CFD Markets News and Forecasts — 20-08-2012

The euro fluctuated against the dollar at a time when the Bundesbank in Germany showed dissatisfaction about the plan of the European Central Bank.

The single currency rose after the Greek Foreign Minister Dimitris Avramopoulos said that his government will present the budget reports, which show that the improvement in Greece was caused by the international financial assistance.

The Australian dollar rose against all major currencies, as the demand for higher-yielding assets.

Also on the increase in value of the currency has affected the possible prospect that the ECB will try to limit bond yields.

Growth also showed the New Zealand dollar in relation to the fact that there is a chance the Federal Reserve will refrain from any further monetary stimulus, which could weaken the dollar.

Asian currencies weakened against the worsening debt crisis in Europe and the slowdown in the Chinese economy, which worsens the prospects for foreign sales in the region.

European (SXXP) stocks fell as Germany’s Bundesbank criticized a European Central Bank plan to lower the region’s sovereign yields through bond purchases, highlighting the rift among policy makers over ways to end the debt crisis.

Lonmin Plc (LMI) slid 4.6 percent on reports it may raise $1 billion in a rights issue after operations at its biggest mine were halted amid deadly violence, the Sunday Times reported. Bankia (BKIA) SA fell 4.6 percent. Heineken NV (HEIA) climbed 1.6 percent after it raised its offer for Asia Pacific Breweries Ltd. Banca Monte dei Paschi di Siena SpA led gainers, jumping 5.1 percent.

The Stoxx 600 dropped 0.5 percent to 271.50 at the close of trading.

National benchmark indexes fell in 16 of the 18 western European markets.

FTSE 100 5,824.37 -28.05 -0.48% CAC 40 3,480.58 -7.80 -0.22% DAX 7,033.68 -7.20 -0.10%

Lonmin lost 4.6 percent to 610 pence, dropping for a sixth day. The world’s third-biggest platinum miner may raise $1 billion in a rights issue as soon as next month after operations at its biggest mine were halted amid deadly violence citing people close to the situation it didn’t name.

Xstrata Plc (XTA), which owns a 25 percent stake in Lonmin, has signaled that it’s ready to cover its part of the deal, the newspaper said. Xstrata fell 3.4 percent to 907.5 pence. Separately, Deutsche Bank downgraded Lonmin shares to sell from neutral.

Eurasian Natural Resources Corp. (ENRC), a producer of metals in Kazakhstan, fell 3.4 percent to 357 pence. The stock was cut to neutral from outperform at Credit Suisse Group AG.

Credit Agricole SA (ACA) dropped 4.9 percent to 4.10 euros as a gauge of bank shares led declines on the Stoxx 600.

Michael Page International Plc (MPI), a U.K. recruitment company, lost 3.2 percent to 371.1 pence. The stock was cut to sell from neutral at Goldman Sachs Group Inc.

Heineken gained 1.6 percent to 43.84 euros. The world’s third-largest brewer raised its offer for a controlling stake in Asia Pacific Breweries to S$5.6 billion ($4.5 billion).

Banca Monte dei Paschi di Siena jumped 5.1 percent to 22.7 euro cents, paring gains of as much as 17 percent. The world’s oldest bank may become the first Italian lender since the 1990s to have the government as a shareholder as the company weighs further goodwill writedowns.

Home Retail Group Plc (HOME), the owner of Argos stores, gained 3.6 percent to 96.3 pence. The shares were upgraded to hold from sell at Deutsche Bank.

Amlin Plc (AML) climbed 2.1 percent to 389.1 pence. The insurer reported a first-half pre-tax profit of 184.5 million pounds ($289 million) compared with a 192.3 million pound loss in the same period last year.

Crude oil futures fell from a three-month high due to the fact that European leaders discussed ways to address the debt crisis in the region.

Value declined after Germany's Bundesbank Board expressed dissatisfaction about the plan of the European Central Bank started to potentially "unlimited" purchases of government bonds. In connection with this situation, European leaders are planning this week to visit with the diplomatic visit troubled countries that help them solve the debt crisis.

Also today it was announced that in June, oil production in Saudi Arabia increased by 3% to 10.1 million barrels per day, beating with Russia, which produces 9.9 million barrels per day.

During the day, the price of oil had little attention to U.S. data, which showed that the index of economic activity from the Federal Reserve Bank of Chicago in July improved to -0.13 from -0.34.

September futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $ 95.71 per barrel.

September futures price of North Sea Brent crude oil mix is ​​now $ 114.12 a barrel on the ICE Futures Europe Exchange.

Today, gold prices resumed their decline, which began last week, amid unusually weak demand from China and India, which are the two largest consumers of gold.

Also to reduce the cost impact comments Bundesbank of Germany, who was critical by referring to a proposal that the European Central Bank should buy government bonds to quell the debt crisis in the region. Also today, there were rumors that the ECB's Governing Council is considering installing a limited return on bonds Euroregion, which were later disproved.

According to the World Gold Council show that Chinese demand fell by 7.1% compared to last year, and by 10% in the first quarter of this year. Demand in India, meanwhile, fell by 13.2% in the first quarter, showing a decline of 38% compared to last year.

However, the research team expects that Chinese demand will soon recover thanks largely to renewed escalation of the eurozone crisis, which will act as a safe haven for the gold. The report predicts that gold prices will increase from the current $ 1,620 per ounce to $ 2,000 by year end.

However, despite the decline throughout the day, gold prices have risen sharply in the last hour of trading and updated maximum session.

September futures price of gold on the COMEX is now 1618.6 dollars per ounce.

EUR/USD $1.2400, $1.2430, $1.2450, $1.2250

USD/JPY Y79.50, Y79.25, Y79.15, Y79.00

EUR/JPY Y98.00

AUD/USD $1.0350, $1.0400, $1.0450, $1.0570

Data

05:00 Japan Leading Economic Index June 92.6 93.2

05:00 Japan Coincident Index June 93.8 94.1

09:00 Eurozone Construction Output, m/m June +0.1% -0.5%

09:00 Eurozone Construction Output, y/y June -8.4% -2.8%

EUR/USD

Offers $1.2400

Bids $1.2315, $1.2305/00, $1.2256, $1.2240

GBP/USD

Offers $1.5780, $1.5745-50, $1.5720

Bids $1.5665/60, $1.5635/30, $1.5600

AUD/USD

Offers $1.0520, $1.0500, $1.0480

Bids $1.0425, $1.0400, $1.0365/60, $1.0350

USD/JPY

Offers Y80.20, Y80.00, Y79.80, Y79.65

Bids Y79.25/20, Y79.10, Y79.00, Y78.80

EUR/JPY

Offers Y99.20, Y99.00, Y98.50

Bids Y97.50, Y97.20, Y97.00

EUR/GBP

Offers stg0.7965/70, stg0.7920, stg0.7900/05, stg0.7885, stg0.7878

Bids stg0.7850, stg0.7810/00

European stock indices show an increase in the upcoming meetings pridverii eurozone leaders. The head of the Eurogroup Jean-Claude Juncker, August 22, visited Athens, where he will discuss with the Greek Prime Minister Antonis Samaras Greek government's request for an extension to the two year extension of the program of fiscal austerity in the country.

German Chancellor Angela Merkel and French President Francois Hollande will meet in Berlin on 23 August, and then - 24 and August 25 - will meet with Greek Prime Minister Antonis Samaras in Berlin and Paris.

Today published data on the level of construction output in the euro zone in June year on year figure fell by -2.8%.

The focus of the market are the data on the index of economic activity from the Federal Reserve Bank of Chicago in the U.S., which will be published at 12:30 GMT.

To date:

FTSE 100 5,852.09 -0.33 -0.01%

CAC 40 3,501.91 +13.53 +0.39%

DAX 7,081.33 +40.45 +0.57%

EUR/USD $1.2400, $1.2450, $1.2250 USD/JPY Y79.25, Y79.15, Y79.00 EUR/JPY Y98.00 AUD/USD $1.0350, $1.0570 NZD/USD $0.8100, $0.8150

Asian stocks fell on concern China won’t ease monetary policy even as corporate earnings deteriorate amid slowing economic growth, offsetting optimism for the global outlook after U.S. consumer confidence improved.

Nikkei 225 9,171.16 +8.66 +0.09%

S&P/ASX 200 4,364.3 -5.80 -0.13%

05:00 Japan Leading Economic Index June 92.6 93.2

05:00 Japan Coincident Index June 93.8 94.1

Asian stocks rose, with the region’s benchmark index set for a third weekly gain, after U.S. housing permits rose to a four-year high, helping temper concerns about the strength of a global recovery.

Nikkei 225 9,162.5 +69.74 +0.77%

S&P/ASX 200 4,370.1 +39.93 +0.92%

Shanghai Composite 2,114.89 +2.69 +0.13%

Santos Ltd. climbed 3.2 percent after the Australian energy explorer said it will begin sales from a shale gas project in October.

Mitsubishi UFJ Financial Group Inc., Japan’s largest publicly traded lender, rose 2.2 percent as German Chancellor Angela Merkel backed the European Central Bank’s conditions for assisting indebted countries.

Samsung Electronics Co., an electronics exporter, fell 3.7 percent in Seoul after resting its case in a patent-infringement trial with Apple Inc.

05:00 Japan Leading Economic Index June 92.6

05:00 Japan Coincident Index June 93.8

09:00 Eurozone Construction Output, m/m June +0.1%

09:00 Eurozone Construction Output, y/y June -8.4%