Asia 

China Factory Activity Slows Further. China's manufacturing activity weakened further in June, falling to a nine-month low as demand fell, according to a preliminary survey by HSBC. The bank's Purchasing Managers' Index (PMI) declined to 48.3, from May's reading of 49.2. A reading below 50 indicates a contraction. Last week, the World Bank lowered its 2013 growth forecast for China. The bank now expects the China to grow 7.7% this year, down from its earlier projection of 8.4%. (BBC)

USA

Sales Of Existing U.S. Homes Rise More Than Forecast. Sales of previously owned homes in the U.S. climbed in May to the highest level in more than three years and manufacturing improved in June, bearing out the Federal Reserve’s view that risks to the expansion are abating. Purchases of existing houses rose 4.2% to  a 5.18 million annualized rate, the most since November 2009, the National Association of Realtors reported today in Washington. TheFederal Reserve Bank of Philadelphia also said its factory index climbed this month to the highest since April 2011, exceeding all forecasts in a Bloomberg survey. (Bloomberg)

Jobless Claims Rise as Manufacturing Growth Slows. The number of Americans filing new claims for unemployment benefits rose more than expected last week, but not enough to signal a material shift from the recent pace of moderate job growth. A separate report showed that U.S. manufacturing activity growth slowed slightly in June. Initial claims for state unemployment benefits increased 18,000 to a seasonally adjusted 354,000, the Labor Department said on Thursday. Claims for the prior week were revised to show 2,000 more applications received than previously reported. Economists polled by Reuters had expected first-time applications to rise to 340,000 last week. A separate survey showed that U.S. manufacturing activity growth slowed slightly in June as the pace of hiring and overseas demand weakened, making the second quarter the weakest for the sector in the last four. Financial data firm Markit said its "flash," or preliminary, U.S. Purchasing Managers' Index fell to 52.2 in June from 52.3. A reading above 50 indicates expansion. June's 52.2 reading was also the average for the second quarter, behind the 54.9 average in the first three months of the year and the worst showing since the third quarter of 2012. (Reuters)

Bernanke Sees Beginning Of End For Fed’s Record Easing. Federal Reserve Chairman Ben S. Bernanke is putting investors on notice that the central bank is prepared to begin phasing out one of the most aggressive easing programs in its century-long history later this year. The Fed will probably taper its $85 billion in monthly bond buying later in 2013 and halt purchases around mid-2014 as long as the world’s largest economy performs in line with Fed projections, Bernanke told reporters yesterday in Washington after a twoday meeting of the Federal Open Market Committee. (Bloomberg)

Europe

Euro-Area Services, Factory Output Rises More Than  Forecast. Euro-area services and factory output increased more than economists forecast in June, adding to signs the currency bloc may emerge from its record-long recession in the second quarter. A composite index based on a survey of purchasing managers in both industries rose to 48.9 from 47.7 in May, London-based Markit Economics said today. That is the highest in 15 months and exceeded the median estimate of 48.1 in a Bloomberg News survey of 26 economists. A reading below 50 indicates contraction. The six-quarter contraction in the euro-area economy is forecast to end in the April-June period, when economists project gross domestic product will stagnant before growing 0.1 % in the third quarter, according to a Bloomberg survey. (Bloomberg) 

Euro-Area Consumer Confidence Rises to Highest in 22 Months. Euro-area consumer confidence increased more than economists forecast in June, jumping to the highest in 22 months and adding to signs the economy is starting to emerge from a record-long recession. An index of household confidence in the 17-nation euro zone rose to minus 18.8 this month from minus 21.9 in May, the European Commission in Brussels said today. Economists had forecast an increase to minus 21.5, according to the median of 26 estimates in a Bloomberg News survey. It was the seventh consecutive increase and the biggest nominal  jump since July 2010. (Bloomberg) 

UK Retail Sales Sees Strong Rise In May. UK retail sales recorded a larger-than-expected rise last month, helped by a strong increase in food sales. Sales rose 2.1% in May from the month before, and were up 1.9% from a year earlier, according to the Office for National Statistics (ONS). Supermarket discounts helped to boost food sales, which rose 3.5% from April, and online sales continued to rise. Analysts said that the figures were further evidence that the UK economy was continuing to recover. (BBC) 

Greece To Avoid Funding Problems If It Delivers On Bailout Program: IMF. The International Monetary Fund on Thursday urged Greece to speedily deliver on its bailout program,  adding that doing so would ensure the country encounters "no financing problems." There is an ongoing review of the Greek bailout program, the IMF said on Thursday. "If the review is concluded by the end of July, as expected, no financing problems will arise because the program is financed till end-July 2014," IMF spokesman Gerry Rice said in a brief statement. The Financial Times reported on Thursday the IMF might suspend aid to Greece next month unless euro zone leaders plugged a funding gap in the Greek rescue program. (Reuters)

Currencies

Indian Rupee Falls To An All-Time Low Against Us Dollar. The Indian rupee dipped to an all-time low against the US dollar after the Federal Reserve signalled that it could start pulling back on its monetary stimulus later this year. The rupee fell as low as 59.93, down from its Wednesday close of 58.72. The Fed's program to pump cash into the economy has caused capital to flow into emerging markets. Analysts said the slide signalled India's dependence on those foreign capital inflows. (BBC)

Dollar Extends Rally As Fed Talks Slower Stimulus. The U.S. dollar trimmed an earlier surge but remained higher versus most major currencies Thursday, building on gains triggered a  day earlier after Federal Reserve Chairman Ben Bernanke said the bank could begin to slow its stimulus-providing program of bond purchases by the end of the year. The ICE  dollar index, which tracks the greenback’s performance against six rivals, rose to 81.823 from 81.301 late Wednesday in North America, and traded as high as 82.140. The dollar changed hands at 97.38 yen, up from ¥96.36 in North American trade late Wednesday, when it surged versus the Japanese currency. The dollar traded as high as ¥98.28 in earlier action Thursday. Meanwhile, the euro fell to $1.3221, down from $1.3294. The British pound managed to shake off early weakness to rise to $1.5492, up slightly from $1.5482. The Aussie changed hands at 92 U.S. cents in recent action after trading as low as 91.63 cents versus 93.01 late Wednesday. The Aussie hadn’t traded below 93 cents since September 2010, according to FactSet data. (Market Watch) 

Commodities

Oil Hit By Biggest Decline Since November On Fed Plan. Brent crude oil futures dropped $4 on Thursday in the biggest one-day decline since November as part of a cross-market rout sparked by the U.S. Federal Reserve's Chairman plan to wind down monetary stimulus. Brent crude settled down $3.97, or 3.74 %, to $102.15 per barrel. U.S. crude oil for July, which expired on Thursday, fell $2.84 to settle at $95.40, the largest daily decline since November. (Market Watch)

Gold Down 5 Pct In Global Rout On U.S. Fed Stimulus Fears. Gold plunged over 5% to its lowest in three years on Thursday, leading a global market rout one day after the U.S. Federal Reserve gave its most explicit signal yet it plans to wind down the era of easy money. Spot gold was down 5.2 % at $1,280.54 an ounce by 4:28 p.m. EDT (2028 GMT), having hit $1,276.19, which marked its lowest level since Sept. 21, 2010. Silver was the biggest decliner among the precious metals, sliding nearly 8% to $19.64 an ounce, having hit a low of $19.58 an ounce, its weakest since September 2010. Platinum dropped 3.6% to $1,359.50 an ounce, while spot palladium slid 4.7% to $661.25 an ounce. (Reuters)