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US dollar rose against major currencies, after weak data from the United States, Europe and China stoked global growth worries, driving investors to perceived safe-haven assets. More Americans than forecast filed claims for unemployment benefits and an index of leading indicators declined for second time in three months, adding to signs of weakness in the world’s largest economy. While household wealth in the U.S. dropped from April through June as stocks prices declined, overshadowing a second consecutive gain in home prices. Elsewhere manufacturing in the Philadelphia region shrank for a fifth straight month in September, reinforcing signs the industry will offer less support to the U.S. economy.
Treasuries headed for a weekly gain after Federal Reserve officials including James Bullard and Eric Rosengren warned the economy may have trouble picking up.
The finance unit of Ford Motor Co., the second-largest U.S. automaker, raised $1 billion in its first sale of benchmark 10-year bonds in more than a year.
The euro dropped the most in 2-months against the dollar, as services and manufacturing in the region shrank to a 3-year low, adding to evidence that central bank will need to do more to spur growth.
Greek Prime Minister Antonis Samaras struggled to clinch agreement with his coalition partners on an 11.5 billion euro ($14.9 billion) budget-cut package that’s key to receiving international aid funds.
The International Monetary Fund will cut economic forecasts for the global economy “by a few decimal points,”
The Spanish Treasury sold 4.8bn Euros, or $6.2bn, of 3-year and 10-year bonds, more than the 4.5bn Euros it had targeted for sale. The ten year bonds were priced to yield 5.666%, well below the 6.647% it received at a similar auction on Aug. 2.
German government bonds rose for a fourth day as demand declined at a Spanish auction of three-year notes, underpinning demand for the euro area’s safest assets.
Sterling rose to a one-week high against a broadly weaker euro, as poor euro zone business activity data fanned concerns about a deepening recession in the region. The Britain's economy is recovering slowly, but much depends on the euro zone finding a way to put its problems behind it, and there is little sign that a return to normal economic conditions is close, Bank of England governor Mervyn King said on yesterday.
China’s economic slowdown may last longer than during the global financial crisis because of worsening external demand and limited lending to smaller companies.
South Africa’s central bank kept its benchmark interest rate unchanged as rising food and fuel costs limit the room policy makers have to stimulate growth in Africa’s biggest economy.
The yen headed for a weekly gain against most of its major peers as signs of a global economic slowdown spurred demand for the refuge of Japan’s currency. While across the Atlantic the Canadian dollar may fell to its lowest level in two weeks against its U.S. counterpart even with oil prices elevated.