CFD Markets News and Forecasts — 27-08-2012

The euro rose against most major currencies after data released showed that the index of current conditions IFO fell less than some economists predicted, suggesting that the region's largest economy can withstand the sovereign debt crisis. Other submitted data for Germany were slightly below expectations, but in spite of this, the euro rose.

The single currency traded near a seven-week high against the dollar after German Finance Minister Wolfgang Schaeuble said that Germany and France will create a working group to improve the financial and monetary union in the region.

Pound today traded in a narrow range, as financial markets in the UK were closed for an official holiday.

The Canadian dollar strengthened against the dollar and rose against most other major currencies, as well as among investors increased appetite for higher-yielding assets. The Australian dollar touched its lowest level in a month, extending a two-week decline, as concern about global economic growth is the increased demand for higher-yielding assets.

Demand for Currency Australian and New Zealand was supported after Federal Reserve Chairman Ben Bernanke said that "there is scope for further action by the Federal Reserve to ease financial conditions and strengthen recovery".

European stocks rose as Germany’s Finance Minister Wolfgang Schaeuble said the continent’s two largest economies will create a working group to strengthen the euro area’s fiscal and monetary union.

Deutsche Bank AG (DBK) and BNP Paribas SA (BNP) both gained at least 2 percent. Nokia Oyj (NOK1V) jumped 7.7 percent after a jury found rival Samsung Electronics Co. had violated Apple Inc. patents. Q-Cells SE (QCE) surged 11 percent after South Korea’s Hanwha Group signed a deal to acquire the insolvent German company.

The Stoxx Europe 600 Index added 0.4 percent to 269.11 at 4:30 p.m. in London, after earlier falling as much as 0.2 percent.

Schaeuble said today that Germany and France will seek to develop common proposals on a fiscal, banking and monetary union. He also told reporters, after meeting with French Finance Minister Pierre Moscovici in Berlin today, that the two countries will look for measures to boost economic growth.

Next month, the European Central Bank will formulate a bond-buying plan and representatives of Greece’s international creditors will issue a progress report. A German court will also announce its decision on the legality of the euro area’s proposed permanent bailout fund.

Investors are also awaiting a speech from Federal Reserve Chairman Ben S. Bernanke on Aug. 31 at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming. His speech in 2010 preceded a second round of bond purchasing, or quantitative easing, to help support the economic recovery.

National benchmark indexes gained in every Western-European market that opened today.

FTSE 100 5,776.6 0.00 0.00% CAC 40 3,458.56 +25.35 +0.74% DAX 7,041.8 +70.73 +1.01%    

A gauge of European banks climbed 0.7 percent as Spanish 10-year bonds rallied.

Nokia surged 7.7 percent to 2.69 euros, for the biggest advance on the Stoxx 600, amid speculation the company’s sales will benefit if the U.S. bans some of Samsung’s mobile devices.

Samsung plummeted in Asian trading after a U.S. court on Aug. 24 ruled that the world’s biggest handset maker infringed six of seven Apple patents. A ban may undermine Samsung’s grip on the smartphone market and set a precedent for rival handset makers that use Google Inc.’s Android operating system.

Q-Cells soared 11 percent to 18.9 euro cents. The shares surged as much as 40 percent after Hanwha agreed to buy the company that filed for insolvency in April. Hanwha, which signed a deal yesterday with Q-Cell’s administrator, Henning Schorisch, will assume “business liabilities in the low hundreds of millions” and a cash purchase price “in the medium double- digit million euro range.”

Lundin Petroleum AB (LUPE) climbed 4.4 percent to 153.60 kronor after the Swedish oil company said it discovered a 25-meter oil column at an appraisal well in the northeastern part of Johan Sverdrup deposit, Norway’s largest oil find since 1974.

Statoil ASA (STL) also said today that its Geitungen prospect in the North Sea holds as much as 270 million barrels of oil. The shares increased 0.8 percent to 148.10 kroner.

ThyssenKrupp AG (TKA) rose 1.7 percent to 16.49 euros after Welt am Sonntag reported that Germany’s biggest steelmaker wants to sell plants in the U.S. and Brazil for at least their book value of 7 billion euros ($8.8 billion).

Crude oil futures fell amid speculation that Tropical Storm Isaac will have a limited impact on the oil as it approaches the northern coast of the Gulf of Mexico.

Bureau of Safety and Environmental Control said that prices fell by 1.5% due to the forecast of the storm Isaac reaches the southeastern coast of Louisiana on August 29 with winds of the first category and the strength of 85 miles / hour to 90 miles / h We also learned that Isaac had led to the closure of about 24% of U.S. production.

Recall that before the storm Isaac seven years ago, there raged a hurricane Katrina, which caused landslides levees in New Orleans and the deaths of more than 1,800 people.

It is assumed that Isaac will have no power of Hurricane Katrina and will cause minimal damage to drilling rigs and platforms as well as onshore refineries and pipelines.

Also today it was announced that the delay in the construction of the pipeline in Iraq threaten to stop production at Royal Dutch Shell for three months, causing a loss of about 175,000 barrels a day.

In Norway, oil platform workers broke off negotiations with the oil companies on the level of wages, which could lead to a new strike, which will be the second in the last two months.

October futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $ 95.13 per barrel.

October futures price of North Sea Brent crude oil mix is ​​now $ 112.47 a barrel on the ICE Futures Europe Exchange.

Today, gold prices peaked in April at a time when the Federal Reserve System may soon declare on another round of quantitative easing. Later, the price of gold fell, as market participants are wary of meeting of key central banks, which will be held at the end of the week.

Recall that last week, in his letter to Federal Reserve Chairman Ben Bernanke said that the Fed has a number of reasons for additional stimulus measures. While recent U.S. data was mixed, economists remain concerned about unemployment and the rate of recovery.

Further incentives in the form of quantitative easing, a positive impact on cost, as market participants would use it in the fight against inflation and protection of their capital.

Against the background of the low volume of trading gold hard to continue upward movement. Many analysts suggest that further appreciation of precious metals must first overcome entrenched above $ 1,675 per ounce, which opens the way to a level of $ 1,700.

The cost of the August gold futures on the COMEX is now 1669.4 dollars per ounce.

U.S. stock futures rose as Apple (AAPL) Inc. rallied on a $1 billion verdict and investors awaited indications on Federal Reserve stimulus measures.

Global Stock:

Nikkei  9,085.39 +14.63 +0.16%
Hang Seng 19,798.67 -81.36 -0.41%
Shanghai Composite 2,055.71 -36.40 -1.74%
FTSE  5,776.6 0.00 0.00%
CAC  3,449.09 +15.88 +0.46%
DAX 7,028.63 +57.56 +0.83%
Crude oil $96.68 +0,55%
Gold $1671.50 -0.08%

Sterne Agee lowers their Intel (INTC) tgt to $24 from $25.

Data
06:00 United Kingdom Bank holiday -
06:00 Germany Import prices July -1.5% +0.8% +0.7%
06:00 Germany Import prices Y/Y July +1.3% +1.4% +1.2%
08:00 Germany IFO - Business Climate August 103.3 102.8 102.3
08:00 Germany IFO - Current Assessment August 111.6 110.8 111.2
08:00 Germany IFO - Expectations August 95.6 95.0 94.2

The euro rose slightly against the dollar after the published data showed that the index of current conditions IFO fell less than some economists predicted, suggesting that the region's largest economy can withstand the sovereign debt crisis. Other submitted data for Germany were slightly below expectations, but in spite of this, the euro rose.
The single currency strengthened against the yen as German Finance Minister Wolfgang Schaeuble said that Germany and France will create a working group to improve the financial and monetary union in the region. He also said that the working group will prepare solutions in banking alliance and strengthen fiscal union and monetary union.
Note that the most important event of the week will be a symposium in Jackson Hole, where the President of the ECB and the Fed chairman gave a speech on the future policy.
We remind that the UK financial markets closed on Letnik holidays. Against this background, pound traded in a narrow range.

EUR/USD: during the European session, the pair has grown, reaching $ 1.2535.
GBP/USD: the pair shown peak at $ 1.5830, after rate slightly receded.
USD/JPY: steam updated Friday's high, then fell to the opening level

16:15 GMT In an address by a member of the FOMC Sandra Pyanalto.

EUR/USD

Offers $1.2600, $1.2550/55

Bids $1.2480, $1.2470-50, $1.2430, $1.2415/00

GBP/USD

Offers $1.5920, $1.5850

Bids $1.5780, $1.5730

AUD/USD

Offers $1.0500, $1.0470/80, $1.0450, $1.0420

Bids $1.0350, $1.0320, $1.0300

EUR/JPY

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

Bids Y98.00, Y97.75/70, Y97.50

EUR/GBP

Offers stg0.8015/20, stg0.8000, stg0.7965/70, stg0.7925

Bids stg0.7900, stg0.7875/70, stg0.7860/50

USD/JPY

Offers Y79.20, Y79.00

Bids Y78.50, Y78.30/25, Y78.10/00, Y77.90

A slight decline in European indices caused by the slowdown in the Chinese economy.

Was released today stat data for Germany. Was lower than the forecast expectations index IFO, the August figure was 94.2, the forecast 95. IFO business climate index for August at the forecast 102.3 102.8.

Import prices year on year in July showed an increase in the forecast of +1.2% +1.4%, import prices on a monthly basis in July against the forecast of +0.7% +0.8%.

It was learned that the plans of German Chancellor Angela Merkel is signing a new contract, which will form the basis of the European Union. Already this year, the Heads of State and Government of the EU, according to the plans of Chancellor may decide to hold the convention, the function of which will be the development of a legal framework for the new treaty, held together by the European Union. According to the press, the German position was announced in Brussels advisor Chancellor for European Policy Nikolaus Meyer-Landrut.

To date:

FTSE 100 5,776.60 0.00 0.00%

DAX    6,965.29 -5.78 -0.08%

CAC   3,425.51 -7.70   -0.22%

Nokia Oyj shares soared 7% after Samsung Electronics Co. lost a patent dispute with Apple Inc.

Asian stocks fell, with the regional benchmark index heading for a second day of decline, as a drop in profits at Chinese industrial companies offset optimism policy makers around world will move to boost growth.
Nikkei 225 9,085.39 +14.63 +0.16%
S&P/ASX 200 4,343.7 -5.30 -0.12%
Shanghai Composite -36.40 -1.74%
Jiangxi Copper Co., China’s biggest supplier of the metal, slid 1.9 percent in Hong Kong.
Samsung Electronics Co. slumped 7.5 percent in Seoul after a U.S. jury ruled that the world’s No. 1 maker of smartphones infringed Apple Inc. (AAPL) patents.
Olympus Corp., the world’s largest manufacture of endoscopes, rose 4.4 percent in Tokyo after agreeing to sell unit ITX Corp.’s telecommunications business for 53 billion yen ($673 million).

The euro remained lower following a drop at the end of last week before a report today that may show German business confidence fell to a two-year low, adding to evidence Europe’s debt crisis is hurting its economies. The Munich-based Ifo institute is forecast to say today that its business climate index for Germany slid to 102.7 in August, a level unseen since March 2010, according to the median estimate of economists in a Bloomberg News survey. That compares with a reading of 103.3 in July.

The 17-nation currency also maintained a decline versus the majority of its 16 peers before German Finance Minister Wolfgang Schaeuble meets his French counterpart today to discuss Greek budget targets. Germany’s Schaeuble will meet French Finance Minister Pierre Moscovici today. Schaeuble said a new aid package for Greece “isn’t the right path” for solving the debt crisis, Tagesspiegel am Sonntag reported over the weekend, citing an interview.

Demand for the dollar was limited before Federal Reserve Bank of Chicago President Charles Evans speaks today amid speculation the U.S. central bank will expand monetary easing that may debase the currency. The Chicago Fed’s Evans will speak today in Hong Kong and central bank Chairman Ben S. Bernanke will deliver a speech on Aug. 31 at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming.

On Friday the euro fell against the dollar amid comments from the German Parliament, who said that the Bundestag not want Greece to provide new facilities or extend the time for the fulfillment of its obligations.

Europe’s leaders aren’t making progress in solving the region’s debt crisis.

On result of today’s session:

Nikkei  9,070.76 -107.36 -1.17%

Hang Seng 19,880.03 -252.21 -1.25%

Shanghai Composite 2,092.1 -20.97 -0.99%

S&P/ASX  4,349 -34.71 -0.79%

Shares of Nissan Motor Co. fell 1.5%. Shares of Aluminum Corp. of China fell 1.8%. Shares of Makita Corp. fell 1.1%.

06:00 United Kingdom Bank holiday -

06:00 Germany Import prices July -1.5% +0.8%

06:00 Germany Import prices Y/Y July +1.3% +1.4%

08:00 Germany IFO - Business Climate August 103.3 102.8

08:00 Germany IFO - Current Assessment August 111.6 110.8

08:00 Germany IFO - Expectations August 95.6 95.0