Friday 24 August 2012

August 24, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 2.1 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 6.4 points higher, while French CAC-40 futures are trading 2.7 points higher.
At 0500 BST today, DJIA futures are trading 10.0 points higher.
Nikkei 225 index is trading 1.1% lower at 9,077.2.
In Asia, crude oil for October delivery is trading 0.6% or $0.53 lower at $95.74 per barrel.
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5862, slightly higher against the EUR at €1.2628, and 0.1% higher against the JPY at ¥124.70.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 10.0 points higher.
Yesterday, DJIA shed 0.9% to settle at 13,057.5. NASDAQ slipped 0.7% to end at 3,053.4. S&P 500 fell 0.8% to close at 1,402.1.
US markets closed lower yesterday, after comments from a Federal Reserve official dimmed hopes of additional monetary stimulus. Market sentiment was also weighed down amid concern about the eurozone, and following disappointing domestic and international economic data.
Hewlett-Packard dropped 8.2%, after it posted a loss in its third-quarter, the worst in its 73-year history. Big Lots plunged 21.8%, as it lowered its full-year earnings outlook.
United States Steel dropped 6.9%, as a broker downgraded the stock from “Buy” to “Hold”. Guess tumbled 22.6%, as it forecasted weak third-quarter results and again lowered its full-year guidance.
International Rectifier slumped 11.9%, as it reported a loss in its fiscal fourth-quarter.
After the closing bell, Autodesk dropped 21.3%, as its second-quarter profit fell 9.3%, Salesforce.com declined 5.1%, after its quarterly forecasts came in lower than market expectations.
Asian Market Snapshot
Asian markets are trading lower this morning, following negative cues from Wall Street overnight and amid scaled back expectations of stimulus from major central banks. Continued concerns about the eurozone also weighed on market sentiment.
In Japan, Toyota Motor, Nissan Motor, Honda Motor and industrial robot maker Fanuc Corp dropped as a relatively stronger yen dimmed earnings prospects for exporters.
In Hong Kong, PetroChina is trading lower, as it reported a higher-than-expected drop in its second-quarter net profit, while Bank of China slipped after it reported a 6.3% decline in its first half earnings.
In South Korea, Samsung Electronics lost value, after a South Korean court ruled that both Apple and Samsung Electronics infringed on each other's patents in making their mobile devices.
 Nikkei 225 index is trading 1.1% lower at 9,077.2. Hang Seng index is trading 1.1% down at 19,909.3. Kospi is trading 1.0% lower at 1,923.5.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 2.1 points higher.
HSBC Holdings, which is under money-laundering investigation by the US regulators, is reportedly in settlement talks. HSBC has made a $700 million provision in July for any US fines.
Sagittarius Mines, a unit of Xstrata has warned it might delay the planned 2016 start of production at its Tampakan copper-gold project, located in the Southern Philippines in the wake of regulatory and security concerns.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 6.4 points higher, while French CAC-40 futures are trading 2.7 points higher.
Automobile maker, Volkswagen’s global sales of utility vehicles rose in the first seven months of 2012 by 4.7% to 317,300.
The board of directors of the French online shopping guide, Leguide.com has unanimously decided to approve the public offer of the media group Lagardere Active.
Commodities
In Asia, crude oil for October delivery is trading 0.6% or $0.53 lower at $95.74 per barrel.
Yesterday, crude oil for October delivery dropped 1.0% or $0.99 to $96.27 per barrel, as doubts about Europe's ability to address its debt crisis weighed on market sentiment.
However, expectations policymakers in China would implement fresh stimulus measures to boost economic growth following dismal Chinese manufacturing data and higher-than-expected rise in US new home sales in July limited losses.
Gold for immediate delivery is trading 0.1% lower today, at $1,667.15 per ounce.
Gold for December delivery settled up 2.0% or $32.30 at $1,672.80 per ounce yesterday, as disappointing Chinese manufacturing data and US jobless claims data boosted demand for the precious metal as a safe haven asset.
Mounting hopes of third quantitative easing by US Federal Reserve weighed on the dollar, pushing gold futures higher.
Yesterday, copper 3-month futures rose 1.3% or $99.0, to close at $7,676.00 /MT. Aluminium 3-month futures gained 1.4% or $25.0, to close at $1,795.00 /MT.
Currencies
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5862, slightly higher against the EUR at €1.2628, and 0.1% higher against the JPY at ¥124.70, before the release of the UK GDP data for the second-quarter due later in the day.
The EUR is trading marginally higher against the USD at $1.2561. The EUR is trading slightly higher against the JPY at ¥98.75. Greece Prime Minister Antonis Samaras and German Chancellor Angela Merkel are scheduled to meet today to discuss about the next Greece loan tranche of €31.5 billion.
Earlier in the session, the JPY was trading higher against most of its major peers, as most Asian equity markets traded lower, increasing the demand for safe haven assets.
The AUD is trading lower against the NZD, after Reserve Bank of Australia Governor Glenn Stevens stated that the nation’s currency would probably fall if the mining boom ends.
Yesterday, the EUR closed higher against the USD, on a report that Spain is negotiating with the eurozone over conditions for international aid. However, gains were capped, after eurozone manufacturing data suggested that Europe might be heading for another recession, as the region logged its seventh month of manufacturing contraction in August.
The USD ended lower against the EUR, after data showed that US jobless claims rose to a one-month high and amid rising speculations that US Federal Reserve would introduce another round of monetary stimulus to boost economic growth.
Macroeconomic Snapshot
UK BBA mortgage approvals rose to 28,441 in July, compared to revised approvals of 25,940 recorded in June.
UK CBI retail sales balance fell to a reading of -3.0 in August from 11.0 recorded in the previous month.
Markit Economics reported that the flash manufacturing PMI in the US rose to a reading of 51.9 in August, from 51.4 recorded in the previous month.
For the week ended 18 August 2012, initial jobless claims in the US rose to 372,000, from the previous week's revised figure of 368,000.
On a seasonally adjusted basis, new home sales in the US rose 3.6% to an annual rate of 372,000 in July, compared to an upwardly revised rate of 359,000 in June.
On a year-on-year basis, the corporate service price index in Japan fell 0.2% to 96.0 in July compared to a downwardly revised 0.4% drop recorded in June.
 

Thursday 23 August 2012

August 23, 2012 Financial Market Summary


At 0500 BST today, FTSE 100 futures are trading 16.2 points higher.
 
At 0500 BST today, German DAX Xetra 30 futures are trading 28.1 points higher, while French CAC-40 futures are trading 16.0 points higher.
 
At 0500 BST today, DJIA futures are trading 41.0 points higher.
 
Nikkei 225 index is trading flat at 9,130.6.
 
In Asia, crude oil for October delivery is trading 0.7% or $0.69 higher at $97.95 per barrel.
 
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5897, slightly higher against the EUR at €1.2677, and marginally higher against the JPY at ¥124.80.
 
US Market Snapshot
 
At 0500 BST today, DJIA futures are trading 41.0 points higher.
 
Yesterday, DJIA edged down 0.2% to settle at 13,172.8. NASDAQ edged up 0.2% to end at 3,073.7. S&P 500 rose marginally to close at1, 413.5.
 
US stocks ended on a mixed note yesterday, trimming earlier losses, after the Fed meeting minutes highlighted the central bank is preparing to take new steps to bolster the economic recovery. Markets were trading in the negative territory earlier following weak export data from Japan and caution over Greece's meeting this week.
 
Apple rose 2.0%, after a broker raised its target-price. Toll Brothers, PulteGroup and DR Horton rallied between 3.8% and 4.1%, as sales of existing homes climbed in July.
 
EBay and Discover Financial Services rose 2.5% and 3.9%, respectively, after both agreed to team up with PayPal on mobile payments. Williams Sonoma jumped 11.6%, as its second-quarter earnings surpassed market expectations.
 
However, Dell fell 5.4%, weighed down on disappointing second-quarter results and as it forecasted weak personal-computer demand for second-half.
 
After the closing bell, Hewlett-Packard dropped 4.8%, as it swung to a fiscal third-quarter net loss. Retailer, Guess plunged 16.3%, as its second-quarter results missed market estimates.
 
Asian Market Snapshot
 
Asian markets are trading mostly higher this morning, after the US Fed meeting minutes hinted at another round of monetary easing, overshadowing a preliminarily data that showed a drop in China’s manufacturing PMI slipped to a nine-month low.
 
In Japan, Hitachi, Mitsubishi Motors, Pioneer and Panasonic paced losses, as the yen rose to a one-week high yesterday. Sharp surged after media reports that the company might receive additional ¥200 billion in loans.
 
In Hong Kong, Sinopharm gained as it reported a rise in earnings for the first-half fiscal.
 
In South Korea, Korea Zinc rose after gold prices climbed to near record-highs. LG Display paced gains, amid speculation that it is manufacturing components to be used in the next version of the iPhone.
 
Nikkei 225 index is trading flat at 9,130.6. Hang Seng index is trading 0.6% higher at 20,010.7. Kospi is trading slightly higher at 1,936.0.
 
UK Market Snapshot
 
At 0500 BST today, FTSE 100 futures are trading 16.2 points higher.
 
BP announced that the company’s terminals in the past week have delivered off-specification gasoline to approximately 200 retail outlets in the northwest Indiana and Chicago that has resulted in mechanical problems in vehicles.
 
Tullow Oil announced that Blackrock has lowered its stake in the company to 10.8%.
 
European Market Snapshot
 
At 0500 BST today, German DAX Xetra 30 futures are trading 28.1 points higher, while French CAC-40 futures are trading 16.0 points higher.
 
According to media reports, ThyssenKrupp is about to sell its subsidiary Tailored Blanks to Chinese peer Wuhan Iron and Steel.
 
Carrefour plans to raise up to €3 billion to fund a revival plan for its struggling European hypermarket.
 
Commodities
 
In Asia, crude oil for October delivery is trading 0.7% or $0.69 higher at $97.95 per barrel.
 
Yesterday, crude oil for October delivery gained 0.4% or $0.42 to $97.26 per barrel, after the Energy Information Administration reported a higher-than-expected decline of 5.4 million barrels in US crude inventories for the week ended 17 August.
 
Growing speculations that US Federal Reserve would soon implement new stimulus measures and ongoing fears over supply disruption from Middle East region also supported oil prices.
 
Gold for immediate delivery is trading 0.4% higher today, at $1,661.55 per ounce.
 
Gold for December delivery settled down 0.2% or $2.40 at $1,640.50 per ounce yesterday, as investors decided to book profit following the recent rally in gold prices and cautiously awaited the release of the US Federal Open Market Committee minutes.
 
Later in the day, the Fed minutes revealed most members favoured additional monetary stimulus to support the domestic economic recovery.
 
Yesterday, copper 3-month futures gained 0.7% or $52.5, to close at $7,577.00 /MT. Aluminium 3-month futures rose 0.9% or $15.0, to close at $1,770.00 /MT.
 
Currencies
 
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5897, slightly higher against the EUR at €1.2677, and marginally higher against the JPY at ¥124.80. Bank of England policy maker Adam Posen stated yesterday that the UK economy had stagnated.
 
The EUR is trading slightly higher against the USD at $1.2539. The EUR is trading marginally lower against the JPY at ¥98.44. The EUR is trading lower against the JPY before the release of manufacturing and services purchasing managers’ indexes for the eurozone.
 
The USD is trading lower against most of its major counterparts, ahead of Federal Reserve Bank of Chicago President Charles Evans speech amid expectations of additional stimulus measures and ahead of jobless claims and housing data due later in the day.
 
Yesterday, the USD ended lower against major currencies, after minutes from the Federal Reserve’s latest policy meeting revealed that many members backed additional monetary easing to support the economy unless the economy shows signs of expansion.
 
The CAD ended lower against the USD, after a report indicated that Canadian retail sales unexpectedly fell in June. However, losses were capped, following the release of Federal Open Market Committee (FOMC) minutes that showed US policy makers remain committed to more monetary stimulus unless the economy improves considerably.
 
Macroeconomic Snapshot
 
The National Association of Realtors (NAR) stated that, existing home sales in the US rose 2.3% to an annual rate of 4.47 million in July, from 4.37 million recorded in June.
 
According to Mortgage Bankers Association (MBA), for the week ended 17 August 2012, mortgage application volume in the US, on a seasonally adjusted basis, declined 7.4% from one week earlier.
 
According to the minutes of US Federal Reserve (Fed), many Fed policy makers stated that, additional stimulus probably would be needed soon unless the US economy shows signs of a durable pickup.
 
On a year-on-year basis, super market sales in Japan declined 4.9% in July, compared to a 3.9% drop recorded in the previous month.
 
Standard & Poor's stated that, China’s government has significant capacity to support economic growth, if needed.
 

Wednesday 22 August 2012

August 22, 2012 Financial Market Summary


At 0500 BST today, DJIA futures are trading 33.0 points lower.
Nikkei 225 index is trading 0.9% lower at 9,078.0.
At 0500 BST today, FTSE 100 futures are trading 18.4 points lower.
At 0500 BST today, German DAX Xetra 30 futures are trading 30.2 points down, while French CAC-40 futures are trading 15.2 points lower.
In Asia, crude oil for October delivery is trading 0.1% or $0.08 down at $96.76 per barrel.
At 0400 BST today, the GBP is trading slightly higher against the USD at $1.5781, 0.1% higher against the EUR at €1.2658, and marginally lower against the JPY at ¥125.04.
 
US Market Snapshot
At 0500 BST today, DJIA futures are trading 33.0 points lower.
Yesterday, DJIA shed 0.5% to settle at 13,203.6. NASDAQ edged down 0.3% to end at 3,067.3. S&P 500 slid 0.4% to close at 1, 413.2.
US markets closed lower yesterday, with the S&P 500 index retreating from its four-year high level, as a decline in technology sector stocks overshadowed optimism over the progress in euro-bloc.
Apple slipped 1.4%, on report the company and Samsung Electronics had failed to settle a potentially costly patent dispute. Facebook declined 4.3%, after its director sold roughly $400 million worth of shares.
Best Buy dropped 1.4%, as it suspended its profit outlook and share buybacks for the year, amid forecast-trailing second-quarter profit. Medical technology firm, Medtronic lost 0.8%, despite reporting higher first-quarter earnings.
Groupon declined 2.4%, closing to a new low, after Barclays lowered its rating on the stock to “Underweight” from “Equal-weight.”
After the closing bell, Dell declined 4.5%, as it lowered its full-year forecast amid downbeat second-quarter results. Analog Devices dipped 0.4%, as it forecasted a weak fourth-quarter on expectations margins would remain under pressure.
 
Asian Market Snapshot
Asian markets are trading lower this morning, as Japan posted a wider-than-expected trade deficit in July and as investors await more cues from the eurozone before the region’s finance ministers meeting this week.
In Japan, Japan Tobacco paced losses amid investigation by the EU on accusations that it smuggled cigarettes to Syria despite sanctions against the country. Nintendo and Kyocera traded lower, on news that both companies were under investigation by the US International Trade Commission over possible wireless patent infringement.
In Hong Kong, China Rongsheng Heavy Industries Group and Cnooc dropped after booth reported downbeat earnings.
In South Korea, Samsung Electronics fell, after its customer Dell cut its full-year profit forecast on weaker demand for personal computers
Nikkei 225 index is trading 0.9% lower at 9,078.0. Hang Seng index is trading 0.8% lower at 19,930.3. Kospi is trading 1.3% lower at 1,919.0.
 
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 18.4 points lower.
GlaxoSmithKline announced that it has purchased 750,000 of its ordinary shares of 25 pence each and intends to hold the shares in Treasury. The shares were bought at a price range of 1462.5p-1479.0p.
Highcroft Investments announced that its subsidiary, Rodenhurst Estates Limited purchased a property located in Elms Industrial Estate from Eastburn Estates Limited for a consideration of £1.86 million.
 
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 30.2 points down, while French CAC-40 futures are trading 15.2 points lower.
Siemens Healthcare has entered into a definitive agreement to acquire Penrith Corporation, a manufacturer of integrated ultrasound imaging systems, with an aim to offer new and improved diagnostic capabilities.
Vivalis and its Australian partner Biodiem announced successful results from two programs to develop vaccines that have been tested in successful Phase II clinical trials.
 
Commodities
In Asia, crude oil for October delivery is trading 0.1% or $0.08 down at $96.76 per barrel, ahead of the release of Energy Department’s oil inventories data due later in the day.
Yesterday, crude oil for September delivery gained 0.7% or $0.71 to $96.68 per barrel. The September contract expired at the end of the session. The more actively traded October contract added 0.6% or $0.58 to $96.84 per barrel, amid optimism European leaders would take further steps to help debt-ridden countries in the region and as the dollar traded lower against the euro.
Ongoing worries over escalating violence in Syria and lingering tensions between Iran and the West also pushed oil prices higher.
Later in the day, the American Petroleum Institute reported that crude oil inventories dropped 6.04 million barrels to 361 million last week.
Gold for immediate delivery is trading 0.1% higher today, at $1,639.00 per ounce.
Gold for December delivery settled up 1.2% or $19.90 at $1,642.90 per ounce yesterday, as the dollar weakened against major currencies, amid intervention hopes by the ECB to stem eurozone debt crisis and ongoing expectations of further monetary easing by the US Federal Reserve. Gold prices also rose, as China hinted at fresh stimulus to boost its economy.
Yesterday, copper 3-month futures rose 1.1% or $82.5, to close at $7,524.50 /MT. Aluminium 3-month futures gained 0.6% or $10.0, to close at $1,755.00 /MT.
 
Currencies
At 0400 BST today, the GBP is trading slightly higher against the USD at $1.5781, 0.1% higher against the EUR at €1.2658, and marginally lower against the JPY at ¥125.04.
The EUR is trading 0.1% lower against the USD at $1.2464. The EUR is trading 0.1% lower against the JPY at ¥98.77. The EUR is trading lower against its most of major counterparts, as investor await the outcome of meetings among European leaders this week, beginning with Luxembourg Prime Minister Jean-Claude Juncker’s visit to Greece today to discuss the nation’s request for a two- year extension to its fiscal adjustment program.
The USD is trading higher against most of its major peers, ahead of data that might show an improvement in US housing market in July, damping prospects the US Federal Reserve would implement additional monetary easing.
Yesterday, the EUR ended higher against the USD and the JPY, as European leaders meet this week to discuss Greece’s fiscal adjustment program and amid increasing optimism that the ECB would make progress to bring down borrowing costs of Spain and Italy. The EUR also rose, as Spanish borrowing costs declined at a bill auction. The GBP ended lower against the EUR, after a report indicated that UK manufacturing orders declined to an eight-month low in August. A separate report showed that the UK government borrowed more-than-expected in July.
The AUD ended higher against the USD, after the minutes of Reserve Bank of Australia’s latest meeting indicated that policy makers held the benchmark interest rate unchanged at 3.5% for a second month.
 
Macroeconomic Snapshot
UK public sector net borrowing posted a surplus of £1.8 billion in July, compared to a revised deficit of £12.2 billion in June.
The Confederation of British Industry indicated that total order book balance in the UK dropped to -21.0 in August from -6.0 recorded in July.
Leading economic index in Germany fell 0.8% to a reading of 103.2 in June, compared to a 0.4% drop recorded in May.
On a month-on-month basis, the all industry activity index in Japan rose 0.2% in June, compared to a revised 0.2% drop recorded in the previous month.
Japan’s merchandise trade deficit stood at ¥517.382 billion in July, compared to a downwardly revised surplus of ¥60.3 billion recorded in June.
The People's Bank of China has injected CNY220 billion into the money market through reverse repurchase operations.

Tuesday 21 August 2012

August 21, 2012 Financial Market Summary


At 0500 BST today, FTSE 100 futures are trading 1.6 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 2.4 points higher, while French CAC-40 futures are trading 4.7 points higher.
At 0500 BST today, DJIA futures are trading 5.0 points higher.
Nikkei 225 index is trading 0.1% higher at 9,183.3.
In Asia, crude oil for September delivery is trading marginally lower at $95.94 per barrel.
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5719, slightly higher against the EUR at €1.2721, and 0.1% higher against the JPY at ¥124.74.

US Market Snapshot
At 0500 BST today, DJIA futures are trading 5.0 points higher.
Yesterday, DJIA slid marginally to settle at 13,271.6. NASDAQ slipped marginally to end at 3,076.2. S&P 500 remained unchanged at 1,418.1.
US markets ended flat, with the DJIA ticking down for the first time in three sessions, as concern about the European debt crisis offset a rally in technology and financial sector companies. Investors also looked ahead to the minutes from the Federal Reserve’s last meeting.
Apple gained 2.6%, amid continued speculation of launch of new iPhone and iPad products.  Citigroup rallied 3.3%, as its Chief Executive, Vikram Pandit, rejected calls for bank split. Facebook gained 5.0%, after Capstone Investments upgraded the shares to “Buy” from “Hold”.
JP Morgan Chase gained 1.1%, as it choose veteran Lee Raymond to lead a board committee to probe the bank’s massive trading loss.
However, Hibbett Sports dropped 5.0%, as it was downgraded by Raymond James to “Market Perform” from “Out-perform”.
In extended hours trading, Urban Outfitters jumped 17.5%, as its second-quarter profit came ahead of market expectations. DreamWorks Animation advanced 1.6%, as it entered into a new five-year distribution agreement with Twentieth Century Fox.

Asian Market Snapshot
Asian markets are trading higher this morning, amid expectation of upbeat housing and durable goods data from the US later this week. However, gains were limited as investors waited for more concrete details on potential action from the European Central Bank.
In Japan, Nintendo climbed as it released its 3DS XL portable game system in the US. Fujitsu climbed, following an upgrade to “Buy” from “Neutral” at Citigroup.
In Hong Kong, PICC Property and Casualty traded higher, as it reported a 23.6% rise in its half-year net profit. Tingyi Cayman Islands Holding paced gains as it posted robust half-yearly results.
In South Korea, SK Hynix gained ground on expectation that DRAM prices would rebound and stabilize in the second half of 2012.
Nikkei 225 index is trading 0.1% higher at 9,183.3. Hang Seng index is trading marginally higher at 20,106.8. Kospi is trading 0.4% higher at 1,953.8.

UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 1.6 points higher.
Centrica stated that its South Morecambe gas field has again started production after it was suspended recently on UK government’s decision to raise offshore drilling taxes.
Royal Dutch Shell entered a swap deal with Chevron to transfer its interest in the $29 billion Wheatstone project and pay $450 million to Chevron. In return, Chevron would transfer its interest in the proposed $30 billion-plus Browse project to the company.

European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 2.4 points higher, while French CAC-40 futures are trading 4.7 points higher.
Volkswagen has put its new product development and emissions test laboratory in Oxnard, California, in operation. The carmaker invested $27 million in the facility and plans to employ 50 people initially.
According to a press release from the stock exchange, Lagardere has offered to buy the remaining shares of LeGuide.com.

Commodities
In Asia, crude oil for September delivery is trading marginally lower at $95.94 per barrel.
Yesterday, crude oil for September delivery fell $0.04 to $95.97 per barrel, snapping its four-session winning streak, amid concern Germany’s Bundesbank would not support the ECB's plan to embark on potentially "unlimited" government bond purchases.
However, losses were capped, amid lingering concern that geopolitical tensions in Middle East would disrupt crude oil supply.
Gold for immediate delivery is trading 0.1% higher today, at $1,622.00 per ounce.
Gold for December delivery settled up 0.2% or $3.60 at $1,623.00 per ounce yesterday, as investors looked ahead to the minutes of the US Federal Reserve’s August policy meeting, amid rising speculation of another round of stimulus measures.
Yesterday, copper 3-month futures fell 0.9% or $66.0, to close at $7,442.00 /MT. Aluminium 3-month futures dropped 0.6% or $10.0, to close at $1,745.00 /MT.

Currencies
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5719, slightly higher against the EUR at €1.2721, and 0.1% higher against the JPY at ¥124.74.
The EUR is trading marginally higher against the USD at $1.2357. The EUR is trading 0.1% higher against the JPY at ¥98.06.
The EUR is trading higher against its major counterparts, as Spain’s benchmark yields slid to a seven-week low and ahead of Luxembourg Prime Minister Jean-Claude Juncker’s visit to Greece tomorrow to discuss the country’s request for an extension to its fiscal adjustment program.
The WON rose against the USD as overseas investors boosted their holdings of South Korean stocks and exporters repatriated income to take advantage of the more favorable exchange rate.
The AUD is trading higher against the USD, after minutes of the Australia’s Reserve Bank last meeting indicated that policy makers see domestic growth overshadowing a “fragile” global outlook.
Yesterday, the EUR ended higher against the USD, amid scope of possible ECB action to contain the region's debt crisis. However, earlier in the trading session, the EUR capped its advance against the USD and dropped against the JPY, after Germany's central bank reiterated its opposition to the ECB’s plan to purchase government bonds. The ECB dismissed a report as "absolutely misleading" which had stated that the ECB planned to set a cap on the borrowing costs of debt-laden eurozone countries.
Macroeconomic Snapshot
Markit Economics reported that the household finance index in the UK rose to a reading of 38.9 in August, compared to a reading of 37.5 recorded in July.
The Council of Mortgage Lenders (CML) reported that on a month-on-month basis, the gross mortgage lending in the UK increased by 8.0% to £12.7 billion in July.
On a seasonally adjusted monthly basis, construction output in the eurozone dropped 0.5% in June, compared to a revised 0.2% decline recorded in the previous month.
The Federal Reserve Bank of Chicago reported that the national activity index rose to a reading of -0.13 in July, from a revised reading of -0.34 recorded in the previous month.
Japan’s leading index was revised up to a reading of 93.2 in June from an initially estimated reading of 92.6.