US dollar falls against yen amid global rout

New York, April 6 (IANS) The US dollar decreased against the Japanese yen as declining stocks across the globe spurred market demand for safe-haven currencies.

In late New York trading on Tuesday, the euro dropped to $1.1386 from $1.1399 of the previous session, and the British pound fell to $1.4151 from $1.4280, Xinhua news agency reported.

The Australian dollar went down to $0.7530 from $0.7609.

The dollar bought 110.43 Japanese yen, lower than 111.23 yen of the previous session. The dollar slipped to 0.9562 Swiss francs from 0.9587 Swiss francs, and it inched up to 1.3163 Canadian dollars from 1.3065 Canadian dollars.

US stocks ended lower on Tuesday after wavering below the flatline in a narrow range. European equities traded sharply lower Tuesday with the German benchmark DAX index at the Frankfurt Stock Exchange tumbling more than 2 percent.

In Asia, Tokyo shares ended sharply lower on Tuesday with its benchmark Nikkei stocks index plunging to a two-month low.

Global rout in equity markets fuelled investors’ need for safe-haven assets like the yen. The Japanese currency rose 0.75 percent against the greenback in late trading on Tuesday.

British FTSE 100 deceases

London, April 6 (IANS) FTSE 100 Index, British benchmark stock market gauge decreased by 1.19 percent, or 73.49 points, to 6,091.23 points.

Share price of Berkeley Group Holdings increased by 2.56 percent, topping the gainers of the blue chips on Tuesday, Xinhua news agency reported.

Randgold Resources, London Stock Exchange Group, Worldpay Group and Fresnillo increased by 2.10 percent, 1.00 percent, 0.90 percent and 0.77 percent respectively.

Glencore led the top losers of the blue chips with a share price drop of 5.31 percent, following by BHP Billiton (4.57 percent), Standard Chartered (4.28 percent), Anglo American (3.98 percent) and Standard Life (3.87 percent).

Germany rules out debt relief for Greece

Berlin, April 6 (IANS) German Chancellor Angela Merkel ruled out a debt relief for Greece after meeting International Monetary Fund (IMF) chief Christine Lagarde and leaders of other global economic organisations.

“In our opinion, it is not legally possible in the euro zone,” Merkel said in a joint press conference with the leaders on Tuesday, Xinhua news agency reported.

A debt relief for Greece had been repeatedly rejected by German officials. Merkel’s remarks on Tuesday followed a recent leak of a transcript suggested the IMF may threaten to pull out of Greece’s bailout as a tactic to force European lenders to write down Greek debts.

The Washington-based IMF has not decided to join the third bailout worth up to 86 billion euros (about $97.9 billion) to Greece.

It is waiting for review results of Greece’s reform progress. On Tuesday, a new round of talks on the review started in Athens.

In Berlin, Lagarde said that “debt sustainability” was needed in Greece, urging the country to continue reforms.

Merkel told reporters that Germany wanted the IMF to take part in the bailout plan with the European Commission and the European Central Bank. The fund’s participation was a condition for German lawmakers to approve the third Greek bailout last year.

Gold up on weaker US equities

Chicago, April 6 (IANS) Gold futures on the COMEX division of the New York Mercantile Exchange rose as US equities showed weakness amid worse-than-expected US data.

The most active gold contract for June delivery on Tuesday rose $10.3, or 0.84 percent, to settle at $1,229.60 per ounce, Xinhua news agency reported.

US stocks opened lower and traded lower in the morning session on Tuesday. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when US equities post gains.

Gold was given further support as a report released by the US Department of Commerce showed the international trade deficit during February increasing to a worse- than-expected negative $47.1 billion.

Silver for May delivery added 17.2 cents, or 1.15 percent, to close at $15.116 per ounce. Platinum for July delivery rose $8.1, or 0.86 percent, to close at $951.60 per ounce.

Germany’s benchmark DAX index closes down

Frankfurt, April 6 (IANS) The benchmark DAX index at the Frankfurt stock exchange closed down by 2.63 percent.

Worries about the interest rate hikes in the US and weak economic data in Germany were blamed for the correction of the DAX index that lost 258.72 points and closed at 9,563.36 points on Tuesday, Xinhua news agency reported.

A total of 29 among the 30 DAX member shares suffered losses. Henkel, which operates in business areas including laundry and home care and beauty care, rose by 0.07 percent.

Deutsche Bank slumped by 5.07 percent. Continental fell by 4.97 percent. The utilities company RWE dropped by 4.83 percent. Thyssenkrupp lost 4.65 percent. Volkswagen plunged by 4.01 percent.

Daimler was the most traded share of the day with a turnover of 493.32 million euros (around $561.81 million).

Spanish stock market slides

Madrid, April 6 (IANS) The Spanish stock market index Ibex-35 fell 2.44 percent to close at 8,387.70 points, down from the 8,597.50 points of the previous session.

On Tuesday, Sacyr shares led falls losing 9.20 percent, followed by ArcelorMittal, OHL, Banco Santander, Telefonica and DIA that lost 5.97 percent, 5.01 percent, 3.46 percent, 3.42 percent and 3.24 percent respectively, Xinhua news agency reported.

Only AENA shares rose climbing 1.15 percent.

Spain’s risk premium closed at 140 points, rising by 7 points from Monday, and Spain’s 10-year bond interest rate closed at 1.5 percent.

US stocks end lower amid mixed data (Lead)

New York, April 6 (IANS) US stocks ended lower after wavering below the flatline in a narrow range, as investors digested a batch of mixed economic reports.

The Dow Jones Industrial Average fell 133.68 points, or 0.75 percent, to 17,603.32 on Tuesday, Xinhua news agency reported.

The S&P 500 dropped 20.96 points, or 1.01 percent, to 2,045.17. The Nasdaq Composite Index moved down 47.86 points, or 0.98 percent, to 4,843.93.

The US Department of Commerce announced Tuesday that the goods and services deficit was $47.1 billion in February, up $1.2 billion from the revised January reading.

The US non-manufacturing index registered 54.5 percent in March, 1.1 percentage points higher than the February reading of 53.4 percent and beating market consensus of 54.0 percent, the Institute Supply Management (ISM) reported on Tuesday.

“The wider than expected trade deficit will weigh on first quarter growth, which is likely to be softer than initially expected,” said Sophia Kearney-Lederman, an economic analyst at FTN Financial.

“The uptick in both ISM manufacturing and non-manufacturing new orders in March, suggest a rebound in Q2. This rebound sets the stage for a recovery, but further increases are necessary for confirmation,” she said.

Meanwhile, the number of job openings was little changed at 5.4 million on the last business day of February, said the US Labor Department on Tuesday.

Canadian stocks lower on widened trade deficit

Toronto, April 6 (IANS) Canada’s main stock market in Toronto dipped lower as financial issues weighed after the country’s trade deficit unexpectedly jumped and exports slumped.

The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index lost 31.49 points, or 0.24 percent, to close at 13, 304.66 points on Tuesday, Xinhua news agency reported.

Six of the TSX index’s eight main sub-sectors were lower.

Canada’s international merchandise trade deficit with the world widened from 628 million Canadian dollars ($477 million) in January to 1.9 billion Canadian dollars in February, according to Statistics Canada.

The agency said Canada’s exports fell 5.4 percent to 43.7 billion Canadian dollars in February, after reaching a record high in January. Export prices decreased 3.2 percent and volumes were down 2.2 percent.

Imports declined 2.6 percent to 45.6 billion Canadian dollars, as prices were down 1.4 percent and volumes decreased 1.2 percent.

The Canadian dollar traded lower at $0.7601, compared with Monday’s closing rate of $0.7650.

Tokyo stocks open higher

Tokyo, April 6 (IANS) Tokyo stocks opened higher on Wednesday as investors bought back stocks oversold a day earlier when the market tumbled, with the Nikkei closing in negative territory for a sixth straight day.

As of 9.15 a.m. (local time), the 225-issue Nikkei Stock Average edged up 21.11 points, or 0.13 percent, from Tuesday to 15,753.93, Xinhua news agency reported.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, crept 0.28 points, or 0.02 percent higher, to 1,268.65.

Early issues that made notable gains comprised mining, iron and steel, and air transportation-linked shares.

Chinese yuan weakens

Beijing, April 6 (IANS) The central parity rate of the Chinese currency renminbi, or the yuan, weakened 91 basis points to 6.4754 against the US dollar on Wednesday, according to the China Foreign Exchange Trading System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day, Xinhua news agency reported.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Chinese shares open lower

Beijing, April 6 (IANS) Chinese stocks opened lower on Wednesday, with the benchmark Shanghai Composite Index down 0.44 percent, at 3,039.74 points.

The smaller Shenzhen index opened 0.34 percent lower at 10,604.23 points, Xinhua news agency reported.

The ChiNext Index, tracking China’s NASDAQ-style board of growth enterprises, lost 0.21 percent to open at 2,274.77 points.

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