Exchange
Crude oil futures eased a bit after gaining over 1% to $96.42 a barrel on the back of a stock market rally after a solid rise in U.S. consumer sentiment and leading indicators data.
Light sweet crude oil futures for June delivery was last at $95.25 per ounce, up from an open at $95.17, having earlier hit a high of $96.42, and a low of $94.78 per barrel. As of 11:50 New York Time
The Standard & Poor`s 500 Index was recently up 0.4% at 1657.45, rising after the Conference Board reported its index of leading economic indicators rose twice as much as expected in April.
Oil futures often rise and fall with the stock market, which is often tracked as a barometer of broader economic sentiment and oil demand.
In the U.S., the Thomson Reuters/University of Michigan preliminary index of ...
Fundamental Analysis
EUR
"Deflation is perhaps becoming more of a risk than inflation for the eurozone, although it remains unlikely for now at least."
- HIS Global Insight analyst Howard Archer
Consumer prices hike in the 17-nation economy has slowed to the lowest level in more than three years, as fuel and telecommunications costs dropped substantially, the EU statistics office, Eurostat said Thursday.
Read more: FULL REPORT - Fundamental Analysis
Technical Analysis
EUR/USD
"U.S. bond prices gained sharply yesterday despite William's comments. Each market has its own interpretation now and there's no broad consensus on the Fed's stance yet."
- Bank of Tokyo-Mitsubishi UFJ (based on CNBC)
It looks like 1.2874/46 will be unable to withstand bearish pressure and thus will give in, ...
Gold extended losses for a seventh straight session on Friday , falling to its lowest since March 2009, as investors cut their interest in the metal after its recent drop below $1,400 per ounce, sending holdings in exchange-trade funds to their lowest in four years.
As of 09:47 (GMT+3), gold for immediate delivery slumped 0.44 percent or 6.15 points to trade at $1,379.31 after opening at $1,386.45, having earlier hit a high of $1,392.95, and a low of $1,377.56.
Gold prices dropped below $1,385 on Thursday as Securities and Exchange Commission filing showed that George Soros, founder and chairman of Soros Fund Management, cut his holdings of bullion-backed exchange-traded products. Soros reduced his stake in the SPDR Gold Trust from 600,000 shares in December to 530,900 shares by March 31. ...
Market wrap
Global market sentiment: Another batch of weaker US data hurt the US dollar and depressed interest rates. However, the WSJ's influential Fedwatcher, Hilsenrath, wrote the Fed isn't too concerned about falling inflation since future inflation expectations are stable. That may have comforted the equity markets, the S&P500 currently unchanged.
Interest rates: US 10yr treasury yields corrected lower for the second consecutive day, falling from 1.95% to 1.86% in a clear response to the weaker US data. The 2-10yr yield curve flattened by 6bp. Australian 3yr government bond yields followed suit, falling from 2.58% to 2.49% while the 10yr yield fell from 3.26% to 3.16%
Currencies: The US dollar index is around 0.3% lower. EUR rose from 1.2847 to 1.2930. USD/JPY fell from 102.68 to ...
Beside the gloomy data released so far on the U.S soil we watch the gold fall near to a one-month low mainly as filings showed that George Soros and Blackrock Inc. (BLK) cut holdings of bullion-backed exchange-traded products, adding to signs that investment demand is waning as U.S. equities rally to records to watch gold so far trade around $1386.60 an ounce recording a high of $1398.35 an ounce and a low of $1369.80 an ounce.
In fact holdings in the SPDR Gold Trust fell to 1,047.13 metric tons yesterday and Paulson & Co., the largest investor in SPDR, maintained its stake, while funds run by Northern Trust and Blackrock showed reductions.
On the other hand Initial claims for jobless benefits rose by 32,000 last week, more than forecast, to a seasonally adjusted 360,000. It was the ...
Fundamental Analysis
EUR
"The first-quarter contraction reinforces pressure on the ECB to come up with further measures to try and support euro-zone growth."
- Howard Archer, an economist at IHS Global Insight
The 17-nation economy has slumped into its longest recession ever, as the economic activity in the region fell for a sixth quarter in a row. Gross domestic product in the Eurozone shrank 0.2% in the first three months of 2013 after a 0.6% decline in the previous quarter, and below analysts’ expectations of a 0.1% slump.
Read more: FULL REPORT - Fundamental Analysis
Technical Analysis
EUR/USD
"The euro zone GDP data reinforced expectations of additional easing from the ECB."
- Commonwealth Foreign Exchange (based on CNBC)
Even though EUR/USD was facing a strong support zone at ...
Gold pared early losses on Thursday trading session, as U.S. dollar weakened pulling back from multi highs after disappointing U.S. industrial data. However, gains may be capped as holdings in exchange-traded funds hit their lowest in four years.
Wednesday was a tough day for gold as it dropped below $1,400 for first time in about a month, where the rally in U.S. equities makes gold less attractive to investors as it strengthened the dollar, thereby making gold a major underperformer.
As of (09:40 GMT+3) gold for immediate delivery fell 0.21 percent or 2.99 points to trade at $1,393.55 after opening at $1,393.88, having earlier hit a high of $1,397.94 and a low of $1,387.10.
Among other commodities:
- Silver dropped 0.47% to 22.63
- Platinum lost 0.58% to 1,482.60
- Palladium inched ...
The Swiss franc gained yesterday and remained little-changed today against the US dollar and the euro even as economic expectations were worsening. The currency traded sideways versus the Japanese yen.
The ZEW-CS Indicator of economic expectations for Switzerland sank as much as 17.8 points to 2.2 in May. The report said that “last month’s significant gains are lost and the indicator falls back to the level of March 2013″. Meanwhile, the Swiss Producer Price Index ticked up 0.2 percent in April.
Fritz Zurbruegg, Member of the Swiss National Bank Governing Board, said in an interview to L’Hebdo newspaper yesterday about the cap on the franc:
The floor rate will remain in force as long as necessary to carry out our mandate of maintaining price stability. The current exchange rate ...
European stocks ended higher Wednesday, extending their highest level since June 2008, after the Bank of England raised its growth forecast for Europe’s third-biggest economy.
Equities gained after BOE Governor Mervyn King said that an economic recovery in the U.K. is now “in sight” it the central bank’s quarterly Inflation report, King’s last report before retiring in July.
Growth is forecast to accelerate to 0.5% in the second quarter from 0.3% in the first quarter.
The Stoxx Europe 600 Index gained 0.59 percent to 308.06. The equity benchmark has rallied 10.15 percent so far this year, bolstered by monetary stimulus from the world’s central banks.
The Stoxx Europe 50 ended also in green, higher by 0.50% at 2809.58.
CAC 40 Index
The French benchmark index ended in the green today to ...