(raw materials / closing price /% change)

Oil 47.82 -0.02%

Gold 1,225.00 +0.07%

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

Nikkei +61.46 19961.55 +0.31%

TOPIX +1.67 1586.86 +0.11%

Hang Seng +110.13 25125.55 +0.44%

CSI 300 +18.95 3356.65 +0.57%

Euro Stoxx 50 -22.19 3623.55 -0.61%

FTSE 100 +1.39 7386.63 +0.02%

DAX -46.40 12711.06 -0.36%

CAC 40 -17.04 5383.42 -0.32%

DJIA -23.69 20919.42 -0.11%

S&P 500 -5.19 2394.44 -0.22%

NASDAQ -13.18 6115.97 -0.22%

S&P/TSX -82.66 15550.55 -0.53%

(pare/closed(GMT +2)/change, %)

EUR/USD $1,0861 -0,06%

GBP/USD $1,2887 -0,36%

USD/CHF Chf1,0077 -0,08%

USD/JPY Y113,82 -0,40%

EUR/JPY Y123,62 -0,46%

GBP/JPY Y146,66 -0,76%

AUD/USD $0,7377 +0,60%

NZD/USD $0,6844 -0,06%

USD/CAD C$1,3697 +0,22%

06:00 Germany CPI, y/y (Finally) April 1.6% 2%

06:00 Germany CPI, m/m (Finally) April 0.2% 0%

06:00 Germany GDP (QoQ) (Preliminary) Quarter I 0.4% 0.7%

06:00 Germany GDP (YoY) (Preliminary) Quarter I 1.2% 1.7%

06:45 France Non-Farm Payrolls (Preliminary) Quarter I 0.4% 0.2%

09:00 Eurozone Industrial production, (MoM) March -0.3% 0.3%

09:00 Eurozone Industrial Production (YoY) March 1.2% 2.3%

12:00 Eurozone ECB's Vitor Constancio Speaks

12:30 U.S. Retail Sales YoY April 5.2%

12:30 U.S. Retail sales April -0.2% 0.6%

12:30 U.S. Retail sales excluding auto April 0% 0.5%

12:30 U.S. CPI excluding food and energy, m/m April -0.1% 0.2%

12:30 U.S. CPI, Y/Y April 2.4% 2.3%

12:30 U.S. CPI excluding food and energy, Y/Y April 2% 2%

12:30 U.S. CPI, m/m April -0.3% 0.2%

13:00 U.S. FOMC Member Charles Evans Speaks

14:00 U.S. Business inventories March 0.3% 0.1%

14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) May 97 97

16:30 U.S. FOMC Member Harker Speaks

17:00 U.S. Baker Hughes Oil Rig Count May 703

Major US stock indices showed a weak decline, as political uncertainty in the US sent investors in search of safer investments, such as gold and the Japanese yen.

In addition, as it became known, producer prices in the US rose more than expected in April against the background of rising costs for goods and services, which led to the largest annual increase in five years. The Ministry of Labor reported that the final producer demand price index rose 0.5% last month after a 0.1% decrease in March. The PPI increased by 2.5% in the 12 months to April, which is the highest since February 2012, after moving in March by 2.3%. Economists predicted an increase in the producer price index by 0.2% per month and an increase of 2.2% compared to last year.

However, new applications for unemployment benefits in the US unexpectedly fell last week, and the number of repeated applications for unemployment benefits reached a minimum of 28.5 years, indicating a rapid tightening of the labor market, which could push the Fed to raise rates in June . Initial applications for unemployment benefits fell by 2,000 people and, taking into account seasonal fluctuations, reached 236,000 for the week ending May 6, the Ministry of Labor said. Data for the previous week has not been revised. Economists predicted that new applications for unemployment benefits will increase to a level of 245,000.

Most components of the DOW index finished trading in the red (18 of 30). Most fell shares of Microsoft Corporation (MSFT, -1.38%). Leader of the growth were shares of Merck & Co., Inc. (MRK, + 0.80%).

Most sectors of the S & P index registered a decline. The conglomerate sector fell most of all (-1.3%). The maximum increase was demonstrated by the utilities sector (+ 0.1%).

At closing:

DJIA -0.11% 20.919.96 -23.15

Nasdaq -0.22% 6,115.96 -13.18

S & P -0.21% 2,394.55 -5.08

• Will hold floating-rate tdf operation on May 18; maximum tender per institution will be $1 billion

EURUSD: 1.0750 (EUR 517m) 1.0800 (410m) 1.0875-85 ( EUR 847m) 1.0900 (1.3bln) 1.0925-30 (913m) 1.1000 (1.575bln) 1.1040-50 (2bln)

USDJPY: 112.50 (USD 1.2bln) 113.50-60 (521m) 114.00 (1.3bln) 115.00 (267m) 115.20 (300m)

GBPUSD: 1.3000 (GBP 513m)

EURJPY: 126.00 (EUR 660m)

AUDUSD: 0.7400-10 (AUD 1.3bln) 0.7450-60 (540m) 0.7500 (306m)

NZDUSD: 0.6905 (187m) 0.6940-50 (396m)

U.S. stock-index futures fell as weak earnings of the largest U.S. department store operator Macy's (M) weighed on the retail sector.

Stocks:

Nikkei 19,961.55 +61.46 +0.31%

Hang Seng 25,125.55 +110.13 +0.44%

Shanghai 3,061.74 +8.95 +0.29%

S&P/ASX 5,878.34 +2.90 +0.05%

FTSE 7,383.56 -1.68 -0.02%

CAC 5,389.08 -11.38 -0.21%

DAX 12,739.67 -17.79 -0.14%

Crude $47.77 (+0.93%)

Gold $1,221.00 (+0.17%)

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

Upgrades:

Caterpillar (CAT) upgraded to Buy from Neutral at BofA/Merrill

Exxon Mobil (XOM) upgraded to Buy from Neutral at BofA/Merrill

Downgrades:

Home Depot (HD) downgraded to Neutral from Overweight at Atlantic Equities

Other:

In the week ending May 6, the advance figure for seasonally adjusted initial claims was 236,000, a decrease of 2,000 from the previous week's unrevised level of 238,000. The 4-week moving average was 243,500, an increase of 500 from the previous week's unrevised average of 243,000.

The New Housing Price Index (NHPI) rose 0.2% in March compared with the previous month. Higher new house prices in Vancouver and Toronto led the gain.

New house prices were up in 10 of the 27 metropolitan areas surveyed, with the largest increases in Oshawa (+1.1%) and Guelph (+0.9%). In Oshawa, builders cited higher construction costs and improving market conditions as reasons for the gain. Builders in Guelph linked higher new house prices to improving market conditions and a shortage of developed land.

Vancouver was the top contributor to the national gain, with prices up 0.7%. Builders reported market conditions as the main source of the rise. This was the first price increase in five months and the largest since May 2016.

The Producer Price Index for final demand advanced 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices edged down 0.1 percent in March and climbed 0.3 percent in February. On an unadjusted basis, the final

demand index rose 2.5 percent for the 12 months ended April 2017, the largest increase since moving up 2.8 percent for the 12 months ended February 2012.

In April, almost two-thirds of the advance in the final demand index is attributable to prices for final demand services, which moved up 0.4 percent. The index for final demand goods climbed 0.5 percent.

Prices for final demand less foods, energy, and trade services increased 0.7 percent in April. For the 12 months ended in April, the index for final demand less foods, energy, and trade services climbed 2.1 percent.

EUR/USD

Offers: 1.0900 1.0920-30 1.0950 1.0985 1.1000 1.1030 1.1050

Bids: 1.0865 1.0850 1.0820 1 .0800 1.0780 1.0750 1.0700

GBP/USD

Offers: 1.2950 1.2965 1.2980-85 1.3000 1.3020 1.3050 1.3080 1.3100

Bids: 1.2930 1.2900 1.2880 1.2850 1.2830 1.2800 1.2785 1.2750 1.2700

EUR/JPY

Offers: 124.50 124.80 125.00 125.20 125.50

Bids: 124.00 123.80 123.50 123.20 123.00

EUR/GBP

Offers: 0.8420-25 0.8450 0.8465 0.8480-85 0.8500

Bids: 0.8400 0.8380-85 0.8365 0.8350 0.8330 0.8300

USD/JPY

Offers: 114.35 114.50 114.70 115.00 115.20 115.50

Bids: 114.00 113.80 113.60 113.20 113.00 112.80 112.45-50

AUD/USD

Offers: 0.7385 0.7400 0.7425 0.7550-55 0.7480 0.7500

Bids: 0.7350 0.7330-35 0.7320 0.7300 0.7285 0.7250 0.7200

• Sterling has appreciated, possibly reflecting market expectations of a more orderly brexit

• Sterling depreciation caused by market expectations of material adjustment to UK's medium-term prospects as it leaves EU

• MPC judges that monetary policy could need to be tightened by somewhat greater extent than very gentle path implied by markets in may forecasts

• Monetary policy will respond in either direction to changes in economic outlook

• While brexit will play important role, other factors will influence uk economic outlook

• Economy is still growing solidly

• This is going to be a more challenging time for UK households

• Leaves 2017 world oil demand growth forecast unchanged at 1.27 million bpd

• OPEC, citing secondary sources, says its april oil outputfalls 18,000 bpd month/month to 31.732 million bpd as group implements supply cut deal for fourth month

• Saudi Arabia tells opec it raised oil output in april to 9.946 million bpd from 9.90 million bpd in march, still below its opec target

• OPEC's 11 members with supply targets cut output to 29.674 million bpd in april, below 29.804 mbpd target - Reuters calculation based on OPEC data

• Market interest rate assumption based shows first rate hike fully priced in for q4 2019 (feb forecast q1 2019)

• Shows inflation in two years' time at 2.20 pct (feb forecast 2.56 pct), based on market interest rates

• Expects q2 gdp growth of +0.4 pct qq, expects q1 gdp growth to be revised up to +0.4 pct from +0.3 pct

• "Some" MPC members would need relatively little upside news on growth or inflation to consider voting for tighter policy

• Policy outlook depends on weak pound boosting cpi but not longer-term inflation expectations, modest pay growth near-term to pick up significantly

• Consumption to recover once wages pick up, in short-term will be offset by better net trade and investment

The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 10 May 2017, the Committee voted by a majority of 7-1 to maintain Bank Rate at 0.25%. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

As the MPC observed at the time of the United Kingdom's referendum on EU membership, the appropriate path for monetary policy depends on the evolution of demand, potential supply, the exchange rate, and therefore inflation. Aggregate demand slowed markedly in 2017 Q1, and the MPC's central projection contained in the May Inflation Report is now for quarterly growth to remain around current rates, and close to trend. The slowdown appears to be concentrated in consumer-facing sectors, partly reflecting the impact of sterling's past depreciation on household income and spending. The Committee judges that consumption growth will be slower in the near term than previously anticipated before recovering in the latter part of the forecast period as real income picks up.

Between Quarter 4 (Oct to Dec) 2016 and Quarter 1 (Jan to March) 2017, the total trade deficit (goods and services) widened by £5.7 billion to £10.5 billion; this followed a sharp narrowing in Quarter 4 2016.

The UK's total trade deficit (goods and services) widened by £2.3 billion between February and March 2017 to £4.9 billion, contributing nearly half of the quarterly deficit.

At the commodity level, the main causes of the widening of the deficit in Quarter 1 2017 were increased imports of machinery and transport equipment (mainly mechanical machinery and cars), oil and chemicals; these commodities also contributed the most to the increase in imports in March 2017.

Total imports increased by £2.9 billion between February and March 2017, with an increase in imports of goods from both EU and non-EU countries.

Since the last UK trade release, the trade balance for February 2017 has revised up by £1.0 billion; this is mainly due to a downward revision to the imports of goods.

The Index of Production for Quarter 1 (Jan to Mar) 2017 was estimated to have increased by 0.1%. Increases of 0.3% in manufacturing and 1.8% in mining and quarrying were offset by a fall of 4.3% in energy supply.

In March 2017, total production decreased by 0.5% compared with February 2017, due to falls of 4.2% in energy supply and 0.6% in manufacturing.

Basic metals and metal products provided the largest downward pressure on manufacturing in March 2017, while warmer-than-average temperatures led to a decrease in energy supply.

Total production output for March 2017 compared with March 2016 increased by 1.4%, with growth in three of the four main sectors, with manufacturing providing the largest contribution, increasing by 2.3%.

• Forecasts german gdp growth at 1.6 pct for 2017 (previously 1.6 pct), 1.9 pct for 2018 (prv 1.8 pct)

• Confirms forecast of french gdp growth at 1.4 pct for 2017, 1.7 pct for 2018

• Eu gdp growth at 1.9 pct for 2017, 1.9 pct for 2018

• Confirms forecast of italian gdp growth at 0.9 pct for 2017, 1.1 pct for 2018

• Cuts greek gdp growth forecast to 2.1 pct for 2017 (from 2.7 pct), to 2.5 pct for 2018 (pvs 3.1 pct)

• Revises up spanish gdp growth forecast to 2.8 pct for 2017 (from 2.3 pct), to 2.4 pct for 2018 (pvs 2.1 pct)

• Revises up forecast of Portugal gdp growth to 1.8 pct for 2017 (from 1.6 pct), to 1.6 pct for 2018 (pvs 1.5 pct)

EURUSD: 1.0750 (EUR 517m) 1.0800 (410m) 1.0875-85 ( EUR 847m) 1.0900 (1.3bln) 1.0925-30 (913m) 1.1000 (1.575bln) 1.1040-50 (2bln)

USDJPY: 112.50 (USD 1.2bln) 113.50-60 (521m) 114.00 (1.3bln) 115.00 (267m) 115.20 (300m)

GBPUSD: 1.3000 (GBP 513m)

EURJPY: 126.00 (EUR 660m)

AUDUSD: 0.7400-10 (AUD 1.3bln) 0.7450-60 (540m) 0.7500 (306m)

NZDUSD: 0.6905 (187m) 0.6940-50 (396m)

The consumer price index (IPC) increased by 0.2% in April 2017 compared with the previous month, reaching 100.9 points (December 2015=100). Inflation was 0.4% compared with the same month the previous year. These are the results of the Federal Statistical Office (FSO).

• China seriously concerned by U.S. inclusion of China on IP watch list

• China urges U.S. to fulfill promises to evaluate china's efforts on IP protection fairly and objectively

Moody's Investors Service has today downgraded the Baseline Credit Assessments (BCAs), the long-term ratings and the Counterparty Risk Assessments (CRAs) of six Canadian banks and their affiliates, reflecting Moody's expectation of a more challenging operating environment for banks in Canada for the remainder of 2017 and beyond, that could lead to a deterioration in the banks' asset quality, and increase their sensitivity to external shocks.

The banks affected are: Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, and Royal Bank of Canada.

The BCAs, long-term debt and deposit ratings and CRAs of the banks and their affiliates were downgraded by 1 notch, excepting only Toronto-Dominion Bank's CRA, which was affirmed. The short term Prime-1 ratings of the Canadian banks were affirmed. All relevant ratings for these banks continue to have negative outlooks, reflecting the expected introduction of an operational resolution regime in Canada.

As reported by the Federal Statistical Office (Destatis), the selling prices in wholesale trade increased by 4.7% in April 2017 from the corresponding month of the preceding year. In March 2017 and in February 2017 the annual rates of change were +4.7% and +5.0%, respectively.

From March 2017 to April 2017 the index rose by 0.3%.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1045 (7782)

$1.0981 (4069)

$1.0936 (3570)

Price at time of writing this review: $1.0876

Support levels (open interest**, contracts):

$1.0837 (1785)

$1.0800 (3915)

$1.0745 (4783)

Comments:

- Overall open interest on the CALL options with the expiration date June, 9 is 82896 contracts, with the maximum number of contracts with strike price $1,1000 (7782);

- Overall open interest on the PUT options with the expiration date June, 9 is 88861 contracts, with the maximum number of contracts with strike price $1,0700 (6019);

- The ratio of PUT/CALL was 1.07 versus 1.06 from the previous trading day according to data from May, 10

GBP/USD

Resistance levels (open interest**, contracts)

$1.3203 (2165)

$1.3105 (2465)

$1.3009 (3600)

Price at time of writing this review: $1.2940

Support levels (open interest**, contracts):

$1.2892 (1265)

$1.2795 (1947)

$1.2697 (1893)

Comments:

- Overall open interest on the CALL options with the expiration date June, 9 is 32028 contracts, with the maximum number of contracts with strike price $1,3000 (3600);

- Overall open interest on the PUT options with the expiration date June, 9 is 34712 contracts, with the maximum number of contracts with strike price $1,1500 (2795);

- The ratio of PUT/CALL was 1.08 versus 1.08 from the previous trading day according to data from May, 10

* - 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.

"Statement by Reserve Bank Governor Graeme Wheeler:

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent.

Global economic growth has increased and become more broad-based over recent months. However, major challenges remain with on-going surplus capacity and extensive political uncertainty.

Stronger global demand has helped to raise commodity prices over the past year, which has led to some increase in headline inflation across New Zealand's trading partners. However, the level of core inflation has generally remained low. Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward.

The trade-weighted exchange rate has fallen by around 5 percent since February, partly in response to global developments and reduced interest rate differentials. This is encouraging and, if sustained, will help to rebalance the growth outlook towards the tradables sector.

GDP growth in the second half of 2016 was weaker than expected. Nevertheless, the growth outlook remains positive, supported by on-going accommodative monetary policy, strong population growth, and high levels of household spending and construction activity.

House price inflation has moderated further, especially in Auckland. The slowing in house price inflation partly reflects loan-to-value ratio restrictions and tighter lending conditions. This moderation is projected to continue, although there is a risk of resurgence given the continuing imbalance between supply and demand".

European stocks closed with small gains Wednesday, helping the region's benchmark to a fresh 21-month high. The Stoxx Europe 600 index SXXP, +0.16% edged up 0.2% to finish at 396.45, its highest closing level since August 2015. That comes after the pan-European gauge tacked on 0.5% on Tuesday. The index is up 9.7% this year, after getting a boost ahead of markets-friendly Emmanuel Macron's victory in the French presidential election on Sunday.

The Dow Jones Industrial Average was trading in negative territory late Wednesday afternoon, weighed down by a late-afternoon slump in shares of Boeing Co., Walt Disney Co., and 3M Co. The trio of Dow DJIA, -0.16% components combined were cutting about 45 points from the blue-chip gauge, which was off 50 points, or 0.2% at 20,924.

Stocks in Asia were broadly higher Wednesday, as local drivers outpaced global geopolitical concerns, though shares in South Korea reversed early gains on investor caution following the presidential elections. Markets had a muted reaction to the unexpected firing of James Comey, the director of the Federal Bureau of Investigation.