04:08
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GLOBAL MARKET UPDATE
ASIAN STOCKS MARKET
Asian stocks fell a fourth day after after China’s imports grew at about half the pace economists expected, fueling concern a slowdown is deepening in the world’s second-biggest economy. Shares rose earlier as Europe’s finance chiefs made progress on Spain’s bailout. The MSCI Asia Pacific Index (MXAP) fell 0.1 percent to 116.73 as of 5:56 p.m. in Tokyo after rising as much as 0.4 percent. About five stocks declined for every three that rose.
U.S.STOCK MARKET
U.S. stock-index futures advanced, erasing earlier losses, after a report showed U.K. manufacturing unexpectedly rose in May, and easing concern Europe will be a drag on the global economy. Futures on the Standard & Poor’s 500 Index expiring in September gained 0.2 percent to 1,352.4. Dow Jones Industrial Average futures climbed 36 points, or 0.3 percent, to 12,721 today.
EUROPEAN MARKET
European stocks rose for the first time in a week as manufacturing in U.K. and Italy unexpectedly gained and euro-area governments moved to support Spanish banks. U.S. index futures advanced while Asian shares dropped. The Stoxx Europe 600 Index (SXXP) climbed 1 percent to 255.87 at 10:58 a.m. in London. The gauge has risen for five straight weeks, the longest winning streak since January, as the region’s policy makers eased repayment rules for Spanish banks and relaxed conditions for possible aid to Italy
U.S.TREASURIES
Treasuries snapped three days of gains before a $32 billion sale of three-year notes today, the first of three auctions this week. Ten-year note yields rose 0.1 basis point, or 0.01 percentage point, to 1.52 percent at 9:44 a.m. London time, according to Bloomberg Bond Trader data. The all-time low was 1.44 percent set June 1. Yields have fallen 12 basis points in the past three days. The 1.75 percent security due May 2022 fell 2/32, or 63 cents per $1,000 face amount, to 102 3/32.
CURRENCY UPDATE
DOLLAR
The dollar may rise above 80 yen, according to Forecast Pete, citing trading patterns. The U.S. currency has been above its 200-day moving average since June 18 and its lows have risen from 75.35 on Oct. 31, to 76.03 on Feb. 1 and to 77.66 on June 1, signaling the greenback is on an upward trend, said Pak Lai Ng, a technical analyst at Forecast in Singapore. The greenback fell 0.1 percent today to 79.50 yen as of 1:29 p.m. in Tokyo.
EURO
The euro fell against the yen as reports showed industrial output shrank in France and exports and imports growth slowed in China, adding to concern Europe will struggle to avoid a recession. The euro fell 0.3 percent to 97.66 yen at 9:54 a.m. London time. It touched 97.43 yesterday, the least since June 5. The shared currency was little changed at $1.2316 after sliding to $1.2251 yesterday, the weakest since July 2010.
COMMODITY UPDATE
CRUDE OIL
Oil dropped for a third time in four days after Norway ended an energy strike that threatened to halt production by western Europe’s largest crude exporter, while China reduced purchases of the commodity. Brent for August settlement decreased $1.44, or 1.4 percent, to $98.88 a barrel on the London-based ICE Futures Europe exchange. The European benchmark’s premium to WTI was at $13.81, down from $14.33 yesterday.
GOLD
The lackluster trade numbers came a day after data showed inflation in China eased further in June, giving room to the central bank to loosen its monetary policy to stimulate growth without stoking upward price pressures. Spot gold dipped $1.50 to $1,585.15 an ounce by 0620GMT. U.S. gold futures contract for August delivery edged down 0.2 percent to $1,585.30.
SILVER
Market analysts attributed the fall in silver futures to a weakening trend in global markets as a stronger dollar, which reached a two-year high, curbed demand for the precious metals as an alternative investment. Meanwhile, silver traded 0.29 per cent lower at USD 27.26 in Singapore. Silver prices fell by Rs 227 to Rs 53,317 per kg in futures trade today as speculators reduced positions tracking a weak trend overseas.
COPPER
Copper imports fell 17.5 percent from May to 346,233 tones, but were broadly in line with expectations as demand has been largely weak this year due to a decline in the appetite for manufactured goods as the global economy softens. Europe and the United States are China's main customers and both have been beset by economic troubles. The fall in June may be related to lower demand for imports that were used as a financing too. The economic slowdown has cut credit demand by companies and therefore the need for such financing imports fell.
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