India Morning Call-Global Markets

Wed Aug 13, 2014 11:32pm EDT

EQUITIES

NEW YORK - U.S. stocks ended higher on Wednesday, with the Dow Jones industrial average returning to positive territory for the year, as surging biotech shares helped investors shrug off disappointing retail sales data.

Retail stocks capped the market's gains after Commerce Department data showed that U.S. retail sales unexpectedly stalled in July, marking the weakest report since January. Macy's Inc M.N reported quarterly earnings that missed analysts' estimates and slashed its full-year same-store sales forecast, driving the stock down 5.5 percent to $56.47.

For a full report, click on

- - - -

LONDON - Britain's top share index ended slightly higher in thin trade on Wednesday, boosted by a dovish message from the Bank of England.

Financial markets pushed back expectations for a UK interest rate rise until the first quarter of next year at the earliest after the Bank of England, in its quarterly Inflation Report, slashed its wage growth forecasts and said this metric would be key to determining future rate rises.

For a full report, click on

- - - -

TOKYO - Japanese shares rose on Thursday, heartened by gains on Wall Street shares and on anticipation that Japanese public pension funds and other public accounts will step up buying to shore up the market.

The Nikkei share average .N225 rose 0.6 percent in early trade to 15,301.97 points, extending a three-day rally, though trade volume was low due to Japanese traditional "obon" summer holidays.

For a full report, click on

- - - -

HONG KONG - Hang Seng Index set to open flat.

For a full report, click on

- - - -

FOREIGN EXCHANGE

SYDNEY - Sterling languished at four-month lows early on Thursday, having taken the honours of the worst-performing major currency after the Bank of England signalled it was in no hurry to raise interest rates.

The pound traded at $1.6688 GBP=D4 after suffering a 0.7 percent drop on Wednesday. It plumbed a near seven-week low at 80.20 pence per euro EURGBP=R and slid 0.7 percent on the yen to 170.79 EURJPY=R.

For a full report, click on

- - - -

TREASURIES

NEW YORK - U.S. Treasury debt yields fell on Wednesday as disappointing data on U.S. retail sales revived bets the Federal Reserve might leave interest rates near zero for a longer period in a bid to keep the economic recovery on track.

The decline in bond yields was limited by worries about demand for this week's longer-dated supply. Wednesday's $24 billion in 10-year notes was met with solid demand. The U.S. Treasury will sell $16 billion of 30-year bonds on Thursday.

For a full report, click on

- - - -

COMMODITIES

GOLD

SINGAPORE - Gold held on to small overnight gains on Thursday, as sluggish U.S. retail sales data boosted the metal's safe-haven appeal, although higher stock markets could keep any gains in check.

Spot gold XAU= was steady at $1,311.16 an ounce by 0025 GMT, after gaining 0.3 percent in the previous session. U.S. gold GCcv1 slipped about $2 to $1,312.70.

For a full report, click on

- - - -

BASE METALS

SYDNEY - London copper fell to its lowest since late June on Thursday after growth in China's huge property sector showed signs of cooling, while worries persisted that geopolitical tensions would dampen Europe's recovery.

China's economy showed further signs of softening in July despite a burst of government stimulus measures, suggesting more policy support may be needed to keep growth on track as a property downturn worsens

For a full report, click on

- - - -

OIL

SINGAPORE - Brent crude fell below $104 a barrel on Thursday, after briefly bouncing in the previous day off a 13-month low, on ample supplies and concerns about weak demand despite the ongoing political turmoil in Iraq and Ukraine. Oil exports from Libya's Ras Lanuf port have resumed after an oil tanker carrying 670,000 barrels of crude left its oil terminal. This was its first shipment since the port was reopened following a year of blockades by armed protesters.

For a full report, click on (Compiled by Abhishek Vishnoi)

FILED UNDER: