(raw materials / closing price /% change)

Oil 48.51 -0.16%

Gold 1,292.10 +0.16%

(index / closing price / change items /% change)

Nikkei -8.97 19729.74 -0.05%

TOPIX -0.65 1617.25 -0.04%

Hang Seng -313.09 27444.00 -1.13%

CSI 300 -15.12 3715.92 -0.41%

KOSPI -8.92 2359.47 -0.38%

Euro Stoxx 50 -34.91 3433.54 -1.01%

FTSE 100 -108.12 7389.94 -1.44%

DAX -139.70 12014.30 -1.15%

CAC 40 -30.47 5115.23 -0.59%

DJIA -204.69 21844.01 -0.93%

S&P 500 -35.81 2438.21 -1.45%

NASDAQ -135.46 6216.87 -2.13%

S&P/TSX -143.08 15074.25 -0.94%

(pare/closed(GMT +3)/change, %)

EUR/USD $ 1,1771 +0,11%

GBP/USD $1,2974 -0,24%

USD/CHF Chf0,9621 -0,14%

USD/JPY Y109,13 -0,71%

EUR/JPY Y128,47 -0,61%

GBP/JPY Y141,6 -0,95%

AUD/USD $0,7870 -0,20%

NZD/USD $0,7266 -1,18%

USD/CAD C$1,2738 +0,34%

00:01 Japan Bank holiday

06:00 Germany CPI, y/y (Finally) July 1.6% 1.7%

06:00 Germany CPI, m/m (Finally) July 0.2% 0.4%

06:45 France CPI, y/y (Finally) July 0.7% 0.7%

06:45 France CPI, m/m (Finally) July 0.0% -0.3%

06:45 France Non-Farm Payrolls (Preliminary) Quarter II 0.4% 0.4%

09:00 U.S. IEA Monthly Report 12:30 U.S. CPI excluding food and energy, m/m July 0.1% 0.2%

12:30 U.S. CPI excluding food and energy, Y/Y July 1.7% 1.7%

12:30 U.S. CPI, Y/Y July 1.6% 1.8%

12:30 U.S. CPI, m/m July 0% 0.2%

13:40 U.S. FOMC Member Kaplan Speak

15:30 U.S. FOMC Member Kashkari Speaks

17:00 U.S. Baker Hughes Oil Rig Count August 765

12:30 U.S. PPI, y/y July 2% 2.2%

12:30 U.S. PPI, m/m July 0.1% 0.1%

12:30 U.S. Initial Jobless Claims 240 240

14:00 U.S. FOMC Member Dudley Speak

18:00 U.S. Federal budget July -90 -73

22:30 New Zealand Business NZ PMI July 56.2

22:45 New Zealand Food Prices Index, y/y July 3.0%

The main US stock indexes finished trading in negative territory, as investors were concerned about tightening tensions between the United States and North Korea.

Yesterday, officials of the DPRK declared their readiness to strike a missile strike at the US Air Force base on the island of Guam, located in the Pacific Ocean, if such a decision was made by the head of state. These comments are North Korea's response to Trump's statements, which demanded that North Korea stop "further threats" and warned that the US would respond with "the fire and fury that the world has never seen." Meanwhile, today North Korea rejected Trump's comments as a "load of nonsense" and said that in a few days she would outline a plan for a missile strike near Guam. As explained in Pyongyang, the military is developing a plan to launch four medium-range missiles in the direction of Guam. According to the commander of the strategic forces of the DPRK, this will be a "strike-warning": In response, President Trump noted that "perhaps a warning that the US will respond with" fire and fury "on threats from North Korea was not tough enough" .

In addition, the pressure on the indices was provided by the US statistics. The Ministry of Labor reported that the number of Americans applying for unemployment benefits rose unexpectedly last week, but the main trend remained in line with the tightening of the labor market. Initial claims for unemployment benefits increased by 3000 to 244,000, taking into account seasonal fluctuations for the week ending August 5. However, producer prices in the US unexpectedly fell in July, recording their biggest decline in almost a year, which was caused by lower costs for services and energy. The Ministry of Labor reported that the producer price index for final demand fell by 0.1% in July, having replaced growth by 0.1% in June. The July recession was the largest since August 2016.

Almost all components of the DOW index recorded a decline (26 out of 30). Outsider were shares Apple Inc. (AAPL, -3.59%). The leader of growth was the shares of McDonald's Corporation (MCD, + 1.23%).

All sectors of the S & P index finished trading in the red. The greatest decrease was shown by the technological sector (-1.7%).

At closing:

DJIA -0.91% 21.848.94 -199.76

Nasdaq -2.13% 6,216.87 -135.46

S & P -1.44% 2.438.28 -35.74

Statistics Canada reported the New Housing Price Index (NHPI) rose 0.2 percent m-o-m in June, following a 0.7 percent m-o-m advance in May. Economists forecast a 0.4 percent m-o-m increase.

According to the report, prices rose in 8 of the 27 metropolitan areas surveyed in June, with the largest increases recorded in Vancouver (+1.5 percent m-o-m) and Ottawa-Gatineau, Ontario part (+0.9 percent m-o-m), due to improving market conditions.

In y-o-y terms, NHPI surged 3.9 percent in June after a 3.8 percent y-o-y gain in May.

U.S. stock-index futures fell, as continuing tensions between the United States and North Korea weighed on investor sentiment for the third day in a row.

Global Stocks:

Nikkei 19,729.74 -8.97 -0.05%

Hang Seng 27,444.00 -313.09 -1.13%

Shanghai 3,261.80 -13.77 -0.42%

S&P/ASX 5,760.93 -4.73 -0.08%

FTSE 7,411.69 -86.37 -1.15%

CAC 5,127.78 -17.92 -0.35%

DAX 12,051.85 -102.15 -0.84%

Crude $50.08 (+1.05%)

Crude $1,287.10 з(+0.61%)

(company / ticker / price / change ($/%) / volume)

Goldman Sachs (GS) initiated with an Outperform at Wells Fargo; target $265

JPMorgan Chase (JPM) resumed with an Outperform at Wells Fargo; target $110

Bank of America (BAC) resumed with an Outperform at Wells Fargo; target $30

The Labor Department announced the U.S. producer-price index (PPI) fell 0.1 percent m-o-m in July after a 0.1 percent m-o-m gain in June. For the 12 months through June, the PPI rose 1.9 percent compared to a 2.0 percent increase recorded in the prior month.

According to the report, over 80 percent of the June decline in PPI is attributable to lower prices for final demand services, which dropped 0.2 percent. Meanwhile, prices for final demand goods edged down 0.1 percent.

Economists had forecast the headline PPI would rise 0.1 m-o-m in last month and 2.2 percent over the past 12 months.

Excluding volatile prices for food and energy, the indicator fell 0.1 percent m-o-m, but rose 1.8 percent over 12 months, while economists forecast advances of 0.2 percent and 2.1 percent respectively.

The data from the Labor Department revealed the number of applications for unemployment benefits rose more than expected last week, but continued to point to a healthy labor market.

According to the report, the initial claims for unemployment benefits increased by 3,000 to a seasonally adjusted 244,000 for the week ended August 5. Economists had expected 242,000 new claims last week.

Claims for the prior week were revised upwardly to 241,000 from the initial estimate of 240,000.

Meanwhile, the four-week moving average of claims fell by 1,000 to 241,000 last week. That was the 127th straight week that claims remained below the 300,000 threshold, the longest streak since 1970.

The data from the Office for National Statistics (ONS) revealed that UK's industrial production rose more than expected in June.

According to the data, the industrial output grew 0.5 percent m-o-m in June after being flat in May, exceeding economists' forecast for 0.1 percent m-o-m increase. The ONS said that the June rise in industrial production was mainly attributable to a 4.1 percent m-o-m surge in mining and quarrying due to an increased oil and gas production.

Meanwhile, manufacturing production remained unchanged m-o-m in June, in line with economists' forecast, after dropping 0.1 percent in May (revised from an initially reported 0.2 percent m-o-m fall).

In y-o-y terms, industrial production increased 0.3 percent in June, reversing a 0.2 percent decline in the previous month, while manufacturing output grew by 0.6 percent, accelerating from an upwardly revised 0.3 percent rise in May (originally 0.4 percent) and marking the biggest increase since March.

The Office for National Statistics (ONS) reported that UK's trade deficit expanded to GBP4.56 billion in June from a revised GBP2.52 billion in May (originally GBP 3.07). That represented the biggest trade gap since last September.

According to the report, imports grew 3.3 percent m-o-m to GBP53.95 billion in June, while exports reduced 0.7 percent m-o-m to GBP49.39 billion.

In the second quarter as a whole, the trade deficit amounted to GBP 8.94 billion, up GBP0.11 billion q-o-q and GBP1.10 billion y-o-y.

Chicago Federal Reserve Bank President Charles Evans said at a media briefing in Chicago on Wednesday that he thought it would be "reasonable" for the Fed to announce the beginning of a reduction of its balance sheet at its September meeting, while further interest-rate hikes might be delayed until December or even beyond.

"I personally think that it would be quite reasonable to that (start trimming the Fed's balance sheet) in September on the basis of the data that I've seen so far, even with the potentially temporary lower inflation data," Evans said.

If the Fed does make a decision to start the balance sheet reduction, "presumably that takes us to December," for any potential rate hike, he said, adding that the policymakers should be "very careful" in assessing the need for future rate hikes. He noted there would be "many more months of inflation data" to chew over at the December meeting. If inflation was weak, the regulator could put off another rate hike "until later," he said.

The Reserve Bank of New Zealand (RBNZ) announced on Thursday its monetary policy decision, made at its August meeting. As widely expected, New Zealand's regulator did not make any changes to the policy stance, leaving the cash rate unchanged at 1.75 percent.

The RBNZ Governor Graeme Wheeler in his rate statement reaffirmed that interest rates would "remain accommodative for a considerable period," noting that "numerous uncertainties remain and policy may need to adjust accordingly."

According to the statement, economics growth "is expected to improve going forward," while headline inflation "is likely to decline in coming quarters as the effects of higher fuel and food prices dissipate," and house price inflation is forecast to continue to moderate.

Wheeler also noted the trade-weighted exchange rate had strengthened since the May Statement, adding that "a lower New Zealand dollar is needed to increase tradables inflation and help deliver more balanced growth."

EUR/USD

Resistance levels (open interest**, contracts)

$1.1902 (2722)

$1.1855 (2622)

$1.1823 (2345)

Price at time of writing this review: $1.1733

Support levels (open interest**, contracts):

$1.1675 (2334)

$1.1650 (3302)

$1.1621 (3260)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date September, 8 is 122606 contracts (according to data from August, 9) with the maximum number of contracts with strike price $1,2000 (5351);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3170 (1785)

$1.3116 (3111)

$1.3054 (284)

Price at time of writing this review: $1.2980

Support levels (open interest**, contracts):

$1.2928 (1048)

$1.2903 (1249)

$1.2873 (1968)

Comments:

- Overall open interest on the CALL options with the expiration date September, 8 is 28674 contracts, with the maximum number of contracts with strike price $1,3000 (3111);

- Overall open interest on the PUT options with the expiration date September, 8 is 24832 contracts, with the maximum number of contracts with strike price $1,2850 (2558);

- The ratio of PUT/CALL was 0.87 versus 0.87 from the previous trading day according to data from August, 9

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

Japan's Ministry of Economy, Trade and Industry reported Thursday its tertiary industry index, which measures the changes in value of services purchased by businesses, stayed flat m-o-m at 104.9 in June, after dropping 0.1 percent m-o-m in May. Economists had forecast tertiary industry index would gain 0.2 percent m-o-m in June.

Stocks across Europe closed sharply lower Wednesday as tensions between the U.S. and North Korea escalated. In Frankfurt, the DAX 30 DAX, -1.12% dropped 1.1% to 12,154.00, and in Paris, the CAC 40 index PX1, -1.40% was fell 1.4% to 5,145.70. Those marked the worst sessions for those benchmarks since July 21, FactSet data showed.

U.S. stocks closed down Wednesday, but off session lows as tensions between North Korea and the U.S. added a dollop of geopolitical uncertainty to markets, and as high-profile companies disappointed with their quarterly results. The Dow Jones Industrial Average DJIA, -0.17% declined 36.64 points, or 0.2%, to close at 22,048.70, after briefly losing its grip on the psychological milestone of 22,000. Fourteen out of the average's 30 components finished lower.

Asian stocks steadied and US Treasury bond prices fell slightly on Thursday as the risk aversion triggered by the latest flare up of tensions between the United States and North Korea began to settle.

The Melbourne Institute's survey on Australia's consumer inflation expectation revealed the expected inflation rate fell by 0.2 percentage points to 4.2 percent in August from 4.4 percent in July.

According to the report, the weighted proportion of respondents (excluding the 'don't know' category) expecting the inflation rate to decrease within the 0-5 percent range rose by 1.2 percentage points to 67.6 percent this month. Meanwhile, the weighted mean of responses within this range was unchanged at 2.5 percent.

The report released by the Cabinet Office on Thursday showed Japan's core machinery orders unexpectedly declined in June.

According to the report, core machinery orders, an indicator of capital expenditures in the coming six to nine months, decreased at a seasonally adjusted 1.9 percent m-o-m in June, following a 3.6 percent m-o-m drop in May, while economists expected a 3.7 percent m-o-m increase. That marked the third straight month of decline in machinery orders.

The major contributors to the June fall were lower manufacturing orders, (-5.4 percent m-o-m), while non-manufacturing orders (+0.8 percent m-o-m) rose slightly.

In y-o-y terms, core orders, which excludes those of ships and electricity, fell 5.5 percent in June, versus a 0.6 percent y-o-y gain recorded in May and a 1 percent y-o-y increase projected by the economists.

For the second quarter, core orders fell 4.7 percent q-o-q, recording the biggest quarterly decline in a year. The first quarter had a 1.4 percent q-o-q decline.