Canadian dollar firms as vaccine hopes boosts equity markets - Reuters News
Canadian dollar firms as vaccine hopes boosts equity markets - Reuters News
Canadian dollar rises 0.1% against the greenback
Loonie trades in a range of 1.3154 to 1.3196
Price of U.S. oil decreases nearly 1%
Canadian bond yields ease across the curve
TORONTO, Sept 14 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as investors grew more hopeful of a coronavirus vaccine, but gains for the currency were restrained as oil prices fell and ahead of a busy week of domestic economic data.
World stocks .WORLD rose after drugmaker AstraZeneca AZN.L said it has resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development. (Full Story)
As the mood in global equity markets lifted, the safe-haven U.S. dollar .DXY fell against its major peers. Investors eyed a Federal Reserve interest rate decision on Wednesday. (Full Story)
The price of oil, one of Canada's major exports, slipped amid concerns about a stalled global economic recovery and worries over renewed Libyan supply. U.S. crude CLc1 prices were down nearly 1% at $36.96 a barrel. (Full Story)
The Canadian dollar CAD= was trading 0.1% higher at 1.3161 to the greenback, or 75.98 U.S. cents. The currency, which fell last week for the first time in six weeks, traded in a range of 1.3154 to 1.3196.
Speculators have cut their bearish bets on the Canadian dollar to the lowest in six weeks, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of Sept. 8, net short positions had fallen to 17,355 contracts from 27,006 in the prior week.
Canada's inflation report for August is due on Wednesday, while the July retail sales report is set for Friday. The data could help guide expectations for economic recovery.
Last week, the Bank of Canada said that the third-quarter rebound was looking to be faster than anticipated but the economy will continue to require extraordinary support as it moves to a recuperation phase. (Full Story)
Canadian government bond yields were slightly lower across the curve on Monday, with the 10-year CA10YT=RR down about half a basis point at 0.543%.
China's new home prices growth steady, supports economic recovery - Reuters News
August new home prices up 0.6% m/m vs 0.5% uptick in July
August new home prices up 4.8% y/y vs 4.8% increase in July
59 out of 70 cities reported higher prices vs 59 in July
BEIJING, Sept 14 (Reuters) - New home prices in China rose at a slightly faster monthly pace in August, as consumer demand showed signs of picking up in a boost to an economy recovering from the coronavirus crisis.
Average new home prices in 70 major cities climbed 0.6% in August from a month earlier, a touch better than a 0.5% increase in July, according to Reuters calculations based on data released by the National Bureau of Statistics on Monday.
On an annual basis, home prices rose 4.8% in August, matching July's pace.
The property market has been a major driver in China's economic recovery, with home sales and investment growing at a robust pace in recent months after coronavirus lockdowns were lifted. (Full Story)
Yet policymakers remain wary about the risks of overheating, long one of the key balancing acts for authorities as they try to support a crucial sector of the economy without stoking excessive speculation.
Since July, many major cities have imposed new restrictions on property transactions to arrest sharp price rises. Big provincial capitals Hangzhou and Shenyang also strengthened curbs on home purchases this month.. (Full Story)
Most of the 70 cities surveyed by the NBS reported monthly price increases for new homes, with the number unchanged from 59 in July.
Tier-3 cities reported the strongest monthly gains. Huizhou, a small city in China southern Guangdong province which is close to Shenzhen, was the top performer in August, notching up a monthly price increase of 1.9%.
Regulators said last month they would institute new rules to control liquidity in the real estate market and are looking to contain property developers' debt levels to reduce risks to the financial system.
That has prompted indebted developers to cut prices to spur sales and cashflow. Analysts expect more developers would initiate sales promotion in the coming months, dubbed "Golden September, Silver October", a traditional sales peak season.
"Going forward, price cuts and sales promotion would be the main theme," said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution.
"We do not rule out possibility that the home price increase will continue to narrow."
Euro zone industrial output up as expected m/m in July - Reuters News
BRUSSELS, Sept 14 (Reuters) - Euro zone industrial production rose as expected month-on-month in July thanks to stronger output of capital goods and durable consumer goods, but was still well below last year's levels because of the COVID-19 pandemic, data showed on Monday.
The European Union's statistics office Eurostat said industrial production in the 19 countries sharing the euro rose 4.1% month-on-month for a 7.7% year-on-year fall. Economists polled by Reuters had expected a 4.0% monthly rise and a 8.2% annual drop.
Production of investment goods rose 5.3% on the month and was up 4.7% for durable consumer goods but both were still well below last year's levels at -10.4% and -3.8% respectively as the euro zone economy struggles with effects of lower economic activity caused by the COVID-19 pandemic.
