Euro fell against the U.S. dollar despite the strong data on industrial production in the euro area and the economic sentiment in Germany. It should be noted that industrial production in the euro zone rose to a seasonally adjusted 0.7 percent in June on a monthly measurement, offsetting a decline of 0.2 percent the previous month, which was revised from 0.3 percent fall. Economists had forecast that industrial production will grow more rapidly by 1.1 percent.

It also became known, the index of economic sentiment in Europe's largest economy rose to its highest level since March. A key indicator gave hope that a prolonged recession in the euro zone is coming to an end. Centre for European Economic Research ZEW reported an increase in the index to 42.0 in August, down from 36.3 in July, ahead of the growth forecast to 40.3.

Note that some support the U.S. currency was the U.S. data. It is learned that retail sales in the U.S. rose as expected in July. The pace of growth slowed compared to the previous month, partly due to the noticeable drop in car sales.

The report said that retail sales rose 0.2 percent in July after an upwardly revised 0.6 percent increase in June. Economists had expected sales to rise 0.2 percent compared with 0.4 percent growth, which was originally reported in the previous month.

Excluding the 1.0 percent drop in sales of vehicles and parts dealers, retail sales rose 0.5 percent in July compared with a 0.1 percent increase in June. The growth of retail sales excluding automobiles exceeded economists' estimates for a 0.4 percent rise.

Experts note that the decline in the euro contribute to the expectations publication of the report on the euro area's GDP, which will be presented tomorrow. It is expected that in the second quarter, the eurozone economy was able to show growth, and interrupt a series of cuts, which is fixed for 6 consecutive quarters.

The British pound fell slightly against the dollar after data on price indices. Inflation in the UK has slowed somewhat in July, with a 14-month high, and inflation output prices rose due to higher oil prices, showed data released by the Office for National Statistics (ONS) on Tuesday.

Consumer price inflation declined to 2.8 percent, according to the forecast from 2.9 percent in June. On a monthly basis, consumer prices were flat after falling 0.2 percent in June. Core inflation, which excludes prices of energy, food, alcoholic drinks and tobacco, slowed more than expected, up to 2 percent from 2.3 percent a month earlier. Economists predicted that core inflation will be 2.3 percent. In addition, the annual retail price inflation fell to 3.1 percent in July from 3.3 percent in June, in line with economists' forecasts.

In another ONS report showed that producer prices inflation rose to 2.1 percent in July from 2 percent in the previous month, in line with economists' forecasts. Selling prices increased 0.2 in July, a monthly measurement compared with growth of 0.1 percent in June. The main contribution to the monthly increase in prices of petroleum products made and food.

At the same time, inflation of purchase prices rose sharply to 5 percent from 4 percent in June. However, it remains below the consensus forecast of 5.5 percent. On a monthly measurement of the purchase prices rose 1.1 percent, slightly less than the 1.2 percent growth that had been expected in July.

European stocks gained for a fourth day, extending a 10-week high, as companies posted better-than-estimated earnings and German investor confidence climbed.

The Stoxx Europe 600 Index climbed 0.6 percent to 307.79 at 4:38 p.m. in London, the highest level since May 28. The gauge gained 0.6 percent last week as China’s industrial output rose more than estimated. The index has soared 10 percent in 2013, led by automobile and financial-services companies, as central banks around the world maintained stimulus measures.

Investor confidence in Germany, Europe’s largest economy, rose more than forecast in August. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations advanced to 42 from 36.3 in July.

A report in Washington showed U.S. retail sales climbed for a fourth consecutive month in July, increasing 0.2 percent. The median forecast of economists had called for a 0.3 percent advance.

National benchmark indexes advanced in all of the 18 western European markets today, except Greece and Iceland.

FTSE 100 6,611.94 +37.60 +0.57% CAC 40 4,092.5 +20.82 +0.51% DAX 8,415.76 +56.51 +0.68%

EON rallied 2.2 percent to 12.50 euros, the biggest jump since June 26. The company reported first-half underlying net income of 1.91 billion euros ($2.54 billion), topping the average analyst estimate of 1.79 billion euros.

RWE AG, the second-largest utility in Germany, increased 4 percent to 22.25 euros, the biggest gain in four months.

GAM Holding jumped 11 percent to 17.05 Swiss francs, the largest gain since April 2009. The asset manager that split from Julius Baer Group Ltd. almost four years ago said first-half profit more than tripled after fee and commission income increased.

Deutsche Wohnen AG climbed 2 percent to 14.13 euros, the highest in more than two months. Germany’s second-largest residential landlord by market value said first-half profit jumped 85 percent as acquisitions increased rental income. The company raised its earnings forecast for 2013.

Geberit AG sank 7.6 percent, the most since March 2009, to 235.90 francs. The Swiss maker of toilets and bathroom piping said there’s been “a clear fall in demand” in most European markets since the fourth quarter of 2012 and a continued downturn in public construction in North America.

Schindler Holding AG slid 5.2 percent to 135.90 francs, the biggest decline in almost two years, after the Swiss elevator maker cut its profit forecast.

Schindler projected net income of about 550 million francs ($589 million) to 600 million francs this year, including a 155 million-franc charge on its investment in Hyundai Elevator Co. That compares with an earlier forecast of as much as 790 million francs.

Oil prices rose slightly today, rising at the same time above $ 109 per barrel, after data showed that the volume of oil exports from Libya has fallen to its lowest level in two years, increasing concerns about the previously planned production cuts by other members.

The reason for the increase in oil prices were the reports that Libya was unable to start the largest oil terminals. On Monday, the authorities attempted to run the terminals of Es Sider and Ras Lanuf, which had been closed due to strikes from the end of July. Export capacity of the terminals in the aggregate of 600 thousand barrels per day - 43% of all oil produced in the country. Oil and Gas Minister of Libya Abdel al-Bari Arussi tried to reassure investors, vowing that exports could resume on Thursday as workers agreed with the local authorities to end the strike.

Experts note that the unstable geopolitical climate in the region to support prices at the beginning of the fourth quarter. But traders will try to avoid over-reacting to any news because the uncertainty has become the norm for the region.

Note also that the effect of decreasing the supply of Libyan oil increased reports of disruptions to oil production in Norway. The failure of the compressor oil platform Ula has led to a decline in oil production on the Norwegian Ekofisk field in the North Sea. The volume of oil on the platform is 10 thousand barrels per day.

In addition, the dynamics of trade expectations affect the publication of data on oil reserves. According to the median forecast of analysts, U.S. crude inventories fell by 1.55 million barrels last week.

The cost of the September futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 106.17 dollars a barrel on the New York Mercantile Exchange.

September futures price for North Sea Brent crude oil mixture rose to $ 109.60 a barrel on the London exchange ICE Futures Europe.

Gold prices fell markedly today, which was due to the strengthening of the dollar and the news that the Indian federal government raised import duties on petroleum products, gold bars for the third time in the last eight months to 10% from 8%, and for silver to 10 % to 6%.

We also add that earlier gold managed to reduce some of the losses after a report on U.S. retail sales was below consensus expectations, but after the event has faded into the background, prices continued to decline.

It should be noted that the published data showed that consumer spending in the U.S. rose slightly in July, a sign that the economy remains weak after the spring period. In the U.S. Commerce Department reported that retail sales and food sales in July rose 0.2% from 0.6% in June, because of the slowing car purchases, furniture and electronics. Economists had forecast a sales increase of 0.3% compared to the previous month.

Add that to an annual basis, retail sales rose by 5.4%, as consumers increased spending on food, clothing and sporting goods. Sales rose at the fastest pace in more than a year. Excluding auto sales, total sales rose in July by 0.5% on a monthly basis. But the slow growth in total sales shows that households are still constrained by high unemployment, high taxes, which came into force in January

Traders also report that the current dynamics of the gold market is related to the low volume of trading, which is inherent in the summer holidays. Note that many market participants are focused on economic data from the U.S., as they can help to assess the possible actions of the Federal Reserve System in respect of reduction in monthly purchases of bonds. Recall that gold prices have fallen by about 20% this year on expectations that the U.S. Federal Reserve will cut their economic stimulus program.

The cost of the October gold futures on COMEX today dropped to $ 1325.10 per ounce

EUR/USD $1.3150

USD/JPY Y96.00, Y97.00, Y99.00, Y100.00

GBP/USD $1.5450, $1.5500

USD/CHF Chf0.9250

AUD/USD $0.9050, $0.9150, $0.9220

EUR/USD A$1.4500

USD/CAD C$1.0275

CAD/JPY Y94.10

USD/MEX Mxn12.65, Mxn12.75

U.S. stock-index futures retreated from session high as retail sales climbed in July for a fourth straight month and a gauge of German investor confidence advanced.

Global Stocks:

Nikkei 13,867 +347.57 +2.57%

Hang Seng 22,541.13 +269.85 +1.21%

Shanghai Composite 2,106.16 +4.87 +0.23%

FTSE  6,602.53 +28.19 +0.43%

CAC  4,084.82 +13.14 +0.32%

DAX 8,414.94 +55.69 +0.67%

Crude oil $106.53 +0.40%

Gold $1330.80 -0.25%

After reporting decreases in import prices in each of the four previous months, the Labor Department released a report on Tuesday showing a modest increase in import prices in the month of July.

The report said import prices rose by 0.2 percent in July following a revised 0.4 percent decrease in June. However, the price growth fell well short of economist estimates for a 0.9 percent increase.

The Labor Department also said export prices edged down by 0.1 percent in July, matching the drop seen in the previous month. Economists had expected export prices to rise by 0.2 percent.

Retail sales in the U.S. rose by slightly less than anticipated in the month of July, according to a report released by the Commerce Department on Tuesday, with the weaker than expected sales growth partly due to a notable drop in auto sales.

The report said retail sales edged up by 0.2 percent in July following an upwardly revised 0.6 percent increase in June. Economists had expected sales to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

Excluding the 1.0 percent drop in sales by motor vehicle and parts dealers, however, retail sales rose by 0.5 percent in July compared to a 0.1 percent increase in June. The increase in ex-auto sales exceeded economist estimates for 0.4 percent growth.

Upgrades:

Downgrades:

Microsoft (MSFT) downgraded to Hold from Buy at Stifel

Other:

Northland Capital raises its Cisco (CSCO) tgt to $30 from $26

Hewlett-Packard (HPQ) added to Focus list at Citigroup

EUR/USD

Offers $1.3410/20, $1.3390/400, $1.3370, $1.3350, $1.3320/30

Bids  $1.3280, $1.3270, $1.3235/30

GBP/USD

Offers $1.5620/30, $1.5595/605, $1.5580, $1.5550/60, $1.5525/35, $1.5500/10

Bids  $1.5440/25, $1.5405/00, $1.5390, $1.5375

AUD/USD

Offers  $0.9250, $0.9220/25, $0.9200, $0.9180, $0.9160, $0.9150

Bids  $0.9110, $0.9100, $0.9090/85, $0.9080, $0.9050, $0.9020, $0.9000

EUR/GBP

Offers  stg0.8675, stg0.8665, stg0.8640/45, stg0.8620/30

Bids  stg0.8580/75, stg0.8540, stg0.8500, stg0.8485/80

EUR/JPY

Offers  Y132.00, Y131.75/80, Y131.50, Y131.00, Y130.50

Bids Y129.80, Y129.25/20, Y129.00

USD/JPY

Offers  Y98.50, Y98.20, Y98.00

Bids Y97.40/35, Y97.20, Y97.00, Y96.85/80, Y96.50

European stocks gained for a fourth day as companies posted better-than-estimated earnings and German investor confidence climbed.

Investor confidence in Germany, Europe’s largest economy, rose more than forecast in August. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations advanced to 42 from 36.3 in July. Economists had predicted a reading of 39.9, according to the median of 42 estimates in a survey.

EON rallied 3.2 percent to 12.62 euros, the biggest gain since May 3. The company reported first-half underlying net income of 1.91 billion euros ($2.54 billion), topping the average analyst estimate of 1.79 billion euros.

Rival RWE AG, the second-largest utility in Germany, increased 2.8 percent to 22 euros.

GAM Holding jumped 7.8 percent to 16.60 Swiss francs, the largest gain since January 2012. The asset manager that split from Julius Baer Group Ltd. almost four years ago said first-half profit more than tripled after fee and commission income increased.

FTSE 100 6,567.41 -15.98 -0.24%

CAC 40 4,059.8 -16.75 -0.41%

DAX 8,272.62 -65.69 -0.79%

Industrial production in the euro area increased in June, after falling in the previous month, data released by statistical office Eurostat showed Tuesday.

Industrial production increased a seasonally adjusted 0.7 percent month-on-month in June, reversing the previous month's 0.2 percent decrease, which was revised up from a 0.3 percent fall. Economists had forecast production to record a faster growth of 1 percent.

Driving the rebound, production of durable consumer goods climbed 4.9 percent sequentially, and output of capital goods advanced 2.5 percent. Intermediate goods production was higher by 0.5 percent than in May.

Partially offsetting these positive contributions, energy production recorded a 1.6 percent monthly decline, and output of non-durable consumer goods dropped by 0.6 percent.

Year-on-year, industrial production moved up 0.3 percent in June, recovering from the 1.3 percent decline seen in May and April's 0.5 percent decrease. The annual growth rate matched expectations.

Among the member states, the highest increases were registered in Ireland, Romania, Poland, Germany and Greece, while Netherlands, Portugal and France recorded the largest decreases.

U.K. inflation slowed slightly in July from a 14-month high, while factory gate inflation accelerated on higher petroleum prices, data released by the Office for National Statistics showed Tuesday.

Consumer price inflation dropped to 2.8 percent, in line with forecast, from 2.9 percent in June. On a monthly basis, consumer prices remained flat after falling 0.2 percent in June.

Core inflation that excludes prices of energy, food, alcoholic beverages and tobacco, slowed more-than-expected to 2 percent from 2.3 percent a month ago. It was forecast to ease moderately to 2.2 percent.

Similarly, retail price annual inflation fell to 3.1 percent in July from 3.3 percent in June. Economists were expecting a marginal fall to 3.2 percent.

Another report from ONS showed that output price inflation rose to 2.1 percent in July from 2 percent in prior month. The rate matched economists' forecast.

Factory gate prices rose 0.2 in July from a month ago, compared with a rise of 0.1 percent in June. The main upward contributions to the monthly price rise were from petroleum products and food products.

At the same time, input price inflation increased sharply to 5 percent from 4 percent in June. Nonetheless, it remained below the consensus forecast of 5.5 percent. Month-on-month, input prices surged 1.1 percent as expected for July.

EUR/USD $1.3150

USD/JPY Y96.00, Y97.00, Y99.00

GBP/USD $1.5450, $1.5500

AUD/USD $0.9050, $0.9150, $0.9220

EUR/USD A$1.4500

USD/CAD C$1.0275

CAD/JPY Y94.10

USD/MEX Mxn12.67

Asian stocks rose for a fourth day, with Japanese shares gaining as the yen weakened after a report showed machinery orders beat estimates and amid a report Prime Minister Shinzo Abe is considering a corporate-tax cut.

Nikkei 225 13,867 +347.57 +2.57%

Hang Seng 22,521.1 +249.82 +1.12%

S&P/ASX 200 5,157.7 +49.05 +0.96%

Shanghai Composite 2,106.16 +4.87 +0.23%

Honda Motor Co., which gets 83 percent of sales from overseas, increased 1.9 percent, pacing gains among Japanese exporters.

Sony Financial Holdings Inc., the financial services unit of electronics maker Sony Corp., jumped 2.8 percent in Tokyo after proposing a higher dividend.

Newcrest Mining Ltd. slipped 2.3 percent as brokers cut ratings on shares of Australia’s biggest gold producer.

01:30 Australia National Australia Bank's Business Confidence July 0 -3

01:30 Australia National Australia Bank's Business Confidence July 0 -7

The dollar touched the highest in almost a week versus the yen before a report today that may show U.S. retail sales climbed for a fourth month. The U.S. Commerce Department will probably say today retail sales climbed 0.3 percent last month after a 0.4 percent advance in June, according to the median forecast of economists surveyed by Bloomberg News.

The yen slid against all of its 16 major counterparts after Japan’s machine orders fell in June, spurring bets that the nation’s central bank will step up stimulus measures. In Japan, machine orders declined 2.7 percent in June from the previous month, when they climbed 10.5 percent, data released today by the Cabinet Office showed. That compares with an estimate for a 7 percent decline in a Bloomberg survey. Orders climbed 4.9 percent from a year earlier, according to the report.

The euro strengthened versus most of its peers before a report that may show German economic confidence is at a five-month high. The ZEW Center for European Economic Research in Mannheim will probably say today its index of investor and analyst expectations, which aims to predict economic developments six months in advance, climbed to 39.9 this month from 36.3 in July, according to economists polled by Bloomberg. If confirmed, that would be the highest since March. Analysts in a separate survey predict a report tomorrow will show the euro-area economy expanded 0.2 percent in the second quarter, edging back to growth for the first time since 2011. European Central Bank President Mario Draghi held benchmark borrowing costs in the 17-nation region at a record-low 0.5 percent on Aug. 1, reiterating that interest rates will stay low for the foreseeable future.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3290-10

GBP / USD: during the Asian session the pair traded in the range of $ 1.5445-65

USD / JPY: during the Asian session the pair rose above Y97.50

There is a raft of UK releases expected at 0830GMT, with the inflation report the main reading. Input prices are expected to have spiked higher in July, due to the sharp rise in oil prices which were further magnified by the fall in sterling. Sterling fell some 1.9% on the month against the dollar. Core output prices, which exclude petrol prices, are forecast to be flat on the month and up 1.2% on the year, showing underlying pipeline inflation pressure remain contained. The Bank of England's August Inflation Report predicted headline CPI would hold close to its June 2.9% level in coming months, dropping to around 2.8% on the year in July and averaging 2.82% in Q3. The British Retail Consortium Shop Price Index showed accelerating high street deflation in July, led by the drop in clothing and footwear prices. Offsetting the fall in clothing and footwear prices in the National Statistics data will be the near 1% rise on the month in petrol prices. Also due are the official UK house price numbers from the ONS.

Nikkei 225 -0,70 -95,76 13,519.43%

Hang Seng 22,224.9 417,34 1,91%

S & P / ASX 200 5,108.65 53,44 1,06%

Shanghai Composite 2,101.28 49,05 2,39%

FTSE 100 6,574.34 -9.05 -0.14%

CAC 40 4,071.68 -4.87 -0.12%

DAX 8,359.25 +20.94 +0.25%

Dow -5.53 15,419.98 -0.04%

Nasdaq +9.84 3,669.95 +0.27%

S&P -1.94 1,689.48 -0.11%

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

EUR/USD $1,3298 -0,62%

GBP/USD $1,5460 -0,49%

USD/CHF Chf0,9260 +0,65%

USD/JPY Y97,09 +0,51%

EUR/JPY Y129,12 -0,11%

GBP/JPY Y150,10 +0,03%

AUD/USD $0,9138 +0,42%

NZD/USD $0,7998 -0,01%

USD/CAD C$1,0306 -0,17%

01:30 Australia National Australia Bank's Business Confidence July 0 -3

01:30 Australia National Australia Bank's Business Confidence July 0 -7

06:00 Germany CPI, m/m July +0.5% +0.5%

06:00 Germany CPI, y/y July +1.9% +1.9%

08:30 United Kingdom Retail Price Index, m/m July -0.1% 0.0%

08:30 United Kingdom Retail prices, Y/Y July +3.3% +3.1%

08:30 United Kingdom RPI-X, Y/Y July +3.3% +3.1%

08:30 United Kingdom Producer Price Index - Input (MoM) July +0.2% +1.2%

08:30 United Kingdom Producer Price Index - Input (YoY) July +4.2% +5.5%

08:30 United Kingdom Producer Price Index - Output (MoM) July +0.1% +0.3%

08:30 United Kingdom Producer Price Index - Output (YoY)  July +2.0% +2.1%

08:30 United Kingdom HICP, m/m July -0.2% 0.0%

08:30 United Kingdom HICP, Y/Y July +2.9% +2.8%

08:30 United Kingdom HICP ex EFAT, Y/Y July +2.3% +2.3%

09:00 Eurozone ZEW Economic Sentiment August 32.8 37.4

09:00 Eurozone Industrial production, (MoM) June -0.3% +1.1%

09:00 Eurozone Industrial Production (YoY) June -1.3% +0.3%

09:00 Germany ZEW Survey - Economic Sentiment August 36.3 40.3

12:30 U.S. Retail sales July +0.4% +0.2%

12:30 U.S. Retail sales excluding auto July 0.0% +0.4%

12:30 U.S. Import Price Index July -0.2% +0.9%

14:00 U.S. Business inventories June +0.1% +0.3%

20:30 U.S. API Crude Oil Inventories August -3.7

22:45 New Zealand Retail Sales, q/q Quarter II +0.5% +1.4%

22:45 New Zealand Retail Sales ex Autos, q/q Quarter II +0.6% +1.3%