Shanghai stocks gain for 11th day as consumer and financials rise

Shanghai stocks gain for 11th day as consumer and financials rise

Shanghai stocks gain for 11th day as consumer and financials rise

Gold prices rose on Thursday, nearing the highest level in four months, after a stronger tone from the European Central Bank (ECB) in its last meeting, which backed the euro against the dollar, Reuters reported.

GBP/USD is supported in the range of 1.3455 levels and now trading at 1.3529 levels.

Germany's 10-year Bund yield had briefly hit a fresh five-month high of 0.54 percent after Chancellor Angela Merkel's conservatives and the Social Democrats agreed a blueprint for formal coalition negotiations, news that also buoyed the euro. The British pound strengthened against the greenback on Thursday as British pound was dragged higher by stronger euro after minutes of a European Central Bank meeting showed a more aggressive tone, boosting the euro against the USA dollar.

The dollar then rallied and was up as much as 0.4 percent before slipping back to trade 0.2 percent up at 111.69 yen.

With both the US Federal Reserve and the Bank of England now on policy tightening cycles, the ECB is, along with the Bank of Japan, among the few major central banks still to retain an overwhelmingly dovish policy stance with policy language such as "evolve gradually" and "lower for longer" still prevalent in its statements.

The dollar index is suffering from the massive receding producer prices in the US; according to reports, the producer prices have not seen this kind of drop for nearly one and a half year in December and this is also in the midst of lower costs for services.

A change in policy message would likely be taken by investors as a sign that rate-setters may begin to wind down their 2.55 trillion euros bond-buying programme.

In London, Rio Tinto gained 1.87 percent after receiving a binding offer from Liberty House for its Aluminum Dunkerque smelter in northern France. Yet it still suggested consumer spending had made a sizeable contribution to economic growth for the fourth quarter as a whole, after a disappointing third quarter. The euro jumped 0.75% on the news.

Treasury yields fell on Thursday after China disputed a report that its government officials had recommended the country slow or halt its purchases of USA bonds.

Turley: Manafort's Lawsuit Against Robert Mueller 'Will Fail Fairly Quickly'
A Justice Department spokeswoman said while the lawsuit was "frivolous", Manafort was "entitled to file whatever he wants". Hence, Manafort argues that Mueller has overstepped his legal authority in investigating and charging Manafort.

Federal Government to Implement Work Requirements for Medicaid Recipients
Last summer, he submitted a plan to the federal government outlining a truncated version of both Medicaid and Medicaid expansion. CMS said states would have to test whether the work requirement improves enrollees' health - a point Solomon ridiculed.

Trump Cancels Britain Trip, Blames Obama for 'Peanuts' London Embassy Deal
Trump tweeted overnight that he would not attend the ceremony, initially scheduled for next month. He said Trump's visit "would without doubt have been met by mass peaceful protests".

USA stocks were higher in early trading after the S&P 500 suffered its first down day of the year on Wednesday.

The 10-year treasuries yield stood at 2.550%, off Wednesday's 10-month high of 2.597%.

The Dow Jones Industrial Average rose 106.63 points, or 0.42 percent, to 25,475.76, the S&P 500 gained 9.1 points, or 0.33 percent, to 2,757.33 and the Nasdaq Composite added 26.87 points, or 0.38 percent, to 7,180.44.

The central bank left monetary policy unchanged at the mid-December meeting, but previously announced it would slow down its monthly purchases of bonds from €60bn to €30bn - an acknowledgement that less stimulus was needed. Elsewhere, an exchange-traded fund tracking Brazilian equities dropped in after-hours USA trading after S&P Global Ratings cut Brazil's sovereign credit rating deeper into junk territory.

Fiat Chrysler shares (FCA.MI) in Milan rose 2.8% after the company said late Thursday it plans to invest $1 billion to shift production (http://www.marketwatch.com/story/fiat-chrysler-to-move-some-production-to-michigan-2018-01-11) of its profitable Ram Heavy Duty trucks to Michigan from Mexico.

March U.S. Dollar Index futures settled at 91.608, down -.462 or -0.50%.

In other commodities, the Brent crude oil spot price was up by 0.2% to $69.26 per barrel as of 11:10 am Shanghai time.

The SPD are considered heavily pro-Europe, with leader Martin Schulz past year arguing for closer ties and calling for a "United States of Europe".

Latest News