Asia

China To Set Yuan Clearing Bank In Sydney. China will designate a clearing bank in Sydney for overseas trading of its yuan currency, a top Australian official said on Thursday as Beijing seeks to make its tightly-controlled currency more international. The Australian financial capital would follow London and Frankfurt as a location for a Chinese bank to clear transactions in yuan, also known as the renminbi. "I am confident that we will have, before the end of the year, a designated clearing bank for renminbi trading in Australia with the opportunity for an Australian bank to be a market maker," Australia's Treasurer Joe Hockey told the Australian Chamber of Commerce in Shanghai. (AFP)

USA

Jobless Claims In U.S. Decreased 2,000 Last Week To 312,000. Fewer Americans filed applications for unemployment benefits last week, a sign of steady progress in the labor market. Jobless claims fell by 2,000 to a one-month low of 312,000 in the week ended June 21, the Labor Department reported today in Washington. The median forecast of economists surveyed by Bloomberg called for 310,000 initial claims. (Bloomberg)

Restrained Consumer Spending Curbs U.S. Growth Optimism. Consumer spending grew less than forecast in May, putting a damper on the strength of the projected rebound in U.S. economic growth this quarter. Purchases, which account for about 70 % of the economy, climbed 0.2 % last month after being little changed in April, the Commerce Department reported today in Washington. The report also showed Americans squirrelled away more money for a rainy day as incomes and inflation picked up. The Commerce Department’s report also showed inflation was inching closer to the Federal Reserve’s goal. The price measure tracked by the Fed rose 0.2 % in May from the prior month and was up 1.8 % from a year earlier. That was the biggest 12-month increase since October 2012. The central bank’s goal is for inflation to climb at around 2 %. Incomes advanced 0.4 % in May, paced by a similar gain in wages and salaries, the report showed. Disposable income, or the money left over after taxes, rose 0.2 percent in May for the second month after adjusting for inflation, and was up 1.9 percent over the past year, according to today’s report. (Bloomberg)

Europe

UK Consumer Morale Hits New Nine-Year High In June. British consumer morale touched its highest level in more than nine years last month as Britons became increasingly optimistic about the country's burgeoning economic recovery, a survey showed on Friday. Polling company GfK said its monthly consumer confidence index rose to +1 in June from zero in May, its highest since March 2005, albeit below a Reuters poll forecast of +2. The survey suggested consumer spending will remain one of the biggest drivers of Britain's swift economic recovery, as optimism about the economy over the next 12 months hit its highest level in at least 10 years. (Reuters)

Currencies

Pound Back Above $1.70; Dollar Falls Vs. Yen. The dollar fell against the pound Thursday after the Bank of England took steps to strengthen rules on mortgage lending, and extended losses against the yen after U.S. economic data. The pound rose to $1.7028 from $1.6983 late Wednesday. The dollar fell to ¥101.68 from ¥101.87 late Wednesday, with losses accelerating in the wake of the U.S. data. The ICE dollar index , a gauge of the currency’s strength against a basket of six rivals, was at 80.214 versus 80.210 late Wednesday. The euro declined to $1.3611 from $1.3631 late Wednesday. (Market Watch)

Commodities

U.S. Crude And Brent Fall As Iraq Export Fears Recede. Crude oil on both sides of the Atlantic fell on Thursday as fears eased over export disruptions from war-ravaged Iraq, allowing market participants to take some profit off the table. Brent crude lost 79 cents to settle at $113.21, its lowest settlement since June 16. U.S. crude lost 66 cents to settle at $105.84, the lowest settlement since June 11. (Reuters)

Gold Falls As U.S. Jobless Data Suggests Economic Strength. Gold fell on Thursday as upbeat U.S. jobless claims data and weaker crude oil prices sent prices below a two-month high hit earlier this week, and a lack of investment interest could further pressure the precious metal, traders said. Spot gold was down 0.3% at $1,315.16 an ounce by 2:19 p.m. EDT (1819 GMT). Among other precious metals, silver was up 0.4% at $21.06 an ounce, outperforming gold. Spot platinum gained 10 cents to $1,464.50 an ounce, while spot palladium climbed 0.2 % to $831.40 an ounce.(Reuters)