Dollar rallies on weak data, Fed disappointment
The U.S. dollar
posted its biggest rise in more than three months against major
currencies on Thursday as weak economic data around the globe further
unnerved investors disappointed with the Federal Reserve's decision to
take only a modest step to bolster the economy.
Currencies of
commodity-linked economies including Australia, New Zealand and Canada
sold off as investors dumped riskier investments and parked money in the
relative safety of the dollar. U.S. jobless claims indicated the
labor market is still struggling, while signs of softening in U.S.
manufacturing and weakness in global output heightened the aversion to
risk.
The data comes a day after the U.S. central bank expanded a
program to keep long-term borrowing costs down and said it was ready to
do more if needed, but disappointed some investors who had hoped for
another round of bond buying. The euro dropped as low as $1.2546
<EUR=> on Reuters data, far off Wednesday's high of $1.2744. It
was last at $1.2562, down 1.1 percent, on track for its largest daily
loss in more than three months.
Adding to weakness in the euro
was data showing Germany's private sector shrank in June for the second
month running, with manufacturing activity hitting a three-year low. The
weak euro zone data kept alive speculation the European Central Bank
will cut interest rates soon, offering investors a fresh excuse to sell
the euro.
Wall St suffers worst loss in three weeks
U.S.
stocks posted the worst day in three weeks on Thursday on mounting
evidence that slowing manufacturing growth worldwide threatened
corporate profits. Shares of energy and materials companies led
declines as commodity prices fell. U.S. crude futures <CLc1>
slipped below $80 a barrel for the first time since October and the
S&P energy sector index <.GSPE> lost 4 percent. Investors said
weak overseas demand was responsible for the decline in those
industries.
Stocks' slide was accelerated by a bearish call from
Goldman Sachs, which recommended clients build short positions in the
broad S&P 500 index on expectations of more economic weakness. Stocks
had enjoyed a two-week run that brought the S&P up more than 7
percent on hopes for additional stimulus from the Federal Reserve. Business
activity across the euro zone shrank for a fifth straight month in June
and Chinese manufacturing contracted, while weaker overseas demand
slowed growth by U.S. factories.
The Dow Jones industrial average
<.DJI> was down 251.35 points, or 1.96 percent, at 12,573.04. The
Standard & Poor's 500 Index <.SPX> was down 30.19 points, or
2.23 percent, at 1,325.50. The Nasdaq Composite Index <.IXIC> was
down 71.36 points, or 2.44 percent, at 2,859.09.
The day's decline was the worst since June 1 when the S&P 500 fell 2.5 percent. Softening
data globally lifted hopes of central bank action to support the
economy. The U.S. Federal Reserve announced on Wednesday it would extend
one monetary stimulus program and said it was ready to do more to help
economic growth if necessary.
Gold drops 2.5 pct after data stirs deflation fears
Gold
fell 2.5 percent on Thursday, nearly wiping out this year's gains as
renewed fears of a global economic slowdown and disappointment over a
lack of aggressive U.S. Federal Reserve stimulus dampened bullion's
inflation-hedge appeal. The metal posted its biggest one-day drop
since Feb. 29. Its selloff started o n Wednesday when the Fed ended a
policy meeting without launching a new round of monetary easing but
instead opted to lengthen its "Operation Twist" program aimed at
lowering long-term interest rates.
Deflation worries pummelled
precious metals after reports showed weak U.S. manufacturing activity, a
shrinking Chinese factory sector and slowing business activity across
the euro zone. The data added to fears that Europe's debt crisis and
slower growth in the United States and Asia would cause downturns around
the globe.
Spot gold <XAU=> fell 2.5 percent to $1,566 an
ounce by 3:05 p.m. EDT (1905 GMT), having earlier hit a low of
$1,563.88, within 10 cents to turning negative for the year compared
with the 2011 close at $1,563.80 on Dec. 30. U.S. COMEX gold futures
<GCQ2> for August delivery were down $50.20 an ounce at
$1,565.60, with trading volume in line with the 30-day average,
preliminary Reuters data showed.
Oil Futures Drop Below $80 for First Time in Eight Months
Oil
in New York tumbled below $80 a barrel and Brent crude fell under $90
as reports signaling a global economic slowdown added to concern that
demand will slow amid rising supplies. Futures dropped 4 percent,
the most this year, as manufacturing slumped in the U.S., China and
Europe, applications for U.S. unemployment benefits exceeded estimates
and sales of existing homes were lower than expected. Oil stockpiles
rose last week to the most since 1990, the Energy Department reported
yesterday.
Crude futures for August delivery fell $3.25 to $78.20 a
barrel on the New York Mercantile Exchange, the lowest settlement since
Oct. 4. The price is down 21 percent in 2012. Brent oil for August
decreased $3.46, or 3.7 percent, to $89.23 a barrel on the London-based
ICE Futures Europe exchange, the lowest settlement since December 2010.
The European benchmark’s premium to West Texas Intermediate settled at
$11.03, the lowest level since January.
Fears about the economy are
making people very leery. The jobless claims, the manufacturing data
and all the economic data are coming together to push almost everything
down.
Nikkei set to fall on global growth concerns
Japan's
Nikkei share average is expected to open lower on Friday, as data
showing U.S. manufacturing grew at its slowest pace in 11 months in June
added to concerns about weaker growth in Europe and China.
The
Nikkei <.N225> was likely to trade between 8,650 and 8,750,
strategists said, after Nikkei futures in Chicago <0#NIY:> closed
at 8,740 on Thursday, down 0.9 percent from the Osaka <JNIc1>
close of 8,820.
A weaker yen against the dollar may provide some support to Japanese equities. Japanese
financial stocks may also be in focus after ratings agency Moody's cut
the credit ratings of 15 of the world's biggest banks, including
JPMorgan <JPM.N>, Bank of America <BAC.N>, HSBC
<HSBA.L> and Credit Suisse <CSGN.VX>, in an expected move
that was part of a broad review of major financial institutions. On
Thursday, the Nikkei gained 0.8 percent to 8,824.07, hitting a five-week
closing high. The benchmark is up 3 percent so far this week, but is
still down 12.5 percent on the quarter, weighed by concerns about a
deepening euro zone debt crisis and slowing growth in the United States
and China. The broader Topix <.TOPX> index advanced 0.9 percent to 753.96, its highest close since May 14.
Seoul shares seen inching down on soft U.S. data
Seoul
shares are likely to edge down on Friday as U.S. stocks suffered their
worst loss in three weeks the day before due to growing signs of a
slowdown in manufacturing growth worldwide. Surveys showed on
Thursday that weaker overseas demand slowed U.S. factory growth for 11
months running, while business activity across the euro zone shrank for a
fifth straight month in June and Chinese manufacturing contracted for
the eighth month in a row.
The Korea Composite Stock Price Index (KOSPI) <.KS11> fell 0.79 percent to close at 1,889.15 points on Thursday.
Hong Kong shares seen lower, weekly gain in doubt
Hong
Kong shares could end the week lower on Friday, tracking overnight
weakness on Wall Street after global manufacturing data disappointed,
with the losses poised to wipe out weekly gains for benchmark indices. Global
stocks fell 2 percent and Brent crude oil ended at its lowest in 18
months on Thursday as data showing Chinese, European and U.S.
manufacturing activity slowing further underscored worries about weaker
global growth.
In a measure of negative market sentiment, South
African coal miner LontohCoal has delayed its $1 billion Hong Kong
initial public offering due to difficult market conditions, extending
the time frame for the listing to the end of February next year, its
chief executive said. On Thursday, the Hang Seng Index <.HSI>
slid 1.3 percent to 19,265.1, its biggest one-day loss since a 2 percent
drop on June 4. It is up 0.2 percent on the week to date. Elsewhere
in Asia, Japan's Nikkei <.N225> was down 0.9 percent and South
Korea's Kospi <.KS11> was down 1.7 percent by 0033 GMT.
Source : Reuters
Euro
diperdagangkan di bawah tekanan pada minggu ini di belakang
keprihatinan atas situasi di zona eropa dan spekulasi dalam pertemuan
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tidak memiliki kepercayaan pada solusi yang tepat atau datangnya berita
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