Saturday, November 1, 2014

Gold Falls to Four Year Low After BOJ

Gold and silver fell in New York, slumping to the lowest since 2010, as the dollar strengthened after the Bank of Japan unexpectedly boosted stimulus and the Federal Reserve ended asset purchases this week.

The Fed is weighing the timing of interest-rate increases as other central banks add to stimulus to bolster their economies. The Bank of Japan said today it’s targeting an expansion of its already unprecedentedly large monetary-stimulus program by 80 trillion yen ($723 billion), sending the yen to a six-year low against the dollar. Gold yesterday erased the year’s advance after U.S. gross domestic product beat estimates.

via Bloomberg

Oil Continues Losing Streak Amid Surplus

Brent crude headed for a sixth weekly loss, the longest decline since 2002, as OPEC boosted production to a 14-month high amid a global surplus. West Texas Intermediate was on track for its biggest monthly decline in more than two years.

Futures fell as much as 1.9 percent in London, bringing October’s drop to about 11 percent. Both Brent and WTI are headed for their biggest monthly declines since 2012. Output from the 12-member Organization of Petroleum Exporting Countries increased by 53,000 barrels a day to 30.974 million, a third monthly gain, a Bloomberg survey showed. Traders are split on whether Saudi Arabia will deepen the crude price cuts that propelled oil into a bear market this month.

via Bloomberg

Nikkei Closes At Seven Year High After BOJ Stimulus

Tokyo stocks soared Friday, with the Nikkei stock index ending at its highest level in around seven years, after the Bank of Japan decided to expand its massive asset purchase program.

The 225-issue Nikkei Stock Average ended up 755.56 points, or 4.83 percent, from Thursday at 16,413.76, its highest finish since Nov. 2, 2007. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished up 54.74 points, or 4.28 percent, at 1,333.64.

The Tokyo market started on a firm note on the heels of an overnight rise in U.S. stocks stemming from the country’s strong gross domestic product data.

Also supporting the market was a news report that Japan’s Government Pension Investment Fund could announce its new investment portfolio as soon as Friday, said Nobuhiko Kuramochi, chief strategist at Mizuho Securities Co.

via Mainichi

USD/CAD Lower After Missed Growth Expectations

The Canadian dollar was lower Friday as economic growth for August missed already modest expectations.

The loonie was down 0.27 of a cent to 89.05 cents (U.S.) as Statistics Canada reported that gross domestic product dipped 0.1 per cent against the flat showing that economists had expected.

On an annualized basis, GDP was at an annualized pace of 2.2 per cent, missing expectations of 2.3 per cent.

via The Globe and Mail

Friday, October 31, 2014

Canadian Economy Shrinks After Oil Price Drop

Canada’s gross domestic product shrank in August, an unexpected decline led by oil and gas extractors.

Output shrank 0.1 percent to an annualized C$1.63 trillion ($1.45 trillion), Statistics Canada said today in Ottawa, while the median forecast in a Bloomberg economist survey with 20 responses was for output to be little changed from July.

Oil and gas extraction declined by 2.5 percent to C$96.9 billion, the second straight decrease, leading the broader drop across goods-producing industries. Output among service producers rose 0.2 percent.

The economy remains hobbled by weak exports and business investment, which Bank of Canada Governor Stephen Poloz says are critical to building the recovery. The central bank extended the longest interest-rate pause since the 1950s this month and said it will take two years to restore full output in the world’s 11th-largest economy.

via Bloomberg

U.S. Economy Expands at 3.5%

The U.S. economy expanded more than forecast in the third quarter, validating the optimism that prompted Federal Reserve policy makers to stop pumping money into financial markets.

Gross domestic product grew at a 3.5 percent annualized rate in the three months ended September after a 4.6 percent gain in the second quarter, Commerce Department figures showed today in Washington. It marked the strongest back-to-back readings since the last six months of 2003.

Government outlays and a shrinking trade deficit boosted growth last quarter, buying time for consumer spending in the world’s largest economy to strengthen as fuel prices drop and hiring picks up. Fed officials yesterday cited the improvement in the job market in deciding to end their bond-buying program and stay on course toward interest rate increases next year.

Bloomberg