Euro exchange rate rose significantly against the U.S. dollar, which has been associated with the publication of the U.S. jobs report. It is learned that U.S. employers added jobs at a slower pace in July, offering a more stable, but not spectacular economic growth in the summer. Employment in the U.S. increased by 162,000 last month, the Labor Department said. The unemployment rate fell two-tenths of a percentage point to 7.4%, its lowest level since December 2008. Economists had expected an increase of 180,000, while the unemployment rate to 7.5%.

The last image in the labor market shows that slow economic growth may put pressure on the employers. Raising taxes, reducing government spending and slower growth abroad, holding back the economy for several months, although the pace of hiring to be strong this year.

The Labor Department revised down job totals for the previous two months to 26,000 in total. Over the past 12 months, the economy added an average of 189,000 jobs per month, enough to slow down the unemployment rate from 8.2% level in July 2012.

Economic growth in the last year has been anemic, prompting the Federal Reserve on Wednesday to leave the place of his $ 85 billion per month bond-buying program. The economy grew by 1.4% year on year in the first half of the year.

Note that the central bank is monitoring developments in the labor market, to take the next step to buy bonds, which are designed to keep interest rates and stimulating investment and employment. If companies continue to hire and unemployment falls, the Fed may begin to curtail the program this year.

The British pound rose against the dollar after strong data on construction PMI. Activity in the construction sector in the UK in July jumped to its highest level in more than three years amid a sharp revival of activity in the housing. This was yet another confirmation that the nascent economic recovery will continue. According to Markit and the Chartered Institute of Purchasing & Supply, Purchasing Managers Index (PMI) for the construction sector in the UK in July rose to 57.0, its highest level since June 2010, against 51.0 in June. As shown by PMI for the construction sector, the volume of new orders rose at the fastest pace in more than a year, and employment growth was the strongest since December 2011.

In addition, another report showed that UK house prices in July rose to a five-year high - it was the tenth consecutive increase due to government intervention, which increased demand and fears of the emergence of another bubble in the housing market, according to Nationwide. The housing price index rose by 0.8% m / m and 3.9% y / y The last time prices rose faster in July 2010 by 6.6%. Economists had forecast a growth rate of 0.4% m / m and 3.1% y / y In June, prices rose by 0.3% m / m and 1.9% y / y This means that the average price of an apartment house in the UK was £ 170,825 in July - with up to June 2008, when it was 172,415 lbs.

The Australian dollar fell to a three-year low on expectations that next week, with the Reserve Bank of Australia may lower the level of the discount rate. Earlier, the head of the RBA Governor Glenn Stevens found insufficient depreciation of the Australian dollar by 12% over the past three months, so it is advised of the possibility of further interest rate cuts. In this regard, investors see a 95% chance that the RBA will cut interest rates by a quarter percentage point to 2.5% at the meeting, which will take place on August 6.

European stocks advanced for a fifth day, extending a nine-week high, as company earnings beat estimates and investors studied U.S. jobs data for indications of when the Federal Reserve will start to pare stimulus.

The Stoxx Europe 600 Index rose 0.3 percent to 304.24 at 4:30 p.m. in London. The measure added 1.8 percent this week as central banks maintained their stimulus and investors weighed company results. It has gained 10 percent since a low on June 24 amid growing optimism that the Fed won’t reduce its bond purchases until the economy gains substantial traction.

U.S. employers added fewer workers than anticipated in July as the jobless rate dropped to 7.4 percent, data showed today. The 162,000 increase in payrolls last month followed a revised 188,000 increase in June that was less than initially estimated, Labor Department figures showed in Washington. The median forecast of economists called for a 185,000 gain.

European Central Bank President Mario Draghi said this week economic indicators signal the euro region is past the worst of its longest-ever recession. The euro-area unemployment rate remained unchanged in June amid increasing signs the economy is emerging from its longest-ever recession, a European Union report showed, also this week.

UBS AG upgraded its rating of the equity markets in Europe, excluding the U.K., to neutral from underweight. The bank cited an improving economy and availability of credit, coupled with reduced levels of fiscal austerity.

National benchmark indexes rose in 12 of the 18 western European markets.

FTSE 100 6,647.87 -34.11 -0.51% CAC 40 4,045.65 +2.92 +0.07% DAX 8,406.94 -3.79 -0.05%  

Of the nine Stoxx 500 companies that reported earnings today, five beat profit forecasts, while seven exceeded projections for sales.

Axa climbed 2.4 percent to 17.16 euros, its highest price since April 2010. Europe’s second-largest insurer posted first-half operating income of 2.58 billion euros ($3.41 billion), above the 2.38 billion-euro average forecast. Net income fell a less-than-estimated 3 percent.

Allianz SE (ALV) advanced 0.9 percent to 119.95 euros. Europe’s largest insurer said second-quarter net income rose 27 percent to 1.59 billion euros from a year earlier. That exceeded the 1.33 billion-euro average estimate of analysts. The company also said the top end of its target range for operating profit this year.

Man (EMG) jumped 9.5 percent to 91.45 pence, for its largest rally since May 3. The world’s biggest publicly traded hedge-fund manager said first-half adjusted pretax profit increased 9.8 percent to $134 million, with fees for investment gains more than tripling to $90 million.

IAG rose 6.9 percent to 317.5 pence. The parent of British Airways posted operating profit before one-time items of 245 million euros, compared with a 4 million-euro loss in the year-earlier period.

RBS Falls

Deutsche Lufthansa AG, Europe’s second-largest airline, slid 5 percent to 14.68 euros, a three-month low. First-half operating profit plunged 69 percent to 72 million euros, missing the average analyst estimate for 139 million euros.

The price of oil has dropped considerably today, after reaching a four-month high, which was associated with the publication of employment data that were below expectations.

According to a report released by the Ministry of Labor, employment in non c / U.S. agricultural sector increased in July, less than economists expected, although the unemployment rate fell to its lowest level in more than four years.

The Labor Department said that in the non-agricultural sector employment increased by 162,000 jobs in July after a downwardly revised increase of 188,000 jobs in June.

Economists had expected employment to increase by about 180,000 jobs compared to the addition of 195,000 jobs, which was originally reported in the previous month.

Number of budget jobs in the U.S. in July increased by 1 thousand, and federal declined by 2 million The number of jobs in the manufacturing sector in July rose by 6 thousand in services increased by 158 thousand number of jobs in the private sector grew in July by 161 thousand

Despite the weaker-than-expected job growth, the unemployment rate fell to 7.4 percent in July from 7.6 percent in June. The unemployment rate is expected to drop to 7.5 percent.

In addition, we add that to the dynamics of trade affected by information that in July oil production in the Organization of Petroleum Exporting Countries fell against the background of new challenges with the production in Iraq and Libya.

According to studies, the average crude oil production of OPEC in July amounted to 30.335 million barrels a day, down 201,000 barrels per day less than the revised production level of 30.536 million barrels a day in June.

In addition, it was reported that production in Iraq dropped by 220,000 barrels per day after a prolonged disruption of the oil pipeline in Kirkuk. Protests employees oil terminals in Libya has led to the fact that in the past month, production was reduced by an average of 50,000 barrels per day. However, the oil minister of Libya Abdelbari al-Arussi on Wednesday said that in the last days of Libyan oil exports fell by 70% due to increased violence.

In JBC Energy GmbH point out that the problems with the supply of oil from Libya are likely to continue. According to the agency's analysts, oil production in Nigeria in July remained at a low level, by about 600,000 barrels a day of oil production capacity available below. This is due to sabotage and theft of oil.

Iran, the student news agency ISNA quoted earlier Rouhani said:. "Zionist regime wound that was sitting on the body of the Muslim world for many years and must be removed"

The cost of the September futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 106.84 dollars a barrel on the New York Mercantile Exchange.

September futures price for North Sea Brent crude oil mixture fell to $ 108.87 a barrel on the London exchange ICE Futures Europe.

Gold prices rose sharply, cutting off at the same decline that was recorded earlier. Note that the recovery of gold helped mixed signals about the U.S. labor market, which reduced the likelihood that the Federal Reserve will begin to reduce the amount of the asset purchase program next month.

It is learned that U.S. employers added jobs at a slower pace in July, offering a more stable, but not spectacular economic growth in the summer. Employment in the U.S. increased by 162,000 last month, the Labor Department said on Friday. The unemployment rate fell two-tenths of a percentage point to 7.4%, its lowest level since December 2008. Economists had expected an increase of 180,000, and a decrease in the unemployment rate to 7.5%.

The latest report on the labor market shows that slow economic growth may put pressure on the employers. Raising taxes, reducing government spending and slower growth abroad, holding back the economy for several months, although the pace of hiring to be strong this year. In addition, it was reported that the Department of Labor revised down jobs totals for the previous two months to 26,000 in total. Over the past 12 months, the economy added an average of 189,000 jobs per month, enough to slow down the unemployment rate from 8.2% level in July 2012.

We also add that weak economic growth prompted the Fed to leave unchanged the amount of asset-purchase program. The economy grew by 1.4% year on year in the first half of the year.

Also today, it was reported that gold holdings in SPDR Gold Trust - the largest gold exchange-traded fund in the world, fell on Thursday by 0.7% to 921.05 tons, reaching in this four-year lows.

The cost of the August gold futures on COMEX today rose to $ 1312.70 per ounce.

With a drop in orders for non-durable goods partly offsetting a jump in orders for durable goods, the Commerce Department released a report on Friday showing that new orders for manufactured goods rose by less than expected in the month of June.

The Commerce Department said factory orders increased by 1.5 percent in June following a revised 3.0 percent increase in May. Economists had been expecting orders to rise by about 2.3 percent.

The increase in factory orders in June was largely due to a 3.9 percent increase in orders for durable goods, which came on the heels of a 5.5 percent jump in the previous month.

Orders for transportation equipment drove the increase in durable goods orders, surging up by 12.0 in June after soaring by 15.1 percent in May.

Excluding the jump in orders for transportation equipment, factory orders actually fell by 0.4 percent in June compared to a 1.0 percent increase in May.

The drop in ex-transportation orders in June was partly due to a 0.6 percent drop in orders for non-durable goods, which came on the heels of a 0.8 percent increase in the previous month.

The report also showed that shipments of manufactured goods fell by 0.4 percent in June following a 1.0 percent increase in May. Shipments fell for the third time in the past four months.

Meanwhile, inventories of manufactured goods inched up by 0.1 percent in June after edging down by 0.1 percent in May. Inventories have risen in six of the last seven months.

Even with inventories rising and shipments falling, the inventories-to-shipments ratio was unchanged from the previous month at 1.30 in June.

Switzerland's manufacturing sector expanded for the fourth successive month in July, and at a significantly faster pace than in the previous month, data from a survey compiled by Credit Suisse showed Friday.

The seasonally adjusted purchasing managers' index for the manufacturing sector climbed to 57.4 in July from 51.9 in June, and stayed above the no-change 50 mark - which indicates unchanged activity - for the fourth consecutive month.

Economists were looking for a reading of 52.4 for July. The latest score was the highest since May 2011, data showed.

Driving the pick up in activity, new orders placed with Swiss manufacturers increased further in July, and at the fastest pace in around two years. In line with the upturn in new business, production growth also accelerated to levels last seen around two years ago.

At the same time, supplier delivery times increased and stocks of finished goods decreased, reflecting higher production capacity utilization. Responding to the increase in activity, Swiss goods producers halted their cutbacks in workforces, the survey showed.

U.S. stock-index futures were little changed as employers added fewer workers than anticipated in July even as the jobless rate dropped to 7.4%.

Global Stocks:

Nikkei  14,466.16 +460.39 +3.29%

Hang Seng 22,190.97 +102.18 +0.46%

Shanghai Composite 2,029.42 +0.35 +0.02%

FTSE  6,631.83 -50.15 -0.75%

CAC  4,033.95 -8.78 -0.22%

DAX 8,388.52 -22.21 -0.26%

Crude oil $107.23 -0.61%

Gold $1312.80 +0.12%

With personal spending in the U.S. rising at a faster rate than personal income in the month of June, the Commerce Department released a report on Friday showing a notable drop in the personal savings rate.
The report said personal spending increased by 0.5 percent in June after edging up by 0.2 percent in May. The increase in spending exceeded economist estimates for a 0.4 percent increase.
Additionally, the Commerce Department said personal income rose by 0.3 percent in June following a 0.4 percent increase in May. Economists had expected income to increase by 0.4 percent.
With spending rising at a faster rate than income, personal saving as a percentage of disposable personal income dropped to 4.4 percent in June from 4.6 percent in May.

Employment in the U.S. increased by less than economists had expected in the month of July, according to a report released by the Labor Department on Friday, although the unemployment rate still fell to its lowest level in over four years.

The Labor Department said non-farm payroll employment increased by 162,000 jobs in July following a downwardly revised increase of 188,000 jobs in June.

Economists had expected employment to increase by about 175,000 jobs compared to the addition of 195,000 jobs originally reported for the previous month.

Despite the weaker than expected job growth, the unemployment rate dipped to 7.4 percent in July from 7.6 percent in June. The unemployment rate had been expected to edge down to 7.5 percent.

With the bigger than expected decrease, the unemployment rate fell to its lowest level since hitting 7.3 percent in December of 2008.

EUR/USD

Offers $1.3350/55, $1.3345/50, $1.3300/10, $1.3280, $1.3265-70, $1.3227-40

Bids $1.3180, $1.3165/50, $1.3130/20

GBP/USD

Offers $1.5255, $1.5200/10, $1.5175/85

Bids $1.5145/40, $1.5125/20, $1.5100, $1.5080, $1.5060/50

AUD/USD

Offers $0.9020/40, $0.9000/10, $0.8980, $0.8945/50, $0.8920/25

Bids $0.8870, $0.8860/55, $0.8850, $0.8800

EUR/JPY

Offers Y133.00,  Y132.45/50, Y132.00

Bids Y131.25/20, Y131.00, Y130.80/70, Y130.55/50, Y130.25/20

USD/JPY

Offers Y100.35, Y100.15/20, Y100.00, Y99.80

Bids Y99.30/25, Y99.00, Y98.85/80, Y98.60/50, Y98.35/30

EUR/GBP

Offers stg0.8845/50, stg0.8830/35, stg0.8810/15, stg0.8790/00

Bids stg0.8705/00, stg0.8680/75, stg0.8645/50, stg0.8625/20, stg0.8605/00

European stocks climbed for a fifth day, extending a nine-week high, as companies from Allianz SE to Axa SA reported earnings that beat estimates and investors awaited data that may show job gains in America.

Investors awaited the official U.S. payrolls report due at 8:30 a.m. in Washington. Employers added a net 185,000 workers in July, after hiring 195,000 in the previous month, according to the median estimate in a survey. Economists also predicted that the unemployment rate dropped to 7.5 percent.

UBS AG upgraded its rating of the equity markets in Europe, excluding the U.K., to neutral from underweight. The bank cited improving macro-economic momentum and availability of credit, coupled with reduced levels of fiscal austerity in the region.

Allianz advanced 1.4 percent to 120.55 euros. Europe’s largest insurer said second-quarter net income rose 27 percent to 1.59 billion euros ($2.1 billion) from a year earlier. That exceeded the 1.33 billion-euro average estimate of 12 analysts surveyed by Bloomberg. The company also said the top end of its target range for operating profit this year.

“We are maintaining our operating-profit outlook for 2013 of 9.2 billion euros, plus or minus 500 million euros, although based on our current projections, we see the figure more toward the upper end of this range,” CEO Michael Diekmann said.

AXA SA climbed 3.4 percent to 17.33 euros, its highest price since April 2010. Europe’s second-largest insurer posted first-half operating income of 2.58 billion euros, above the 2.38 billion-euro average forecast. Net income fell a less-than-estimated 3 percent.

FTSE 100 6,675.01 -6.97 -0.10%

CAC 40 4,051.7 +8.97 +0.22%

DAX 8,418.52 +7.79 +0.09%

Activity in the British construction sector increased at the fastest pace in more than three years in July, data from a survey by Markit Economics and the Chartered Institute of Purchasing and Supply showed Friday. The growth rate also far exceeded economists' expectations.

The seasonally adjusted purchasing managers' index for the construction sector climbed to 57 in July from 51 in June, hitting the highest level since June 2010. Economists were looking for a score of 51.5.

The index has now stayed above the neutral mark of 50, which indicates unchanged activity, for the third consecutive month. The upturn in overall activity was driven by the strength of residential construction, which increased at the fastest pace in three years.

Higher levels of business activity were recorded in all three broad areas of the construction sector, with residential building activity surging to its steepest since June 2010. Civil engineering activity returned to expansion in July, and commercial construction output rose at the most marked pace since May 2012.

New orders received by construction firms increased for the third successive month, and at the steepest rate since April 2012, helped by a marked improvement in demand within the house building sector.

In line with the pick up in activity, firms raised their employment levels further during the month. The rate of job creation was the strongest since December 2011.

Eurozone producer prices rose 0.3 percent in June from a year ago, reversing May's 0.2 percent fall, Eurostat reported Friday. The rate matched economists' expectations.

The industrial producer price index remained stable on a monthly basis as expected by economists, following a 0.3 percent drop in May.

In the EU27, producer prices remained flat from a month ago, while it grew 0.6 percent on a yearly basis.

Non-durable consumer goods prices rose 2.3 percent and durable consumer goods prices gained 0.7 percent. Capital goods grew 0.6 percent, while cost of intermediate goods decreased 0.4 percent. The decline in prices in the energy sector slowed to 0.6 percent from 1.9 percent.

EUR/USD $1.3100, $1.3190, $1.3200, $1.3250, $1.3260, $1.3270, $1.3300

YSD/JPY Y98.00, Y98.35, Y98.80, Y99.00, Y99.50, Y100.00, Y100.50

GBP/USD $1.5100, $1.5250

GBP/AUD A$1.6650

USD/CHF Chf0.9350, Chf0.9380

EUR/CHF Chf1.2200, Chf1.2300

AUD/UCD $0.8900, $0.9000

EUR/AUD A$1.4600

USD/CAD C$1.0320, C$1.0350, C$1.0400, C$1.0450

Asian stocks rose, paring the regional benchmark index’s first weekly drop since June, as global manufacturing reports beat forecasts and central banks vowed to maintain stimulus.

Nikkei 225 14,466.16 +460.39 +3.29%

Hang Seng 22,138.93 +50.14 +0.23%

S&P/ASX 200 5,116.76 +55.27 +1.09%

Shanghai Composite 2,029.42 +0.35 +0.02%

Honda Motor Co., which gets about 83 percent of sales outside of Japan, advanced 2.9 percent, pacing gains among exporters.

Sharp Corp., which supplies screens to Apple Inc., rose 3.4 percent in Tokyo after posting a narrower loss than expected.

Hutchison Whampoa Ltd., controlled by Asia’s richest person Li Ka-shing, jumped 4.3 percent in Hong Kong after reporting profit that surpassed expectations amid growth at its infrastructure business.

01:30 Australia Producer price index, q / q Quarter II +0.3% +0.5% +0.1%

01:30 Australia Producer price index, y/y Quarter II +1.6% +1.6% +1.2%

The dollar headed for weekly gains against all its major peers as improvements in the U.S. economy added to the case for the Federal Reserve to slow the pace of bond purchases which tend to debase the currency.

The greenback rebounded from the lowest in six weeks versus the euro before the Labor Department releases employment data for July, following U.S. reports showing claims for jobless benefits fell to a five-year low and manufacturing expanded faster than analysts estimated. U.S. employers probably added 185,000 jobs in July, following a 195,000 gain in June, according to the median forecast of economists in a Bloomberg News poll ahead of the Labor Department’s figures today. The jobless rate probably declined to 7.5 percent from 7.6 percent.

Data yesterday showed initial claims for jobless benefits unexpectedly fell by 19,000 to 326,000 in the week ended July 27, the fewest since January 2008. The Institute for Supply Management’s U.S. factory index increased to 55.4, the strongest since June 2011 and exceeding the highest projection from economists. Readings above 50 indicate expansion.

Australia’s dollar dropped to the lowest in almost three years before a meeting next week when Reserve Bank policy maker are expected to cut interest rates to a record low. Traders agree, seeing a 95 percent chance of a reduction, according to interest-rate swaps data compiled by Bloomberg.

Demand for the shared currency was limited after European Central Bank President Mario Draghi said yesterday policy makers expect interest rates in the region to stay low for an extended period.

EUR / USD: during the Asian session the pair traded in a range of $ 1.3185-25

GBP / USD: during the Asian session the pair traded in a range of $ 1.5100-30

USD / JPY: during the Asian session the pair traded in a range of Y99.20-70

French July car registrations are expected to be released at 0700GMT, with Spain's July unemployment numbers expected at the same time. Spanish unemployment is seen down 75,000 on the month. At 0702GMT, the EMU June PPI numbers will be published, with analysts looking for an unchanged number on month and a rise of 0.3% on year. With the week's central bank meetings behind us, the focus turns to the main data release of the week - possibly the month - the US employment reports. However, ahead of the jobs numbers crossing the wires, there is some limited data in Europe. At 0600GMT, the August Nationwide House Price Index will be released and is expected to underline the continued pick up in UK house prices as the latest government schemes to underpin the housing sector continue. Economists are expecting a rise of 0.4% on month and 3.1% on year. The UK July CIPS/Markit Construction PMI data will cross the wires at 0830GMT, with expectations for a reading of 51.5 against 51.0 in June. At 1400GMT, the US June Factory Orders numbers will be released. At 1615GMT, the St Louis Federal Reserve Bank President James Bullard will give a speech on the economy, followed by a press briefing, in Boston. Across the Atlantic, there is a raft of US data expected at 1230GMT, including June Personal Income numbers, June PCE Price Index and the July Non-farm Payrolls numbers.

Change % Change Last

GOLD 1,310.00 -2.40 -0.18%

OIL (WTI) 107.75 2.72 2.59%

Nikkei 225 14,005.77 337,45 2,47%

Hang Seng 22,054.87 171,21 0,78%

S & P / ASX 200 5,061.49 9,51 0,19%

Shanghai Composite 2,029.07 35,27 1,77%

FTSE 100 6,681.98 +60.92 +0.92%

CAC 40 4,042.73 +50.04 +1.25%

DAX 8,410.73 +134.76 +1.63%

Dow +127.33 15,626.87 +0.82%

Nasdaq +49.37 3,675.74 +1.36%

S&P +21.1 1,706.83 +1.25%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3209 -0,67%

GBP/USD $1,5116 -0,53%

USD/CHF Chf0,9364 +1,08%

USD/JPY Y99,49 +1,52%

EUR/JPY Y131,43 +1,15%

GBP/JPY Y150,40 +0,81%

AUD/USD $0,8935 -0,96%

NZD/USD $0,7897 -0,99%

USD/CAD C$1,0350 +0,69%

01:30 Australia Producer price index, q / q Quarter II +0.3% +0.5% +0.1%

01:30 Australia Producer price index, y/y Quarter II +1.6% +1.6% +1.2%

06:00 United Kingdom Nationwide house price index July +0.3% +0.4%

06:00 United Kingdom     Nationwide house price index, y/y July +1.9% +3.1%

07:00 United Kingdom Halifax house price index July +0.6% +0.3%

07:00 United Kingdom Halifax house price index 3m Y/Y July +3.7%

07:30 Switzerland Manufacturing PMI July 51.9 53.1

08:30 United Kingdom PMI Construction July 51.0 51.6

09:00 Eurozone Producer Price Index, MoM June -0.3% +0.1%

09:00 Eurozone Producer Price Index (YoY) June -0.1% +0.3%

12:30 U.S. Average workweek July 34.5 34.5

12:30 U.S. Average hourly earnings July +0.4% +0.2%

12:30 U.S. Personal Income, m/m June +0.5% +0.5%

12:30 U.S. Personal spending June +0.3% +0.5%

12:30 U.S. PCE price index ex food, energy, m/m June +0.1% +0.1%

12:30 U.S. PCE price index ex food, energy, Y/Y June +1.1% +1.1%

12:30 U.S. Unemployment Rate July 7.6% 7.5%

12:30 U.S. Nonfarm Payrolls July 195 180

14:00 U.S. Factory Orders June +2.1% +2.3%

16:15 U.S. FOMC Member James Bullard Speaks