The main US stock indices grew moderately on Friday amid a cautious transition of investors into more risky assets after three days of decline in the market due to concerns about tensions between the United States and North Korea.

Consumer prices in the US remain weak for the fifth month in a row in July, which raised more questions about whether inflation will eventually rise to a 2% annual target of the Federal Reserve. The consumer price index rose 0.1% in July, according to the Ministry of Labor. Prices for food products in July rose by 0.2%, and energy prices - by 0.1%. The basic consumer price index, which excludes the volatile costs of food and energy, also increased by 0.1%. Economists had expected that the general consumer price index and the base index would increase by 0.2%.

Components of the DOW index finished the auction mixed (15 in positive territory, 15 in negative territory). The leader of growth was shares of Microsoft Corporation (MSFT, + 1.76%). Outsider were the shares of The Travelers Companies, Inc. (TRV, -1.11%).

Most sectors of the S & P index showed an increase. The technological sector grew most (+ 0.7%). The largest decrease was recorded by the utilities sector (-0.4%).

At closing:

Dow + 0.06% 21.858.05 +14.04

Nasdaq + 0.64% 6.256.56 +39.69

S & P + 0.13% 2,441.33 +3.12

The National Institute of Statistics and Economic Studies (Insee) reported the French private payroll employment increased sharply in the second quarter of 2017.

According to the Insee's flash estimate, private payroll employment rose by 91,700 (or 0.5 percent) q-o-q in the second quarter after gaining 57,700 (or 0.3 percent q-o-q) in the first quarter. That marked the eleventh consecutive quarter of growth and exceeded economist forecast for 0.4 percent gain.

In the reviewed period, private employment rose in such sectors as agriculture (+900 jobs or 0.3 percent) and construction (+5,400 jobs or 0.4 percent), but was little changed in industry (-600 jobs or 0 percent).

In y-o-y terms, private payroll employment increased by 291,900 jobs (or 1.5 percent).

U.S. stock-index futures were flat on Friday after the stocks suffered significant declines in the previous three sessions as tensions between the United States and North Korea weighed on investor sentiment.

Global Stocks:

Nikkei -

Hang Seng 26,883.51 -560.49 -2.04%

Shanghai 3,209.80 -51.94 -1.59%

S&P/ASX 5,693.14 -67.79 -1.18%

FTSE 7,332.64 -57.30 -0.78%

CAC 5,073.34 -41.89 -0.82%

DAX 12,013.42 -0.88 -0.01%

Crude $48.54 (-0.10%)

Crude $1,295.70 (+0.43%)

The Labor Department reported the U.S. consumer price index (CPI) increased 0.1 percent m-o-m in July after flat performance in May. Over the last 12 months, the CPI rose 1.7 percent y-o-y last month after advancing 1.6 percent y-o-y in the prior month. Economists had forecast the CPI to gain 0.2 percent m-o-m last month and 1.8 percent y-o-y in the 12-month period.

According to the report, the indexes for shelter (+0.1 percent m-o-m), medical care (+0.4 percent m-o-m), and food (+0.2 percent m-o-m) all rose in July, while the energy index (-0.1 percent m-o-m) declined slightly in July, recording its third consecutive monthly decline.

Core CPI excluding volatile food and fuel costs increased 0.1 percent m-o-m in July, the same as in June. In the 12 months through July, the core CPI rose 1.7 percent after gaining 1.7 percent in the year through June. Economists had forecast the core CPI to rise 0.2 percent m-o-m and 1.8 percent y-o-y last month.

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

Goldman Sachs (GS) downgraded to Hold from Buy at HSBC Securities

Wal-Mart (WMT) upgraded to Overweight from Equal Weight at Stephens

The report from the Federal Statistical Office (Destatis) revealed the German selling prices in wholesale trade rose by 2.2 percent y-o-y in July, decelerating from the 2.5 percent y-o-y increase in June and the 3.1 percent y-o-y growth in May. That marked the weakest gain since November 2016.

In m-o-m terms, wholesale prices fell by 0.1 percent after being flat in June.

EUR / USD: $ 1.1567 (E469 m), $ 1.1700 (E1.17 b), $ 1.1750-65 (E2.48 b),

$ 1.1825 (E760 m)

USD / JPY: Y109.00 ($ 1.62 b), Y109.75 ($ 660 m), Y110.75 ($ 730 m), Y111.00 ($ 1.51 b),

Y112.50 ($ 500 m)

AUD / USD: $ 0.7850 (A $ 348 m), $ 0.7900 (A $ 643 m), $ 0.7930 (A $ 366 m)

USD / CAD: C $ 1.2650-55 ($ 595 m), C $ 1.2725-45 ($ 1.48 billion), C $ 1.3000 ($ 513 m)

EUR / GBP: Gbp0.9000 (E876 m), Gbp0.9300E624 m)

EUR / JPY: Y127.25 (E320 m), Y128.25 (E400 m), Y131.00 (E264 m)

The Federal Statistical Office (Destatis) released its final data on Germany's consumer price inflation for June.

According to the data, German consumer prices rose 1.7 percent y-o-y in June, matching the preliminary estimate and following a 1.6 percent y-o-y gain in May. That was the highest inflation rate since April, mainly boosted by rising energy prices, which demonstrated a 0.9 percent y-o-y surge in July after flat performance in June. Meanwhile, food inflation slowed marginally to 2.7 percent y-o-y this month from 2.8 percent y-o-y a month ago.

On a monthly basis, consumer prices rose 0.4 percent, in line with the flash estimate and following a 0.2 percent rise in June.

The harmonized index of consumer prices (HICP) for Germany, which is calculated for European purposes, increased in July by 1.5 percent y-o-y and by 0.4 percent m-o-m, as estimated initially.

Reserve Bank of Australia (RBA) Governor Philip Lowe, speaking at a parliamentary economics committee in Melbourne, said that further appreciation of the Australian dollar "would cause a slower pick-up in inflation and slower progress in reducing unemployment." He also said that the RBA had tools to intervene in forex market but noted that would deploy them only in an extreme scenario.

The official noted that rates would rise over time, but average interest rates would be lower than in the past. According to him, the RBA does not expect full employment for at least 2.5 years, while inflation is likely to continue to increase gradually. "Our central scenario is for GDP to grow at an average of around 3 percent over the next couple of years," he said, adding that he would like to see annual wages growth of 3.5 percent or more as economic growth picks up.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1910 (2708)

$1.1866 (2502)

$1.1836 (2355)

Price at time of writing this review: $1.1765

Support levels (open interest**, contracts):

$1.1682 (2377)

$1.1656 (3254)

$1.1626 (3450)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date September, 8 is 123165 contracts (according to data from August, 10) with the maximum number of contracts with strike price $1,2000 (5337);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3160 (1775)

$1.3102 (3099)

$1.3060 (910)

Price at time of writing this review: $1.2983

Support levels (open interest**, contracts):

$1.2950 (928)

$1.2916 (1024)

$1.2893 (1229)

Comments:

- Overall open interest on the CALL options with the expiration date September, 8 is 28954 contracts, with the maximum number of contracts with strike price $1,3000 (3099);

- Overall open interest on the PUT options with the expiration date September, 8 is 25051 contracts, with the maximum number of contracts with strike price $1,2850 (2548);

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

Statistics New Zealand reported that food prices fell 0.2 percent m-o-m in July, following a 0.2 percent m-o-m increase in June.

The major contributor to the monthly decline was decreased fruit prices (-5.2 percent m-o-m), led by falls in prices for avocados (-29 percent m-o-o) and strawberries (-23 percent m-o-m). "Strawberries are unseasonably cheap for this time of year," consumer prices manager Matthew Haigh said. "They typically reach their lowest price in December, but are currently dropping in price due to more imports from Australia." However, the decline in fruit prices was partially offset by a gain in vegetable prices (+1.6 percent m-o-m).

At the same time, meat, poultry, and fish prices (-0.8 percent m-o-m) fell, while grocery food prices (+0.2 percent m-o-m), non-alcoholic beverage prices (+0.3 percent m-o-m) and restaurant meals and ready-to-eat food prices (+0.2 percent m-o-m) rose.

In y-o-y terms, food prices increased 3 percent for the second straight month.

European stocks fell Thursday, with caution still lingering as tension between U.S. and North Korea escalated, and as German consumer-goods company Henkel AG & Co. was among the companies whose shares pulled the market toward a second consecutive decline.

U.S. stocks declined on Thursday, marking the first time since April that all main indexes fell in unison for a third session as elevated tensions with North Korea weighed on sentiment.

Global stocks extended their selloff as investors continued to pare their riskier positions following strong year-to-date gains and the rise in geopolitical tensions this week. European stocks fell Thursday, and U.S. stocks accelerated their fall with the Dow Jones Industrial Average suffering its biggest one-day decline since May 17 after President Donald Trump's comment that his threat on Tuesday to unleash "fire and fury" on North Korea "maybe wasn't tough enough."

The latest Bank of New Zealand's (BNZ) survey showed that activity in New Zealand's manufacturing sector continued to expand in July, but at a slower pace than in June.

The BusinessNZ Performance of Manufacturing Index (PMI) came in at 55.4 last month compared to a downwardly revised June's reading of 56 (originally 56.2). A reading above 50 indicates expansion in economic activity, whereas a reading below that level represents contraction.

BusinessNZ's executive director for manufacturing Catherine Beard noted that while the main result experienced a second consecutive dip in expansion levels, the make-up of the sub-indices made for interesting reading. "Expansion across the five indices was very even for July, with the total difference between the lowest and highest results at only 1.2 points. Of particular note was the highest level of expansion for employment (56.4) since September 2014, along with finished stocks (also at 56.4). However, both production (56.0) and new orders (55.4) continued to slip in terms of expansion," she said.

Meanwhile, BNZ Senior Economist, Doug Steel, said that "at 55.4 in July, the PMI remains firmly above its long term average of 53.3. It bodes well for manufacturing GDP growth to continue outperforming its long term average as it has for much of the past three years".