CFD Markets News and Forecasts — 29-08-2012

The dollar rose against most major traded currencies after data released showed that the level in the U.S. rose more than expected, and the number of pending home sales reached a two-year high.

The dollar strengthened against the euro and the yen, as investors' doubts that the Federal Reserve Chairman Ben Bernanke will hint at further easing in his speech at the conference on August 31.

The single currency has strengthened slightly after German Chancellor Angela Merkel said that the reforms in Italy will help reduce the interest the central bank.

The single currency has strengthened by 2.5% against the dollar since August 1, after European Central Bank President Mario Draghi said that the central bank can buy Spanish and Italian bonds to limit borrowing costs.

The Canadian dollar traded near a four-month high against the U.S. dollar on positive data from the U.S.. Gross domestic product grew by 1.7% between April and June, compared with the initial estimate of 1.5%. We also learned that the number of pending home sales increased in July by 2.4%, after falling 1.4% in June, and reached its highest level since April 2010. Economists had expected growth of approximately 1.0%. The index also rose by 12.4% compared to the same month last year.

The Australian dollar traded near-month low on concerns that a slowdown in global growth will impact on the economy.

Australian and New Zealand dollars were supported after the president of the European Union, Herman Van Rompuy said that the region's rescue fund ready to help Spanish banks. Strengthening was supported by increased demand for higher-yielding assets, as well as data that showed that the number of construction projects handed down by 0.2% in the second quarter, compared with a revised growth of 7.8% (originally reported increase of 5 5%) in the first three months of this year. Many analysts expect the figure rose 1.1%. Last fall was due to a decline of 1.9% in the private construction and 0.7% in the public construction. construction work completed fell by 0.2 percent in the three months to June, compared with a revised 7.8 percent increase in the first quarter.

European stocks fell for a second day as companies from L’Oreal SA to Bouygues SA (EN) retreated after reporting earnings and German Chancellor Angela Merkel clashed with Italian Prime Minister Mario Monti over whether to give the euro area’s permanent bailout fund a bank license.

L’Oreal dropped the most in 2 1/2 years after the world’s largest cosmetics maker reported profit margins that missed estimates. Bouygues, the French building, television and telecommunications company, tumbled 9 percent after trimming the earnings forecast for its phone business. Banca Monte dei Paschi di Siena SpA plunged 8 percent after posting a loss.

The Stoxx Europe 600 Index (SXXP) slipped 0.1 percent to 267.01.

Bernanke will deliver his annual speech at the Fed’s Jackson Hole symposium on Aug. 31. His address in 2010 preceded a second round of bond purchasing, or quantitative easing, to help support the economic recovery. Draghi canceled his trip to Jackson Hole yesterday, reducing speculation ECB policy makers will unveil new measures to support the economy before their Sept. 6 meeting. Draghi announced on Aug. 2 that the central bank may resume bond purchases if distressed governments ask for aid from the region’s bailout funds.

National benchmark indexes retreated in 11 of the 18 western-European markets today.

FTSE 100 5,743.53 -32.18 -0.56% CAC 40 3,413.89 -17.66 -0.51% DAX 7,010.57 +7.89 +0.11%

In the U.S., the Commerce Department’s first revision to second-quarter gross domestic product showed a gain of 1.7 percent compared with an initially reported 1.5 percent increase, matching the median forecast in survey of economists. Data from the National Association of Realtors showed U.S. pending home sales rose 2.4 percent in July from June, when they declined 1.4 percent. That was higher than the 1 percent increase forecast in a survey of economists.

L’Oreal (OR) lost 4.4 percent to 96.58 euros, the biggest drop since February 2010, as gross profit as a percentage of sales narrowed to 71 percent in the six months ended June 30 from 71.5 percent a year earlier. That was less than the 71.9 percent average estimate of analysts.

Bouygues SA sank 9 percent to 19.95 euros, the largest decline since December 2008. The French building, television and telecommunications company trimmed its 2012 earnings forecast for its phone business as it cut prices and lost customers to new entrant Iliad SA.

France Telecom SA (FTE) and Vivendi SA (VIV), which also operate French mobile-phone networks, slipped 2.3 percent to 11.06 euros and 2.1 percent to 15.17 euros, respectively.

Monte Paschi (BMPS) retreated 8 percent to 22.4 euro cents in Milan, the biggest decline since Aug. 2. Italy’s third-biggest bank posted a 1.67 billion-euro second-quarter loss after a goodwill writedown.

Raiffeisen Bank International AG (RBI), eastern Europe’s second- biggest lender, slid 5.1 percent to 26.47 euros after net income plummeted 54 percent in the second quarter as lending revenue shrank and bad debt writedowns increased.

Vestas Wind Systems A/S (VWS) dropped 4.6 percent to 38.34 kroner. Temenos Group AG (TEMN), which was also cut from the gauge, slid 2.6 percent to 13.15 Swiss francs.

Novozymes A/S (NZYMB), the world’s biggest maker of enzymes, rose 2.8 percent to 164.70 kroner after Goldman Sachs Group Inc. upgraded the stock to buy from neutral.

Crude oil futures fell, after the U.S. Department of Energy announced that the volume of oil rose unexpectedly.

The department said that oil reserves have increased by 3.78 million barrels to 364.5 million barrels level, while analysts expected that stocks will be reduced by 1.75 million barrels.

Gasoline inventories fell by 1.51 million barrels to 201.2 million level last week, while analysts expected a decline of 1.45 million barrels.

Distillate stocks, which include heating oil and diesel, rose by 873 thousand barrels to the value of 126.1 million, compared with a forecast for the level of 200 thousand barrels.

Note that oil was trading at $ 95.45 a barrel before the release of inventory data.

Futures also declined after Hurricane Isaac hit the U.S., thus causing the closure of offshore platforms and rigs in the Gulf of Mexico, but brought less severe consequences than expected.

It is learned that the company has stopped 93% of oil production platforms in the Gulf of Mexico and 67% of plants for gas production as well as Isaac approached the coast of Louisiana.

"Group of Seven" said yesterday that it was ready to call the International Energy Agency, which includes 28 countries and are the largest consumers of oil in order to take appropriate measures to ensure that the market is fully and promptly provide.

October futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $ 95.20 per barrel.

October futures price of North Sea Brent crude oil mix is ​​now $ 112.48 a barrel on the ICE Futures Europe Exchange.

Gold prices fell on Wednesday as investors cut their open positions before the meeting of the heads of the central banks of the world, to be held over the weekend and be able to shed further light on the Fed policy.

Gold unable to break through its narrow trading range, and fell below the minimum values ​​of the previous day, on expectations that the Federal Reserve Chairman Ben Bernanke in a speech at the meeting will be able to give a clear hint at a new round of quantitative easing.

However, some market participants say that it can only repeat that the Fed has room for action, and to postpone consideration of the matter before the meeting, which is scheduled for September 12-13.

Investors also expect that the ECB will soon unveil an effective plan to deal with the high cost of borrowing of troubled countries, such as Spain and Italy.

Investment interest in gold remained elevated. Against this background, the world's largest exchange-traded fund, which issues securities backed by physical metal, recorded flow at just over 3 tonnes on Tuesday.

The cost of the August gold futures on the COMEX is now 1665.2 dollars per ounce.

EUR/USD $1.2490, $1.2500, $1.2505, $1.2525, $1.2625

USD/JPY Y78.15, Y79.10, Y79.15

EUR/GBP stg0.7900, stg0.7975

AUD/USD $1.0320, $1.0400, $1.0425, $1.0460

AUD/JPY Y82.50

U.S. stock-index futures slightly rose after government data showed gross domestic product expanded more than previously estimated last quarter, matching economists’ estimates for 1.7% growth.
The index has fluctuated near the 1,400 level for three weeks as trading slowed toward the end of the U.S. summer and investors awaited the Federal Reserve’s annual gathering in Jackson Hole to gauge prospects for a possible third round of so-called quantitative easing through asset purchases.

Global Stocks:

Nikkei  9,069.81 +36.52 +0.40%
Hang Seng 19,788.51 -23.29 -0.12%
Shanghai Composite 2,053.23 -19.92 -0.96%
FTSE  5,765.74 -9.97 -0.17%
CAC  3,424.9 -6.65 -0.19%
DAX 7,014.13 +11.45 +0.16%
Crude oil $95.82 -0,53%
Gold $1668.90 -0.05%

Data
01:30 Australia Construction Work Done Quarter II +7.8% +1.1% -0.2%
07:00 Switzerland KOF Leading Indicator August 1.43 1.52 1.57

The euro traded near an eight-week high today against the dollar ahead of the meeting of Italian Prime Minister Mario Monti and German Chancellor Angela Merkel, who will be held today in Berlin, and at which they will discuss measures to prevent the debt crisis.
The single currency rose against the yen, as traders are waiting for the European Central Bank will set out details of its plan to buy government bonds.
The dollar index (DXY) was little changed before the publication of important data from the U.S. in terms of GDP and pending home sales.
The euro rose 2.7% against the dollar since August 1, after European Central Bank President Mario Draghi said that the central bank can buy Spanish and Italian bonds to reduce borrowing costs.
As markets are awaiting speech by Federal Reserve Chairman Ben Bernanke, who will give a speech 31 and is likely to shed light on the future of U.S. monetary policy.
Pound in mid-session trading reserved, but in the last hour has risen sharply against the dollar ahead of the release of the consumer price index in Germany. At the same time, the dollar has appreciated significantly against the euro.


EUR / USD: during the European session, the pair rose to a high of $ 1.2574, and then fell to the lowest level session
GBP / USD: pair rose sharply in the last hour, updating the yesterday's high
USD / JPY: the pair is trading in a narrow range at the maximum of the day

At 12:00 GMT Germany will preliminary index of consumer prices for August. At 12:30 GMT, Canada will report on the index of commodity prices for July. At the same time, the U.S. will publish data on GDP growth on the specified data for the second quarter, the GDP price index, the main index of personal consumption expenditures, the index of personal consumption expenditures in the second quarter. At 14:00 GMT the U.S. said the change in our pending home sales for July. At 14:30 GMT the U.S. will release data on stocks of crude oil from the Ministry of Energy in August. At 18:00 GMT the U.S. will publish economic survey of the Fed's regions "Beige Book." At 22:45 GMT New Zealand will report the relative change in the volume of building permits issued in July. At 23:50 GMT Japan are data on Retail Sales for July

EUR/USD

Offers $1.2650, $1.2610, $1.2600, $1.2590

Bids $1.2525/20, $1.2510/00, $1.2450

GBP/USD

Offers $1.5850/55

Bids $1.5795, $1.5780, $1.5750/40, $1.5720

AUD/USD

Offers $1.0470/80, $1.0450, $1.0420, $1.0400, $1.0390

Bids $1.0355/50, $1.0330, $1.0320

EUR/JPY

Offers Y99.80, Y99.50, Y99.20, Y99.00

Bids Y98.25/20, Y98.00, Y97.80, Y97.75/70, Y97.50

USD/JPY

Offers Y79.20, Y79.00, Y78.90, Y78.75/80

Bids  Y78.30/25, Y77.90

European stocks declined amid falling share price L'Oreal (OR) SA and Bouygues SA, which was due to publish a report on the profits. U.S. index futures little changed, while Asian shares rose.

L'Oreal dropped to eleven-month low after the largest cosmetics manufacturer in the world reported that the rate of return was below analysts' expectations. The cost of the French company Bouygues fell by 7.3% after a weak report on the profits in the phone business. Shares of Banca Monte dei Paschi di Siena SpA fell 7.4 percent after the publication of the report, which showed losses.

Stoxx Europe 600 Index (SXXP) fell 0.4 percent to 266.14.

Market participants are waiting for Federal Reserve Chairman Bernanke's speech central bank symposium in Jackson Hole, to be held on August 31. His performance in 2010 was preceded by a second round of bond purchases, or quantitative easing, to support the economic recovery.

We also learned that yesterday, Draghi canceled his trip to Jackson Hole yesterday.

German Chancellor Angela Merkel in Berlin today to meet with Italian Prime Minister Mario Monti.

To date:

FTSE 100 5,745.88 -29.83 -0.52%

CAC 40 3,410.2 -21.35 -0.62%

EUR/USD $1.2490, $1.2500, $1.2505, $1.2525, $1.2625

USD/JPY Y78.15, Y79.10, Y79.15

EUR/GBP stg0.7900, stg0.7975

AUD/USD $1.0320, $1.0400, $1.0425, $1.0460

AUD/JPY Y82.50

Asian stocks rose, with the regional benchmark index heading for its first advance in four days, as investors await a report on U.S. economic growth and Federal Reserve Chairman Ben S. Bernanke’s speech on monetary policy this week.

Nikkei 225 9,069.81 +36.52 +0.40%

S&P/ASX 200 4,356.4 -2.98 -0.07%

Shanghai Composite -19.92 -0.96%

Renesas Electronics Corp. surged 35 percent in Tokyo after the Nikkei newspaper reported that Kohlberg Kravis Roberts & Co. will shares of the chipmaker.

Samsung Electronics Co., the world’s biggest mobile-phone maker, climbed 2.9 percent after a court hearing for a permanent ban on U.S. sales of its mobile devices was set down for hearing on Dec. 6.

Daikin Industries Ltd. slid 3.5 percent after a report the Japanese air- conditioner maker will buy Houston-based Goodman Global Inc.

01:30 Australia Construction Work Done Quarter II +7.8% +1.1% -0.2%

Yesterday the euro rose for the first time in three days against the dollar after the European Union President Herman Van Rompuy said that the rescue fund in the region ready for quick action to help Spanish banks. At the same time, the Prime Minister of Spain said that Spanish banks will need help in the amount of at least 100 billion euros on the most pressing problems.

The single currency rose from one-week low against the yen after European Central Bank President Mario Draghi has canceled his trip to the annual symposium in Jackson Hole. Also it was announced that Spain sold three-month and six-month treasury bills for a total of 3.607 billion euros against the planned 2.5-3.5 billion euro on speculation that the European Central Bank is preparing measures to combat the debt crisis.

The New Zealand dollar fell against most major currencies after the dairy exporter Fonterra Cooperative Group has cut its forecast for the payments to farmers.

The Australian dollar touched its lowest level in a month after data added concerns that global economic growth will weaken. Also, it was reported that new home sales in Australia fell in July for the first time in four months. But the loss of Australian and New Zealand dollar will likely be limited to speech Fed Chairman Ben Bernanke at a symposium in Jackson Hole.

Canada's dollar rose against its U.S. counterpart on the background of the situation with the supply of oil. Currency strengthened as oil reserves are projected to fall at a time when the tropical storm Isaac went to the Gulf of Mexico. As the situation exacerbated by the fire at the largest refinery in Venezuela. The Canadian dollar was up against the New Zealand dollar as the currency weakened on speculation that the Chinese economy might lapse.

The pound weakened against the euro for the first time in three days on speculation that falling house prices will push the economy deeper into recession, increasing the likelihood that the Bank of England will buy more assets to stimulate economic growth.

Asian stocks fell, with the regional benchmark index heading for a three-week low, after Japan downgraded its assessment of the world’s third-biggest economy and as investors await indications of policy direction from the Federal Reserve.

Nikkei 225 9,033.29 -52.10 -0.57%

S&P/ASX 200 4,359.4 +15.70 +0.36%

Shanghai Composite 2,073.45 +17.74 +0.86%

China Southern Airlines Co. fell 3.6 percent in Hong Kong as Asia’s biggest carrier by passenger numbers reported first- half profit tumbled. Shikoku Electric Power Co. sank 10 percent in Tokyo after Credit Suisse Group AG rated the stock underperform. Aozora Bank Ltd. surged 14 percent after the Japanese lender unveiled a plan to repay a taxpayer bailout and buy back common stock.

Change % Change Last

Oil $96.28 -0.05 -0.05%

Change % Change Last

Nikkei 225 9,033.29 -52.10 -0.57%

S&P/ASX 200 4,359.4 +15.70 +0.36%

Shanghai Composite 2,073.45 +17.74 +0.86%

FTSE 100 5,775.71 -0.89 -0.02%

CAC 40 3,431.55 -31.28 -0.90%

DAX 7,002.68 -44.77 -0.64%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2563 +0,53%

GBP/USD $1,5818 +0,19%

USD/CHF Chf0,9557 -0,53%

USD/JPY Y78,54 -0,25%

EUR/JPY Y98,66 +0,25%

GBP/JPY Y124,20 -0,10%

AUD/USD $1,0363 +0,03%

NZD/USD $0,8042 -0,51%

USD/CAD C$0,9879 -0,25%  

01:30 Australia Construction Work Done Quarter II +5.5% +1.1%

06:00 United Kingdom Nationwide house price index August -0.7% +0.2%

06:00 United Kingdom Nationwide house price index, y/y August -2.6% -2.2%

07:00 Switzerland KOF Leading Indicator August 1.43 1.52

12:00 Germany CPI, m/m (preliminary) August +0.4% +0.2%

12:00 Germany CPI, y/y (preliminary) August +1.7% +1.9%

12:30 U.S. GDP, q/q (revised) Quarter II +1.5% +1.7%

12:30 U.S. PCE price index, q/q Quarter II +1.5% +1.6%

12:30 U.S. PCE price index ex food, energy, q/q Quarter II +1.8% +1.8%

12:30 Canada Raw Material Price Index July -4.0% +2.3%

12:30 Canada Industrial product prices, m/m July -0.3% +0.5%

14:00 U.S. Pending Home Sales (MoM) July -1.4% +1.1%

14:30 U.S. Crude Oil Inventories - -5.4

18:00 U.S. Fed's Beige Book August

22:45 New Zealand Building Permits, m/m July +5.7% +3.0%