Major U.S. stock-indexes are little changed on Friday as jittery investors took to the sidelines ahead of a crucial U.S. Federal Reserve meeting next week, when the central bank decides on an interest rate hike. However, the S&P 500 was poised for its biggest weekly gain in six weeks despite the recent volatility that has rocked the global financial market.
Most of Dow stocks in positive area (22 of 30). Top looser - Merck & Co. Inc. (MRK, -1.01%). Top gainer - McDonald's Corp. (MCD, +1.43).
S&P index sectors mixed. Top looser - Basic Materials (-1.3%). Top gainer - Healthcare (+0,4%).
At the moment:
Dow 16275.00 +70.00 +0.43%
S&P 500 1942.75 +3.00 +0.15%
Nasdaq 100 4288.50 +3.50 +0.08%
10 Year yield 2,19% -0,3
Oil 44.86 -1.06 -2.31%
Gold 1103.00 -6.30 -0.57%
Polish equity market closed flat on Friday. The broad market measure, the WIG Index, inched down 0.01%. Within the index, banking sector (+1.37%) fared the best, while utilities names (-1.94%) declined the most.
The large-cap WIG30 Index edged down 0.14%. PGING (WSE: PGN) was the weakest name among the index components, plunging 2.84%. It was followed by utilities stocks TAURON PE (WSE: TPE) and ENEA (WSE: ENA), declining 2.72% and 2.63% respectively. CCC (WSE: CCC), GTC (WSE: GTC) and HANDLOWY (WSE: BHW) were also among top fallers, dropping more than 2% each. On the other side of the ledger, BOGDANKA (WSE: LWB) and KERNEL (WSE: KER) topped the list of advancers, climbing by 5.08% and 2% respectively. Banking names PKO BP (WSE: PKO), MBANK (WSE: MBK), PEKAO (WSE: PEO), ALIOR (WSE: ALR) and BZ WBK (WSE: BZW) were also good performers, jumping by 0.81-1.76% and extending their gains from the previous session.
Stock indices closed lower as market participants are awaiting the Fed's interest rate decision next week. It remains unclear if the Fed starts raising its interest rates in September or not.
Markets participants are also cautious as China will release the economic data on Sunday. These data could add to concerns over the slowdown in the Chinese economy.
Meanwhile, the economic data from the Eurozone was mostly negative. Destatis released its final consumer price data for Germany on Friday. German final consumer price index was flat in August, in line with the preliminary estimate, after a 0.2% rise in July.
On a yearly basis, German final consumer price index remained unchanged at 0.2% in August, in line with the preliminary estimate.
The decline was driven by falling energy prices, which dropped 7.6% year-on-year in August.
German wholesale prices fell 0.8% in August, after a 0.1% increase in July.
On a yearly basis, wholesale prices in Germany dropped 1.1% in August, after a 0.5% decline in July. Wholesale prices have been declining since July 2013.
The fall was mainly driven by a 14.7% decline in the wholesale prices of solid fuels and related products.
The Bank of France released its current account data on Friday. France's current account surplus turned to a deficit of €0.4 billion in July from a surplus of €0.8 billion in June. June's figure was revised down from a surplus of €1.0 billion.
The deficit in the trade of goods was down to €0.9 billion in July from €1.0 billion in the previous month, while the surplus on services dropped to €0.3 billion from €1.7 billion.
The Office for National Statistics (ONS) released its construction output data for the U.K. on Friday. Construction output in the U.K. declined 1.0% in July, after a 0.9% rise in June.
The decline was driven by a drop in new work, which plunged 1.5% in July.
On a yearly basis, construction output decreased 0.7% in July. It was the first decline since May 2013.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,117.76 -38.05 -0.62 %
DAX 10,123.56 -86.88 -0.85 %
CAC 40 4,548.72 -47.81 -1.04 %
Oil prices declined as Goldman Sachs cut its oil price forecasts. The bank expects the WTI crude to be $45 a barrel in 2016, down from the previous estimate of $57, while Brent is expected to be $49.50, down from the previous estimate of $62.
The International Energy Agency (IEA) released its monthly report on Friday. The agency said that low oil process could lead to the reduction of non-OPEC oil output next year.
"Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day - the biggest decline in 24 years," the IEA said.
Global oil demand growth is expected to rise to 1.7 million barrels per day (bpd) in 2015, and to be 1.4 million in 2016, up 0.2 million from the previous estimate.
The IEA forecasts OPEC oil output to be around 31.3 million bpd in 2016, up 0.5 million bpd from the previous estimate.
The agency noted that Chinese demand for oil products will remain strong.
"We expect China, the world's second-largest oil consumer, to keep up its crude purchases despite the recent stock market collapse, currency devaluation and steady stream of negative macroeconomic news. Beijing could also buy extra crude to fill up its strategic reserves," the agency said.
WTI crude oil for October delivery fell to $44.72 a barrel on the New York Mercantile Exchange.
Brent crude oil for October declined to $47.94 a barrel on ICE Futures Europe.
Gold price fell on the uncertainty over the Fed's interest rate hike continue to weigh on gold. It remains unclear if the Fed will start raising its interest rate in September or not.
Today's U.S. economic data was mixed. The U.S. producer price index was flat in August, beating expectations for a 0.1% decline, after a 0.2% rise in July.
On a yearly basis, the producer price index decreased 0.8% in August, beating forecasts of a 0.9% decline, after a 0.8% fall in July.
A stronger U.S. dollar and low oil prices still weigh on inflation.
The producer price index excluding food and energy climbed 0.3% in August, exceeding expectations for a 0.1% gain, after a 0.3% increase in July.
On a yearly basis, the producer price index excluding food and energy climbed 0.9% in August, beating forecasts of a 0.7% increase, after a 0.6% rise in July.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index slid to 85.7 in September from a final reading of 91.9 in August, missing expectations for a decrease to 91.2. It was the lowest level since September 2014.
Gold is traded in U.S. dollars. It suffers when the U.S. dollar strengthens, becoming more expensive for holders of other currencies.
October futures for gold on the COMEX today fell to 1099.50 dollars per ounce.
The Bank of England's (BoE) Monetary Policy Committee (MPC) Member Kristin Forbes said in Cardiff on Friday that the central bank may have to raise its interest rate sooner than expected if the strong pound has less of an impact on inflation than thought.
"Perhaps most important for monetary policy today, this approach also suggests that sterling's recent appreciation could create less drag on import prices and inflation than we might have expected if the levels of pass-through seen after the crisis persisted. If this plays out, monetary policy would need to be tightened sooner than based on older models," she said.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index slid to 85.7 in September from a final reading of 91.9 in August, missing expectations for a decrease to 91.2. It was the lowest level since September 2014.
"Consumers still anticipate a weaker domestic economy due to the global slowdown and are less optimistic about future growth in jobs and wages than they were a few months ago," the Surveys of Consumers chief economist at the University of Michigan Richard Curtin said.
The decline in the index was mainly driven by falls in the index of current economic conditions and the index of consumer expectations.
The index of current economic conditions declined to 100.3 in September from 105.1 in August, while the index of consumer expectations decreased to 76.4 from 83.4.
The one-year inflation expectations rose to 2.9% in September from 2.8% in August.
The International Energy Agency (IEA) released its monthly report on Friday. The agency said that low oil process could lead to the reduction of non-OPEC oil output next year.
"Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day - the biggest decline in 24 years," the IEA said.
Global oil demand growth is expected to rise to 1.7 million barrels per day (bpd) in 2015, and to be 1.4 million in 2016, up 0.2 million from the previous estimate.
The IEA forecasts OPEC oil output to be around 31.3 million bpd in 2016, up 0.5 million bpd from the previous estimate.
The agency noted that Chinese demand for oil products will remain strong.
"We expect China, the world's second-largest oil consumer, to keep up its crude purchases despite the recent stock market collapse, currency devaluation and steady stream of negative macroeconomic news. Beijing could also buy extra crude to fill up its strategic reserves," the agency said.
EUR/USD: $1.1100(E1.55bn), $1.1150(E800mn), $1.1200(E1.08bn), $1.1300(E910mn), $1.1310(E532mn), $1.1350(E1.08bn)
USD/JPY: Y120.50($700mn), Y120.70-75($548mn), Y121.00-05($690mn), Y121.50($300mn), Y122.00($379mn)
EUR/JPY: Y138.00(E398mn)
GBP/USD: $1.5362-70(GBP262mn)
EUR/GBP: GBP0.7300(E542mn)
AUD/USD: $0.7100(E358mn), $0.7150(A$850mn);
NZD/USD: $0.6300(NZ897mn), $0.6450(NZ$395mn), $0.6500(NZ$626mn)
AUD/NZD: NZ$1.1170(A$653mn), NZ$1.1500(A$826mn)
USD/CAD: C$1.3000($446mn), C$1.3150($230mn), C$1.3200($282mn), C$1.3300($411mn), C$1.3325($604mn)
The Central Bank of Russia (CBR) kept its interest rate unchanged at 11.0% on Friday. This decision was widely expected by analysts.
This decision was driven by risks of higher inflation and an economic slowdown.
"August saw a serious deterioration in foreign economic conditions. Inflation and inflation expectations were showing a clear upward trend, impacted by the exchange rate dynamics. The depreciated ruble will continue to put pressure on prices in the next few months," the CBR said.
The central bank cut its interest rate five times in 2015.
The central bank noted that further interest rate decisions will depend on the risks of inflation and a slowdown in the economy.
U.S. stock-index futures declined as market volatility continues to prevail before the Federal Reserve's policy meeting next week.
Global Stocks:
Nikkei 18,264.22 -35.40 -0.19%
Hang Seng 21,504.37 -58.13 -0.27%
Shanghai Composite 3,200.45 +2.56 +0.08%
FTSE 6,122.4 -33.41 -0.54%
CAC 4,561.25 -35.28 -0.77%
DAX 10,138.34 -72.10 -0.71%
Crude oil $44.74 (-2.57%)
Gold $1106.00 (-0.29%)
(company / ticker / price / change, % / volume)
ABX | Barrick Gold Corporation, NYSE | 6.22 | 0.16% | 55.9K |
CVX | Chevron Corp | 75.70 | 0.05% | 4.0K |
KO | The Coca-Cola Co | 38.09 | 0.00% | 2.4K |
SBUX | Starbucks Corporation, NASDAQ | 55.37 | 0.00% | 0.2K |
TWTR | Twitter, Inc., NYSE | 27.71 | 0.00% | 2.9K |
AMZN | Amazon.com Inc., NASDAQ | 521.95 | -0.06% | 24.5K |
MO | ALTRIA GROUP INC. | 52.62 | -0.16% | 175.9K |
IBM | International Business Machines Co... | 145.93 | -0.18% | 11.0K |
WMT | Wal-Mart Stores Inc | 64.00 | -0.19% | 238.4K |
MRK | Merck & Co Inc | 52.16 | -0.21% | 2.4K |
C | Citigroup Inc., NYSE | 50.95 | -0.23% | 134.7K |
GE | General Electric Co | 24.62 | -0.24% | 1.5K |
JNJ | Johnson & Johnson | 92.50 | -0.24% | 0.1K |
VZ | Verizon Communications Inc | 45.35 | -0.24% | 0.4K |
DD | E. I. du Pont de Nemours and Co | 48.50 | -0.25% | 0.3K |
FB | Facebook, Inc. | 91.75 | -0.25% | 23.7K |
DIS | Walt Disney Co | 102.32 | -0.27% | 0.4K |
AA | ALCOA INC. | 9.60 | -0.31% | 12.5K |
V | Visa | 70.00 | -0.33% | 0.2K |
PFE | Pfizer Inc | 32.50 | -0.37% | 12.4K |
INTC | Intel Corp | 29.15 | -0.41% | 1K |
AAPL | Apple Inc. | 112.11 | -0.41% | 69.4K |
T | AT&T Inc | 32.61 | -0.43% | 0.7K |
TSLA | Tesla Motors, Inc., NASDAQ | 247.40 | -0.43% | 4.9K |
MSFT | Microsoft Corp | 43.10 | -0.44% | 19.9K |
YHOO | Yahoo! Inc., NASDAQ | 31.00 | -0.48% | 1.4K |
F | Ford Motor Co. | 13.65 | -0.58% | 29.8K |
CSCO | Cisco Systems Inc | 26.10 | -0.61% | 8.5K |
XOM | Exxon Mobil Corp | 72.00 | -0.72% | 3.0K |
FCX | Freeport-McMoRan Copper & Gold Inc., NYSE | 11.15 | -1.06% | 9.8K |
YNDX | Yandex N.V., NASDAQ | 11.28 | -1.48% | 1.0K |
The U.S. Commerce Department released the producer price index figures on Friday. The U.S. producer price index was flat in August, beating expectations for a 0.1% decline, after a 0.2% rise in July.
On a yearly basis, the producer price index decreased 0.8% in August, beating forecasts of a 0.9% decline, after a 0.8% fall in July.
A stronger U.S. dollar and low oil prices still weigh on inflation.
Services prices were up 0.4% in August, while prices for goods declined 0.6%.
Food prices increased by 0.3% in August, driven by a rise in wholesale egg prices, which jumped 23.2%.
Energy sales declined 3.3% in August.
The producer price index excluding food and energy climbed 0.3% in August, exceeding expectations for a 0.1% gain, after a 0.3% increase in July.
On a yearly basis, the producer price index excluding food and energy climbed 0.9% in August, beating forecasts of a 0.7% increase, after a 0.6% rise in July.
Upgrades:
Chevron (CVX) upgraded to Overweight from Neutral at JP Morgan
Downgrades:
Other:
DuPont (DD) initiated with a Market Perform at Bernstein; target $56
NIKE (NKE) initiated with a Buy at B. Riley & Co; target $126
German Finance Minister Wolfgang Schaeuble said on Friday that a high amount of liquidity can lead to price bubbles.
"If you look at what's going on [on] a global level, this increasing public and private liquidity on the financial markets, it's by sure that we are moving to the next bubble," he said.
Schaeuble added that structural reforms should be implemented.
"It should not serve as a way out of, or to neglect, what is necessary -- that is structural reforms," he said.
Economic calendar (GMT0):
(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)
06:00 Germany CPI, m/m (Finally) August 0.2% 0% 0.0%
06:00 Germany CPI, y/y (Finally) August 0.2% 0.2% 0.2%
09:00 Eurozone ECOFIN Meetings
11:30 United Kingdom MPC Member Forbes Speaks
The U.S. dollar traded mixed to higher against the most major currencies ahead of the release of the U.S. economic data. The U.S. PPI is expected to decrease 0.1% in August, after a 0.2% rise in July.
The U.S. producer price inflation excluding food and energy is expected to rise 0.1% in August, after a 0.3 gain in July.
The preliminary Thomson Reuters/University of Michigan preliminary consumer sentiment index is expected to fall to 91.2 in September from a final reading of 91.9 in August.
The euro traded lower against the U.S. dollar after the mostly negative economic data from the Eurozone. Destatis released its final consumer price data for Germany on Friday. German final consumer price index was flat in August, in line with the preliminary estimate, after a 0.2% rise in July.
On a yearly basis, German final consumer price index remained unchanged at 0.2% in August, in line with the preliminary estimate.
The decline was driven by falling energy prices, which dropped 7.6% year-on-year in August.
German wholesale prices fell 0.8% in August, after a 0.1% increase in July.
On a yearly basis, wholesale prices in Germany dropped 1.1% in August, after a 0.5% decline in July. Wholesale prices have been declining since July 2013.
The fall was mainly driven by a 14.7% decline in the wholesale prices of solid fuels and related products.
The Bank of France released its current account data on Friday. France's current account surplus turned to a deficit of €0.4 billion in July from a surplus of €0.8 billion in June. June's figure was revised down from a surplus of €1.0 billion.
The deficit in the trade of goods was down to €0.9 billion in July from €1.0 billion in the previous month, while the surplus on services dropped to €0.3 billion from €1.7 billion.
The British pound traded lower against the U.S. dollar after the release of the weak construction output data from the U.K. The Office for National Statistics (ONS) released its construction output data for the U.K. on Friday. Construction output in the U.K. declined 1.0% in July, after a 0.9% rise in June.
The decline was driven by a drop in new work, which plunged 1.5% in July.
On a yearly basis, construction output decreased 0.7% in July. It was the first decline since May 2013.
EUR/USD: the currency pair fell to $1.1253
GBP/USD: the currency pair declined to $1.5404
USD/JPY: the currency pair traded mixed
The most important news that are expected (GMT0):
12:30 U.S. PPI, m/m August 0.2% -0.1%
12:30 U.S. PPI, y/y August -0.8% -0.9%
12:30 U.S. PPI excluding food and energy, m/m August 0.3% 0.1%
12:30 U.S. PPI excluding food and energy, Y/Y August 0.6% 0.7%
14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) September 91.9 91.2
18:00 U.S. Federal budget August -149.2 -81.5
EUR/USD
Offers 1.1320 1.1335 1.1350 1.1390-1.1400 1.1420 1.1450
Bids 1.1265-70 1.1250 1.1225 1.1200 1.1175-80 1.1160 1.1145-50
GBP/USD
Offers 1.5480 1.5500-10 1.5530 1.5550 1.5585 1.5600
Bids 1.5430 1.5400 1.5380 1.5350 1.5330 1.5320 1.5300
EUR/GBP
Offers 0.7325-30 0.7350 0.7380-85 0.7400 0.7425 0.7450
Bids 0.7295-0.7300 0.7280 0.7260-65 0.7250 0.7225-30 0.7200
EUR/JPY
Offers 136.35 136.50 136.80 137.00 137.50
Bids 136.00 135.80 135.50 135.00 134.80-85 134.65 134.50
USD/JPY
Offers 120.80 121.00 121.20 121.35 121.50 121.80 122.00
Bids 120.25 120.00 119.80-85 119.50 119.30 119.00
AUD/USD
Offers 0.7085 0.7100 0.0.7120-25 0.7150 0.7180 0.7200
Bids 0.7020 0.7000 0.6980-85 0.6965 0.6950
Stock indices traded lower as market participants are awaiting the Fed's interest rate decision next week. It remains unclear if the Fed starts raising its interest rates in September or not.
Markets participants are also cautious as China will release the economic data on Sunday. These data could add to concerns over the slowdown in the Chinese economy.
Meanwhile, the economic data from the Eurozone was mostly negative. Destatis released its final consumer price data for Germany on Friday. German final consumer price index was flat in August, in line with the preliminary estimate, after a 0.2% rise in July.
On a yearly basis, German final consumer price index remained unchanged at 0.2% in August, in line with the preliminary estimate.
The decline was driven by falling energy prices, which dropped 7.6% year-on-year in August.
German wholesale prices fell 0.8% in August, after a 0.1% increase in July.
On a yearly basis, wholesale prices in Germany dropped 1.1% in August, after a 0.5% decline in July. Wholesale prices have been declining since July 2013.
The fall was mainly driven by a 14.7% decline in the wholesale prices of solid fuels and related products.
The Bank of France released its current account data on Friday. France's current account surplus turned to a deficit of €0.4 billion in July from a surplus of €0.8 billion in June. June's figure was revised down from a surplus of €1.0 billion.
The deficit in the trade of goods was down to €0.9 billion in July from €1.0 billion in the previous month, while the surplus on services dropped to €0.3 billion from €1.7 billion.
The Office for National Statistics (ONS) released its construction output data for the U.K. on Friday. Construction output in the U.K. declined 1.0% in July, after a 0.9% rise in June.
The decline was driven by a drop in new work, which plunged 1.5% in July.
On a yearly basis, construction output decreased 0.7% in July. It was the first decline since May 2013.
Current figures:
Name Price Change Change %
FTSE 100 6,136.28 -19.53 -0.32 %
DAX 10,107.19 -103.25 -1.01 %
CAC 40 4,556.12 -40.41 -0.88 %
The Office for National Statistics (ONS) released its construction output data for the U.K. on Friday. Construction output in the U.K. declined 1.0% in July, after a 0.9% rise in June.
The decline was driven by a drop in new work, which plunged 1.5% in July.
On a yearly basis, construction output decreased 0.7% in July. It was the first decline since May 2013.
The Italian statistical office Istat released its industrial production data on Friday. Industrial production in Italy climbed at a seasonally-adjusted rate of 1.1% in July, after a 1.0% fall in June. June's figure was revised down from a 1.1% drop.
Consumer goods output rose 1.0% in July, intermediate goods output increased 0.6%, energy output jumped 7.1%, while production in the capital goods sector was up 0.3%.
On a yearly basis, industrial production in Italy jumped at a seasonally-adjusted rate of 2.7% in July, after a 0.3% decrease in May.
The Bank of France released its current account data on Friday. France's current account surplus turned to a deficit of €0.4 billion in July from a surplus of €0.8 billion in June. June's figure was revised down from a surplus of €1.0 billion.
The deficit in the trade of goods was down to €0.9 billion in July from €1.0 billion in the previous month, while the surplus on services dropped to €0.3 billion from €1.7 billion.
The Spanish statistical office INE released its final consumer price inflation data on Friday. Consumer price inflation in Spain was down 0.3% in August, in line with preliminary reading, after a 0.9% drop in July.
On a yearly basis, consumer prices fell by 0.4% in August from a year ago, in line with preliminary reading, after a 0.1% rise in July.
The decline was mainly driven by the decline in the prices of fuels (gas and diesel oil) and electricity.
The German statistical office Destatis released its wholesale prices for Germany on Friday. German wholesale prices fell 0.8% in August, after a 0.1% increase in July.
On a yearly basis, wholesale prices in Germany dropped 1.1% in August, after a 0.5% decline in July. Wholesale prices have been declining since July 2013.
The fall was mainly driven by a 14.7% decline in the wholesale prices of solid fuels and related products.
Destatis released its final consumer price data for Germany on Friday. German final consumer price index was flat in August, in line with the preliminary estimate, after a 0.2% rise in July.
On a yearly basis, German final consumer price index remained unchanged at 0.2% in August, in line with the preliminary estimate.
The decline was driven by falling energy prices, which dropped 7.6% year-on-year in August.
Food prices climbed 0.8% year-on-year in August.
The White House warned on Thursday that the budget battle could lead to another US government shut down. Rival lawmakers have time until October 1 to reach a deal.
"If Republican leaders maintain their insistence on trying to pass a budget along party lines, then we are going to be headed for a shut down," White House spokesman Josh Earnest said. Any shutdown could lead to an economic and financial turmoil on markets.
The last government shutdown happened in October 2013. The U.S. economy lost an estimated $24 billion during the last shutdown.
The European Central Bank's (ECB) Chief Economist Peter Praet said on Thursday that low interest rates were caused due to "economic malaise" in the Eurozone and across world.
"Low interest rates are ultimately a consequence of weak secular trends, coupled with the cyclical consequences of a complex debt crisis, exacerbated by a monetary union with institutional and structural flaw," he said.
Praet noted that the central bank will monitor closely risks to the risks to the inflation outlook, adding that it could adjust its asset buying programme.
According to the Royal Institution of Chartered Surveyors' (RICS), house prices in the U.K. are expected to rise 6% this year. RICS upgraded its forecasts from the previous estimate of a 3% growth due to the shortage of homes on the market and higher house prices.
"Given current market conditions, the latest data unsurprisingly shows house prices continuing to rise, and at an accelerating pace. And there is good reason for this trend to be sustained into next year, however uncomfortable that may be for those looking to enter the market," RICS Chief Economist, Simon Rubinsohn, said.
Japan's Ministry of Finance and the Cabinet Office released its quarterly survey on late Thursday evening. The business survey index (BSI) of manufacturers' sentiment rose to 11.0 in third quarter from -6.0 in the second quarter.
The sentiment is expected to decline to 10.5 in the three months to December, and to be 7.1 in the first quarter of 2016.
West Texas Intermediate futures for October delivery fell to $45.57 (-0.76%), while Brent crude slid to $48.76 (-0.27%) after Saudi Arabia rejected producer summit saying that this meeting would not result in a defined solution and action to support prices of oil.
Yesterday prices rose amid data from the International Energy Administration. U.S. crude oil inventories rose by 2.6 million barrels to 458 million barrels last week, while crude stocks at the Cushing delivery hub in Oklahoma fell by 897,000 barrels to 56.41 million barrels. U.S crude oil production fell by 83,000 barrels a day over the same week to 9.1 million barrels a day, its lowest level since January. The same report showed that demand for gasoline over the past four-week period rose almost 4% on an annualized basis.
Analysts say that seasonal oil demand is expected to partly consume inventories in winter and help support prices.
Gold is currently at $1,110.20 (+0.08%) near a four-week low. The precious metal headed for the third weekly decline in a row as investors remain focused on next week's Fed meeting. "We are likely to see sideways trading until the FOMC," HSBC analyst James Steel said meaning the anticipated meeting.
Recent data suggest that the U.S. labor market is quite healthy, while low inflationary pressures increase uncertainty over probability of a rate hike next week.
U.S. stock indices advanced on Thursday ahead of next week's Fed policymaking meeting. Analysts say that there is a 28% probability of a rate hike next week and a 60% probability of a rate increase by the end of the current year.
Apple stocks and the healthcare sector led gains.
Investors remained concerned over China's economy.
The Dow Jones Industrial Average rose 76.83 points, or 0.5%, to 16330.40. The S&P 500 gained 10.25 points, or 0.5%, to 1952.29. The Nasdaq Composite Index climbed 39.72 points, or 0.8%, to 4796.25.
This morning in Asia Hong Kong Hang Seng climbed 0.89%, or 192.52 points, to 21,755.02. China Shanghai Composite Index slid 0.05%, or 1.75 point, to 3,196.14. The Nikkei gained 0.07%, or 12.98 points, to 18,312.60.
Asian stock indices posted mixed results. Stocks were supported by gains in U.S. markets; however uncertainty over Fed rates keeps investors concerned.
Japan Business Sentiment Index, which is based on a survey of large Japanese manufacturers, rose to +11 in the third quarter from -6 reported previously.
Economic calendar (GMT0):
Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual
06:00 Germany CPI, m/m (Finally) August 0.2% 0% 0.0%
06:00 Germany CPI, y/y (Finally) August 0.2% 0.2% 0.2%
The U.S. dollar traded with low volatility as declines in U.S. import prices had weighed on the greenback before the current session began. Lower import prices are likely to limit inflationary pressure further and justify more gradual tightening of Fed monetary policy. Market participants are waiting for producer price index data. A greater-than-expected decline in this index may weigh on the dollar in the short-term outlook. Economists expect a decline of 0.1% in August compared to an increase of 0.2% in the previous month.
The yen tends to decline against the greenback despite positive business sentiment data. The Business Sentiment Index, which is based on a survey of large Japanese manufacturers, rose to +11 in the third quarter from -6 reported previously. Japan economy minister Amari said that it is important for improvements in corporate sentiment to be reflected in capital expenditure.
The New Zealand dollar advanced slightly. The index of business activity in the industrial sector of the country's economy rose to 55.0 in August from 53.7 in July (revised from 53.5).
EUR/USD: the pair fluctuated within $1.1270-00 in Asian trade
USD/JPY: the pair traded within Y120.55-95
GBP/USD: the pair rose to $1.5460
The most important news that are expected (GMT0):
(time / country / index / period / previous value / forecast)
09:00 Eurozone ECOFIN Meetings
11:30 United Kingdom MPC Member Forbes Speaks
12:30 U.S. PPI, m/m August 0.2% -0.1%
12:30 U.S. PPI, y/y August -0.8% -0.9%
12:30 U.S. PPI excluding food and energy, m/m August 0.3% 0.1%
12:30 U.S. PPI excluding food and energy, Y/Y August 0.6% 0.7%
14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) September 91.9 91.2
18:00 U.S. Federal budget August -149.2 -81.5
EUR / USD
Resistance levels (open interest**, contracts)
$1.1451 (1562)
$1.1406 (1268)
$1.1359 (530)
Price at time of writing this review: $1.1291
Support levels (open interest**, contracts):
$1.1231 (518)
$1.1196 (797)
$1.1151 (1037)
Comments:
- Overall open interest on the CALL options with the expiration date October, 9 is 45859 contracts, with the maximum number of contracts with strike price $1,1500 (4624);
- Overall open interest on the PUT options with the expiration date October, 9 is 59683 contracts, with the maximum number of contracts with strike price $1,1000 (5657);
- The ratio of PUT/CALL was 1.30 versus 1.29 from the previous trading day according to data from September, 10
GBP/USD
Resistance levels (open interest**, contracts)
$1.5705 (1218)
$1.5608 (1300)
$1.5512 (2406)
Price at time of writing this review: $1.5453
Support levels (open interest**, contracts):
$1.5389 (899)
$1.5293 (830)
$1.5195 (2681)
Comments:
- Overall open interest on the CALL options with the expiration date October, 9 is 20797 contracts, with the maximum number of contracts with strike price $1,5500 (2406);
- Overall open interest on the PUT options with the expiration date October, 9 is 19014 contracts, with the maximum number of contracts with strike price $1,5200 (2681);
- The ratio of PUT/CALL was 0.91 versus 0.92 from the previous trading day according to data from September, 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.
(raw materials / closing price /% change)
Oil 45.73 -0.41%
Gold 1,110.10 +0.07%
(index / closing price / change items /% change)
Nikkei 225 18,299.62 -470.89 -2.51 %
Hang Seng 21,562.5 -568.81 -2.57 %
S&P/ASX 200 5,095.02 -126.11 -2.42 %
Shanghai Composite 3,196.22 -46.87 -1.45 %
FTSE 100 6,155.81 -73.20 -1.18 %
CAC 40 4,596.53 -68.06 -1.46 %
Xetra DAX 10,210.44 -92.68 -0.90 %
S&P 500 1,952.29 +10.25 +0.53 %
NASDAQ Composite 4,796.25 +39.72 +0.84 %
Dow Jones 16,330.4 +76.83 +0.47 %
(pare/closed(GMT +3)/change, %)
EUR/USD $1,1275 +0,53%
GBP/USD $1,5443 +0,54%
USD/CHF Chf0,9731 -0,24%
USD/JPY Y120,68 +0,23%
EUR/JPY Y136,08 +0,79%
GBP/JPY Y186,37 +0,78%
AUD/USD $0,7073 +1,29%
NZD/USD $0,6295 +0,11%
USD/CAD C$1,3237 -0,17%
(time / country / index / period / previous value / forecast)
06:00 Germany CPI, m/m (Finally) August 0.2% 0%
06:00 Germany CPI, y/y (Finally) August 0.2% 0.2%
09:00 Eurozone ECOFIN Meetings
11:30 United Kingdom MPC Member Forbes Speaks
12:30 U.S. PPI, m/m August 0.2% -0.1%
12:30 U.S. PPI, y/y August -0.8% -0.9%
12:30 U.S. PPI excluding food and energy, m/m August 0.3% 0.1%
12:30 U.S. PPI excluding food and energy, Y/Y August 0.6% 0.7%
14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) September 91.9 91.2
18:00 U.S. Federal budget August -149.2 -81.5