The euro rose against the dollar after weak data on the Richmond Fed manufacturing activity. Report of the Federal Reserve Bank of Richmond (Richmond Fed) has shown that the producers of the central Atlantic region of the U.S. this month reported a decline in activity. The in Richmond Fed index of current business conditions in the manufacturing sector in July fell to -11 from 7 in June, and the June value was revised downward. The June was the first positive value since March. The index values ​​above zero indicate an increase in activity. Richmond Fed sub-indexes in July showed a massive decline. The new orders index in July fell to -15 from 9 in June. The shipments index fell to -15 from 11. As for services, the activity is also decreased. Income index in the services sector fell to -6 to 12.

At the same time, the Bloomberg survey of economists showed that the expected reduction of the quantitative easing program to $ 65 billion in September. The survey was conducted July 18-22. Half of the respondents expect the onset of decline of the "quantitative easing" in September. That's more than 44% in the June survey. However, despite expectations, the yield on 10-year Treasury bonds continued to decline last week with a high of nearly two years after the announcement of Federal Reserve Chairman Ben Bernanke that the reduction of redemption of bonds will not be a tightening of monetary policy. 15% expect to reduce the start of the program of "quantitative easing" the Fed meeting on 29-30 October. Half of waiting until the "quantitative easing" in the second quarter of 2014 None of the respondents expect to reduce redemption of bonds as a result of the Fed meeting on July 30-31. According to the median estimate, the Fed will buy bonds in the market for another 1.32 trillion. dollars to complete the program of "quantitative easing." 51% percent of the respondents believe that monetary policy is "too soft", 10% - that it is "too hard".

The pound before fell against the dollar, which was due by the publication of the UK. In the British Bankers Association reported that by the end of last month the number of approved applications for mortgage loans increased moderately, reaching with the highest value since the beginning of 2012, but was less than the estimates of experts. According to the report, in June of this indicator has risen to the level of 37.278 million, compared to 36.290 million in the previous month, which was revised upward from 36.1 thousand added that many economists expect growth to 38.5 thousand .

European stocks declined from a seven-week high as a measure of U.S. manufacturing unexpectedly slumped, outweighing gains by companies from Royal KPN NV to Vivendi SA on plans to sell assets.

In the U.S., a measure of manufacturing in the region covered by the Federal Bank of Richmond unexpectedly slumped to minus 11 in July from a revised plus 7 the previous month. The median estimate of economists surveyed by Bloomberg had called for a reading of plus 9.

National benchmark indexes rose in 10 of the 18 western-European markets today. France’s CAC 40 and the U.K.’s FTSE 100 slipped 0.4 percent, while Germany’s DAX fell 0.2 percent.

KPN added 2.8 percent to 1.85 euros after the Dutch company agreed to sell its E-Plus mobile-phone business for 5 billion euros ($6.6 billion) to Telefonica’s German unit. KPN will take a 17 percent stake in Telefonica Deutschland Holding AG, which is controlled by Spain’s largest carrier, Telefonica. The shares rallied 13 percent yesterday when KPN confirmed it had held talks about selling the business.

Separately, KPN posted a second-quarter profit of 107 million euros, missing the average analyst estimate of 145 million euros. Telefonica gained 2.3 percent to 10.29 euros, while Telefonica Deutschland slipped 5.3 percent to 5.39 euros.

Vivendi advanced 2.4 percent to 16.08 euros. The media and telecommunications conglomerate said it has entered exclusive talks with Etisalat to sell a 53 percent stake in the Moroccan phone company for 4.2 billion euros.

Swatch Group AG advanced 1.7 percent to 538.50 Swiss francs. The biggest maker of Swiss watches said it expects a strong second half after first-half profit rose. Net income increased 6.1 percent to 768 million Swiss francs, the Biel, Switzerland-based company said in a statement.

West Texas Intermediate crude fluctuated on speculation that the Federal Reserve will pare stimulus in September and as China’s premier pledged economic growth of at least 7 percent. WTI’s discount to Brent widened.

Futures fluctuated as economists surveyed by Bloomberg predicted the Fed will trim monthly bond buying to $65 billion from $85 billion. Premier Li Keqiang said the slowest economic growth policy makers will tolerate is 7 percent, Beijing News reported today. Goldman Sachs Group Inc. forecast WTI’s discount to Brent will grow amid a U.S. Gulf Coast supply glut.

WTI for September delivery dropped 1 cent to $106.93 a barrel at 10:51 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 18 percent above the 100-day average for the time of day. Front-month futures settled at $108.05 on July 19, the highest level since March 19, 2012.

Brent for September settlement gained 33 cents, or 0.3 percent, to $108.48 a barrel on the London-based ICE Futures Europe exchange. Volume was 2.1 percent below 100-day average. The European benchmark’s premium to WTI widened to as much as $2.73, from yesterday’s close of $1.21. WTI rose above Brent on July 19 for the first time since 2010.

Eurozone consumer confidence in July improved to its highest level since mid-2011, preliminary data released by the European Commission showed on Tuesday.

The flash consumer confidence indicator climbed to -17.4 from -18.8 in June. Economists had forecast a score of -18.3.

The latest confidence reading is the highest since July 2011, when it was -11. The confidence indicator rose for the eighth consecutive month.

Consumer morale improved also in the EU during July, with the indicator rising to -14.8 from -17.5 in June.

Final figures are scheduled to be released along with business and economic sentiment survey data on July 30.

EUR/USD $1.3000, $1.3050, $1.3100, $1.3150, $1.3160, $1.3200, $1.3235

USD/JPY Y99.00, Y99.25, Y99.50, Y99.75, Y100.00, Y100.25, Y101.00, Y100.55, Y102.00

GBP/USD $1.5200, $1.5300

USD/CHF Chf0.9385

EUR/CHF Chf1.2220, Chf1.2350

AUD/USD $0.9080, $0.9165, $0.9170, $0.9250, $0.9265

AUD/JPY Y89.60, Y90.50, Y92.00

USD/CAD C$1.0320, C$1.0400

U.S. stock-index futures rose as earnings from companies including DuPont Co. and Texas Instruments Inc. (TXN) topped analysts’ estimates.

DuPont gained more than 4% after saying it will explore options including a sale for its performance-chemicals business. Texas Instruments rose more than 3% after forecasting third-quarter sales and profit that may exceed forecasts.

Global Stocks:

Nikkei  14,778.51 +120.47 +0.82%

Hang Seng 21,915.42 +498.92 +2.33%

Shanghai Composite 2,043.88 +39.11 +1.95%

FTSE  6,635.32 +12.15 +0.18%

CAC 3,946.87 +6.95 +0.18%

DAX 8,349.77 +18.71 +0.22%

Crude oil $105.76 -1.10%

Gold $1329.30 -0.50%

Data

08:30 United Kingdom BBA Mortgage Approvals June 36.1 38.5 37.3

The dollar rose against the euro in anticipation of the publication of today's U.S. data, as well as tomorrow's release of the report on the index of business activity in the manufacturing sector in the Eurozone. According to the median forecast of economists figure that shows business confidence in the manufacturing sector of the EU economy is likely to grow to 49.1 in July from 48.7 in the previous month. These expectations correspond to the level of March 2012.

Note also that in part on the dynamics of trade affected the results of the auction on the debt of Spain, which surprised investors. The yield on securities maturing in 3 months, dropped to the level of 0.442% versus the value of 0.869% in the previous auction. The yield on the 9-month debt dropped to 1.152% against prev. 1.441%. Spain managed to raise € 3.52 billion, exceeding the planned amount of € 2.5-3.5 billion At this stage, the country has financed 72.9% of the planned for this year cash requirements

We also add that the U.S. dollar strengthened against the background of Treasury yields. The yield on 10-year U.S. Treasury bonds rose 3 basis points to 2.52%.

The pound was down against the U.S. dollar, which has been associated with the publication of data on the UK. In the British Bankers Association reported that by the end of last month the number of approved applications for mortgage loans increased moderately, reaching with the highest value since the beginning of 2012, but was less than the estimates of experts.

According to the report, in June of this indicator has risen to the level of 37.278 million, compared to 36.290 million in the previous month, which was revised upward from 36.1 thousand added that many economists expect growth to 38.5 thousand

In the British Bankers Association reported that the increase in approved applications was supported by the scheme of credit financing from the Bank of England, which has helped those who are first-time buyers.

In addition, the data showed that the number of re-mortgages, meanwhile, fell slightly - to the level of 20478 from 20670 last month.

The total number of mortgage loans, including the purchase of houses, re-mortgages and other secured loans rose in June to 66,917 from 65,993 in the previous month.

EUR / USD: during the European session, the pair dropped to $ 1.3161, and then went back up to $ 1.3185

GBP / USD: during the European session, the pair fell to $ 1.5328

USD / JPY: during the European session, the pair rose to Y100.19

At 12:30 GMT in Canada, there are data on changes in the volume of retail sales for May. At 14:00 GMT Eurozone will present indicator of consumer confidence for July. At 22:45 GMT New Zealand will announce its trade balance for June. At 23:50 GMT Japan will report on the overall balance of foreign trade in June.

EUR/USD

Offers $1.3290/300, $1.3250/60, $1.3220/30, $1.32185, $1.3207

Bids  $1.3160, $1.3145/35, $1.3125/15, $1.3105/00, $1.3080

GBP/USD

Offers $1.5470, $1.5440/50, $1.5420, $1.5390/410, $1.5385

Bids $1.5320, $1.5305/00, $1.5280, $1.5250/40, $1.5220

AUD/USD

Offers $0.9345/50, $0.9339 27, $0.9300, $0.9285/90, $0.9265/70

Bids $0.9225/20, $0.9200, $0.9155/50, $0.9140/20, $0.9110/00

USD/JPY

Offers Y101.00, Y100.85/90, Y100.50, Y100.35/40, Y100.20/25

Bids Y99.60/55, Y99.20/10, Y99.00, Y98.80, Y98.50

EUR/JPY

Offers Y133.00, Y132.50, Y132.25, Y131.95/00, Y131.80

Bids Y131.30/25, Y130.80/75, Y130.55/50, Y130.20, Y130.10/00

EUR/GBP

Offers stg0.8700, stg0.8675/80, stg0.8645/55, stg0.8625/30

Bids stg0.8582, stg0.8575/65, stg0.8550, stg0.8536

Most European stocks rose, with the Stoxx Europe 600 Index trading near a seven-week high, as companies from Royal KPN NV to Vivendi (VIV) SA gained on plans to sell assets. U.S. index futures and Asian shares advanced.

The Stoxx 600 rose 0.1 percent to 300.53 at 9:04 a.m. in London, paring a gain of as much as 0.5 percent. Three stocks climbed for every two that dropped. Stocks rose for a fourth day yesterday as companies from UBS AG to Royal Philips Electronics NV reported increased profit.

A composite index based on a survey of purchasing managers in the euro area’s services and manufacturing industries probably rose in July, Markit Economics will say tomorrow. The measure climbed to 49.1 from 48.7 in June, according to the median forecast in a Bloomberg survey.

In Germany, the Ifo institute releases its business-climate index on Thursday. Economists surveyed forecast the measure will rise to 106.1 in July from 105.9 in June.

A release at 10 a.m. New York time will show that a measure of manufacturing in the region covered by the Federal Bank of Richmond rose to 9 in July from 8 the previous month, according to the median estimate of economists. A report yesterday showed that sales of previously owned houses in the U.S. unexpectedly fell in June.

The volume of shares changing hands in companies listed on the Stoxx 600 was 41 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.

KPN jumped 8.1 percent to 1.95 euros after the Dutch company agreed to sell its E-Plus mobile-phone business for 5 billion euros ($6.6 billion) to Telefonica’s German unit. As part of the deal, KPN will take a 17 percent stake in Telefonica Deutschland Holding AG, which is controlled by Spain’s largest carrier,

Separately, KPN posted a second-quarter profit of 107 million euros, missing the average analyst estimate of 145 million euros. Telefonica gained 2.4 percent to 10.30 euros, while Telefonica Deutschland slipped 0.7 percent to 5.65 euros.

Vivendi climbed 3.7 percent to 16.28 euros. The company said it has entered exclusive talks with Etisalat to sell a 53 percent stake in the Moroccan phone company for 4.2 billion euros.

Swatch advanced 1.8 percent to 539 Swiss francs. The biggest maker of Swiss watches said it expects a strong second half after first-half profit rose. Net income increased 6.1 percent to 768 million Swiss francs ($821 million), the Biel, Switzerland-based company said in a statement.

FTSE 100 6,644.69 +21.52 +0.32%

CAC 40 3,947.79 +7.87 +0.20%

DAX 8,343.91 +12.85 +0.15%

EUR/USD $1.3000, $1.3050, $1.3100, $1.3150, $1.3160, $1.3200, $1.3235

USD/JPY Y99.00, Y99.25, Y99.50, Y99.75, Y100.00, Y100.25, Y101.00, Y100.55, Y102.00

GBP/USD $1.5200, $1.5300

USD/CHF Chf0.9385

EUR/CHF Chf1.2220, Chf1.2350

AUD/USD $0.9080, $0.9165, $0.9170, $0.9250, $0.9265

AUD/JPY Y89.60, Y90.50, Y92.00

USD/CAD C$1.0320, C$1.0400

Asian stocks rose, extending a two-month high, after Premier Li Keqiang said China’s economy won’t grow any slower than 7 percent and as U.S. housing data damped concerns the Federal Reserve will reduce stimulus.

Nikkei 225 14,778.51 +120.47 +0.82%

Hang Seng 21,930.69 +514.19 +2.40%

S&P/ASX 200 5,017.11 +15.25 +0.30%

Shanghai Composite 2,043.88 +39.11 +1.95%

Industrial & Commercial Bank of China Ltd., the world’s second-biggest lender by market value, jumped 4.1 percent in Hong Kong.

Samsung Electronics Co., the largest maker of smartphones, rose 2.7 percent in Seoul.

Nippon Steel & Sumitomo Metal Corp. climbed 3.3 percent in Tokyo after the Nikkei newspaper reported the No. 1 steelmaker agreed to a 10 percent price increase with Toyota Motor Corp.

The dollar held its biggest decline against the yen in almost two weeks, after U.S. housing data underscored the need for Federal Reserve support even as the central bank considers reducing its economic stimulus.

The U.S. currency was 0.2 percent from its weakest in a month versus the euro before data on home prices, following figures yesterday that showed residential sales unexpectedly fell. Home prices in the U.S. probably rose 0.8 percent in May, following a 0.7 percent advance the previous month, the smallest gain since January, the Federal Housing Finance Agency will report today, according to economists in a Bloomberg News survey. Previously owned home sales in the U.S. fell in June amid tight supply and increasing mortgage rates. Purchases slid 1.2 percent to a 5.08 million annualized rate, the National Association of Realtors reported yesterday. The median forecast in a Bloomberg survey was for a 5.26 million pace. Fed Chairman Ben S. Bernanke told Congress last week that any reduction in stimulus would depend on the performance of the economy.

Demand for the euro was supported ahead of data tomorrow forecast to show services and factory output in the region contracted at the slowest pace in more than a year. A euro-area composite index based on a survey of purchasing managers in both the services and manufacturing industries probably rose to 49.1 in July from 48.7 the previous month, London-based Markit Economics is predicted to say tomorrow, according to the median forecast of economists in a Bloomberg survey. That would match the level in March 2012. A reading below 50 indicates contraction.

EUR / USD: during the Asian session the pair rose to $ 1.3205

GBP / USD: during the Asian session the pair rose to $ 1.5375

USD / JPY: during the Asian session the pair traded in a range of Y99.10-60

Tuesday sees data on both sides of the Atlantic, but there are no scheduled appearances from central bank officials or leading politicians. The session gets underway with the release of French data. The main release is the July business climate indicator, including the July services and manufacturing sentiment indices. Sovereign bond sees The Netherlands re-open the off-the-run 3.25% Jul 2021 DSL and off-the-run 3.75% Jan 2042 DSL for between E1.5bln to E2.5bln. Eurozone Sovereign T-bill issuance sees Spain plan to tap the 3-month Oct 13, 2013 Letra and tap 9-month Apr 16, 2014 Letra. Also, then ESM plans to sell new 6-month Jan 23, 2014 for up to E2.0bln. Tuesday sees data on both sides of the Atlantic, but there are no scheduled appearances from central bank officials or leading politicians. There is only limited UK data at 0830GMT. The main release is the June BBA lending data. The UK housing market, boosted by the Funding for Lending Scheme and Help to Buy schemes, is gaining momentum. A further rise is mortgage approvals looks likely in June, with the highest forecast from the small number of analysts who predict this figure up at 40,000.

Change % Change Last

GOLD 1,333.90 41.00 3.17%

OIL (WTI) 106.91 -1.14 -1.06%

Nikkei 225 14,658.04 68,13 0,47%

Hang Seng 21,348.84 -13.58 -0.06%

S & P / ASX 200 5,001.9 29,81 0,60%

Shanghai Composite 2,004.76 12,11 0,61%

FTSE 100 6,628.18 -2.49 -0.04%

CAC 40 3,939.13 +13.81 +0.35%

DAX 8,327.22 -4.35 -0.05%

DJIA 15,545.50 1.81 0.01%

S&P 500 1,695.53 3.44 0.20%

NASDAQ 3,600.39 12.77 0.36%

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

EUR/USD $1,3184 +0,55%

GBP/USD $1,5356 +0,83%

USD/CHF Chf0,9409 -0,34%

USD/JPY Y99,61 -0,91%

EUR/JPY Y131,32 -0,36%

GBP/JPY Y152,94 -0,07%

AUD/USD $0,9244 +0,81%

NZD/USD $0,7970 +0,83%

USD/CAD C$1,0338 -0,36%

08:30 United Kingdom BBA Mortgage Approvals June 36.1 38.5

12:30 Canada Retail Sales, m/m May +0.1% +0.4%

12:30 Canada Retail Sales ex Autos, m/m May -0.3% +0.1%

13:00 U.S. Housing Price Index, m/m May +0.7% +0.9%

13:00 U.S. Housing Price Index, y/y May +7.4%

14:00 Eurozone Consumer Confidence July -18.8 -18.3

14:00 U.S. Richmond Fed Manufacturing Index July 8 7

20:30 U.S. API Crude Oil Inventories July -2.6

22:45 New Zealand Trade Balance, mln June 71 -102

23:50 Japan Adjusted Merchandise Trade Balance, bln June -821.0 -573.5