd. and Penn West Petroleum Ltd. added at least 1.7% to lead gains between oil and natural gas shares.
The Canadian currency declined following a climb in merchandise trade deficit in April after energy drove inbound shipment to a record high while overseas sales slipped for the first time since January. The Canada's Dollar dropped 0.3% to C$1.0310 versus the U.S. currency. The Canadian Dollar advanced 1.1% on Monday, the most since June 29,2012.
West Texas Intermediate crude dropped amid predictions that U.S. supplies of gasoline grew in the previous week and after the U.S. Dollar appreciated versus the basket of major counterparts. The July WTI contracts slipped 0.5% to $93 a barrel and Brent for July delivery decreased to $101.97 a barrel.
U.K. shares advanced, with the FTSE 100 Index recovering from the lowest level in a month, following the Fed officials commentary that U.S. economy is still weak to justify the reduction in QE measures. The FTSE 100 climbed 0.6% to 6,562.25 and the FTSE All-Share Index also gained 0.5%, while Ireland's ISEQ added 0.7%
The U.S. Dollar rebounded from the weakest level in four weeks versus the Japan's currency on Tuesday, with the Japanese Yen declining amid the data that Japan's pension funds could raise foreign holdings. The greenback advanced 0.5% to 100.10 versus the Yen on the comments about Japanese pension funds.
Treasury 10-year yields reached the highest level in 14 months on speculation the Fed will scale back its monetary stimulus after the report that is predicted to indicate that companies employed more people adds to signs the growth is continuing. The U.S. 10-year yields increased 0.01 percentage point to 2.13%. The 1.75% bond due in May 2023 dropped 2/32, or
Czech GDP contracted 1.1% in Q1 compared with the previous quarter, which was worse than expected 0.8% decrease. It was sixth straight quarter when Czech economic output shrunk, the longest recession since 1996, as European debt crisis decreased export demand and lead to less spending by businesses and households. Policy makers are considering an intervention to weaken the Koruna.
U.K. construction activity index unexpectedly rose to 50.8 in May from 49.4 a month ago, indicating a growth in the sector. It was the first time the sector grew since October 2012. The index increased due to expanding residential activity, while civil engineering and commercial construction output contracted. Rising construction output is expected to support economic growth in Q2 2013.
Spain registered record high exports worth EUR223 billion last year and the first trade surplus in March 2013 since 1971, an indication that economic crisis in the country might fade away. The trade balance moved to surplus as imports dropped 15% and foreign sales increased 2%. Meanwhile, Spanish Labor Ministry issued data today, which showed that number of citizens signing
The Yen depreciated 0.7% to 100.25 per U.S. Dollar so far today, after rising to 98.87 yesterday, the highest level since May 9. Japan's currency dropped as speculation that the Fed might cut its stimulus earlier waned due to worse than expected U.S. factory activity figures. The Yen may weaken further to 110 per U.S. Dollar in upcoming 12 months,
Italian 10-year government bond yields fell 5 basis points to 4.11%, while Spanish and Portuguese yields on the same maturity bods decreased 4 and 14 basis points, respectively. German yields rose 0.04 percentage points due to decreasing demand for safe investments as market becomes more risk-seeking. Increasing liquidity is currently the major driver of bond and stock prices, according to
The U.S. Dollar rebounded to above 100 Yen, after worse than expected U.S. manufacturing activity data, which fell to the lowest level since June 2009. It calmed concerns that the Fed might exit its stimulus early. FTSE EuroFirst 300 and DJ Euro Stoxx 50 ETF indexes jumped 0.6% at the opening, potentially ending two-day consecutive losses.
The Australian Dollar weakened after the RBA stated that inflationary outlook leaves a room for further easing and that the national currency remains strong. The Aussie depreciated versus all of its most-traded peers after the central bank left the benchmark interest rate unchanged at all-time low 2.75%. The Australia's currency fell 0.4% to 97.33 U.S. cents at 3:53 p.m. Sydney