The European single currency rose sharply against the U.S. dollar against the speech by ECB President Mario Draghi 's press conference and obtain a vote of confidence in the government of Italian Prime Minister Letty . Former Prime Minister Silvio Berlusconi has changed his position , supporting the ruling coalition on Wednesday, after the weekend ordered the five ministers of his political party to leave their posts.

At a press conference after the ECB decided to leave rates unchanged at 0.5 % in October , Mario Draghi said that the rates will be left at this level or even lower for a long time. Central Bank will keep accommodative policy to support economic activity in the eurozone. Inflation in the euro area is low and should remain at this level in the coming months. Upside inflation risks associated with high indirect taxes and raw materials, and the downside risks stem from weaker growth. During a session of questions and reports Mario Draghi reiterated that the Governing Council of the ECB rate cuts discussed during the meeting. He also assured that the Central Bank was prepared to use all available tools , including the LTRO, to stimulate lending.

The pressure on the dollar strengthened after data showed that the number of jobs in the private sector in September rose less sharply than expected. According to ADP, the number of jobs increased by 166,000 last month.

The pound rose against the dollar amid anxiety caused by negative developments in respect of the U.S. budget . Recall that has not resolved the issue with the U.S. debt limit increase . In order to avoid a default that could happen on October 17 , Republicans in the Senate and the Democrats in the White House to reach an agreement .

Note that the pound could not prevent even the weak data on the UK , which showed that up to September growth in the UK construction sector unexpectedly slowed.

According to the report, the purchasing managers' index for the construction sector fell in September to a level of 58.9 , up from 59.1 in August. Recall that the August figure was highest in six months. Add that to the experts according to the average value of the index was to rise to the level of 60.1 . However , despite the decline , the index remains above the 50 mark for the fifth consecutive month , signaling a dramatic expansion of the total production in the construction sector.

Meanwhile , the data showed that all three of the construction sector recorded a higher level of activity in September. Residential construction was the strongest with branches , and the last production growth was the fastest since November 2003 . Commercial construction , meanwhile, increased by the highest rate since May 2012 , and the growth of civil construction activity fell , retreating with the August high .

European stocks declined the most in more than a month as the shutdown of the U.S. federal government entered its second day.

The Stoxx Europe 600 Index slipped 0.7 percent to 310.79 at the close in London, its biggest slide since Aug. 30.

European Central Bank policy makers meeting in Paris left their benchmark interest rate unchanged at a record low of 0.5 percent. That matched the forecasts of all 52 economists surveyed by Bloomberg News. ECB President Mario Draghi refrained from saying that the euro area needs further help from the central bank to support its economic recovery.

National benchmark indexes retreated in 12 of the 18 western-European markets. The U.K.’s FTSE 100 fell 0.4 percent, Germany’s DAX lost 0.7 percent and France’s CAC 40 Index retreated 0.9 percent.

Italy’s FTSE MIB added 0.7 percent as Prime Minister Enrico Letta won a confidence vote in parliament. During a debate before the vote, Berlusconi said that he would support Letta. The former premier had withdrawn the People of Liberty’s five ministers from the cabinet on Sept. 28, prompting Letta to call today’s vote in an attempt to rebuild a parliamentary majority.

Hochtief slid 7.9 percent to 60.20 euros after the Sydney Morning Herald reported allegations of corruption at its Australian construction unit Leighton Holdings Ltd. The newspaper cited internal company files. Hochtief spokesman Christian Gerhardus declined to comment to Bloomberg News on the Australian newspaper’s report.

KappAhl slumped 9.8 percent to 38.80 kronor after it proposed paying no dividend. The company also announced fiscal fourth-quarter net income of 7 million kronor ($1.1 million).

Portugal’s PSI 20 Index (PSI20) gained 0.9 percent as Portugal Telecom, which accounts for 11 percent of the benchmark measure, surged 6.5 percent to 3.62 euros. The country’s largest phone company said that the merger will generate additional revenue and savings from cost cutting totaling 1.8 billion euros ($2.5 billion). “The merger will consolidate the position of both companies as the leading operator for Portuguese-speaking countries,” Portugal Telecom said in a statement.

Banco Espirito Santo SA jumped 4 percent to 84 euro cents. The lender owns a 10 percent stake in Portugal Telecom, according to data compiled by Bloomberg.

Intesa Sanpaolo SpA, Italy’s second-biggest bank, jumped 4.7 percent to 1.69 euros. Societe Generale SA, France’s second-largest bank, gained 2.5 percent to 38.80 euros.

West Texas Intermediate crude rose after TransCanada Corp. said it expects to finish construction and begin commissioning the southern portion of its Keystone pipeline expansion by end of October.

The spread between WTI and Brent oil, the European benchmark, narrowed on speculation that completion of the link will help reduce stockpiles at Cushing, Oklahoma, the delivery point for the WTI contract. The 700,000-barrel-a-day pipeline will run to the Texas Gulf Coast from Cushing. Futures extended gains after a government report showed that stockpiles at the hub fell to the lowest level since February, 2012.

WTI crude for November delivery rose $1.49, or 1.5 percent, to $103.53 a barrel at 11:31 a.m. on the New York Mercantile Exchange. The contract slid 0.3 percent to settle at $102.04 yesterday, the lowest close since July 3. The volume of all futures traded was 61 percent above the 100-day average.

Brent oil for November settlement gained 94 cents, or 0.9 percent, to $108.88 a barrel on the London-based ICE Futures Europe exchange. Volume was 3.3 percent lower than the 100-day average. The European benchmark traded at a $5.35 premium to WTI, down from $5.90 yesterday.

Gold prices rebounded from a two-month low amid a weakening dollar and stronger euro .

The European single currency rose after ECB President Mario Draghi said that the stoppage of work of the U.S. government is a threat to the recovery of the U.S. and global economies.

Draghi said that in his possession is " a number of" tools ready for use , if necessary, to support the European economy. But , in spite of the fact that Draghi called dynamic European economy " weak , uneven and unstable ," he declared about any new stimulus measures , such as providing more cheap loans to banks to spur lending and spending.

On Tuesday, the U.S. government suspended its work because of the differences in the budget , which led to the closure of some of the administrative agencies and the provision of unpaid leave almost a million civil servants.

Draghi reiterated his recent comments that the ECB intends to open another long-term line of credit to banks if the interest rates at which banks lend to each other, will exceed the levels which , in the opinion of the ECB, are appropriate.

The cost of the October gold futures on COMEX today rose to $ 1321.00 per ounce.

EUR/USD $1.3430, $1.3500, $1.3525, $1.3530, $1.3550, $1.3590, $1.3600, $1.3615

GBP/USD $1.5950, $1.6000, $1.6035, $1.6100, $1.6200

USD/JPY Y97.00, Y98.00, Y98.50, Y99.00, Y99.40, Y99.50, Y100.20

AUD/USD $0.9350, $0.9600, $0.9610

USD/CAD Cad1.0295

GBP/JPY Y155.50, Y158.85

NZD/USD $0.8360

U.S. stock futures fell as a private jobs report showed companies added fewer jobs than forecast and the government shutdown entered a second day.

Global Stocks:

Nikkei 14,170.49 -314.23 -2.17%

Hang Seng 22,984.48 +124.62 +0.55%

FTSE  6,411.89 -48.12 -0.74%

CAC  4,162.8 -33.80 -0.81%

DAX 8,638.01 -51.13 -0.59%

Crude oil $102.04 0.00%

Gold $1301.70 +1.21%

Upgrades:

Downgrades:

Alcoa (AA) downgraded to Sell from Hold at Deutsche Bank

Other:

Boeing (BA) reiterated with Buy at CRT Capital, targed raised from $123 to $142

Data

01:00 Australia HIA New Home Sales, m/m August -4.7% +3.4%

01:30 Australia Building Permits, m/m August +10.8% -0.7% -4.7%

01:30 Australia Building Permits, y/y August +28.3% +12.3% +7.7%

01:30 Australia Trade Balance August -0.77 -0.45 -0.82

08:30 United Kingdom PMI Construction September 59.1 60.1 58.9

11:00 United Kingdom MPC Member Fisher Speaks

11:45 Eurozone ECB Interest Rate Decision 0.50% 0.50%

The euro exchange rate against the dollar holds tight in anticipation of today's meeting of the European Central Bank , which will be held in Paris for the first time after the statements of the president of the Central Bank , Mario Draghi , the willingness to introduce additional cash into the banking system . We also note that in today's meeting, the ECB left the main refinancing rate unchanged at a record low of 0.5 percent.

Note that , according to experts , Mario Draghi will once again rely on the power of his voice , but will not announce a change of policy . He will try to regulate European banks in the early stages of economic recovery.

"The President of the ECB will refrain from the larger volume of the infusion of money into the financial system to the currency bloc as long as the promise of future action keeps interest rates on the market under control," - said economists from Berenberg Bank to Nomura International Plc. - "Last week, Draghi told investors that the launch of the long-term refinancing operations is possible, but other politicians at the moment deny this possibility ."

Meanwhile, we note that many market participants are awaiting today's release of statistics on the employment market in the United States . According to the median forecast of economists , the September change in the number of employees from ADP, will exceed the previous value and will make 177 thousand new jobs.

The pound rose against the dollar amid anxiety caused by negative developments in respect of the U.S. budget . Recall that has not resolved the issue with the U.S. debt limit increase . In order to avoid a default that could happen on October 17 , Republicans in the Senate and the Democrats in the White House to reach an agreement .

Note that the pound could not prevent even the weak data on the UK , which showed that up to September growth in the UK construction sector unexpectedly slowed.

According to the report, the purchasing managers' index for the construction sector fell in September to a level of 58.9 , up from 59.1 in August. Recall that the August figure was highest in six months. Add that to the experts according to the average value of the index was to rise to the level of 60.1 . However , despite the decline , the index remains above the 50 mark for the fifth consecutive month , signaling a dramatic expansion of the total production in the construction sector.

Meanwhile , the data showed that all three of the construction sector recorded a higher level of activity in September. Residential construction was the strongest with branches , and the last production growth was the fastest since November 2003 .

Commercial construction , meanwhile, increased by the highest rate since May 2012 , and the growth of civil construction activity fell , retreating with the August high .

The Japanese yen has increased significantly against the dollar, which was due to concerns about the U.S. budget , which continues to put pressure on market sentiment . Note that the USD / JPY pair continues to fall for the second day in a row, having lost about 150 points after peaked at Y98.72 before the U.S. announced to stop the government's work . Later , the employment report ADP, which will be published at 12:30 GMT will attract attention of investors , as the release of NFP, scheduled for Friday , has been canceled due to interruption of the administration.

EUR / USD: during the European session, the pair is trading in a narrow range

GBP / USD: during the European session, the pair rose to $ 1.6228 , and then decreased slightly

USD / JPY: during the European session, the pair fell to Y97.25, but later recovered to Y97.50

At 12:30 GMT the euro area will be the monthly press conference of the ECB . At 23:30 GMT Australia will release the index of activity in the service of the AiG in September.

EUR/USD

Offers $1.3700, $1.3650, $1.3620, $1.3600, $1.3550/55

Bids $1.3500, $1.3475/70, $1.3462/59, $1.3455/50

GBP/USD

Offers $1.6300, $1.6280, $1.6260, $1.6235/40, $1.6228

Bids $1.6185/80, $1.6120, $1.6100, $1.6060/50

AUD/USD

Offers $0.9480, $0.9450, $0.9425/30, $0.9390/00

Bids $0.9320, $0.9300, $0.9280, $0.9250

EUR/JPY

Offers Y133.45/50, Y133.20/25, Y132.80, Y132.40/45

Bids Y131.50, Y131.00, Y130.80, Y130.50

USD/JPY

Offers Y98.45/50, Y98.20, Y97.95/00, Y97.75

Bids Y97.00, Y96.55/50, Y96.20, Y96.00

EUR/GBP

Offers stg0.8450, stg0.8420, stg0.8390/00, stg0.8388

Bids stg0.8335/30, stg0.8320, stg0.8300, stg0.8280, stg0.8250, stg0.8200

European stocks declined, after yesterday rallying the most in three weeks, as retailers fell and investors awaited the outcome of a European Central Bank meeting. U.S. index futures and Asian shares also retreated as the U.S. government entered the second day of its shutdown.

The Stoxx Europe 600 Index slipped 0.7 percent to 310.61 at 9:11 a.m. in London. The equity benchmark jumped 0.8 percent yesterday as a senior minister in Silvio Berlusconi’s People of Liberty party said that lawmakers should vote for the incumbent prime minister in today’s confidence vote. Standard & Poor’s 500 Index futures also decreased 0.7 percent today, while the MSCI Asia Pacific Index fell 0.3 percent.

European Central Bank policy makers meeting in Paris today will keep their benchmark interest rate unchanged at a record low of 0.5 percent, according to economists.

The ECB will decide against pumping more cash into the currency zone’s financial system as long as the threat of action keeps market interest rates under control, according to economists from Berenberg Bank to Nomura Holdings Inc. While Draghi put investors on notice last week that a further long-term refinancing operation remains possible, other policy makers have played down the likelihood of that for now.

In Italy, Prime Minister Enrico Letta may win a confidence vote today after deputy premier Angelino Alfano said that lawmakers from People of Liberty will support the coalition government. Berlusconi prompted the vote when he withdrew his party’s ministers, including Alfano, from the cabinet on Sept. 28. The front-page headline of the Berlusconi-owned Il Giornale this morning read “Alfano Traitor.”

The U.S. government began its first partial shutdown in 17 years yesterday as Republicans and Democrats failed to agree on a compromise budget to keep the federal government open into the new financial year. As many as 800,000 federal employees didn’t work and the government closed some services.

Tesco fell 4.1 percent to 344.3 pence after reporting that so-called trading profit dropped 7.6 percent to 1.59 billion pounds ($2.6 billion) in the first half of the financial year, Cheshunt, England-based Tesco said. That missed the 1.62 billion-pound median estimate of analysts. Operating profit in Europe slumped 68 percent.

J Sainsbury Plc lost 2.5 percent to 380.6 pence, following Tesco lower. The U.K.’s third-largest supermarket chain also reported that second-quarter same-store revenue, excluding fuel sales, increased 2 percent. Total sales climbed 5 percent.

KappAhl slumped 6.5 percent to 40.20 kronor after it proposed paying no dividend. The company also announced fiscal fourth-quarter net income of 7 million kronor ($1.1 million).

FTSE 100 6,409.52 -50.49 -0.78%

CAC 40 4,166.23 -30.37 -0.72%

DAX 8,644.15 -44.99 -0.52%

EUR/USD $1.3430, $1.3500, $1.3525, $1.3530, $1.3550, $1.3590, $1.3600, $1.3615

GBP/USD $1.5950, $1.6000, $1.6035, $1.6100, $1.6200

USD/JPY Y97.00, Y98.00, Y98.50, Y99.00, Y99.40, Y99.50, Y100.20

AUD/USD $0.9350, $0.9600, $0.9610

USD/CAD Cad1.0295

GBP/JPY Y155.50, Y158.85

NZD/USD $0.8360

Asian stocks outside Japan rose as investors speculated economic effects would be limited from the first partial U.S. government shutdown in 17 years. Japanese shares fell.

Nikkei 225 14,170.49 -314.23 -2.17%

Hang Seng 22,999.22 +139.36 +0.61%

S&P/ASX 200 5,215.6 +8.80 +0.17%

Shanghai Composite 2,174.66 +14.64 +0.68%

Samsung Electronics Co. gained 2.6 percent in Seoul after the consumer-electronics maker said third-quarter earnings will improve at its mobile unit.

Paladin Energy Ltd. soared 10 percent in Sydney as the uranium explorer reported it is cutting costs.

Hutchison Whampoa, controlled by Li Ka-shing, added 3.2 percent on a report it may seek to raise $10 billion spinning off its Watsons retail arm.

Nissan Motor Co., a carmaker that gets about 80 percent of its revenue outside Japan, dropped 1 percent as the yen gained.

01:00 Australia HIA New Home Sales, m/m August -4.7% +3.4%

01:30 Australia Building Permits, m/m August +10.8% -0.7% -4.7%

01:30 Australia Building Permits, y/y August +28.3% +12.3% +7.7%

01:30 Australia Trade Balance August -0.77 -0.45 -815

The euro retreated from an eight-month high versus the dollar before the European Central Bank meets today for the first time since President Mario Draghi said he’s ready to inject cash into the banking system. ECB policy makers meeting in Paris will keep the benchmark refinancing rate unchanged at a record low of 0.5 percent, according to all 52 economists in a Bloomberg News survey. Draghi will hold a news conference after the decision.

The ECB president will hold off from pumping more cash into the region’s financial system as long as the threat of action keeps market interest rates under control, according to economists from Berenberg Bank to Nomura International Plc.

The greenback halted losses against most major peers before a private report forecast to show companies in the U.S. added jobs at a faster pace. U.S. lawmakers still need to agree on raising the debt limit to avoid a default after Oct. 17, following the government’s first partial shutdown in 17 years. In the U.S., companies added 180,000 to their payrolls in September, according to the median estimate of economists surveyed by Bloomberg before today’s report from the ADP Research Institute. Firms hired 176,000 workers in August, according to ADP.

Demand for the euro was limited as the survival of Italian Prime Minister Letta’s government will be tested in a confidence vote today, after former premier Silvio Berlusconi’s decision last week to withdraw support. Berlusconi’s People of Liberty party has splintered, with Angelino Alfano, who stepped down as deputy premier at Berlusconi’s request, saying yesterday his party will back the government.

New Zealand’s dollar weakened for a second day after a central bank official said the nation’s neutral interest rate has fallen. The neutral 90-day rate is about 4.5 percent and rates will approach that level in early 2016, John McDermott, the assistant governor and head of economics, said according to the bank’s website. It was 5.5 percent to 6.5 percent in previous cycles, he said.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3505-25

GBP / USD: during the Asian session, the pair fell to $ 1.6160

USD / JPY: during the Asian session the pair fell to Y97.60

There is a full calendar on both sides of the Atlantic Wednesday, although the ECB's latest policy meeting is likely to dominate proceedings ahead of the US open. The European calendar kicks off at 0700GMT, with the release of Spanish unemployment data. That will be followed at 0800GMT by the release of the German August car registrations. Ahead of the ECB policy decision, the Irish Central Bank Quarterly Bulletin will be released at 1000GMT. The decision from the ECB's September policy meeting will be released at 1145GMT. Markets are not expecting any change in policy, although they will be closely watching President Draghi's press conference at 1230GMT.

GOLD 1,290.30 -36.20 -2.73%

OIL (WTI) 101.83 -0.50 -0.49%

Nikkei 225 14,484.72 28,92 0,20%

Hang Seng 22,859.86 -347,18 -1,50%

S & P / ASX 200 5,206.8 -12,08 -0,23%

Shanghai Composite 2,174.66 14,64 0,68%

FTSE 100 6,460.01 -2.21 -0.03%

CAC 40 4,196.6 +53.16 +1.28%

DAX 8,689.14 +94.74 +1.10%

Dow 15,191.70 +62.03 +0.41%

Nasdaq 3,817.98 +46.50 +1.23%

S&P 500 1,695.00 +13.45 +0.80%

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

EUR/USD $1,3524 +0,02%

GBP/USD $1,6191 +0,04%

USD/CHF Chf0,9058 +0,11%

USD/JPY Y98,02 -0,21%

EUR/JPY Y132,57 -0,20%

GBP/JPY Y158,70 -0,18%

AUD/USD $0,9395 +0,77%

NZD/USD $0,8271 -0,34%

USD/CAD C$1,0333 +0,17%

01:00 Australia HIA New Home Sales, m/m August -4.7%

01:30 Australia Building Permits, m/m August +10.8% -0.7%

01:30 Australia Building Permits, y/y August +28.3% +12.3%

01:30 Australia Trade Balance August -0.77 -0.45

07:00 United Kingdom Halifax house price index September +0.4% +0.6%

07:00 United Kingdom Halifax house price index 3m Y/Y September +5.4%

08:30 United Kingdom PMI Construction September 59.1 60.1

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

09:00 Eurozone Producer Price Index (YoY) August +0.2% -0.5%

11:00 United Kingdom MPC Member Fisher Speaks

11:45 Eurozone ECB Interest Rate Decision 0.50% 0.50%

12:15 U.S. ADP Employment Report September 176 177

12:30 Eurozone ECB Press Conference

14:00 United Kingdom BOE Deputy Governor Andrew Bailey Speaks

14:30 U.S. Crude Oil Inventories September +2.6

16:00 U.S. FOMC Member Rosengren Speaks

19:20 U.S. FOMC Member James Bullard Speaks

19:30 U.S. Fed Chairman Bernanke Speaks

23:30 Australia AIG Services Index September 39.0