Thursday, 02 July 2020 11:11

Swiss Consumer Prices Continue To Fall

Switzerland's consumer prices declined for the fifth straight month in June, data from the Federal Statistical Office showed on Thursday. The consumer price index decreased 1.3 percent year-on-year in June, the same rate of decline as seen in May. This was the fifth consecutive drop in prices. Economists had expected a 1.2 percent fall. On a monthly basis, consumer prices remained unchanged again in June, while economists forecast a 0.1 percent rise.
Romania's producer prices declined at the fastest pace in nearly four years in May, data from the National Institute of Statistics showed on Thursday. The producer price index declined 2.01 percent year-on-year in May, following a 1.67 percent drop in April. The latest decline was the biggest since August 2016, when it was down 2.05 percent. Prices in the domestic market and non-domestic market decreased 1.67 percent and 2.58 percent, respectively in May.
Thursday, 02 July 2020 09:59

NZ Dollar Strengthens Amid Risk Appetite

The NZ dollar climbed against its major counterparts in the Asian session on Thursday, as Asian stock markets rose following the mostly positive cues overnight from Wall Street on optimism about a potential coronavirus vaccine as well as on upbeat U.S. manufacturing data. Investors now look ahead to the U.S. Labor Department's closely watched monthly employment report for June to be released later today. The report, which is expected to show another spike in employment, is likely to overshadow data on weekly jobless claims, the trade deficit and factory orders.
South Korea's consumer prices remained stable in June, figures from Statistics Korea showed on Thursday. The consumer price index remained unchanged year-on-year in June, after a 0.3 percent decrease in May. Economists had expected a 0.1 percent fall. Excluding food and energy, core consumer prices increased 0.2 percent in June, following a 0.1 percent rise in the preceding month. On a monthly basis, consumer prices rose 0.2 percent in June, offsetting a 0.2 percent decrease in the previous month.
Unemployment data from euro area is due on Thursday, headlining a light day for the European economic news. At 3.00 am ET, Spain's unemployment data for June is due. The number of people out of work had increased 26,600 in May. In the meantime, the Hungarian Central Statistical Office is scheduled to release foreign trade figures for April. At 4.00 am ET, unemployment data is due from Italy. Economists forecast the jobless rate to climb to 7.7 percent in May from 6.3 percent in April.
The U.S. dollar drifted lower against some of the major currencies on Wednesday as risk sentiment in the market improved thanks to fairly encouraging economic data from the U.S., Europe and China. However, continued worries about pace of global economic recovery due to sharp spikes in new coronavirus cases in several parts of the world, especially in the U.S., limited dollar's downside. A report from the Institute for Supply Management showed U.S.
After turning lower over the course of the previous session, treasuries saw some further downside during trading on Wednesday. Bond prices regained some ground after coming under pressure in morning trading but remained in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 0.682 percent. The early weakness among treasuries came after drug giant Pfizer (PFE) and German biotech company BioNTech (BNTX) announced positive data from an early-stage human trial of a potential coronavirus vaccine.
With interest rates expected to remain at near-zero levels for the foreseeable future, the minutes of the Federal Reserve's June meeting showed participants discussed new tools for conducting monetary policy. The minutes showed the meeting included briefings on the roles of forward guidance and large-scale asset purchase programs as well as implementing yield curve control. In their discussion of forward guidance and large-scale asset purchases, various participants noted the economy is likely to need support for some time and that it will be important for the Fed to provide greater clarity regarding the likely path of interest rates and asset purchases.
Construction spending in the U.S. unexpectedly saw a continued decrease in the month of May, according to a report released by the Commerce Department on Wednesday. The Commerce Department said construction spending tumbled by 2.1 percent to an annual rate of $1.356 trillion in May after plunging by 3.5 percent to a revised rate of $1.386 trillion in April. The continued decrease came as a surprise to economists, who had expected construction spending to climb by 1.0 percent compared to the 2.9 percent slump originally reported for the previous month.
After reporting contractions in U.S. manufacturing activity for three straights months, the Institute for Supply Management released a report on Wednesday showing activity unexpectedly expanded in the month of June. The ISM said its purchasing managers index jumped to 52.6 in June from 43.1 in May, with a reading above 50 indicating an expansion in manufacturing activity. Economists had expected the index to climb to 49.5, which have still indicated a modest contraction in manufacturing activity.
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