Major stock indexes in Wall Street closed mixed, as growth in consumer sector stocks was offset by a fall in quotations conglomerates sphere.

The pressure on the indices also had a Bloomberg survey results indicated that the Ohio residents are more supportive of the US Republican presidential candidate Donald Trump, and Hillary Clinton. "If Trump becomes president, it will be a surprise, and not very good for the markets and for the economy as a whole - said UniCredit analyst Christian Stocker. - While all attention is focused on the Fed, but the election topic is becoming increasingly important. "

Before the Fed meeting next week, is expected to be the focus of investors this week will be economic reports, including data on retail sales, unemployment, inflation, consumer and business sentiment and industrial production. Analysts predict that by the end of August, retail sales decreased by 0.1%, while industrial production fell by 0.3%. As for inflation, it is expected that the CPI rose in August by 0.1% after the zero change in July. If these estimates are correct, this number will increase the chances of a Fed rate increase in September. According to the futures market, at present, the probability of monetary tightening by the Fed's policy is 15% in September.

Oil prices fell by about 2.5%, which was caused by the publication of the controversial report on US petroleum inventories. US Department of Energy reported that in the week ended Sept. 9 oil inventories unexpectedly declined, but gasoline inventories rose slightly. According to the report, oil inventories fell by 559,000 barrels to 510.8 million barrels. The experts predicted an increase of 4 million barrels. Gasoline stocks rose by 567,000 barrels to 228.4 million barrels. Analysts had expected an increase of 600,000 barrels. Meanwhile, oil production in the US rose to 8.493 million barrels per day versus 8.458 million barrels per day in the previous week. US consumption of oil fell by 0.2 million. Barrels per day to 16.73 million barrels per day.

Most of the DOW index components recorded a decline (24 of 30). More rest rose stocks Apple Inc. (AAPL, + 3.58%). Outsider were shares of American Express Company (AXP, -1.38%).

Sector S & P index closed mixed. conglomerates (-0.8%) sectors fell most. The leader turned out to be the sector of consumer goods (+ 0.2%).

At the close:

Dow -0.18% 18,034.36 -32.39

Nasdaq + 0.36% 5,173.77 +18.51

S & P -0.06% 2,125.83 -1.19

Major U.S. stocl-indexes rose on Wednesday, supported by gains in technology stocks and in tandem with the recent oscillation as investors fret over interest rates. Apple (AAPL.O) shares were up more 4%, giving the three major indexes their biggest boost and rising for the third day in a row on reports of strong demand positive review for the new iPhones.

Most of Dow stocks in positive area (18 of 30). Top gainer - Apple Inc. (AAPL, +4.45%). Top loser - American Express Company (AXP, -0.76%).

Almost all of S&P sectors also in positive area. Top gainer - Consumer goods (+0.6%). Top loser - Basic Materials (-0.2%).

At the moment:

Dow 18036.00 +27.00 +0.15%

S&P 500 2126.75 +4.50 +0.21%

Nasdaq 100 4759.25 +35.25 +0.75%

Oil 44.01 -0.89 -1.98%

Gold 1327.50 +3.80 +0.29%

U.S. 10yr 1.68 -0.05

Oil futures fell, move caused by the publication of a controversial report on US petroleum inventories. At the same time, a further fall in prices restrained by the overall weakness of the US dollar.

US Department of Energy reported that in the week ended Sept. 9 oil inventories unexpectedly declined, but gasoline inventories rose slightly. According to the report, oil inventories fell by 559,000 barrels to 510.8 million barrels vs the average forecas of +4 million barrels. Oil reserves in the terminal Cushing (Oklahoma) fell by 1.2 million barrels to 62.2 million barrels. Gasoline stocks rose by 567,000 barrels to 228.4 million barrels. Analysts had expected an increase of 600,000 barrels. Distillate stocks rose 4.6 million barrels to 162.8 million barrels. Analysts had forecast an increase of 1.4 million barrels. The utilization of refining capacity decreased by 0.8% to 92.9%, while analysts expected a decline of 0.5%. Meanwhile, oil production in the US rose to 8.493 million barrels per day versus 8.458 million barrels per day in the previous week. US consumption of oil fell by 0.2 million barrels per day to 16.73 million barrels per day.

In general, data from the Ministry of Energy of the United States in contrast with yesterday's report from the American Petroleum Institute, which showed that the oil reserves in the country for the previous week rose 1.4 million barrels, which was much better than forecasts. Distillate stocks rose by 5.3 million barrels, while gasoline stocks fell by 2.4 million barrels.

In addition, traders continue to assess the likelihood that major oil producers will be able to agree to freeze production to support the market. OPEC members are expected to discuss a possible agreement on the limitation of oil production at an informal summit to be held in Algiers on 26-28 September. Earlier this year, an attempt to freeze the level of co-production failed due to the refuzal of Saudi Arabia to sign the agreement without the participation of Iran.

The cost of the October futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 44.00 dollars per barrel on the New York Mercantile Exchange.

October futures price for North Sea petroleum mix of mark Brent fell to 46.22 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Polish equity market closed higher on Wednesday. The broad market measure, the WIG Index, surged by 0.41%. Sector performance within the WIG Index was mixed. Materials (+3.72%) outperformed, while utilities (-1.05%) lagged behind.

The large-cap stocks gained 0.51%, as measured by the WIG30 Index, with the way up led by coking coal producer JSW (WSE: JSW), skyrocketing by 11.65%. Other major advancers were thermal coal miner BOGDANKA (WSE: LWB), bank PKO BP (WSE: PKO) and oil refiner LOTOS (WSE: LTS), increasing by 2.8%, 2.79% and 2.18% respectively. On the other side of the ledger, bank MILLENNIUM (WSE: MIL) and genco PGE (WSE: PGE) were the biggest decliners, falling by 2.48% and 2.06% respectively.

Gold prices rose moderately, aided by the widespread weakening of the US dollar, and reduced likelihood of a Fed hike at the next meeting.

The US Dollar Index, showing the US dollar against a basket of six major currencies, was down 0.23%. Since gold price is tied to the dollar, a weaker dollar makes the precious metal cheaper for holders of foreign currencies.

Mixed comments of members of the Fed's leadership, voiced recently, forced market participants doubt that the Central Bank will raise interest rates in September. This week Leil Brainard, a member of the Fed's Board of Governors, said that the grounds for preventive rate hikes seem less convincing.

"The focus of investors is still directed to the possible time of Fed hikes and dynamics of the market will be completely determined by this expectations", - Said David Gavett of Marex Spectron.

Traders believe that up to the Fed meeting, which will take place on 20-21 September, activity in the gold market will be restrained. "The market does not wait for a rate hike in September - said George Gero, expert at RBC Wealth Management." But as the prospects of rate hikes have not disappeared, gold rising moderately"

From a technical point of view, immediate resistance lies at $ 1330, while the range of $ 1,300- $ 1,310 is an important support.

The cost of the October futures for gold on COMEX rose to $ 1324.5 per ounce.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 0.6 million barrels from the previous week. At 510.8 million barrels, U.S. crude oil inventories are at historically high levels for this time of year. Total motor gasoline inventories increased by 0.6 million barrels last week, and are well above the upper limit of the average range. Finished gasoline inventories decreased while blending components inventories increased last week. Distillate fuel inventories increased by 4.6 million barrels last week and are above the upper limit of the average range for this time of year. Propane/propylene inventories rose 2.0 million barrels last week and are above the upper limit of the average range. Total commercial petroleum inventories increased by 6.0 million barrels last week.

EUR/USD: 1.1150 (EUR 265m) 1.1200 (297m) 1.1220 (721m) 1.1225 (380m) 1.1230 (1.2bln) 1.1250 (570m) 1.1270 (222m) 1.1300 (301m) 1.1350 (444m) 1.1360 (653m)

USD/JPY: 100.00-05 (315m) 101.02( 240m) 101.47-50 (560m) 102.00 (541m) 104.00-05 (1.16bln)

AUD/USD: 0.7370-75( AUD 300m)

USD/CAD 1.3100 (USD 590m) 1.3275 (400m)

NZD/USD 0.7450 (262m)

AUD/JPY 77.50 (AUD 445m) 77.95-0.7600 (619m)

A slight breeze of optimism from the opening of the US market encouraged our WIG20 index to growth, although small trading volume does not confirm the acquisition of shares by "strong hands".

Among companies of the WIG20 index we may observe a decline valuation of energy sector. In the sites there is information that PGE, Tauron (WSE: TPE), Energa (WSE: ENG) and Enea (WSE: ENA) (ie, companies with a large share of the Treasury) want to set up a company to produce electric cars. Each of the four companies is to cover 25 percent equity in the new company. We may guess that this government echo of ideas for innovation in the economy. The American example of Tesla in terms of financial results (losses) shows that it is not necessarily goose with the golden eggs.

An hour before the close of trading WIG20 index stood at the level of 1,739 points (+0,69%).

U.S. stock-index futures rose slightly after three days of renewed volatility left equities at a two-month low.

Global Stocks:

Nikkei 16,614.24 -114.80 -0.69%

Hang Seng 23,190.64 -25.12 -0.11%

Shanghai 3,002.67 -20.84 -0.69%

FTSE 6,706.37 +40.74 +0.61%

CAC 4,382.32 -4.86 -0.11%

DAX 10,440.43 +53.83 +0.52%

Crude $44.65 (-0.56%)

Gold $1324.70 (+0.08%)

"We became Dollar bulls in April 2014, forecasting that the greenback would rise 15 percent against the majors. We reasoned that slack was diminishing, allowing the Fed to normalize monetary policy, which would move rate differentials in favor of the Dollar. In the event, the Dollar rose more and faster than we expected, but for a different reason. BoJ and ECB pursuit of QE drove the Dollar up, while the Fed has done little to normalize policy, amid signs that it is increasingly targeting the currency (Exhibit 1).

Following recent Fed speak, which first raised hopes of a September hike only to dash them, we revisit prospects for the Dollar at a time when many see little, if any, upside. We distance ourselves from the near-term debate over September versus December and, instead, work back from the medium term. Through mid-2019 interest rate futures price only two hikes, which is low even by the standards of the recent R-Star debate.

The medium-term outlook for the Dollar is therefore very supportive, even if this hiking cycle falls short of the historical template. In the short term, the discussion over September versus December ignores that markets price only 15 bps for the two meetings combined. Given that Vice Chair Fischer talked about the possibility of two hikes this year, one hike is very much on the table.

The short-term picture is therefore constructive as well, with our favorite implementation long $/CAD into the October MPR meeting (Oct 19). This cross could approach our 12-month forecast of 1.40 by year-end.

We also like long $/JPY, given that long Yen positioning is extreme and markets are overdue for a re-think on the BoJ being out of bullets. We target 110 by year-end.

Finally, it is time to re-initiate short RMB positions, given that Dollar strength remains a stumbling block for China's currency".

Copyright © 2016 Goldman Sachs, eFXnews™

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

U.S. import prices declined 0.2 percent in August, the U.S. Bureau of Labor Statistics reported today, after ticking up 0.1 percent in July. The August downturn was driven by lower fuel prices. Prices for U.S. exports decreased 0.8 percent in August following a 0.2-percent increase in July.

U.S. export prices decreased 0.8 percent in August, the first monthly drop since the index edged down 0.1 percent in March and the largest decline since the index fell 0.9 percent in January. In August, lower prices for both agricultural and nonagricultural exports contributed to the overall drop in
export prices. The price index for U.S. exports decreased 2.4 percent over the past year, the smallest 12- month decline since the index fell 1.7 percent in November 2014.

Exports Excluding Agriculture: Prices for nonagricultural exports decreased 0.4 percent in August, after rising 0.2 percent the previous month. The August decline in nonagricultural export prices was the first monthly drop since the index fell 0.6 percent in February. Lower prices for industrial supplies and materials, automotive vehicles, capital goods, and consumer goods all contributed to the August downturn. The price index for nonagricultural exports decreased 2.2 percent over the past 12 months, primarily driven by a 5.3-percent decline in nonagricultural industrial supplies and materials prices.

Upgrades:

Downgrades:

Freeport-McMoRan (FCX) downgraded to Underweight from Equal-Weight at Morgan Stanley

Other:

EUR/USD

Offers : 1.1235 1.1250 1.1265 1.1285 1.1300 1.1325-30 1.1350 1.1365 1.1380 1.1400

Bids : 1.1200 1.1185 1.1170 1.1145-50 1.1120 1.1100

GBP/USD

Offers : 1.3225-30 1.3250 1.3280 1.3300 1.3335 1.3350-55 1.3380 1.3400

Bids : 1.3180 1.3165 1.3150 1.3130 1.3100 1.3080 1.3050 1.3030 1.3000

EUR/GBP

Offers : 0.8520-25 0.8540 0.8560-65 0.8580 0.8600

Bids : 0.8485 0.8450 0.8420 0.8400 0.8385 0.8365 0.8350

EUR/JPY

Offers : 116.00 116.30 116.50 116.85 117.00 117.50

Bids : 115.50 115.20 115.00 114.80 114.50 114.20 114.00

USD/JPY

Offers : 103.35 103.50 103.75 104.00 104.30 104.50

Bids : 103.00 102.80 102.50 102.00 101.75-80 101.60 101.40 101.20 101.00

AUD/USD

Offers : 0.7500 0.7535 0.7550 0.7560 0.7580 0.7600 0.7630 0.7655-60

Bids : 0.7450 0.7420-25 0.7400 0.7385 0.7365 0.7350

• Have agreed to work together to remove measures restricting the oil and gas industries and shipping and fishing around the Falklands Islands.

• Discussions with Argentina do not affect sovereignty of Falklands.

• UK clear in support for rights of Islanders.

The first half of trading brought mute on the Warsaw Stock Exchange and the session does not carry great emotions. Volatility is also low, and the offset from the opening rather cosmetic.

For stabilization in Warsaw helps environment where change of indices deviate in small extent from the shift of the WIG20. Chance of breaking the market from this marasmus may be traditionally traced, when the US capital will enter in the markets. At the halfway point of the session the index of the largest companies reached the level of 1,728 points (+0,07%). The turnover was amounted to PLN 138 mln.

European stocks rose for the first time after declining during the past several sessions, as investors seek safe assets after a global sell-off in the markets due to doubts about the effectiveness of central bank policy.

Statistical data from the UK, released on Wednesday showed that the country's decision to withdraw from the European Union did not lead to cooling of the labor market. Unemployment in the UK in May-July 2016 remained at 4.9%, which is 11 years low, according to the country's National Statistical Management (ONS). The number of unemployed in the three months fell by 39 thousand., The number of employees (aged 16 to 64 years) increased by 174 thousand.

Market focus is on Bank of England's meeting ending tomorow. British Central Bank is expected to hold the policy after taking aggressive measures at the August meeting.

The composite index of the largest companies in the region Stoxx Europe 600 rose 0,4% to 340.03 points.

Mining stocks rise in price in the bidding against the backdrop of rising prices for metals.

Glencore shares cost increased by 3,9%, Anglo American by 3.8%.

Share of European manufacturers of luxury goods fell during trading.

The world's largest jewelry manufacturer Financiere Richemont SA warned to reduce the operating profit in the fiscal first half to 45%, noting the difficult operating environment in the sector, as well as the general weakening of global economic growth.

Meanwhile, the French fashion house Hermes International SCA increased profit and revenues in the 1 st half of 2016, but declined the mid-term forecast increase in revenue, noting the growing economic and geopolitical tensions around the world.

Stocks of Richemont and Hermes fell 4.2% and 7% and Burberry -2.6%.

The cost of the Swiss watch manufacturer Swatch Group decreased by 3.4%.

At the moment:

FTSE 6710.19 44.56 0.67%

DAX 10421.15 34.55 0.33%

CAC 4389.06 1.88 0.04%

In July 2016 compared with June 2016, seasonally adjusted industrial production fell by 1.1% in the euro area (EA19) and by 1.0% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In June 2016 industrial production rose by 0.8% in the euro area and by 0.7% in the EU28. In July 2016 compared with July 2015, industrial production decreased by 0.5% in the euro area and by 0.1% in the EU28.

Between February to April 2016 and May to July 2016, the number of people in work increased. The number of unemployed people and the number of people not working and not seeking or available to work (economically inactive) fell.

There were 31.77 million people in work, 174,000 more than for February to April 2016 and 559,000 more than for a year earlier.

There were 23.25 million people working full-time, 434,000 more than for a year earlier. There were 8.51 million people working part-time, 126,000 more than for a year earlier.

The unemployment rate was 4.9%, down from 5.5% for a year earlier. The last time it was lower was for July to September 2005. The unemployment rate is the proportion of the labour force (those in work plus those unemployed) that were unemployed.

Average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.3% including bonuses and by 2.1% excluding bonuses compared with a year earlier.

This morning, New York crude oil futures for WTI rose by 0.80% to $ 45.27 and Brent crude oil futures rose 0.53% to $ 47.34 per barrel. Thus, the black gold is trading in the green zone amid American Petroleum Institute's data that showed a slower increase in US oil inventories. According to API, the reserves of black gold in the country increased by 1.4 million barrels to 514.7 million over the week, while analysts had expected an increase of 3.8 million barrels. The official US government data on crude oil inventories will be published later today. Rising oil prices could hold back an increase in exports from Libya.

EUR/USD: 1.1150 (EUR 265m) 1.1200 (297m) 1.1220 (721m) 1.1225 (380m) 1.1230 (1.2bln) 1.1250 (570m) 1.1270 (222m) 1.1300 (301m) 1.1350 (444m) 1.1360 (653m)

USD/JPY: 100.00-05 (315m) 101.02( 240m) 101.47-50 (560m) 102.00 (541m) 104.00-05 (1.16bln)

AUD/USD: 0.7370-75( AUD 300m)

USD/CAD 1.3100 (USD 590m) 1.3275 (400m)

NZD/USD 0.7450 (262m)

AUD/JPY 77.50 (AUD 445m) 77.95-0.7600 (619m)

According to rttnews, Romania's industrial production remained unchanged from a year ago in July, figures from the National Institute of Statistics showed Wednesday.

Industrial production, on a seasonally and working-day adjusted basis, was unchanged from the same month last year. Manufacturing output rose 3.5 percent, output tumbled 13.8 percent and 5.9 percent, respectively, in mining and utility sectors.

Month-on-month, industrial production rose 0.7 percent in July, led by a 1 percent gain in manufacturing and 0.9 percent increase in mining and quarrying.

On an unadjusted basis, production declined 3.4 percent annually and 1.4 percent from the previous month.

WIG20 index opened at 1730.91 points (+0.19%)*

WIG 46911.63 0.24%

WIG30 1996.01 0.33%

mWIG40 3942.95 0.02%

* - change to previous close

The valuation of September series contracts rose on opening by 0.3 per cent (to the level of 1,735 points).

European markets started the sessions with increases. In the first minutes of trading on the Warsaw Stock Exchange we have lightweight drama in terms of trading in the WIG20 components, and it seems that no one of large players are on the parquet. Market movement is conservative and therefore difficult to talk about a serious reflection on the recent discounts.

The session is not going to be exciting - looks more as a consolidation.

In August 2016, the Consumer Prices Index (CPI) grew by 0.3% over a month, after a decrease of 0.4% in July. Seasonally adjusted, it fell by 0.1%, after a stability in July. Year-on-year, the CPI rose by 0.2%, as in the two previous months.

This month-on-month drop was largely seasonal: it arose mainly from the seasonal rebound in the manufactured product prices at the end of the summer sales in Metropolitan France and in some tourism-related services. In addition, food prices kept on rising slightly, especially due to fresh foodstuffs. These increases were partially offset by a further decline in petroleum product prices.

At 09:30 GMT Germany will hold an auction of 30-year bonds

At 09:50 GMT RBA Assistant Governor Guy Debell deliver a speech

At 11:05 GMT, First Deputy Governor of the Bank of Canada, Carolyn Wilkins will deliver a speech

China celebrates Mid-Autumn Festival

"This week's BoE meeting (Thursday) will be the key event risk for GBP and we expect no change in the MPC's monetary policy settings.

We look for unanimous voting in favour of the status quo for the current APF (9-0) but do believe that dovish Committee member Gertjan Vlieghe is likely to dissent and vote for a cut (8-1). Moreover, we expect the minutes to echo the testimony of Governor Mark Carney and Committee members Jon Cunliffe, Kristin Forbes, and Gertjan Vlieghe to the Treasury Select Committee and think the MPC is comfortable with its recently announced easing package.

A confirmation of this and openness towards further easing, should downside risks to the economy materialize, will likely keep GBPUSD under pressure, in our view".

Barclays targets GBP/USD at 1.27 by the end of the year.

Copyright © 2016 Barclays Capital, eFXnews™

The yen fell against the dollar after the Japanese financial magazine Nikkei reported that the Bank of Japan at the upcoming meeting will likely consider to further reduce deposit rates. Experts point out that at the meeting on 20-21 September, the central bank will mainly discuss it negative rate, as an element of additional monetary easing. Analysts also suggest that to deal with the side effects of negative interest rates on deposits, the regulator can cut the volume of purchases of Japanese bonds maturing in 25 years and above. In addition, the Bank of Japan will once again abandon the anchor to achieve the target level of inflation at 2% in two years.

The New Zealand dollar declined on negative data on the balance of payments of New Zealand. As reported today, the Bureau of Statistics New Zealand's current account deficit in the second quarter was NZ $ 0.945 billion while analysts had expected a balance decline of NZ $ 0,411 billion The value of the balance of payments in the first quarter was revised from NZ $ 1,31 billion to NZ $ 1, 84 billion.

The Australian dollar fell on weaker data from the Westpac consumer confidence index. According to the studies of the Faculty of Economics and Commerce at the University of Melbourne, consumer confidence index in Australia increased by 0.3% in September, down from the previous value of 2.0%.

EUR / USD: during the Asian session, the pair was trading in the $ 1.1215-25 range

GBP / USD: during the Asian session, the pair was trading in the $ 1.3165-00 range

USD / JPY: during the Asian session, the pair rose to Y103.20

Tuesday's session on Wall Street brought back to a repricing and the S&P500 index lost 1.48 percent.

The impact on this situation have undoubtedly four factors; uncertainty about the September rate hike in the US, the appreciation of the dollar, the decline in oil prices and an increase in the profitability of the debt.

The morning trading in Europe should bring some attempts to rebound. Now oil is going up by 0.5 percent and futures on the DAX are listed on a slight positive territory.

Today's macro calendar does not contain any significant publication. We will know today read of the dynamics of industrial production in the euro zone, but these data do not arouse strong emotions. Some investors will pay attention to the reading of unemployment in the UK, which may reflect an echo on the pound and indirectly affect the main currency pair EURUSD.

Assuming that world markets will slightly rebuild, the WIG20 index should return to the area of 1,750 points and start looking for stability. However, we expect that in the next days the index will move under the dictation of news from overseas about the possibility of interest rate hikes in the US. Potential increases will not help the entire Polish market.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1364 (2222)

$1.1316 (2104)

$1.1269 (425)

Price at time of writing this review: $1.1225

Support levels (open interest**, contracts):

$1.1188 (2101)

$1.1135 (3763)

$1.1102 (3453)

Comments:

- Overall open interest on the CALL options with the expiration date October, 7 is 35835 contracts, with the maximum number of contracts with strike price $1,1500 (5354);

- Overall open interest on the PUT options with the expiration date October, 7 is 37881 contracts, with the maximum number of contracts with strike price $1,1100 (5357);

- The ratio of PUT/CALL was 1.06 versus 1.05 from the previous trading day according to data from September, 13

GBP/USD

Resistance levels (open interest**, contracts)

$1.3503 (1805)

$1.3405 (2004)

$1.3308 (966)

Price at time of writing this review: $1.3201

Support levels (open interest**, contracts):

$1.3092 (792)

$1.2995 (3330)

$1.2897 (700)

Comments:

- Overall open interest on the CALL options with the expiration date October, 7 is 21405 contracts, with the maximum number of contracts with strike price $1,3450 (2774);

- Overall open interest on the PUT options with the expiration date October, 7 is 20252 contracts, with the maximum number of contracts with strike price $1,3000 (3330);

- The ratio of PUT/CALL was 0.95 versus 0.98 from the previous trading day according to data from September, 13

* - 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.

During his speech today, the Prime Minister of Japan Shinzo Abe said that the country is in the process of emerging from deflation. "The effect of the Central Bank's soft monetary policy is obvious and at the moment we are on the verge of exiting a deflationary period," - said the head of the Cabinet. However, Abe warned that there are risks in the global economy.

Record spending by New Zealanders travelling overseas was behind a larger current account deficit in the June 2016 quarter, Statistics New Zealand said today. The current account deficit was $1.8 billion for the June quarter, $187 million larger than the March 2016 quarter's deficit.

"More New Zealanders went overseas this quarter than in previous June quarters. And they spent the most ever recorded while travelling for work and holidays," international statistics manager Stuart Jones said. This caused services imports to increase, while services exports decreased, resulting in the $144 million fall in the services surplus; the biggest since March 2012.

The decrease in services exports was mainly influenced by a decrease in transportation services. Spending by international visitors to New Zealand also decreased slightly.

The primary income deficit increased by $135 million to $2,040 million in the June 2016 quarter, due to an increase in income on foreign direct investment in New Zealand.

"Overall, the profits earned by foreign-owned New Zealand companies increased this quarter," Mr Jones said. "The majority of this income was reinvested in the June quarter, rather being than paid out as dividends as it was last quarter."

The seasonally adjusted goods balance was a deficit of $452 million in the June 2016 quarter, $71 million smaller than the March 2016 quarter's deficit. The value of both exports and imports of goods grew strongly in the latest quarter; however, goods exports increased more than imports, narrowing the goods deficit.

Japan's industrial production declined in July from the previous month after revision, latest data from the Ministry of Economy, Trade and Industry showed Wednesday.

Industrial production decreased 0.4 percent from June, while the initial report had shown no change.

Shipments grew 0.7 percent, while inventories declined 2.4 percent.

The year-on-year decline was revised to -4.2 percent from -3.8 percent.

Capacity utilization grew a seasonally adjusted 0.6 percent.

European stocks were also dropping as investors grappled with mixed messages from the Federal Reserve. Recent Fed speakers have hinted interest rates could go up as soon as next week, but after European trading closed on Monday, the central bank's Gov. Lael Brainard said the lack of inflation pressure means "the case to tighten policy pre-emptively is less compelling."

The Dow industrials on Tuesday finished nearly 260 points lower as equities suffered a sharp sell-off amid a slump in energy shares and uncertainty about the Federal Reserve's plans for monetary policy. A decline in crude-oil prices, as the International Energy Agency warned of slowing growth in demand, also helped to fuel the downdraft for the stock benchmarks.

Asian shares were broadly mixed Wednesday on weakness in U.S. equities and continued worries that global central banks will soon reverse their easing schemes. In Japan, banks were particularly hard hit Wednesday on speculation that the Bank of Japan will reduce its purchases of superlong bonds to steepen the yield curve, while maintaining the negative rate on excess reserves.

(raw materials / closing price /% change)

Oil 44.97+0.16%

Gold 1,322.10-0.12%

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

Nikkei 225 16,729.04 +56.12 +0.34%

Shanghai Composite 3,023.79 +1.81 +0.06%

S&P/ASX 200 5,207.78 -11.83 -0.23%

FTSE 100 6,665.63 -35.27 -0.53%

CAC 40 4,387.18 -52.62 -1.19%

Xetra DAX 10,386.60 -45.17 -0.43%

S&P 500 2,127.02 -32.02 -1.48%

Dow Jones Industrial Average 18,066.75 -258.32 -1.41%

S&P/TSX Composite 14,349.10 -248.04 -1.70%

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

EUR/USD $1,1215 -0,17%

GBP/USD $1,3184 -1,14%

USD/CHF Chf0,9771 +0,54%

USD/JPY Y102,54 +0,60%

EUR/JPY Y115,01 +0,44%

GBP/JPY Y135,19 -0,52%

AUD/USD $0,7661 +1,29%

NZD/USD $0,7249 -1,39%

USD/CAD C$1,3161 +0,93%

(time / country / index / period / previous value / forecast)

00:30 Australia Westpac Consumer Confidence September 2.0%

04:30 Japan Industrial Production (MoM) (Finally) July 2.3% 0.0%

04:30 Japan Industrial Production (YoY) (Finally) July -1.5% -3.8%

08:30 United Kingdom Average Earnings, 3m/y July 2.4% 2.1%

08:30 United Kingdom Average earnings ex bonuses, 3 m/y July 2.3% 2.2%

08:30 United Kingdom Claimant count August -8.6 1.8

08:30 United Kingdom ILO Unemployment Rate July 4.9% 4.9%

09:00 Eurozone Industrial production, (MoM) July 0.6% -0.9%

09:00 Eurozone Industrial Production (YoY) July 0.4% -0.7%

09:00 Switzerland Credit Suisse ZEW Survey (Expectations) September -2.8

09:50 Australia RBA Assist Gov Debelle Speaks

10:30 Canada Gov Council Member Wilkins Speaks

14:30 U.S. Crude Oil Inventories September -14.513

22:30 New Zealand Business NZ PMI August 55.8

22:45 New Zealand GDP y/y Quarter II 2.8% 3.7%

22:45 New Zealand GDP q/q Quarter II 0.7% 1.1%