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Reports Asia

Asian stock market, economy and companies update (March 04, 2014)

March 4, 2014, Tuesday, 13:19 GMT | 08:19 EST | 17:49 IST | 20:19 SGT
Contributed by Trade The News

Asian and European trading sessions:

Euro: Rate of the euro retreated from the maximum values ??against the dollar, while returning to the levels of the session. Little support was data on index of industrial activity, but interest in him was short-lived, and attention gradually began to switch to U.S. reports, which caused the fall of the euro currency. Recall that the growth in the eurozone manufacturing sector weakened in February, but lesser expected than previously. This was stated in the final data, which were published earlier today by Markit Economics. According to the report, the seasonally adjusted purchasing managers' index for the manufacturing fell to 53.2 in February from 54 in January, the highest reading in 32 months. The decline in February was the first in five months. Result was also slightly higher than previously estimated - at 53 points. The index currently remains above the mark of 50 points, which separates growth from contraction for the eighth consecutive month. We also learned that the manufacturing sector continued to show growth in Germany in February, and have expanded more than initially expected. According to the report , the manufacturing purchasing managers index from Markit / BME fell to 54.8 points in February from January's 32-month high of 56.5 . The originally was reported on the significance of this indicator at the level of 54.7 points. The index remained above the neutral mark of 50 points for the eighth consecutive month. The EUR / USD pair fell to $ 1.3759 during the European session.

British Pound: The pound showed sharp fluctuations against the dollar, but in general, was trading in a small range. On the dynamics of trade influenced the British data, which showed that the UK manufacturing sector continued its expansion in February, registering with several large paces than in the previous month. It became known from the survey results, which were released Markit Economics and the Royal Institute of Purchasing and Supply (CIPS). According to the report, the seasonally adjusted purchasing managers' index for the manufacturing sector rose in February to a level of 56.9, compared with 56.6 in January, the figure for which was revised down from 56.7. A reading above 50 indicateed an increase in activity, while a drop below indicates contraction. The index currently remains above the neutral point of the eleventh month in a row. The GBP / USD pair traded in the range of $ 1.67650 -$ 1.67550 during the European session.

Japanese Yen: The yen rose against all major currencies as a result of increased demand for safe-haven currencies, after entering the Russian armed forces on the territory of Ukraine. It was learned that U.S. Secretary of State tomorrow John Kerry will travel to Kiev to meet with Ukrainian leaders and offer support. Tension in the region has reached its peak since the “cold war”. The USD / JPY pair dropped to Y101.20 during the European session.

American trading session:

U.S. Dollar: The U.S. dollar strengthened against major currencies on the back of strong U.S. macro data. U.S. consumer spending rose in January, more than forecast, together with a sharp increase in income, which increased the likelihood that the biggest part of the economy can sustain growth in early 2014. This was stated in the report, which was submitted to the Ministry of Commerce. According to consumer spending, which accounts for about 70 % of the economy, rose in January by 0.4 % after a 0.1 % increase in the previous month, which was revised to 0.4 %. Experts predicted that the value of this index will rise by only 0.2 %. We also add that the amount of consumer income increased by 0.3 %, after a zero change in December. As it was expected the revenues will grow by 0.2%. Today's report confirms recent data that indicate that Americans are beginning to overcome the effect of the severe winter, and confidence in the world's largest economy will grow.

Manufacturing activity in the U.S. rebounded in February after it’s weakening due to the weather in January, although production decreased. This was published by the Institute for Supply Management (ISM). According to the report, the Purchasing Managers Index (PMI) for the manufacturing U.S. in February rose to 53.2 after an unexpected decline to a minimum of 51.3 in January. Index value above 50 indicates growth in the sector of activity. Economists had expected the index to rise in February to 52.3. In turn, the final data from Markit showed that business conditions in the U.S. manufacturing sector improved in February compared with the previous month, and were slightly higher than those reported in the initial assessment. Corresponding PMI rose to 57.1 points, compared with a final reading for January at 53.7, and a preliminary estimate at around 56.7.

Gold: The Gold prices rose more than 1 % because of the worsening situation in the Crimea. The cost of the April gold futures rose to $ 1354.50 per ounce on the COMEX today.

Oil: Prices for crude oil West Texas Intermediate rose to its highest level since September. April futures price for U.S. light crude oil WTI rose to $ 105.25 per barrel on the New York Mercantile Exchange.