The euro fell against the dollar to its lowest level since April 4, after the data provided by Thomson-Reuters and the Michigan Institute showed that in May, U.S. consumers are feeling much more optimistic about the economy than last month. According to provisional data, in May consumer sentiment index rose to 83.7, compared with a reading at 76.4 the previous month. Note that according to the average estimates of experts, the index had to rise to the level of 77.9. In addition, it was reported that the current conditions index rose to 97.5 from 89.9 reported last month, and the expectations index advanced to 74.8 from 67.8. It should be noted that inflation expectations one year ahead remained unchanged in the month of May - at 3.1%, while inflation expectations for the next 5-10 years declined to 2.8% from 2.9%.

Previously, the pressure on the European single currency was evidence that in March the eurozone construction output continued to decline, registering with the fifth consecutive monthly decline. According to the report, a monthly basis, the volume of construction in April fell 1.7 percent, which followed a decline of 0.3 percent in February, while the year-on-year decline was 7.9%, compared with growth of 1.7% in March. Construction of buildings and civil engineering fell by 1.4% and 2.4%, respectively. We also add that in the first quarter as a whole, construction output fell by 3.0%, which was significantly greater than the decline of 1.8% recorded in the last three months of last year. At the same time, the data showed that the annualized volumes declined in ten Member States and improved in four. The largest annual decline was registered in Slovenia, the Czech Republic and Poland. Meanwhile, Spain and Hungary reported the highest growth rates. Statistical Office reported that the decline in construction was distributed across the euro zone (the volume of construction in the EU-27 decreased by 1.1% on a monthly basis, and fell by 7.2% per annum), and even in Germany (by 3.1% ), which narrowly avoided slipping into recession in the first quarter. In monthly terms, the largest decline in construction was recorded in Portugal (10.7%), which reflects the current austerity as to how the country is struggling to reduce the budget deficit.

The Canadian dollar fell to a two-month low against the U.S. dollar after the annual inflation rate in April fell to its lowest level in more than three years, reinforcing expectations of lower interest rates. The Canadian dollar fell against all of its 16 most-traded currencies after the consumer price index rose 0.4% in April, in annual terms, and compared with 1% growth in the previous month. This is the slowest growth since October 2009.

European stocks climbed to their highest level in almost five years as a report showed that U.S. consumer confidence rose more than economists had predicted, while banks and carmakers increased.

National benchmark indexes advanced in 15 of the 17 western-European markets that opened today. The U.K.'s FTSE 100 rose 0.5 percent and Germany's DAX Index added 0.3 percent. France's CAC 40 Index climbed 0.6 percent to its highest level since July 2011. Markets in Norway were closed today for the Constitution Day public holiday.

Lloyds gained 3.2 percent to 62.84 pence, its highest price in more than two years. The U.K.'s largest mortgage lender exceeded the 61 pence threshold below which the Treasury has said it would recognize a loss from selling its shares. The state paid more than $30 billion to rescue the lender in 2008.

European carmakers, which have rallied 21 percent in the past four weeks, were the best-performing industry group on the Stoxx 600. PSA Peugeot Citroen and Renault SA jumped 10 percent to 7.14 euros and 3.6 percent to 61.29 euros, respectively, after a report showed car sales increased 1.8 percent in April. Registrations rebounded in Germany and Spain.

FLSmidth sank 9.7 percent to 302 kroner after posting net income of 37 million kroner ($6.4 million) in the first quarter, less than the 231 million-krone average estimate in a Bloomberg survey. Sales of 5.65 billion kroner also missed analysts' predictions for revenue of 5.89 billion kroner.

Intertek Group Plc slid 1.9 percent to 3,385 pence, its biggest decline in almost two months. The consumer-goods testing company said that its operating-profit margin has narrowed from a year earlier as net income at its minerals unit declined. Profit at the minerals business will continue to drop into the second half of the year, the company forecast.

West Texas Intermediate crude rose a third day on signals that global economic growth will accelerate, bolstering fuel consumption.

Futures advanced as much as 1.4 percent as the Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 83.7 in May, higher than any of the forecasts in a survey. A government report yesterday showed Japanese gross domestic product grew 3.5 percent at an annualized pace, the most in a year. European Union car sales gained in April for the first time since September 2011.

WTI oil for June delivery rose 22 cents to $95.38 a barrel at 11:30 a.m. on the New York Mercantile Exchange. Prices are down 0.7 percent this week. The volume of all contracts traded was 22 percent above the 100-day average.

Brent crude for July settlement increased 23 cents to $104.01 a barrel on the London-based ICE Futures Europe exchange. The June contract expired at $103.80 yesterday. Volume for all contracts was 1.3 percent lower than the 100-day average.

Gold declines seventh consecutive session, helped by signs of weakening demand for the precious metal. Reduction in the price of gold is almost completely leveled his recovery after a record decline in mid-April.

The volume of gold in exchange-traded funds holding (ETF), dropped this week to their lowest level since July 2011. Submitted on Wednesday evening, data showed that some hedge funds, including fund headed by George Soros, have reduced their stakes in gold ETF in the 1st quarter.

Investor demand for gold, which is traditionally considered to be safe haven, fell, as U.S. stocks soared to record highs, as fears about the stability of the financial system weakened.

In addition, those market participants who are buying gold as a hedge against inflation, felt that the need for holding the metal is reduced, since inflation in developed countries remains low-key, and Fed officials are discussing the possibility of folding the enabling policy of the central bank.

Report of the World Gold Council showed that global demand for gold in the 1st quarter was the lowest in three years, since a large share of the liquidation in the ETF leveled demand for jewelery, bars and coins.

The cost of the June gold futures on COMEX today dropped to 1357.60 dollars an ounce.

EUR/USD $1.2825, $1.2865, $1.2900, $1.2940, $1.2950, $1.3000

USD/JPY Y101.50, Y101.60, Y102.00, Y102.50, Y103.00. Exotic Y103.00

GBP/USD $1.5200

EUR/GBP stg0.8400

USD/CHF Chf0.9675

U.S. stock futures advanced as investors awaited reports on leading economic indicators and consumer sentiment.

Global Stocks:

Nikkei 15,138.12 +100.88 +0.67%

Hang Seng 23,082.68 +38.44 +0.17%

Shanghai Composite 2,282.87 +31.06 +1.38%

FTSE 6,714.93 +27.13 +0.41%

CAC 3,997.08 +18.01 +0.45%

DAX 8,393.8 +23.93 +0.29%

Crude oil $96.03 +0.91%

Gold $1374.40 -0.90%

Upgrades:

General Motors (GM) upgrade from Underperform to Buy at Credit Agricole

Downgrades:

Walt Disney (DIS) downgraded to Neutral from Overweight at Atlantic Equities

Deere (DE) downgraded to Sell from Neutral at Goldman

Data

02:00 China Leading Index April 0.0% +1.5%

09:00 Eurozone Construction Output, m/m March -0.3% -1.7%

09:00 Eurozone Construction Output, y/y March +1.7% +7.9%

09:30 United Kingdom MPC Member Weale Speaks

The pound fell against the dollar, approaching its second weekly decline, due to speculation that the Fed may resort to stop stimulation, which increased the demand for the U.S. currency.

The dynamics are also influenced by the statement of the Federal Reserve Bank of San Francisco, who said that "we are ready to reduce the program of bond purchases in the coming months if the economy continues to grow. It is clear that the labor market situation has improved since September. " Moreover, he added that it would take a further improvement of the situation in order to convince me that "significant improvement" corresponds to the situation, "but if things go as expected," we could reduce some of the pace of our purchases of securities, perhaps as early as this summer. If all goes as hoped, we might end up buying program somewhere at the end of this year. "He added, however, that uncertainty surrounds the outlook, and if he is wrong about the economy," we will adjust our purchases accordingly in Depending on how the economy running. Note that during the meeting of officials offered differing opinions about the prospects for continued efforts the Fed to buy about $ 85 billion a month in Treasury and mortgage debt.

Value of the dollar rose slightly against the euro, after the latest data, which were published today by Statistics agency Eurostat showed that in March the eurozone construction output continued to decline, registering with the fifth consecutive monthly decline. According to the report, a monthly basis, the volume of construction in April fell 1.7 percent, which followed a decline of 0.3 percent in February, while the year-on-year decline was 7.9%, compared with growth of 1.7% in March. Construction of buildings and civil engineering fell by 1.4% and 2.4%, respectively. We also add that in the first quarter as a whole, construction output fell by 3.0%, which was significantly greater than the decline of 1.8% recorded in the last three months of last year. At the same time, the data showed that the annualized volumes declined in ten Member States and improved in four. The largest annual decline was registered in Slovenia, the Czech Republic and Poland. Meanwhile, Spain and Hungary reported the highest growth rates. Statistical Office reported that the decline in construction was distributed across the euro zone (the volume of construction in the EU-27 decreased by 1.1% on a monthly basis, and fell by 7.2% per annum), and even in Germany (by 3.1% ), which narrowly avoided slipping into recession in the first quarter. In monthly terms, the largest decline in construction was recorded in Portugal (10.7%), which reflects the current austerity as to how the country is struggling to reduce the budget deficit.

EUR / USD: during the European session, the pair is hovering around $ 1.2850-$ 1.2890

GBP / USD: during the European session, the pair dropped to $ 1.5221

USD / JPY: during the European session, the pair rose to Y102.63, then dropped to Y102.26

At 12:30 GMT Canada released the consumer price index and core consumer price index from the Bank of Canada in April, as well as become aware of a change in the volume of wholesale trade for March. At 13:55 GMT the United States will publish the consumer sentiment index from the University of Michigan in May.

EUR/USD

Offers $1.2950, $1.2930/40, $1.2890/900, $1.2880/85

Bids $1.2850/40, $1.2825/20, $1.2800/790, $1.2775/70

GBP/USD

Offers $1.5380/85, $1.5350, $1.5295/300, $1.5282, $1.5250

Bids $1.5195, $1.5175/70, $1.5160/50, $1.5130/20

AUD/USD

Offers $0.9900, $0.9880, $0.9845/50, $0.9830/35, $0.9800/10

Bids $0.9720/10, $0.9700, $0.9650, $0.9600

EUR/GBP

Offers stg0.8545/50, stg0.8530/35, stg0.8490-500, stg0.8460/65

Bids stg0.8421, stg0.8400, stg0.8398, stg0.8395/90

EUR/JPY

Offers Y133.50, Y133.00, Y132.75/80, Y132.40/50, Y132.20

Bids Y131.40, Y131.30/20, Y131.10/00, Y130.80

USD/JPY

Offers Y103.50, Y103.05/10, Y103.00, Y102.90/95, Y102.75/80

Bids Y102.00, Y101.85/80, Y101.50, Y101.00

European stocks pared their decline as banks advanced, offsetting a Federal Reserve policy makers warning that the central bank may reduce its monthly bond purchases as early as this summer. U.S. index futures advanced, while Asian shares retreated.

The Stoxx Europe 600 Index slipped 0.1 percent to 307.8, paring a drop of as much as 0.4 percent. The equity benchmark has still climbed 0.9 percent this week, its fourth consecutive week of gains.

Williams was one of the first Fed officials to advocate that the Fed buy bonds without setting a time limit or total for the purchases. He doesn't vote on policy this year. The European Banking Authority has delayed stress tests for lenders that it had planned to undertake this year, allowing the European Central Bank to hold its own review of the institutions' asset quality. The London-based EBA, which the European Union set up in 2011 to harmonize rules, has postponed its tests until 2014.

FLSmidth sank 9 percent to 304.50 kroner after posting net income of 37 million kroner ($6.4 million) in the first quarter, less than the 231 million-krone average estimate in a survey. Sales of 5.65 billion kroner also missed analysts' predictions for revenue of 5.89 billion kroner.

Intertek Group Plc slid 4.7 percent to 3,289 pence, its biggest decline in 14 months. The consumer-goods testing company said that its operating-profit margin has narrowed from a year earlier as net income at its minerals unit declined. Profit at the minerals business will continue to drop into the second half of the year, the company forecast.

Deutsche Telekom AG, Germany's largest phone company, lost 1.3 percent to 9.22 euros. The index has still gained 13 percent this year. UBS AG lowered its rating on the industry to underweight, similar to a sell recommendation, from neutral. The brokerage cited weak earnings momentum.

Lloyds added 2.2 percent to 62.3 pence, its highest price in more than two years. The U.K.'s largest mortgage lender exceeded the 61 pence threshold below which the Treasury has said it would recognize a loss from selling its shares. The state paid more than $30 billion to rescue the lender in 2008.

At that moment:

FTSE 100 6,706.52 +18.72 +0.28%

CAC 40 3,998.54 +19.47 +0.49%

DAX 8,385.94 +16.07 +0.19%

EUR/USD $1.2825, $1.2865, $1.2900, $1.2940, $1.2950, $1.3000

USD/JPY Y101.50, Y101.60, Y102.00, Y102.50, Y103.00. Exotic Y103.00

GBP/USD $1.5200

EUR/GBP stg0.8400

USD/CHF Chf0.9675

Asia's benchmark stock index is poised for a second weekly advance after Japan's Topix Index closed at the highest level since 2008 as leasing companies rallied on a report Prime Minister Shinzo Abe will encourage the practice to revive capital spending.

Nikkei 225 15,138.12 +100.88 +0.67%

S&P/ASX 200 5,180.77 +15.11 +0.29%

Shanghai Composite 2,282.87 +31.06 +1.38%

Orix Corp., which provides leasing and loans, jumped 9.2 percent in Tokyo.

Mizuno Corp. surged 18 percent after the Japanese sportswear company more than doubled its net-income forecast.

Singapore Airlines Ltd. dropped 4 percent after posting a wider operating loss.

02:00 China Leading Index April 0.0% +1.5%

The dollar maintained this week's gains versus all 16 major peers before data forecast to show improvement in the U.S. economy. The Conference Board's index of U.S. leading indicators probably rose 0.2 percent last month, according to the median estimate of economists surveyed by Bloomberg News before the data today. The gauge of the outlook for the next three to six months fell 0.1 percent in March.

The greenback rose toward a six-week high against the euro before the Federal Reserve releases on May 22 minutes of its last meeting, when policy makers said they may alter the pace of monthly bond purchases. Fed Bank of San Francisco President John Williams said yesterday the central bank may begin to taper off buying as early as this summer.

Economists in a separate Bloomberg poll expect a preliminary reading on the Thomson Reuters/University of Michigan index of consumer sentiment today will rise to 77.9 this month from 76.4 in April.

The yen headed for a third weekly loss before the Bank of Japan meets next week. Industrial production increased 14.2 percent in March from the previous month, when it grew a revised 4.2 percent, the Cabinet Office said today. Economists in a Bloomberg survey expected a 3.5 percent expansion.

The Australian dollar dropped to its lowest level in more than 11 months before the nation's central bank releases minutes of its last policy meeting on May 21. Reserve Bank Governor Glenn Stevens lowered borrowing costs to a record 2.75 percent this month and cut the inflation outlook, while reiterating a forecast for below-trend growth.

EUR / USD: during the Asian session, the pair fell to $ 1.2850

GBP / USD: during the Asian session, the pair fell to $ 1.5235

USD / JPY: during the Asian session, the pair traded in the range of Y102.05-35

Change % Change Last

GOLD 1,385.30 -10.90 -0.78%

OIL (WTI) 94.99 0.69 0.73%

Change % Change Last

Nikkei 225 15,037.24 -58.79 -0.39%

S&P/ASX 200 5,165.7 -25.96 -0.50%

Shanghai Composite 2,245.43 +20.63 +0.93%

FTSE 100 6,687.8 -5.75 -0.09%

CAC 40 3,979.07 -3.16 -0.08%

DAX 8,369.87 +7.45 +0.09%

DJIA 15,233.20 -42.47 -0.28%

S&P 500 1,650.22 -8.56 -0.52%

NASDAQ 3,465.24 -6.37 -0.18%

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

EUR/USD $1,2883 +0,02%

GBP/USD $1,5273 +0,33%

USD/CHF Chf0,9643 -0,17%

USD/JPY Y102,21 -0,06%

EUR/JPY Y131,69 -0,03%

GBP/JPY Y156,11 +0,29%

AUD/USD $0,9842 -0,46%

NZD/USD $0,8169 -0,77%

02:00 China Leading Index April 0.0%

09:00 Eurozone Construction Output, m/m March -0.8%

09:00 Eurozone Construction Output, y/y March +0.8%

09:30 United Kingdom MPC Member Weale Speaks

12:30 Canada Wholesale Sales, m/m March 0.0% +0.4%

12:30 Canada Consumer Price Index m / m April +0.2% +0.1%

12:30 Canada Consumer price index, y/y April +1.0% +0.9%

12:30 Canada Bank of Canada Consumer Price Index Core, m/m April +0.2% +0.2%

12:30 Canada Bank of Canada Consumer Price Index Core, y/y April +1.4% +1.2%