Major stock indexes on Wall Street showed a decline in the last trading day of summer on the background of the intensified decline in oil prices.

Oil prices fell by more than 3% after weekly government data pointed to a marked increase in crude oil inventories in the United States.

US Department of Energy reported that in the week from August 19 to 26 commercial oil stocks rose 2.28 million barrels to 525.87 million. Analysts had expected growth stocks only 1.31 million barrels. Oil reserves in Cushing terminal fell by 1 million barrels to 63.9 million barrels.

As shown by data provided by Automatic Data Processing (ADP), employment growth in the private sector of the US slowed in August, but were slightly above forecasts of experts. According to the report, in August, the number of employees increased by 177 thousand. People in comparison with the upwardly revised July index at the level of 194 thousand. (Originally reported growth of 179 thousand.). Analysts had expected the number of people employed will increase by 175 thousand.

At the same time, it became known that the transaction is pending home sales in the US rose in July after two consecutive months of decline, as demand rose almost across the board, suggesting that the housing market remains on solid ground. The National Association of Realtors reported Wednesday that the index of pending home sales, based on contracts signed in the past month increased by 1.3 percent to 111.3, finishing second in a period of ten years.

In addition, the Managers Association of Chicago reported that the PMI index fell to 51.5 against 55.8 in July. It was expected that the figure will be 54.0 points.

Most DOW components of the index closed in negative territory (20 of 30). Most remaining shares rose Intel Corporation (INTC, + 0.49%). Outsider were shares of Chevron Corporation (CVX, -1.17%).

Most of the S & P sectors registered a decline. The leader turned conglomerates sector (+ 0.6%). Most of the basic materials sector fell (-1.5%).

At the close:

Dow -0.29% 18,400.40 -53.90

Nasdaq -0.19% 5,213.22 -9.77

S & P -0.24% 2,170.87 -5.25

Major U.S. stock-indexes extended losses on Wednesday, the last trading day of August, as lower oil prices weighed on energy stocks.

Oil prices fell more 3% after U.S. government data showed a large unexpected weekly build in U.S. crude and distillate stockpiles and a smaller-than-expected draw in gasoline. Oil was also pressured by the dollar index, trading at a three-week high.

Most of all Dow stocks in negative area (27 of 30). Top gainer - Apple Inc. (AAPL, +0.41%). Top loser - Chevron Corporation (CVX, -1.56%).

Most of S&P sectors also in negative area. Top gainer - Conglomerates (+0.3%). Top loser - Basic Materials (-1.6%).

At the moment:

Dow 18347.00 -97.00 -0.53%

S&P 500 2162.50 -12.75 -0.59%

Nasdaq 100 4761.00 -15.00 -0.31%

Oil 44.78 -1.57 -3.39%

Gold 1311.90 -4.60 -0.35%

U.S. 10yr 1.56 -0.01

Polish equity market closed lower on Wednesday. The broad market measure, the WIG index, lost 0.11%. From a sector perspective, utilities (+1.16%) recorded the biggest gains, while chemicals (-1.21%) lagged behind.

The large-cap stocks' measure, the WIG30 Index, declined by 0.24%. Within the WIG30 Index components, clothing retailer LPP (WSE: LPP) fared the worst, slumping by 5.59% after the company announced its Q2 financials, which showed the company's profit reduced by 34.4% y/y to PLN 89.8 mln in the reviewed period, in-line with analysts' expectation. Other largest losers were FMCG-wholesaler EUROCASH (WSE: EUR) and two chemical producers SYNTHOS (WSE: SNS) and GRUPA AZOTY (WSE: ATT), which fell by 4.44%, 3.96% and 2.15% respectively. On the other side of the ledger, gencos ENERGA (WSE: ENG) and ENEA (WSE: ENA) were the biggest gainers, climbing by a respective 5.61% and 3.03% after yesterday's slump.

Oil prices fell nearly 3 percent after weekly government data pointed to a marked increase in stocks of crude oil and distillates in the United States.

US Department of Energy reported that in the week from August 19 to 26 commercial oil stocks rose 2.28 million barrels to 525.87 million. Analysts had expected a growth of only 1.31 million barrels. Oil reserves in Cushing terminal fell by 1 million barrels to 63.9 million barrels. Gasoline inventories fell last week by 691 thousand. barrels to 232.004 million barrels. Experts predicted a decline of 1 million barrels. Meanwhile, distillate stocks rose by 1.496 million barrels to 154.753 million barrels. Analysts expected an increase of 300,000 barrels. The utilization of refining capacity increased by 0.3% to 92.8%. Analysts had expected a decline of 0.4%. US domestic oil production dropped to 8.488 million. barrels per day versus 8.548 million. barrels per day from the previous week

Yesterday the American Petroleum Institute (API) reported that US crude stocks in the previous week rose to 0.942 million barrels, which is generally in line with expectations. The report also pointed to a decline in gasoline stocks of 1.65 million barrels and distillate stocks reduction, including diesel fuel, 800 thousand barrels.

The cost of the October futures for WTI fell to 45.01 dollars per barrel.

October futures price for North Sea petroleum mix of mark Brent fell to 47.24 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Gold price dropped to a 2-month low, move caused by data on the US labor market, which reinforce the arguments in favor of Fed rate hike this year.

The report from Automatic Data Processing (ADP) showed that employment growth in the private sector of the US slowed in August, but were slightly above forecasts of experts. According to the data, the number of employees increased by 177 thousand in comparison with the revised figure for July (194 thousand). Analysts had expected that the number of people employed will increase by 175 thousand.

Market participants are using this data as a benchmark for NFP. Overall, the data from ADP suggest that Friday report could also be strong. According to forecasts, the number of people employed in non-agricultural sectors increased by 180 thousand after increasing by 255 thousand. In July. The unemployment rate is likely to decline to 4.8% from 4.9%. Meanwhile, the growth rate of the average hourly earnings is estimated to have slowed to 0.2% from 0.3%. If expectations are met further increases the likelihood of the Fed raising interest rates this year.

A strong US dollar, as a rule, is putting pressure on gold, as it reduces the metal's appeal as an safe asset.

In addition, it was reported that in August, the world's largest gold exchange-traded fund SPDR Gold reserves fell by 2.7 tons to 8 tons after the inflow in July.

The cost of the October futures for gold on the COMEX fell to $ 1307.7 per ounce.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.3 million barrels from the previous week. At 525.9 million barrels, U.S. crude oil inventories are at historically high levels for this time of year.

Total motor gasoline inventories decreased by 0.7 million barrels last week, but are well above the upper limit of the average range. Finished gasoline inventories remained unchanged while blending components inventories decreased last week.

Distillate fuel inventories increased by 1.5 million barrels last week and are near the upper limit of the average range for this time of year. Propane/propylene inventories rose 2.4 million barrels last week and are above the upper limit of the average range. Total commercial petroleum inventories increased by 4.5 million barrels last week.

Pending home sales expanded in most of the country in July and reached their second highest reading in over a decade, according to the National Association of Realtors. Only the Midwest saw a dip in contract activity last month.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.3 percent to 111.3 in July from a downwardly revised 109.9 in June and is now 1.4 percent higher than July 2015 (109.8). The index is now at its second highest reading this year after April (115.0).

One of the most interesting data that flow down to the market on a monthly basis, means ADP report, came in line with expectations. Therefore the market did not show any reaction. Another thing that more emotion evoke monthly labor market data, which will be announced on Friday.

Beginning on Wall Street took place as expected. Red, but the scale of decline is so safe that so far no one care about this departure. Even our not so strong market might at this point get away again slightly up from the lows of the session.

Readings of the Chicago PMI missed the estimate and sends a signal to the market that the right may have analysts who point to slightly worse than the optimists want the condition of American industry. An hour before the end of trading the WIG20 index was at the level of 1,784 points (-0.21%).Prezentowany komentarz został przygotowany w Wydziale Doradztwa i Analiz Rynkowych Domu Maklerskiego Banku Ochrony Środowiska S.A. z siedzibą w Warszawie (DM BOŚ) tylko i wyłącznie w celach informacyjnych i nie stanowi rekomendacji w rozumieniu "Rozporządzenia Delegowanego Komisji (UE) nr 2016/958 z dnia 9 marca 2016 r. uzupełniającego rozporządzenie Parlamentu Europejskiego i Rady (UE) nr 596/2014 w odniesieniu do regulacyjnych standardów technicznych dotyczących środków technicznych do celów obiektywnej prezentacji rekomendacji inwestycyjnych lub innych informacji rekomendujących lub sugerujących strategię inwestycyjną oraz ujawniania interesów partykularnych lub wskazań konfliktów interesów" lub jakiejkolwiek porady, w tym w szczególności porady inwestycyjnej w zakresie doradztwa inwestycyjnego, o którym mowa w art. 76 ustawy z dnia 29 lipca 2005 r. o obrocie instrumentami finansowymi (t.j. Dz. U. 2014, poz. 94 z póź. zm.), porady prawnej lub podatkowej, ani też jest wskazaniem, iż jakakolwiek inwestycja jest odpowiednia w indywidualnej sytuacji inwestora. Inwestor wykorzystuje informacje zawarte w niniejszym komentarzu na własne ryzyko i odpowiedzialność. Przedstawiony komentarz jest wyłącznie wyrazem wiedzy i poglądów autora według stanu na dzień sporządzenia. Przy sporządzaniu komentarza DM BOŚ działał z należytą starannością oraz rzetelnością. DM BOŚ, jego organy zarządcze, organy nadzorcze, i jego pracownicy nie ponoszą odpowiedzialności za działania lub zaniechania klienta lub innego inwestora podjęte na podstawie niniejszego komentarza ani za szkody poniesione w wyniku tych decyzji inwestycyjnych, skutki finansowe i niefinansowe powstałe w wyniku wykorzystania niniejszego komentarza lub zawartych w nim informacji. Niniejszy komentarz został sporządzony w celu udostępnienia klientom DM BOŚ, a także może być udostępniany innym osobom zainteresowanym w celu promocji usług świadczonych przez DM BOŚ. Niniejszy dokument nie stanowi podstawy do zawarcia jakiejkolwiek umowy lub powstania jakiegokolwiek zobowiązania po stronie DM BOŚ. W przypadku klientów DM BOŚ, którzy zawarli Umowę o Opracowania, o której mowa w Regulaminie doradztwa inwestycyjnego i sporządzania analiz inwestycyjnych, analiz finansowych oraz innych rekomendacji o charakterze ogólnym dotyczących transakcji w zakresie instrumentów finansowych oraz instrumentów bazowych instrumentów pochodnych (Regulamin), niniejszy raport stanowi Opracowanie w rozumieniu Regulaminu. Regulamin jest dostępny na stronie internetowej bossa.pl w dziale Dokumenty.
DM BOŚ jest firmą inwestycyjną w rozumieniu Ustawy z dnia 29 lipca 2005 r. o obrocie instrumentami finansowymi (t.j. Dz. U. 2014, poz. 94 z póź. zm.). Nadzór nad DM BOŚ sprawuje Komisja Nadzoru Finansowego.

The MNI Chicago Business Barometer fell 4.3 points to 51.5 in August from 55.8 in July, led by a large setback in Order Backlogs and a deceleration in New Orders. Four of the five Barometer components fell between July and August. Only Employment increased, hitting a 16-month high. The latest fall left the Barometer, New Orders and Production running at the slowest pace since May, when they all slipped below 50.

EUR/USD: 1.1175-80 (EUR 750m) 1.1200-05 (629m) 1.1250 (267m) 1.1300 (291m)

USD/JPY:100.00 (USD 610m) 103.00 (370m) 103.19 (200m) 105.00 (440m)

GBP/USD: 1.3000 (GBP 301m)

AUD/USD: 0.7510-15 (AUD 204m) 0.7600-07 (1.8bln)

USD/CAD: 1.2875 (USD 240m) 1.2995-1.3000 (215m)

NZD/USD 0.7210 (NZD 300m)

U.S. stock-index futures edged lower as investors awaited monthly jobs data and its implications for interest rates.

Global Stocks:

Nikkei 16,887.40 +162.04 +0.97%

Hang Seng 22,976.88 -39.23 -0.17%

Shanghai 3,085.48 +10.81 +0.35%

FTSE 6,814.54 -6.25 -0.09%

CAC 4,476.25 +18.76 +0.42%

DAX 10,628.78 -28.86 -0.27%

Crude $45.82 (-1.14%)

Gold $1307.90 (-0.65%)

Real gross domestic product (GDP) rose 0.6% in June, essentially offsetting an equivalent decline in May. Mining, quarrying and oil and gas extraction, manufacturing and utilities were the major contributors to the increase.

Goods-producing industries increased 1.6% in June. Mining, quarrying and oil and gas extraction contributed the most to the gain, mainly because of a rise in non-conventional oil extraction, as capacity gradually returned following the Fort McMurray wildfire and evacuation in May. Manufacturing and utilities also rose, while construction and the agriculture and forestry sector decreased.

The output of service-producing industries grew for a ninth consecutive month, rising 0.2% in June. Gains were posted by the public sector (education, health and public administration combined), transportation and warehousing services, and the finance and insurance sector. Retail trade recorded the most notable decline in output.

Private sector employment increased by 177,000 jobs from July to August according to the August ADP National Employment Report

Payrolls for businesses with 49 or fewer employees increased by 63,000 jobs in August, down from 68,000 in July. Employment at companies with 50-499 employees increased by 44,000 jobs, down from last month's 71,000. Employment at large companies - those with 500 or more employees - increased by 70,000, up from July's 56,000. Companies with 500-999 employees added 25,000 and companies with more than 1,000 employees added 46,000 in August.

"Job growth in August was stable and consistent with levels from previous months as consumer conditions improve," said Ahu Yildirmaz, vice president and head of the ADP Research Institute. "Continued strong growth in service-providing jobs is offset by weakness in goods-producing areas."

.

The following data was published:

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

6:00 UK House Price Index from Nationwide, m / m in August of 0.5% -0.3% 0.6%

6:00 UK House Price Index from Nationwide, y / y in August 5.2% 4.8% 5.6%

6:00 Germany Retail Sales seasonally adjusted -0.6% Revised July from -0.1% 0.5% 1.7%

6:00 Germany Retail sales, excluding seasonal adjustments, y / y 2.3% Revised July from 2.7% 0.3% -1.5%

6:00 Switzerland indicator of consumer activity from UBS in July 1.34 1.32

7:55 Germany Unemployment rate seasonally adjusted 6.1% in August 6.1% 6.1%

7:55 Germany Change in the number of unemployed in August Revised -8 from -7 -5 -7

9:00 Eurozone July unemployment rate 10.1% 10.0% 10.1%

9:00 Eurozone Consumer Price Index y / y (provisional) in August 0.2% 0.3% 0.2%

9:00 Eurozone consumer price index base value, y / y (provisional) in August 0.9% 0.9% 0.8%

Pound rises sharply after data showed that the UK economy is going through a good period after Brexit. According to the report of Nationwide, house prices in the country remains stable. A survey conducted by the GfK, showed improvement in consumer sentiment. These data allow investors to take profits on short positions on the pound.

In the UK house prices rose at the fastest pace in five months in August, reported Nationwide Building Society. Housing prices rose 5.6 percent year on year in August, after rising 5.2 percent in July. It was the most rapid growth over the past five months. Economists had forecast that the annual growth rate will slow to 4.8 per cent. In monthly terms, housing prices unexpectedly rose 0.6 percent, slightly faster than the growth of 0.5 percent a month ago. Prices were expected to decline by 0.3 percent.

New buyer inquiries softened after the introduction of an additional fee for second homes in and the uncertainty surrounding the EU referendum, said Robert Gardner, chief economist at Nationwide. "What's next on the demand side will determine to a large extent the prospects of the labor market and confidence among potential buyers," says Gardner.

At the same time, the consumer confidence index from the GfK Group has dropped to -7 in August, while analysts expected a decline to -8. Despite the decline, the index was better than the value of July, when the indicator fell to -12. Consumer confidence is weaker than it was prior to the vote on 23 June when the index stood at -1. The index of consumer confidence from the GfK Group is a leading indicator that reflects the level of consumer confidence in economic activity. The index is based on a survey of 2,000 people, conducted from August 1-16.

The euro declines against the background of large-scale strengthening of the US currency on expectations of a fed hike. At the same time, German unemployment dropped more than expected in August. The number of people out of work fell by 7,000 in August compared to July. Economists had forecast a decline of 5,000. At the same time, the unemployment rate remained stable at 6.1% in August. The result was in line with expectations. It was the lowest level since German reunification.

In addition, as shown by preliminary estimates from Eurostat, inflation in the eurozone remained stable in August. Inflation remained unchanged at 0.2%, while economists had expected the index to rise slightly to 0.3%. Inflation remains below the target level of the European Central Bank's' below but close to 2 percent since the beginning of 2013. Core inflation, which excludes energy, food, alcohol and tobacco decreased slightly to 0.8% from 0.9% in July. Core inflation was expected to remain at 0.9%.

EUR / USD: during the European session, the pair fell to $ 1.1128

GBP / USD: during the European session, the pair rose to $ 1.3156

USD / JPY: during the European session, the pair rose to Y103.33

"Sentiment toward UK assets has improved, helped by a range of anecdotal and high frequency data that suggest the near-term hit to the UK economy may have been less than many feared. These have centred on retail spending, tourism and manufacturing orders. The news on housing has been less positive. Mortgage approvals for house purchases were weaker last week and there are reports of reduced asking prices and weak activity. The sector is also slowing following a front loading of purchases ahead of changes to buy-to-let and stamp-duty.

We believe that the impact of the Brexit vote will be a slow-burn as a combination of weaker investment and real incomes growth on higher inflation is gradually felt. Political noise may rise on Parliament's return on September 5th. We may get more on the timing of Article 50 and priorities for fiscal policy at the Autumn Statement.

We maintain our negative bias while spot is below 1.35 and expect resistance at 1.3372".

Copyright © 2016 RBS, eFXnews™

Keep in mind that banks are big market makers so when a bank recommends a trade it may also want to attract liquidity in that particular asset. It may signal that something is going to happen with that pair and a move is about to start. Fundamental factors can be interpret in so many ways and for the most of the time fundamentals are already priced in. The only thing that count is what the chart tells you through periods of accumulation or distribution.

EUR/USD

Offers : 1.1150 1.1165 1.1180 1.1200 1.1225-30 1.1250 1.1280 1.1300

Bids : 1.1120 1.1100 1.1080 1.1050 1.1030 1.1000

GBP/USD

Offers : 1.3120 1.3135 1.3150 1.3180 1.3200 1.3235 1.3250 1.3280 1.3300

Bids : 1.3080 1.3065 1.3050 1.3030 1.3000 1.2980 1.2950

EUR/GBP

Offers : 0.8520-25 0.8535 0.8550 0.8565 0.8580 0.8600 0.8625-30 0.8655-60

Bids : 0.8500 0.8480-85 0.8465 0.8450 0.8430 0.8400

EUR/JPY

Offers : 115.20 115.50 115.75 116.00 116.50 117.00

Bids : 114.80 114.50 114.00 113.80 113.50 113.30 113.00

USD/JPY

Offers : 103.50 103.60 103.75-80 104.00 104.45-50 104.75 105.00 105.50

Bids : 103.00 102.80 102.50 102.20 102.00 101.80 101.65 101.50

AUD/USD

Offers : 0.7530 0.7550 0.7580 0.7600 0.7625-30 0.7650 0.7680 0.7700

Bids : 0.7500 0.7485 0.7450 0.7430 0.7400 0.7385 0.7350

There is not too much emotions on the Warsaw market today, both the activity and volatility seem to be subordinated to the core markets. We had a clear example of this in the course of an attempt to stabilize the German DAX, which coincided with the information that Frankfurt Airport was evacuated. Appetites for correction of morning weakness on the German market were undercut and in response our WIG20 went to daily lows. Everything points to the fact that prior to 14:00, and without a help from the core markets the WSE will not stand for serious and validated by turnover changes in the WIG20.

For a little more attention deserves the behavior of companies from the mWIG40 index, that since the hole from June has grown almost 22 percent. Substantial growth momentum suggests that this movement is not exhausted yet.

The second half of today's trading was greeted by the WIG20 index on the level of 1,791 points (-0,37%) and with turnover of PLN 205 mln.

So far the stock indexes in Western Europe traded mixed and little changed registering growth for a second consecutive month.

Earlier today, data showed that German retail sales rose in July by 1.7%, beating expectations for a 0.5% rise after a 0.6% decline in the previous month. However, on an annualized basis, retail sales fell 1.5%.

At the same time, German unemployment dropped more than expected in August. The number of people out of work fell by 7,000 in August compared to July. Economists had forecast a decline of 5,000. At the same time, the unemployment rate remained stable at 6.1% in August. The result was in line with expectations. It was the lowest level since German reunification.

In addition, as shown by preliminary estimates from Eurostat, inflation in the eurozone remained stable in August. Inflation remained unchanged at 0.2%, while economists had expected the index to rise slightly to 0.3%. Inflation remains below the target level of the European Central Bank's' below but close to 2 percent since the beginning of 2013. Core inflation, which excludes energy, food, alcohol and tobacco decreased slightly to 0.8% from 0.9% in July. Core inflation was expected to remain at 0.9%.

Today, market participants are preparing for the release a report for US ADP emplyment data in search of additional signals on the strength of the economy.

On Tuesday, Fed Vice President Stanley Fischer said that the labor market gained almost full capacity, and the rate of increase of the interest rate will depend on the statistical data.

The composite index of the largest companies in the region Stoxx Europe 600 rose 0,2% - to 345.48 points.

Price of Commerzbank AG Bank shares jumped 4.7% on media reports that Germany's biggest bank Deutsche Bank planned to acquire its rival. DB securities increased by 2%.

European banks in general, complete a record month of growth since January 2015, since the first time in a long while quarterly profit of most of them was better than forecasts.

Shares of Anglo American Plc dropped in price by 3%. Earlier, analysts of Clarksons Platou Securities warned that iron ore prices experienced downward pressure.

The Swiss manufacturer Straumann Holding AG lost 4.5% of capitalization on news that its largest shareholder GIC Private Ltd. reduced its stake in the company.

Shares of French mobile operator Iliad rose by 1.9%. The company raised its profit and revenue in the 1st half of the year due to the increase in the number of subscribers.

Shares of Airbus Group grew by 1.2% after the company said that more planes than in the same period of last year were delivered, increasing their chances of achieving their goal for 2016 after previous delays in the supply of parts .

Shares of ARM Holdings rose 0.1% after shareholders approved the offer of $ 32 billion from the Japanese SoftBank Group Corp.

At the moment:

FTSE 6808.11 -12.68 -0.19%

DAX 10638.85 -18.79 -0.18%

CAC 4483.36 25.87 0.58%

• low growth low rate world is a difficult situation

• spike in long run rates unlikely even if Fed finds it needs to raise rates faster than expected

• expects protracted period of low interest rates ahead

The euro area (EA19) seasonally-adjusted unemployment rate was 10.1% in July 2016, stable compared to June 2016 and down from 10.8% in July 2015. This remains the lowest rate recorded in the euro area since July 2011. The EU28 unemployment rate was 8.6% in July 2016, stable compared to June 2016 and down from 9.4% in July 2015. This remains the lowest rate recorded in the EU28 since March 2009. These figures are published by Eurostat, the statistical office of the European Union.

Eurostat estimates that 21.063 million men and women in the EU28, of whom 16.307 million were in the euro area, were unemployed in July 2016. Compared with June 2016, the number of persons unemployed decreased by 29 000 in the EU28 and by 43 000 in the euro area. Compared with July 2015, unemployment fell by 1.688 million in the EU28 and by 1.034 million in the euro area.

Euro area annual inflation is expected to be 0.2% in August 2016, stable compared with July 2016, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in August (1.3%, compared with 1.4% in July), followed by services (1.1%, compared with 1.2% in July), non-energy industrial goods (0.3%, compared with 0.4% in July) and energy (-5.7%, compared with -6.7% in July).

EUR/USD: 1.1175-80 (EUR 750m) 1.1200-05 (629m) 1.1250 (267m) 1.1300 (291m)

USD/JPY:100.00 (USD 610m) 103.00 (370m) 103.19 (200m) 105.00 (440m)

GBP/USD: 1.3000 (GBP 301m)

AUD/USD: 0.7510-15 (AUD 204m) 0.7600-07 (1.8bln)

USD/CAD: 1.2875 (USD 240m) 1.2995-1.3000 (215m)

NZD/USD 0.7210 (NZD 300m)

According to rttnews, Germany's unemployment declined more than expected in August, reports said citing data from the Federal Labor Agency on Thursday.

The number of people out of work decreased by 7,000 in August from July. Economists had forecast a decline of 4,000.

At the same time, the jobless rate held steady at 6.1 percent in August. The rate came in line with expectations. This was the lowest since German reunification.

This morning in New York futures for WTI were down -0.41% to $ 46.16 and Brent oil futures were down -0.57% to $ 48.45 per barrel. Thus, the black gold has fallen in value against the initial dollar strengthen, which continues to be held near three-weeks high. At the same time, published statistics indicated a growth in US oil stocks. The American Petroleum Institute said yesterday that the black gold reserves rose by 942 thousand barrels to 525.2 million for the week ending 26 August.

In order to improve the timeliness of statistical information on the Italian labour market and in accordance with the agreements made within the European Union, Istat publishes monthly estimates of the main labour market indicators resulting from the "Labour force survey". In July 2016, 22,765 million persons were employed, -0.3% compared with June. Unemployed were 2,944 million, -1.3% over the previous month. The unemployment rate declined 0.2% to 11.4%.

At 01:30 GMT the Bank of Japan board member Yukitoshi Funo will deliver a speech

At 07:15 GMT the ECB Board Member Peter Prat will make a speech

At 07:15 GMT FOMC member Eric Rosengren will give a speech

FOMC members Charles Evans will give a speech at 12:00 GMT

The US dollar rose against the yen, updating yesterday's high, reaching Y103.25. Support for the pair gave recent comments by Fed officials that increase the likelihood of a rate hike.

The yen was also affected by negative data on Japan's industrial production. As reported today the growth of industrial production in Japan in July was flat, after rising in June by 2.3%. Analysts had expected an increase of 0.8%. On an annual basis, industrial production fell by -3.8%, lower than the previous value of -1.5%.

Industrial production - an indicator published by the Ministry of Economy, Trade and Industry, that reflects the activity of production plants, factories and mining companies. This indicator has attracted attention because it is the main indicator of the strength and health of the manufacturing sector.

The data published today indicate the slowdown of industrial production growth, despite the efforts of Prime Minister Abe to revive the economy.

Also today, was published the data on the number of housing starts, which in July increased 8.9%, after falling -2.5% in June. This indicator reflects the strength of the Japanese housing market, but also gives an idea about the general state of the economy, because it is very sensitive to changes in the business cycle.

Despite the increase in the number of constructions, the volume of orders in the construction sector decreased year on year by 10.9%, after declining by 2.4% in June.

The pound rose against the dollar for a short time after the publication of more positive than expected data on UK consumer confidence from the GfK Group, which in August fell to -7, while analysts expected a decline to -8. Despite the decline, the index was better than the value of July, when the indicator fell to -12. Consumer confidence is weaker than it was prior to the vote on 23 June when the index stood at -1.

The index of consumer confidence from the GfK Group is a leading indicator that reflects the level of consumer confidence in economic activity. The index is based on a survey of 2,000 people, conducted from August 1-16.

The Australian dollar strengthened slightly on data of private sector lending. Report of the Reserve Bank of Australia showed that the amount of money borrowed by Australian private sector increased by 0.4% in June, after rising 0.2% in May. In annual terms, the indicator fell by 0.2% and amounted to 6.0%. This indicator shows whether the private sector can afford large expenses that will support economic growth and is considered an indicator of business conditions and economic situation in Australia as a whole.

EUR / USD: during the Asian session, the pair was trading in $ 1.1135-1.1165 range

GBP / USD: during the Asian session, the pair was tading in $ 1.3065-1.3115 range

USD / JPY: during the Asian session, the pair was trading in Y102.85-103.20 range

WIG20 index opened at 1797.35 points (-0.05%)*

WIG 47946.59 -0.09%

WIG30 2058.22 -0.21%

mWIG40 3945.54 0.13%

*/ - change to previous close

The future market started to a new day from loss of 0.1% (opening: 1,801 points).

Euroland begins sessions with no surprises, the DAX and the CAC slightly depreciating and after the first deal the Warsaw market adapts to the environment. After a quarter of an hour of the session, the WIG20 index lost 0.33% and fell below 1,800 points. This means a clear shortness of breath around the psychological barrier of 1,800 points. Small trading volumes indicate that we will now follow the core markets in anticipation of the data from the US (ADP employment change report, forecast 171k - 14:15 Warsaw time).

• monetary policy alone is not enough

• Europe needs investment union

• ECB needs to continue current monetary policy

• helicopter money not a good tool for monetary policy

In August 2016, according to the provisional estimate made at the end of the month, the Consumer Price Index (CPI) is set to rise by 0.3% month-on-month, as in August 2015. Prices should be mainly driven by the seasonal increases in the manufactured product prices at the end of the summer sales in Metropolitan France and in some services related to tourism. In addition, food prices should keep on rising slightly, especially owing to fresh foodstuffs. These increases are likely to be partially offset by a further decline in petroleum products prices.

Year-on-year, consumer prices should grow by 0.2%, as in the two previous months. This rise should arise mainly from the dynamism of service prices, partially offset by falls in the prices of energy and manufactured products.

In August 2016, the Harmonised Index of Consumer Prices is set to grow by 0.3% over the month. Year-on-year, it should expand by 0.4%, as in the previous month.

"Insurance against an early hike:

As long as the markets have to deal with the prospect of the Fed hiking rates, the USD should remain supported. However, USD strength should be limited and difficult to trade suggesting to us to look into alternative currency pairs which would rally too should the Fed hike rates early.

We think bullish EUR crosses should do well for other reasons too, but an early Fed rate hike would certainly add to upside momentum.

EURCAD, EURAUD or EURKRW are good candidates to rally from here. Our trade of the week is to be long EURCAD," MS says as a rationale behind this call".

Copyright © 2016 Morgan Stanley, eFXnews

EUR/USD

Resistance levels (open interest**, contracts)

$1.1280 (5033)

$1.1246 (3951)

$1.1196 (1783)

Price at time of writing this review: $1.1145

Support levels (open interest**, contracts):

$1.1103 (2515)

$1.1053 (4327)

$1.1019 (5286)

Comments:

- Overall open interest on the CALL options with the expiration date September, 9 is 51645 contracts, with the maximum number of contracts with strike price $1,1250 (5033);

- Overall open interest on the PUT options with the expiration date September, 9 is 57239 contracts, with the maximum number of contracts with strike price $1,1000 (5764);

- The ratio of PUT/CALL was 1.11 versus 1.10 from the previous trading day according to data from August, 30

GBP/USD

Resistance levels (open interest**, contracts)

$1.3401 (2081)

$1.3302 (2681)

$1.3204 (1613)

Price at time of writing this review: $1.3096

Support levels (open interest**, contracts):

$1.2995 (2084)

$1.2898 (1851)

$1.2799 (2687)

Comments:

- Overall open interest on the CALL options with the expiration date September, 9 is 32662 contracts, with the maximum number of contracts with strike price $1,3300 (2681);

- Overall open interest on the PUT options with the expiration date September, 9 is 26561 contracts, with the maximum number of contracts with strike price $1,2800 (2687);

- The ratio of PUT/CALL was 0.81 versus 0.82 from the previous trading day according to data from August, 30

* - 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.

Tuesday's session on Wall Street ended with a modest changes in the major indexes. In case of the S&P500 loss was amounted to 0.2 percent. Yesterday, the German DAX was dominated by the weakening of the euro against the dollar, which usually is perceived as positive for the German shares. On the morning trading the markets of Euroland may therefore affect two factors - bearish session in the US and night strengthening of the euro against the dollar. The Warsaw market reacts positively to the good attitude of other emerging markets, but may here be a risk in the form of sensitivity of emerging markets for signals impending hike of the US interest rates.

In macro calendar particularly important during today's session will be an indication of ADP (exp. 171k), since the last signals from the J. Yellen most of the markets are waiting for Friday's US Labor Department report, which is seen in terms of tips on what on 21 of September Fed will do. There is also no other reports today, which could have some serious significance.

Today's morning trading on the currency market brings an attempt to stabilize the valuations of PLN after recent discounts. Polish currency is quoted on the market as follows: PLN 4.3586 per euro, PLN 3.9068 against the US dollar. The profitability of Polish debt rose to 2.746% in case of 10-year bonds.

The growth of industrial production in Japan in July was flat, after rising in June by 2.3%. Analysts had expected an increase of 0.8%. On an annual basis, industrial production fell by -3.8%, lower than the previous value of -1.5%.

Industrial production - an indicator published by the Ministry of Economy, Trade and Industry, that reflects the activity of production plants, factories and mining companies. This indicator has attracted attention because it is the main indicator of the strength and health of the manufacturing sector.

The data published today indicate the slowdown of industrial production growth, despite the efforts of Prime Minister Abe to revive the economy.

In July, the UBS consumption indicator rose to 1.32 points from 1.21. A slight downward adjustment of the June figure and above-average car sales generated the increase. However, the disappointing June figures for tourism and sluggish consumer sentiment slightly curbed this upward trend.

The rise of the UBS consumption indicator to 1.32 from 1.21 still suggests a boost in Swiss private consumption, but is qualified by the downward adjustment of the June figure. The revision resulted from the much lower number of overnight hotel stays of Swiss guests in June than first projected. The dismal weather severely dampened the general desire to take a vacation, resulting in a 3.3% reduction in overnight stays compared to the previous year.

House prices increased by 0.6% in August.

Annual house price growth increased to 5.6%, from 5.2% in July.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: "UK house prices increased by 0.6% in August, resulting in a slight pick up in the annual rate of house price growth to 5.6%, from 5.2% in July, although this remains within the 3- 6% range prevailing since early 2015. "The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months. New buyer enquiries have softened as a result of the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. The number of mortgages approved for house purchase fell to an eighteen-month low in July.

However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to thirty-year lows. This helps to explain why the pace of house price growth has remained broadly stable".

According to provisional results of the Federal Statistical Office (Destatis), retail turnover in July 2016 in Germany decreased in real terms 1.5% and in nominal terms 1.2% compared with the corresponding month of the previous year. The number of days open for sale was 26 in July 2016 and 27 in July 2015.

Compared with the previous year, turnover in retail trade was in the first seven months 2016 in real terms 1.7% and in nominal terms 1.9% larger than in in the corresponding period of the previous year.

When adjusted for calendar and seasonal variations, the July turnover was in real terms 1.7% and in nominal terms 1.8% larger than that in June 2016.

Stocks in the U.K. ended modestly lower in choppy trade Tuesday as mining shares slumped as the dollar strengthened to multiweek highs, dragging down commodities priced in the currency.

The FTSE 100 UKX, -0.25% lost 0.3% to finish at 6,820.79. Trading was closed Monday for a late-August bank holiday.

While a stronger U.S. economy should be supportive for global growth, the FTSE 100 on Tuesday was "held back by a strong dollar, with the fallers' board looking like a who's who of mining firms," said IG market analyst Joshua Mahony in a note.

U.S. stocks closed slightly lower Tuesday as investors weighed additional comments from Federal Reserve members that emphasized the central bank's intention to raise interest rates sooner rather than later.

The S&P 500 index SPX, -0.20% closed down 4.26 points, or 0.2%, at 2,176.12. Among the S&P 500's 10 sectors, only the financial sector ended the day in positive territory, scoring a 0.8% gain on the prospect of higher interest rates. Utilities led the charge lower with a 1% decline.

The Dow Jones Industrial Average DJIA, -0.26% declined 48.69 points, or 0.3%, to close at 18,454.30. Shares of banks Goldman Sachs Group Inc. GS, +1.90% and J.P. Morgan Chase & Co. JPM, +0.82% led the index's gainers, while shares of Boeing Co. BA, -1.57% topped blue-chip decliners.

Meanwhile, the Nasdaq Composite Index COMP, -0.18% shed 9.34 points, or 0.2%, to finish at 5,222.99. Overall trade remained subdued and rangebound.

Asian shares eased on Wednesday following modest losses on Wall Street, with investors awaiting U.S. jobs numbers for further signs the Federal Reserve may raise rates as soon as September.

The growing prospect for an imminent rate hike lifted the dollar against major currencies such as the yen.

Japan's Nikkei stock index .N225 added 0.8 percent, poised to rise 1.7 percent for the month, boosted by a weaker yen after upbeat U.S. data lifted the dollar overnight. Sluggish domestic data that increased the prospect of further easing by the Bank of Japan also supported stocks.

Japanese industrial output was flat in July from June, data showed earlier on Wednesday, underscoring fragility in factory activity and falling short of economists' median forecast for a 0.8 percent rise.

(raw materials / closing price /% change)

Oil 46.26 -0.19%

Gold 1,313.80 -0.21%

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

Nikkei 225 16,725.36 -12.13 -0.07%

Shanghai Composite 3,076.20 +6.17 +0.20%

S&P/ASX 200 5,478.29 +9.07 +0.17%

FTSE 100 6,820.79 -17.26 -0.25%

CAC 40 4,457.49 +33.24 +0.75%

Xetra DAX 10,657.64 +113.20 +1.07%

S&P 500 2,176.12 -4.26 -0.20%

Dow Jones Industrial Average 18,454.30 -48.69 -0.26%

S&P/TSX Composite 14,684.85 +2.88 +0.02%

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

EUR/USD $1,1143 -0,39%

GBP/USD $1,3079 -0,20%

USD/CHF Chf0,9834 +0,54%

USD/JPY Y102,97 +1,06%

EUR/JPY Y114,75 +0,68%

GBP/JPY Y134,68 +0,86%

AUD/USD $0,7511 -0,84%

NZD/USD $0,7221 -0,44%

USD/CAD C$1,309 +0,62%

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

01:00 Australia RBA Assist Gov Debelle Speaks

01:00 New Zealand ANZ Business Confidence August 16

01:30 Australia Private Sector Credit, m/m July 0.2% 0.4%

01:30 Australia Private Sector Credit, y/y July 6.2%

05:00 Japan Construction Orders, y/y July -2.4%

05:00 Japan Housing Starts, y/y July -2.5% 7.4%

06:00 United Kingdom Nationwide house price index August 0.5% -0.3%

06:00 United Kingdom Nationwide house price index, y/y August 5.2% 4.8%

06:00 Germany Retail sales, real adjusted July -0.1% 0.5%

06:00 Germany Retail sales, real unadjusted, y/y July 2.7% 0.3%

06:00 Switzerland UBS Consumption Indicator July 1.34

07:55 Germany Unemployment Rate s.a. August 6.1% 6.1%

07:55 Germany Unemployment Change August -7 -5

09:00 Eurozone Unemployment Rate July 10.1% 10.0%

09:00 Eurozone Harmonized CPI, Y/Y (Preliminary) August 0.2% 0.3%

09:00 Eurozone Harmonized CPI ex EFAT, Y/Y (Preliminary) August 0.9% 0.9%

12:15 U.S. ADP Employment Report August 179 175

12:30 Canada GDP (m/m) June -0.6% 0.4%

12:30 Canada GDP QoQ Quarter II 0.6%

12:30 Canada GDP (YoY) Quarter II 2.4% -1.5%

13:45 U.S. Chicago Purchasing Managers' Index August 55.8 54.0

14:00 U.S. Pending Home Sales (MoM) July 0.2% 0.6%

14:30 U.S. Crude Oil Inventories August 2.501

23:30 Australia AIG Manufacturing Index August 56.4

23:50 Japan Capital Spending June 4.2% 5.6%