17 / 05 / 2013 - 02:34 UTC
- Amid concern falling commodity prices will be weighting on South Africa’s economy, the rand extended its longest losing streak in a year.
- The rand weakened to a four-year low against the dollar, extending its longest losing streak in a year on concern that renewed labor unrest and weakened to a four-year low against the dollar.
- According to the deputy president of the ruling African National Congress today, Cyril Ramaphosa, the mines in South Africa are quite volatile.
- Violent protest contributed to the rand’s 5.6 percent slide in the past six months, since the mines costs were 15 billion rand or $1.6 billion in lost revenue.
- Upon speculation the U.S. Federal Reserve may end its monetary easing, weakening the currency, the dollar strengthened against all 16 major peers this week.
- According to a currency strategist at Rand Merchant Bank in Johannesburg, John Cairns, the major factors of intra-day volatility are the rumors and stories of strikes and union violence.
- 02:21 UTC
- Amid speculation the Federal Reserve is heading closer toward ending stimulus boosting demand for the U.S. currency, the sterling extended a second weekly decline, falling against the dollar.
- Upon John Williams,San Francisco President of saying yesterday the U.S. central bank may begin tapering off its monthly asset purchases earlier this summer, the pound reached the lowest level in six weeks against the dollar.
- According to Bank of England policy maker Martin Weale, the central bank will be keeping interest rates low reflected amid U.K. 10-year government bonds advancing for a second day.
- According to the head of currency strategy at Canadian Imperial Bank of Commerce in London, Jeremy Stretch, dollar is the main primary mover of the sterling.
- As of 11:52 a.m. London time. the sterling, after reaching the least price level since April 14, at $1.5174 on May 15, dropped 0.2% to $1.5240. The sterling, after depreciating to 85.17 pence on May 15, the weakest level since April 25, dropped 0.8% this week.
- 07:54 UTC
- Upon the dollar advancing against global currencies and amid Malaysia reporting the slowest economic growth since 2009, Malaysian ringgit poised to snap an eight week winning streak.
- Based on valid data, the gross domestic product of the Southeast Asian nation for the first quarter was less than a 6.5% increase, rising 4.1% from a year earlier and a 5.5% median forecast.
- The Dollar Index climbed 0.9% this week. According to a Singapore based economist at Mizuho Corporate Bank Ltd., Vishnu Varathan, the ringgit is softer because of the dollar strength. Despite election spending, Malaysia’s first quarter GDP came in weaker than expected.
- As of 9:25 a.m. in Kuala Lumpur, the ringgit dropped to 3.0149 per dollar, weakening 0.7% this week. The currency made the longest winning streak since November 2007, rallying 4.4% in the previous eight weeks.
- According to John Williams yesterday, the Federal Reserve Bank of San Francisco President, as U.S. economy is gaining strength, the Federal Reserve may trim its $85 billion in monthly bond buying.
- 07:47 UTC
- Prior data forecasts showing improvements in the U.S. economy, the dollar gained against all of its 16 major peers this week. Amid policy makers saying they may alter the pace of monthly bond purchases and prior the Federal Reserve releases on May 22 minutes of its last meeting, the U.S. dollar climbed toward a six week high versus the euro.
- During this summer, the central bank may begin tapering off buying, said John Williams, Fed Bank of San Francisco President. Prior Bank of Japan’s meeting next week, the yen headed toward its third weekly loss.
- According to a New York based foreign exchange strategist at Barclays Plc., Yuki Sakasai, the major focus now is concentrated on U.S. economic data and Fed speakers comments.
- As of 12:02 p.m. in Tokyo from yesterday, the dollar remained almost unchanged at 102.26 yen, posing for a 0.6 % advance this week. The U.S. currency reached the strongest level since April 4, by 0.2 percent to $1.2862 per euro. The Dollar Index rose 0.4% to 83.894.
16 / 05 / 2013 - 08:20 UTC
- Amid applications for unemployment benefits in America rising to the highest level in six weeks, the Canadian dollar climbed from an almost three week low versus the dollar.
- Upon speculation of worse than expected U.S. jobless claims, a contraction in regional manufacturing and slowing inflation, the Canadian dollar pared the drop.
- Amid a report showing foreigners being net purchasers of Canadian securities in March led by federal government bonds, Canada’s dollar trimmed losses.
- According to head of currency strategy at Bank of Nova Scotia in Toronto, Camilla Sutton, the U.S. negative data created a negative impact also for Canada, with the relevant currency attempting to rally back.
- The Canadian dollar dropped 0.1% to C$1.0170 per U.S. dollar at 1:06 p.m. in Toronto. Yesterday, the currency touched C$1.0219, the lowest level since April 25.
- Crude oil climbed 0.6% to $94.90 a barrel in New York. Canada’s 10 year benchmark government bonds reached 1.89%. The 1.5% security maturing in June 2023 reached C$96.49., adding 28 cents.
- 09:59 UTC
- Prior U.K. sold 30 year government debt today, pound approached a six week low, weakening against the dollar. Amid the Governor Mervyn King saying a recovery for the U.K. is in sight and Bank of England upgrading its estimate of the U.K. economy, the sterling yesterday climbed the most against its 16 major peers.
- An auction of 2.5 billion pounds or $3.8 billion of gilts maturing in January 2044 is nearly scheduled by the Debt Management Office.
- As of 7:33 a.m. London time, the sterling after reaching $1.5174 yesterday, the lowest level since April 4, it continued falling by an additional 0.2% to $1.5210.
- The pound was the second worst performer after the yen, weakening this year by 2.7%, among the 10 most developed market currencies. The euro climbed 1.9% and the dollar rose 4.8%.
- On April 18, U.K. last sold 30-year gilts, down from 3.22% at a previous auction on Nov. 15, at an average yield of 3.12%, in comparison to the 2.951% set at a sale on Sept. 5.
- According to indexes compiled by the European Federation of Financial Analysts Societies, Treasuries dropped 1.1%, German bonds fell 1% and U.K. gilts lost 1.9%.
- 08:58 UTC
- Amid the yen slumping to a four year low and upon speculation authorities will be weakening the currency to safeguard exports, South Korea’s won headed for a second weekly loss.
- All the market risks including the weak yen will be monitored by the Financial Services Commission, taking preemptive measures were necessary.
- According to a Yonhap News report yesterday, the Japanese currency is more likely to stay low for some time, therefore companies should strengthen their competitiveness, said the Finance Minister Hyun Oh Seok.
- According to an analyst at Woori Futures Co. in Seoul, Son Eun Jeong, there might be a probable intervention by the authorities, even though such a scenario seems a bit uncertain. Investors are speculating for riskier assets due to the global monetary easing policies, which may benefit the won.
- As of 10:13 a.m. in Seoul, the won dropped 0.8% this week to 1,114.25 per dollar. Today, the currency touched the lowest level since April 24, at 1,118.96.
- 08:52 UTC
- Prior a report probably confirming inflation in the Eurozone performed at the slowest pace in three years, the euro slid toward a six week low.
- Amid speculation ECB will ease policy and euro area economy extending its recession to a record sixth quarter, the euro made its longest losing stretch in six months, competing a five day drop yesterday.
- Prior Federal Reserve Bank of San Francisco President John Wiliams speaks, the Dollar Index since July managed to drop 0.4% from its previous highest level.
- According to an analyst at IG Markets Securities Ltd. in Tokyo, Junichi Ishikawa, the Eurozones currency will highly likely continue its downtrend direction.
- As of 1:49 p.m. in Tokyo from yesterday, the euro, upon touching $1.2843, the weakest since April 4, it further dropped 0.1% to $1.2874.
- Yesterday, the dollar remained almost unchanged at 102.18 yen, after touching the highest level since October 2008, at 10.276. The Dollar Index, after reaching the highest level at 84.094 since July 24, remained almost unchanged at 83.794 since yesterday.
15 / 05 / 2013 - 02:08 UTC
- Amid a German government report showing the Germany expanding less in the first quarter than analysts estimations, the euro was forced to decline toward the lowest level again the dollar in almost six weeks.
- Upon data showing euro area’s gross domestic product contracting more than economists predictions in the same period, the euro fell for the first time in six days against the yen.
- Amid an improving sentiment toward the U.S. economy spurring bets the Federal Reserve will be reducing stimulus measures, the Dollar Index reached the highest level since July. The Swiss franc against the U.S. dollar, was forced to declined toward the lowest level in almost nine months.
- According to the European head of currency strategy at Bank of Montreal in London, Stephen Gallo, the euro is fluctuating to the downside, as growth divergence and weaker macroeconomic fundamentals exert tremendous pressure on the currency.
- At 10:36 a.m. London time, the euro dropped 0.1% to $1.2902, after falling to the lowest level since April 4, at $1.2888. According to the Federal Statistics Office, German economy won 0.1% in the first quarter.
- 12:02 UTC
- On speculation South Korean policy makers will attempt to protect the nation’s exports by weakening the currency, the won fell toward a three week low.
- According to Bank of Korea Governor Kim Choong Soo last week, Japan’s aggressive monetary easing has a tremendous impact on South Korea’s economy. The benchmark seven-day repurchase rate was minimized by the nation’s central bank by a quarter percentage point to 2.5%.
- The country’s jobless rate declined, while foreign funds sold more local shares than they bought today. According to an analyst at Daishin Economic Research Institute in Seoul, Hong Seok Chan, on speculation that authorities may intervene as the yen weakened to 102 against the dollar, the won was forced to a further declination.
- As of 10:02 a.m. in Seoul, the won fell to 1,112.70, a percentage drop of 0.6%. The currency reached the lowest level since April 25, touching 1,115.20, after weakening to 1,116.68. The yen reached today the price of 102.43.
- According to Statistics Korea today, the unemployment rate in South Korea fell from 3.2% in March to 3.1% in April. The median estimates predicted the rate at 3.2%.
More from currencies
17 / 05 / 2013 - 08:21 UTC
- Amid raising concern demand from the U.S. is slowing and upon data showing U.S. jobless claims rising and housing start slumping, copper poised for its first weekly drop.
- The metal for three months delivery was at $7,254 at 9:44 a.m. in Shanghai, and dropped lower to $7,234, as much as 0.6% on the London Metal Exchange. Copper made the first drop since the week ending April 19, retreating 1.7% this week.
- Based on yesterday’s data, manufacturing in the Philadelphia region unexpectedly shrank in May with the majority of American citizens filing claims for jobless benefits last week.
- According to an analyst at Galaxy Futures Co. from Beijing, He Shan, U.S. data outweighed on market sentiment. There is also the probability of a seasonal consumption boom in China soon, especially during the middle of the second quarter.
- July futures on the Comex in New York remained almost unchanged at $3.2910 a pound, whilst September futures contract on the Shanghai Futures Exchange won 0.5 percent to 52,390 yuan or $8,534 a ton.
- 08:15 UTC
- Upon speculation exports from Malaysia may rebound and trim stockpiles, palm oil headed toward its second weekly advance. The contract for delivery in August, was at 2,331 ringgit at 11:55 a.m. in Kuala Lumpur and gained on the Bursa Malaysia Derivatives as much as 1% to 2,338 ringgit or $775 a metric ton. This week, futures headed 0.5% higher.
- During the Muslim fasting month of Ramadan, with consumption usually climbing, purchases from the Middle East to South Asia including India increased.
- Based on Malaysia’s Palm Oil Board on May 10, Malaysian reserves reached the lowest level since June, down from 2.63 million tons in December to 1.93 million tons in April.
- According to deputy director of futures and commodities at RHB Investment Bank Bhd. in Kuala Lumpur, Donny Khor, due to the great anticipation of demand and improvements, market players are really optimistic with regards to the future of palm oil.
- Soybeans for delivery in July on the Chicago Board of Trade won 0.5% to $14.3475 a bushel. On the Dalian Commodity Exchange, refined palm oil for delivery in September climbed 0.5% to 6,072 yuan or $989 a ton.
- 08:07 UTC
- According to a KPMG LLP Global Energy Institute survey, natural gas will be trading lower than $4 per million British thermal units for the remaining days of the year.
- The majority of forecasts, approximately 73%, highlight a range from $3 to $4 in 2013. During intra-day trading on May 1, gas for delivery in June went down 12% from the 2o13 high of $4.444, settling at $3.932 yesterday.
- According to the Houston based gas and oil sector leader for KPMG, Regina Mayor, larger investments will be enabled due to the wider assurance of supply which stabilizes commodity price environments, but with marginal production remaining shut.
- According to the U.S. Energy Information Administration yesterday, natural gas stockpiles climbed 99 billion cubic feet lat week toward 1.964 trillion.
- According to data from the EIA, U.S. produced most of its own energy last year, the most since 1991, by an approximately 84%. U.S. oil production reached 7.37 million barrels a day, a 23 year high, in the week ending May 3.
- 08:00 UTC
- Amid signs of sustained demand for the U.S. crop from China, soybeans headed toward the highest weekly level in four months.On the Chicago Board of Trade, soybeans for July delivery reached the highest level for the most active contract since March 28, rising as much as 0.5% to $14.345 a bushel. By 10:01 a.m. Singapore time, the commodity was at $14.34.
- Futures made the biggest increase since Jan. 18, gaining 2.5% this week. According to the U.S. Department of Agriculture yesterday, China bought 79% of the 346,634 metric tons sold by U.S. exporters, taking the total U.S. sales to 8.86 million tons for the next marketing year.
- According to a commodity strategist at Commonwealth Bank of Australia today, Luke Mathews, soybeans values were supported due to the sustained U.S. soybean export sales to China.
- Corn for delivery in July traded on volume 56% lower than the 100 day average, setting for a 1.2% win this week, gaining 0.4% to $6.4375 a bushel in Chicago.
16 / 05 / 2013 - 09:36 UTC
- Amid speculation demand for palm oil, the world’s most consumed vegetable oil may increase, the relevant commodity climbed for the first time in four days.
- On the Bursa Malaysia Derivatives, the contract for delivery in July ended up in the morning session gaining 1.1% at 2,322 ringgit or $772 a metric ton. The largest volume contract, the one of August, rose 0.9% to 2,317 ringgit.
- According to the director at Commtrendz Risk Management Services Pvt., Gnanasekar Thiagarajan, stockists will slowly start buying now at high levels. Prices will highly likely supported by a weaker ringgit.
- During Ramadan festival, purchases or consumption in the South Asia, Middle East and India are usually increasing.
- According to the Malaysian Palm Oil Board on May 10, Malaysia’s reserves reached the lowest level since June, falling 11% to 1.93 million tons in April from a record 2.63 million tons in December.
- On the Dalian Commodity Exchange, soybean oil rose 1% to 7,404 yuan, while refined palm oil for delivery in September, headed toward 6,048 yuan or $984 a ton, gaining 1.6%.
- 09:27 UTC
- According to technical analysis by Shanghai Cifco Futures Co., copper is nearly completing an Elliott Wave correction, thus poising to fell 16% by the end of September to the weakest level in three years. Elliott Wave theory aims to forecast trend via dividing past trends into five areas or waves.
- Based on the trading manager Hu Kaixi, the base metal upon completion of its third bearish cycle from February to April, will find itself within a rebounding stage or cycle.
- On the London Metal Exchange, copper for three months delivery was down 9.5%, at $7,175 as of 8:51 a.m. Expectations highlight that, the metal is most likely in the short term to rise toward $7,600 as it is currently in a rebound phase.
- Copper, amid its spectacular five wave bull run in the decade between 2001 to 2011, is currently within a downtrend channel from a long term perspective. During July to September, the commodity is expected to drop as low as $6,037.50.
- 09:13 UTC
- Amid speculation decreasing oil prices can cut the cost of synthetic products, therefore decreasing the appeal of the natural variety, rubber headed toward a downside direction of a one week low.
- On the Tokyo Commodity Exchange, rubber for October delivery headed toward the lowest price for the most active contract since May 9, falling as much as 2.3% to 276.3 yen a kilogram or $2,707 a metric ton. Futures set for their third day of decline, at 279.9 yen, performing a weekly loss of 4.7%.
- On the New York Mercantile Exchange during electronic trading, crude for June delivery, after falling as much as 2.2% yesterday to the lowest level since May 2, traded at $94.02.
- According to an analyst at broker ACE Koeki Co. in Tokyo, Hideshi Matsunaga, there is lack of support from the currency market with a weaker oil market exerting a kind of a drag on rubber futures.
- Based on a Cabinet Office report showed today in Tokyo, Japan’s GDP climbed the most in a year, thus rising on an annualized basis of 3.5% in the first quarter.
- According to the Rubber Research Institute of Thailand, Thai rubber fell 0.3% to 89.55 baht or $3.02 a kilogram yesterday.
- 09:05 UTC
- Amid signs demand is increasing in China, soybeans rose for the first time in three days, whilst corn declined. The oil seed for July delivery traded in Singapore on a volume of 52% lower than the 100 day average, at $14.1575 by 11:58 a.m., and gained as much as 0.3% to $14.1625 a bushel on the Chicago Board of Trade.
- According to the U.S. Department of Agriculture yesterday, U.S. exports sold China 171,000 metric tons in the marketing year beginning Sept. 1.
- Based on China National Grain and Oils Information Center said today, buyers in China take a total monthly average purchases in August and September to 5 million tons, thus waiting for the new U.S. crop to come on stream.
- According to an analyst at Phillip Futures Pte today, Ker Chung Yang, China’s interest for new crop U.S. soybeans is constantly increasing. Wheat rose 0.3 percent to $6.955 a bushel, while corn for delivery in July fell 0.2% to $6.4975 a bushel.
15 / 05 / 2013 - 12:35 UTC
- Upon investors weighting weak growth in China and the improved U.S. data, copper in London climbed the most, after the big fall for the last two weeks. Zinc, nickel, aluminium and lead also rose.
- Copper for three months delivery was at at $7,278.50 at 9:53 a.m. in Shanghai, climbing recently on the London Metal Exchange as much as 0.7% to $7,295 a metric ton. Yesterday, the metal dropped the most since May 1, declining 2.3%.
- Amid the economic outlook and sales brightening, U.S. small businesses confidence rose in April to a six month high. Based on economists perspective, China’s growth for this year was minimized from 8% to 7.6%, lowering the forecast for next year from 7.7% to 7.6%.
- Bank of China highlighted that, it is highly unlikely to introduce a rate cut in short term or any other significant stimulus measures.
- According to an analyst at Beijing Capital Futures Co., Xiao Jing, the metal is still fluctuating between the range of $7,200 and $7,450, almost stuck.
- 12:27 UTC
- Amid the increasing speculation that prices may weaken for synthetic products and upon oil dropping to the lowest level in almost two weeks, rubber fell for a second day.
- On the Tokyo Commodity Exchange at 10:44 a.m., rubber for October delivery was 285.9 yen, recently decreasing as much as 1.6% to 283 yen a kilogram or $2,768 a metric ton. This year, futures dropped 5.5%.
- On the New York Mercantile Exchange, amid signs of rising supplies, crude for June delivery in electronic trading traded at $94.34 a barrel, making the longest run of losses this year.
- According to an analyst at research company JSC Corp. in Tokyo, Takaki Shigemoto, Rubber tracked losses in oil on speculation investors’ interest in global stocks and generally commodities will weaken.
- Amid the U.S. benchmark equity gauge extending a record high, Japanese shares led Asian stocks toward higher levels. On the Shanghai Futures Exchange, rubber for September delivery remained almost unchanged at 20,295 yuan or $3,302 a ton.
More from commodities
17 / 05 / 2013 - 03:49 UTC
- With investment on companies, including OAO Gazprom cooling down and the euro area’s longest recession hurting demand for commodity exports, Russia’s economy grew at the weakest pace in the first quarter since 2009.
- According to the Federal Statistics Service in Moscow today, gross domestic product slowed for a fifth consecutive quarter, growing 1.6% from a year earlier, 0.4% higher than the median estimate of 23 economists and 0.5% higher than the Economy Ministry estimations.
- According to an economist and trading strategist at Danske Bank A/S, Vladimir Miklashevsky, fixed investment growth is the most worrying issue at the moment, especially for longer time frames.
- Emerging and developed market peers have been under-performed by the Russian stocks, with MSCI Emerging markets Index declining 2%, S&P 500 advancing at a rate of 10% and Micex Index dropping 2.5% in the first three months. Russia’s benchmark gauge rose 1.4% to 1,393.16 as of 2:50 p.m, highlighting an upside run for the first time in six days now.
- 03:19 UTC
- Amid policy makers weighting the impact of consumer spending boom and stagnant manufacturing output, the borrowing costs were left unchanged by Chile’s central bank since yesterday for a 16th consecutive month.
- The bank board held the benchmark rate at 5%. The bank made a rate point reduction in January 2012 that surprised economists.
- Manufacturing contracted 3%, the most since September, while Chilean retail sales leaped 10.2% in March from the year earlier. According to the economist Cristobal Doberti, wages are rising almost six times faster than prices, with the unemployment rate being near a record low, even as the inflation rate fell to a three year low.
- According to chief economist at BICE Inversiones from Santiago on May 15, Doberti, changed are expected to occur within the upcoming year as inflation and growth now are at ease. The gross domestic product has the slowest pace in 20 months, growing 3.1% in March from the year before.
- 03:02 UTC
- Amid annual inflation rate falling in April via the slowest level in more than three years, the Canadian dollar extended a two month declination against its U.S. counterpart.
- Based on the Statistics Canada from Ottawa, amid the consumer price index, compared with a 1% gain the prior month, rose 0.4% in April from a year ago, the Canadian dollar dropped versus the majority of its 16 most traded peers.
- Amid speculation the Federal Reserve will end its asset purchase program, the Canadian dollar headed toward its largest weekly loss in a year.
- According to the head analyst in Toronto at the online currency trading firm Oanda Corp., Dean Popplewell, Canada is still walking on a tightrope, amid comments why isn’t the central bank contemplating lowering rates.
- At 8:37 a.m. in Toronto, the Canadian dollar dropped 1% to C$1.0298 per U.S. dollar. During the week, the currency was forced to reach the weakest level since March 8, touching C$1.307.
- 02:47 UTC
- Moody’s Investors Service rating for Turkeys first investment grade, forced bond yields to reach record lows, whilst stocks climbed.
- Turkey’s government bonds rating climbed by one step, from Ba1, the lowest investment grade, to Baa3, according to Moody’s statement yesterday. Turkey now has the same credit rating level as India, Colombia and Spain, obtaining a more stable outlook.
- According to Moody’s analysts, existing vulnerabilities in Turkey are expected to be reduced as international capital flows will start taking place over time.
- At 10:11 a.m. in Istanbul, the two year benchmark bonds yields dropped to a record low of 4.68%, by 12 basis points. For the first time, ten year lira bond yields lat at 6.01%, falling below 6%.
- The main Istanbul stock exchange index extended its advance this year to 18%, the highest since at least 1988,
- jumped as much as 1.3% to 93,116.29. The lira made its longest streak of losses since June 2011, dropping 0.3% to 1.8287 per dollar, trading 0.2% higher.
16 / 05 / 2013 - 10:11 UTC
- Prior data indicating economists confirming that the euro area inflation was at a three year low in April, German 10 year government bonds snapped a two day drop.
- The annual inflation rate in the Eurozone bloc, matched earlier reports, falling from 1.7% in March to 1.2%, the lowest since 2010. Within a period of seven weeks, the Benchmark yields fell from their previous highest level.
- France is scheduled to sell up to 1.2 billion euros of index linked securities and as much as 8 billion euros or $10.3 billion of debt maturing between 2015 and 2018.
- At 7:15 a.m. London time, Germany’s 10 year bond yield reached 1.36%, falling two basis points or 0.02% points. The rate climbed the most since March 25, reaching 1.41% yesterday.
- The two year note yield remained almost unchanged at 0.02%. The 1.5% security maturing in February 2023, rose to 101.23, an increase of 1.65 euros per 1,000 euro face amount or 0.165.
- According to indexes compiled by the European Federation of Financial Analysts Societies, French securities fell 0.7% and German government bonds lost 1%.
- 08:13 UTC
- Bond yields were pushed above analyst forecasts for the first time since July, by Bank of Japan Governor Haruhiko Kuroda’s stimulus policies, as the widest price swings in a decade halted two debt offerings.
- Benchmark 10 year Japanese government bond yields headed toward the highest level since April 2012, reaching 0.92% yesterday. Analysts predictions for the year end forecast based on a survey was at 0.7%
- Amid the central bank announcing a 2.8 trillion yen or $27.4 billion infusion of funds, the rate pared gains. The 10 year Treasury yields analysts forecasts was at 2.2% in relation to 1.93%.
- Due to market volatility, Lixil Group Corp. and Toyota Industries Corp., are cancelling debt sales this week via keeping borrowing costs low and casting doubt on the BOJ’s plan to boost investment.
- According to chief economist in Tokyo at Norinchukin Research Institute Co., Takeshi Minami, BOJ aims to keep bond yields low, a not so realistic scenario though, despite monetary easing aiming toward minimizing 2% inflating via buying JGBs.
- 08:05 UTC
- Prior a government report of economists showing that consumer price index fell in April, the expectation for inflation is nearly approaching the weakest level in eight months, based on treasury yields.
- The difference between same-maturity Treasury Inflation Protected Securities and yields on 10 year notes was 2.29% points. The spread was the smallest since September, as low as 2.24 earlier this month. Over the past decade the average was 2.21.
- According to an analyst at Diam Co., a unit of Dai-Ichi Life Insurance Co., in Tokyo, Hajime Nagata, inflation will remain at its current level with probabilities of heading toward lower levels. Tremendous support will be needed so that the economy holds strong.
- According to Bond Trader data, at 11:59 a.m. in Tokyo, U.S. 10 year rates remained almost unchanged at 1.93%. For the first time in five days, treasuries were able to rise.
- Based on Nagata, there is a bearish view on Treasuries based on the short term debt bets, as those are the securities offering greater protection in case yields rise.
- 07:56 UTC
- According to a latest Global Poll, U.S. and Japanese markets are seen as improving, therefore investors perceive them the most bullish ones in more than 3 1/2 years.
- U.S. achieved the highest rating since October 2009 via performing a 15-point jump from the last poll in January, thus being among the markets offering the best returns.
- Based on a survey of investors, analysts and traders, Japan ranked second in May 14, even if it was considered to be a place to avoid in many of the previous polls.
- According to the president of Doraine Wealth Management Group Inc. in Corpus Christie, Texas, Charles Doraine, Japan will become energy independent in the near future and the housing market will be coming back.
- The majority of investors perceive deflation becoming a greater obstacle than inflation in the coming year, and most of them are soured on gold and generally commodities of this type.
15 / 05 / 2013 - 05:07 UTC
- The Euro Stoxx 50, the estimator of the stock markets in the Eurozone, achieved small gains of 0.2%. The pan-European index Stoxx Europe 600, after closing yesterday at highest level since June 2008, has strengthened 0.4% reaching 307 points.
- The UK FTSE 100 index gained 0.1% at 6,695.59 points, the French CAC 40 strengthened by 0.2% at 3,972.95 points, while the DAX 30 noted marginal gains of 0.03% at 8341.3 points.
- The Swiss SMI rose 1%, the Spanish IBEX 35 gained 1.1%, while the Italian FTSE Mib index strengthened 0.5%. The Turkish ISE gained 0.7% and the MICEX and RTS showed negative signs at -0.8% and -1.4%, respectively.
- According to the German stabilization fund SoFF, following the completion of the private placement shares amounting to 625 million, Commerzbank AG shares were priced at 7 euros per share, thus the bank jumping 11% in value.
- ThyssenKrupp fell 1%, after communication impairments of 683 million euros, resulting in net losses increase from 587 million euros a year earlier to 656 million, on the carrying amounts of steel plants in Brazil and the USA.
- 05:01 UTC
- With the economic activity contracting for a sixth consecutive quarter, the European stock markets traded on Wednesday toward a much higher level against the the disappointing GDP progress taking place in the Eurozone.
- According to the European Statistical Office Eurostat, the GDP of the Eurozone since the last quarter of 2012, is shrinking by 0.2% in the first quarter of 2013.
- Although the declination in economic activity overall, is not as huge as it used to be four years ago, the current recession has surpassed in duration the recession of 2008 and 2009. The GDP of the Eurozone fell 1% compared to the same quarter of 2012.
- Regarding European GDPs, Portugal’s GDP shrank 0.3%, Cyprus GDP fell 1.3%, while the Spanish and the Italian tumbled 0.5% respectively.
- The German economy grew just 0.1% in the first quarter from the previous quarter, according to data from Eurostat. There was an overall GDP of 0.3%, based on the average estimates of the analysts of Dow Jones Newswires poll.
More from economy
17 / 05 / 2013 - 07:32 UTC
- Upon overseas funds continuing to record purchases of local shares, benchmark indexes signaled an extension of their rally as India stock index futures gained, reaching the highest level since November 2010 yesterday.
- At 10:13 a.m. in Singapore, SGX CNX Nifty futures for May delivery climbed 0.5% to 6,203. On the National Stock Exchange of India Ltd, the underlying CNX Nifty Index increased 0.4% to 6,169.90 yesterday.
- The Bank of New York Mellon India ADR Index dropped 0.4%. The S&P BSE Sensex index climbed 0.2%. Bases on valid data, foreigners bought the most of Indian stocks since Feb 7, on May 15, a net purchase of $311 million
- According to a director at Arihant Capital Markets Ltd. in Mumbai yesterday, Anita Gandhi, the Indian allocation is expected to increased via foreign funds, in comparison with other emerging markets.
- Amid a weakening economic growth, monetary easing by global central banks, slowing inflation and upon foreign funds extending purchases prompted the central bank to cut interest rates for a third time this year, on May 3.
- The Sensex has rallied 11%. India’s largest cigarette maker, ITC Ltd., expectation highlight the possibility the company reporting a fourth net income of 18.97 billion rupees or $346 million for the fourth quarter.
- 07:22 UTC
- Upon valuations surging and on speculation first quarter economic growth will weaken, Philippine stocks extended a decline from a record, falling the most among emerging markets in Asia.
- Alliance Global Group Inc., SM Prime Holdings Inc., Ayala Land Inc., lost 2.8%, leading the decline. Asia United Bank, on its trading debut, climbed as much as 9.9%.
- At 12:02 p.m. in Manila, the benchmark Philippine Stock Exchange Index extended yesterday’s 1.1% loss, falling 0.7% to 7,257.87. On May 30, the Gross domestic product growth will be reported by governmental reports.
- According to Credit Suisse Group AG analyst Alvin Tan today, the market will be really disappointed from the first-quarter GDP figures. Investors remain optimistic though over the medium and long term prospects.
- Basd on Tan, Universal Robina Corp., Ayala Land, SM Investments Corp. became overvalued, thus the gauge declining as much as 8.4% from 6,700 yesterday’s close. Philippine stock market corrections have traded around 11%, lasting at most two months since 2009.
- 07:14 UTC
- Amid property developers rallying on speculation the government won’t impose more real estate curbs, the Chinese benchmark index headed toward a third week of gains, as the Chinese stocks rose.
- The gauge of property companies made its biggest advance today and for week, with Gemdale Corp. and Poly Real Estate Group Co. gaining at least 1.7%.
- The electricity producer, Huaneng Power International Inc., rose 3.2% as utility stocks advanced. The consumer company, FAW Car Co. dropped 2.6%.
- According to an analyst at Soochow Securities Co., from Suzhou, Deng Wenyuan, due to the lack of tightening measures recently, property stocks are leading the way in the Chinese stock market. Such measures are expected to be reduced throughout time even more, with power companies benefiting from lower costs.
- At the 11:30 a.m. local time break, the Shanghai Composite Index extended this week’s gain to 0.4%, climbing 0.1% to 2,254.75. The China US Equity Index lost 1%. The CSI 300 fell less than 0.1% to 2,551.66.
- Amid concern the decelerating economy will be curbing profits, the Shanghai measure has lost 7.4% from this year’s Feb. 6 peak
- 07:06 UTC
- Upon a report Prime Minister Shinzo Abe will be encouraging the practice to boost growth and amid signs the market may be overheating, Japan’s Topic Index rose, with leasing companies leading the Japanese stock market.
- The sportswear company, Mizuno Corp., reported a net income forecast more than double, soaring 19%. Orix Corp., leasing and loans provider, climbed 12%.
- Japan’s biggest exporter of consumer electronics, Sony Corp., over the past five trading days, was able to surge 19%.
- Nippon Sheet Glass Co. projected wider than expected loss, slumping 5.7%. At 12:51 p.m. in Tokyo, the Topix climbed 0.6% to 1,252.74. Today, the Nikkei 225 Stock Average won 0.3% to 15,074.52.
- According to a Tokyo-based fund manager at Mizuho Asset Management Co., Takashi Aoki, leasing companies surge on a report regarding the governmental strategy for growth, still drawing investors attention.
- Amid unprecedented easing from Bank of Japan, the Topix was able to outperform all major equity indexes, rising 45% this year through yesterday.
16 / 05 / 2013 - 09:49 UTC
- Amid U.S. index futures remaining almost unchanged, Asian shares falling and the Stoxx Europe 600 Index benchmark extending toward its highest level since June 2008, European stocks remained almost unchanged.
- Zurich Insurance Group AG reported earnings that missed out forecasts, thus losing a share value of 3.7%. At 8:07 a.m. in London, Stoxx 600, after rising for a second day yesterday, fell 0.2% to 307.55.
- Upon central banks around the world maintaining their stimulus measures, the equity benchmark made its best start to a year since 1998, rallying 10% so far in 2013.
- MSCI Asia Pacific Index dropped 0.3%, while Standard & Poor’s 500 Index futures retreated 0.1%. Upon weakness in manufacturing data bolstering confidence the Federal Reserve is not rushing to scale back stimulus, the he S&P 500 made its ninth record for the past 10 days.
- The Nikkei 225 Stock Average retreated from its highest level since December 2007, leading Asian equities fall today, even when a report showed that the economy of Japan making the highest annual expansion.
- 08:37 UTC
- India’s stock futures surged to the highest level in more than two years since yesterday, but today were forced to decline, signalling also a declination for the benchmark indexes as well.
- At 9:48 a.m. in Singapore, SGX CNX Nifty Index futures for May delivery dropped to 6,152.5, a declination of 0.2%. The underlying CNX Nifty Index headed toward the highest close since Jan.3, 2011, jumping 2.5% to 6,146.75 yesterday.
- The Bank of New York Mellon India ADR Index climbed 0.8% and so did S&P BSE Sensex index, advancing 2.5% Upon speculation the central bank may be cutting lenders’ reserve requirement ratios, Sensex’s valuation reached the highest level in seven months.
- According to the vice president of private client group research at Kotak Securities Ltd., Sanjeev Zarbade, valuations will necessarily require governmental support as there are currently near their long term average.
- Upon foreign funds extending purchases of Indian stocks amid monetary easing by global central banks, the Sensex was able to rally 11%, rebounding from a seven month low on April 9.
- 08:30 UTC
- Amid valuations reaching a nine year high and a technical indicator suggesting the rally may be reversing, Philippine stocks were forced to tumble from a record high.
- At 11:11 a.m. in Manila, the Philippine Stock Exchange Index headed for the largest decline among Asian benchmark indexes and the biggest loss in three weeks, sliding 1.5% to 7,283.36. Philippine Long Distance Telephone Co. and Ayala Land Inc. contributed most to the drop.
- Upon the country wining its first investment grade credit ratings from Standard & Poor’s and Fitch Ratings, Philippine stocks surged 25% this year.
- According to an analyst at brokerage Campos Lanuza & Co., from Manila, Jomar Lacson, the Philippine market is considerably expensive at various time intervals.
- The 14 day RSI (Relative Strength Index) was at 75 yesterday, higher than the 70 level signalling for some traders that the current rally might reverse.
- Ayala Land pared its advance this year to 29%, losing 1.9% to 34.05 pesos. PLDT snapped a 5.7%, dropping 1.5% to 3,200 pesos.
- 08:22 UTC
- Amid the benchmark index, in more than three years, trading at its biggest discount to global markets, China stocks climbed for a second day.
- Gemdale Corp. lead a 2.2% rally in property shares , climbing the most in a month. Among brokerages rallying, Sealand Securities Co. rose 5.8%. Sanan Optoelectronics Co. extended for a sixth day, rallying 6.1% to an 18% advance.
- At 1:07 pm. local time, the Shanghai Composite Index climbed 1% to 2,248.02, summing up its drop to 0.9% this year. Amid concern the slowing economy will be curbing profits, the Chinese index fell 7.7% from this year’s Feb. 6 peak.
- According to Sunil Garg, JPMorgan Chase & Co. analyst, in Hong Kong, there is a deceleration in growth for the Chinese stocks, as the stocks seem to be stacked within a trading range.
- The Hang Seng China Enterprises Index remained almost unchanged. The CSI 300 Index climbed 1.5% to 2,543.17.
- Foreign direct investment in China highlighted a concern regarding the growth outlook for the nation, as it lagged behind analysts’ estimates in April.
15 / 05 / 2013 - 01:24 UTC
- Amid Bank of England Governor Mervyn King predicting that a recovery for the U.K. economy is within sight, European stocks extended their highest level since June 2008. Asian shares rallied, whilst U.S. index futures remained almost unchanged.
- Commerzbank AG, upon its first day of offering shares to investors, surged 14%. ThyssenKrupp, Germany’s largest steelmaker reported earning exceeding estimates, this gaining an additional 3% in share value.
- At 10:44 a.m. in London, the Stoxx Europe 600 Index climbed 0.3% to 306.57. The equity benchmark, bolstered by monetary stimulus from the world’s central banks, rallied 9.6% so far this year.
- Today, the MSCI Asia Pacific Index climbed 0.8%, while Standard & Poor’s 500 Index futures contracts dropped 0.2%.According to the head of European equities at Royal London Asset Management, Andrea Williams, the market is a little bit alarming and surprising most of the times that keeps getting influenced from unexpected bad news.
- Amid the increasing optimism in the world’s largest economy, the S&P 500 made its eighth record in the past nine trading days and U.S stocks rallied.
- 01:15 UTC
- Amid the the euro area economy contracting more than forecast and Standard & Poor’s 500 Index declining from a record, U.S. stock futures were forced to retreat.
- Amid Lone Pine Capital LLC cutting its holding in Walt Disney Co., the world’s largest entertainment company, the Disney market shares dropped 0.7% in German trading.
- At 10:34 a.m. in London, S & P 500 Index futures expiring in June fell 0.2% to 1,644.5. Today, Dow Jones Industrial Average contracts lost 18 points or 0,1%, to 15,157.
- According to a fund manager at Banque Martin Maurel in Marseille, Jerome Forneris, the market is gaining momentum rapidly, thus being normal locking the profits.
- The S&P 500, driven by three rounds of bond purchases from the Federal Reserve and better than estimated corporate earnings, surged 144% from a 12 year low in 2009. The U.S. market is currently fluctuating within the fifth year of bullish momentum.
- According to the European Union’s statistics office in Luxembourg today, the euro economy, after a 0.6% drop in the last three months, shrank 0.2% in the first quarter.
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17 / 05 / 2013 - 04:37 UTC
- Microsoft made the news once more – According to the Billionaires Index, the 57 year old co founder of Redmond, Washington based Microsfot Corp., Bill Gates is once again the world’s richest person, as the software maker Microsoft hit a five year high. Gates was able to recapture the tile from Carlos Slim, the Mexican billionaire investor.
- The software magnet, was lower than the 1st place since 2007, as his fortune today sums up at $72.7 billion, 16% up from his previous appraisal.
- Upon Mexico’s Congress passing a bill possibly quashing the billionaire’s market dominance, the largest mobile phone operator in the Americas, Slims’s America Movil SAB, fell 14% this year.
- According to managing director at New York based Deltec Asset Management LLC, Greg Lesko, Gates appearance on the fist place could be seen as a bad thing, especially now that U.S. is in a very critical situation and needs a complete reformation as a nation. Alternatively, Carlos Sim is located in Mexico, a country where significant improvements are taking place lately.
- 04:23 UTC
- Amid the dollar rallying on speculation the Federal Reserve will be scaling back stimulus measures and upon the central bank refraining from intervening to strengthen the currency, Brazil’s real headed toward a third week of declines.
- At 10:43 a.m. in Sao Paulo, Brazil’s rand extended its decline this week to 0.6%, depreciating 0.4% to 2.0337 per dollar. Swap rates on the contract due in January 2015 reached 8.54%, climbing seven basis points or 0.07 percentage points. Swap rates made their biggest five day increase since April 12, rising 19 basis points since May 10.
- Amid San Francisco’s Fed President John Williams saying that the U.S. central bank may be reducing its $85 billion monthly bond buying program in the next few months, the real fell versus the dollar along with other currencies.
- According to a currency trader at Renascenca DTVM in Sao Paulo, Jose Carlos Amado, the real could very easily slip, in case the central bank stands there doing nothing.
- 04:06 UTC
- The Central Bank today announced the preliminary balance sheet of The Bank of Cyprus. The total capital and reserves of the bank reached € 3,5 billion, with the total assets amounting at € 38,3 billion and liabilities at € 34,7 billion.
- The stabilization of the financial position and the normalization of the Bank of Cyprus has been achieved so far said Central Bank’s announcement.
- The bank’s customers have been informed accordingly, regarding the conversion of 37.5% of deposits into shares. The percentage of deposits that is to be converted into capital will be decided via independent auditor firm. The specific credit rating will be done upon completion of the Board of Directors of the Central Bank.
- According to the Memorandum, the role and responsibilities of the Board already established. The future course of the Bank and the immediate plan would be judged by the decisions of this Council. The decision making regarding the members of the Board of Directors is already in place, with the assignment of a 15 member Council.
- 07:39 UTC
- Amid the yen falling to a four year low and on speculation regional central banks might be allowing their currency rates to depreciate in an attempt to keep exports competitive with Japan, Asian currencies declined for a second week.
- Companies such as Sony Corp. and Samsung Electronics Co. compete for global market share, thus the Taiwan dollar and South Korea’s won becoming more sensitive to yen’s weakness.
- The Taiwan dollar, South Korea’s won and Malaysia’s ringgit are those exchange rate leading this week’s drop. According to the foreign exchange strategist and chief executive officer and FPG Securities Co. in Tokyo, Koji Fukaya, there are some intervention concerns in these markets, as policy makers competing with Japan fragile regarding yen’s movement. The U.S. economic recovery and overall optimism helped also the dollar to strengthen.
- As of 11:51 a.m., JPMorgan Asia Dollar Index fell 0.3% from a week ago to 117.64 in Hong Kong. The Taiwan dollar fell 0.6% to NT$29.978, ringgit weakened 0.9% to 3.0203, won dropped 0.9% to 1,116.60.
16 / 05 / 2013 - 07:59 UTC
- The labor market and the housing market in the U.S. is operating under a caution environment, leading Dow Jones and S & P 500 indices into a negative territory far away from historic highs.
- Nasdaq gained 0.1%, while Dow Jones and S & P 500 futures declined 0.1% accordingly. On Wednesday’s trading session, the negative events were not able to hold back the U.S. economy, with Dow Jones and S & P 500 reaching at unprecedented levels.
- The Dow Jones industrial average closed at 15,275.60 points, gaining 60.40 points or 0.40%. The S & P 500 rose 8.40 points or 0.51% and closed at 1658.70 points. The Nasdaq rose 9.00 points or 0.26% and closed at 3471.60 points. The wider index dropped twice this month.
- The jobless claims in the U.S. made the biggest increase since November last year. According to data from the Ministry of Employment, for the ween ending May 11, new applications increased by 32,000 to 360,000, whilst economists predictions by Dow Jones Newswires predicted a rise of 330,000.
- 10:49 UTC
- The Asian trading has once more confirmed the strong investor interest in the U.S. dollar. The commodity currencies weakness and the intense interest taking place on the Australian dollar conquers the higher level of interest today, with pressures increasing every day.
- Investors have become extremely negative towards the currency, as there is absolutely no correlation with the U.S. index S & P 500.
- There is indeed a risk aversion mood, especially after the AUD fall, indicating probably the end of a multi-uptrend for the commodity market. In such as scenario, the commodities fluctuations will be considerably large.
- In the upcoming session, investors interest will shift toward economies that are highly favored by rising commodity prices, thus special care is required with countries having a significant correlation with such goods or commodities.
- Already, AUDUSD is under a testing zone of 0.9825 and an 11 months low. Inflation in Europe and America are the largest announcement for today’s trading session economic calendar.
- 10:34 UTC
- The majority of Asian stock markets is heading toward new higher record levels on Wall Street, even if the Japanese markets fell, amid investors attempt locking their profits due to the recent strengthening of the yen.
- The Topix lost 0.6% at 1,245.23 points. The Nikkei dropped 0.4% to 15,037.24 points amid yesterday’s close above 15,000 points for the first time since December 2007.
- The better than predicted GDP figures taking place earlier today could not stop the indicators from retreating toward lower levels.
- Nominal GDP, not adjusted for price changes, reached the highest level this year, climbing 1.5%. Private contributed with a 2.3% at the uptrend move, accounting 60% of the GDP. GDP overall grew 3.5%.
- The Shanghai Composite in China gained 0.9%, the broader CSI 300 strengthened by 1.4%, the Hang Seng rate in Hong Kong slightly rose 0.2% and the Asia wide MSCI Asia Pacific index declined 0.3% to 142.78 points.
- The index NZX50 in New Zealand recorded a small loss of 0.2%, Australia’s ASX index dropped 0.5%, Taiex index in Taiwan gained 0.9% and Kospi in South Korea rose by 0.8%.
- 10:25 UTC
- According to the World Gold Council (World Gold Council), demand for gold fell in the first quarter, with the physical demand strengthening in the same period.
- Global demand fell with gold investments falling half in the first quarter, from 395.8 metric tons to 200.8 metric tons. Alternatively, with the assistance of China and India, demand for gold jewelry rose by 12%.
- The total placements in gold ETF remained higher than last year, while the level of demand for gold bars and coins is aggressively increasing by 22% in China, 43% in the U.S and 52% in India.
- According to the CEO of World Trust Services, Jason Toussaint, based on Market Watch, the first increase in demand for gold jewelry in the U.S. took place during the first quarter of the year for the last seven years.
- The total global gold demand in the first quarter stood at 963 metric tonnes, with a drop of 19% compared to the fourth quarter of 2012 and a fall of 13% compared with the same period last year.
15 / 05 / 2013 - 05:15 UTC
- The futures indices extended their mild losses, portending a negative start in Wall Street, as the index of manufacturing activity in New York acquired a negative value for May.
- The Empire State manufacturing index fell by 3.05 points in April to 1.43 points in May, based on an announcement in New York, showing a constant reduction in the activity, with indications being lower than zero.
- According to an announcement by the Ministry of Labour, wholesale prices fell in a seasonally adjusted rate of 0.7% in April.
- Dow Jones and S & P 500 futures ended at new highs while the S & P 500 lost 0.2%, whilst Dow Jones and Nasdaq dropped by 0.1%. Estimates highlight that the economic recovery is about to gain momentum steadily and gradually.
- S & P 500 Index rose 16.50 points and closed at 1,650.30 points, the Nasdaq rose 23.80 points and closed at 3,462.60 points, while Dow Jones gained 123.50 points and closed at 15,215.20 points.
- 01:59 UTC
- Amid the Bank of England upgrading its estimate of the U.K. economy in its quarterly Inflation Report, the sterling rose against the euro for the first time in four days.
- Upon the Governor Mervyn King saying a recovery was in sight as he presented his forecast for the economy, the sterling climbed versus all of its 16 major counterparts except one.
- Amid a report showing British jobless claims dropping in April, the sterling advanced. Upon the demand for safer assets waning, U.K. government bonds dropped for a second day.
- According to a currency strategist at National Australia Bank Ltd. in London, Gavin Friend, headlines have a tremendous impact on the sterling (pound) as well as the inflation forecasts from the Bank of England.
- At 11:25 a.m. London time, the sterling, after dropping to 85.17 pence yesterday, climbed 0.3% to 84.68 pence per euro. The currency previously declined toward the lowest level since April 4, to $1.5193, recently gaining 0.1% to $1.5217.
- Based on King’s overall identification at a press conference in London, today there is a much better and more optimistic overview in the economic outlook.
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