Topix Falls First Time in Nine Days on Outlook for Fed Rate Rise

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Japan stocks fell, with the Topix index halting its longest winning streak since June, as strong U.S. data bolstered the case for raising interest rates.

The Topix dropped 0.2 percent to 1,655.90 as of 9:05 a.m. in Tokyo, heading for its first decline in nine days. The Nikkei 225 Stock Average retreated 0.3 percent to 20,394.36. The yen traded at 123.08 per dollar after yesterday falling 1.3 percent to its weakest since July 2007. The MSCI World Index lost the most since March 10, with concern Greece’s debt crisis could spread across Europe also weighing on shares.

Better-than-estimated capital goods orders and new-home sales came after Federal Reserve Chair Janet Yellen indicated the central bank will raise rates this year if the economy improves as she expects. Fed Bank of Cleveland President Loretta Mester echoed her comments on Monday, saying the U.S. economy is close to the point where it can support higher borrowing costs.

Greece’s government continued negotiating for a bailout ahead of an International Monetary Fund payment due next month. The nation’s finance minister, Yanis Varoufakis, blamed insistence on more austerity for the lack of a deal that would release the funds. Spanish bonds slumped after the anti-austerity party made advances in local elections across the country.

Source: Bloomberg

Asia Stocks Follow U.S. Shares Lower as Data Spur Rate-Rise Bets

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Asian stocks dropped, following a decline in U.S. equities, after better-than-estimated economic data bolstered the case for higher interest rates in the world’s largest economy.

The MSCI Asia Pacific Index lost 0.3 percent to 152.77 as of 9:01 a.m. in Tokyo. The Standard & Poor’s 500 Index sank 1 percent on Tuesday, its biggest slide since May 5, as strong readings for U.S. capital-goods orders and new home sales fueled bets for higher rates. Japan’s Topix index slipped 0.3 percent today even after the yen weakened 1.3 percent to an almost eight-year low against the dollar Tuesday. In Europe, talks between Greece and its creditors are said to be stalling.

South Korea’s Kospi index fell 0.6 percent. Australia’s S&P/ASX 200 Index retreated 0.3 percent and New Zealand’s NZX 50 Index lost 0.4 percent.

Futures on the Hang Seng China Enterprises Index, a gauge of Chinese stocks listed in Hong Kong, added 0.4 percent in most recent trading, after the index climbed to its highest level since January 2008 on Tuesday. Contracts on the FTSE China A50 Index rose 0.3 percent, following a 2 percent surge in the Shanghai Composite Index for a sixth day of gains.

E-mini futures on the S&P 500 slid less than 0.1 percent today.

Source: Bloomberg

U.S. Stocks Fall as Better Data, Fed Remarks Boost Rate Bets

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U.S. stocks fell the most in three weeks, as better-than-forecast economic data and comments by Federal Reserve officials bolstered bets for an interest-rate increase this year.

The Standard & Poor’s 500 Index declined 1 percent to 2,104.32 at 4 p.m. in New York, after a third straight weekly advance. The Dow Jones Industrial Average ended a six-session stretch without a 100-point intraday swing, the longest in almost a year.

Better-than-estimated increases in capital goods orders and new-home sales came after Federal Reserve Chair Janet Yellen indicated the central bank will raise borrowing costs this year if the economy improves as she expects. Fed Bank of Cleveland President Loretta Mester echoed her comments on Monday, saying the U.S. economy is close to the point where it can support higher rates.

Source : Bloomberg

Gold Slumps to Two-Week Low as Dollar Gains on Fed Rate Outlook

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Gold futures fell to a two-week low as the dollar strengthened amid speculation that the Federal Reserve will raise U.S. interest rates this year.

The greenback climbed to a one-month high against a basket of 10 currencies, cutting demand for gold as an alternative investment. Accelerating inflation and jobs growth mean the “time is near” for a rate increase, Fed Bank of Cleveland President Loretta Mester said Monday.

Gold swung between year-to-date gains and losses more than 10 times in 2015, gyrating as traders tried to gauge when policy makers are likely to raise borrowing costs. Higher rates drive investors to favor assets that pay interest, including new bonds, curbing the appeal of gold, which generally offers returns only through price gains.

Gold futures for August delivery declined 1.4 percent to settle at $1,187.80 an ounce at 1:46 p.m. on the Comex in New York. The metal touched $1,185.60, the lowest for a most-active contract since May 12. Trading on all monthly contracts doubled compared with the 100-day average, according to data compiled by Bloomberg.

The price dropped 1.7 percent last week. Inflation rose more than forecast in April, government figures showed Friday, and Fed Chair Janet Yellen said the same day it would be “appropriate” to raise rates this year if the economy improves.

Source : Bloomberg

Gold Futures Decline to Two-Week Low as Dollar Gains on Fed

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Gold futures fell to a two-week low as the dollar strengthened amid speculation that the Federal Reserve will raise interest rates this year.

The Bloomberg Dollar Spot Index climbed to a one-month high, cutting demand for the precious metal as an alternative. Accelerating inflation and jobs growth mean the “time is near” for a U.S. rate increase, Fed Bank of Cleveland President Loretta Mester said Monday.

Gold swung between year-to-date gains and losses more than 10 times in 2015, gyrating as traders tried to gauge when policy makers are likely to raise interest rates. Higher rates drive investors to favor assets that pay interest, including new bonds, curbing the appeal of gold, which generally offers returns only through price gains.

Gold futures for August delivery declined 1.3 percent to $1,188.80 an ounce at 9:49 a.m. on the Comex in New York, after touching $1,185.90, the lowest since May 12.

Prices dropped 1.7 percent last week. U.S. inflation rose more than forecast in April, government figures showed Friday, and Fed Chair Janet Yellen said the same day it would be “appropriate” to raise borrowing costs this year if the economy improves.

Silver futures for July delivery declined 1.4 percent to $16.815 an ounce, headed for the biggest drop in a week.

Source : Bloomberg