The Dollar Index rose to a two-week high as investors fled higher-yielding currencies in favor of the relative safety of dollar-denominated assets.

The U.S. currency rose against the majority of its 16 major counterparts before U.S. reports tomorrow that economists said will show durable-goods orders gained and house prices increased as the Federal Reserve may reduce monetary stimulus. June 25 U.S. Department of Commerce will present the figures on orders for durable goods, which, according to analysts, the rise in May, up 3% compared with April. Expected positive report and the real estate market. According to experts, the April housing price index from the S & P / Case-Shiller will grow by 10.6% compared with a year earlier. These may correspond to the March figures, which showed the highest growth in the last seven years.

In the last hours of the dollar began to fall back from highs against the euro and other higher-yielding currencies after comments from Fed officials. Today in London the speech of President Richard Fisher Federal Reserve Bank of Dallas. Recall that Fisher is one of the most vocal critics of quantitative easing, the central bank. Responding to questions, Fisher said that "it is expedient to reduce pokypki assets" and "tax-perezapystit byudzhetnyyu politiky."

Partly on the rate of the euro / dollar have affected the data for Germany. As it became known that the business sentiment in Germany in June improved, raising hopes for the restoration of sentiment among Europe's largest trading partners. The business confidence index rose a second straight month to 105.9 in June from 105.7 in May, being above its long term average 101 and above expectations of economists. Increasing Ifo index gave relief as uncertain business prospects and reduce exports to the Evrobloka affected by the recession have been a deterrent to corporate investments during the year. Business expectations for the next six months improved to 102.5 in June from 101.6 in May. But about 7,000 managers participating in the monthly Ifo survey were less satisfied with their current business situation sub-index fell to 109.4 from 110.0 in the previous month. Ifo study offers hope that business sentiment also restore the position of the major European trading partners, particularly France and Italy.

The Japanese yen rose against the dollar, although it retreated from earlier reached the maximum values ​​that are likely to be associated with a convincing victory for Japan's ruling coalition in local elections on Sunday, the result of which showed strong support economic recovery policies of Prime Minister Shinzo Abe. Resounding victory in the municipal elections in Tokyo will win the election administration Abe next month in the upper house of parliament. This result will allow the Prime Minister to continue monetary policy, begun in December, on assuming office, which led to a rapid weakening of the yen. In case of victory of the ruling Liberal Democratic Party of Japan and its coalition partners in the elections to the upper house of parliament in July, Abe will have full control of both houses of parliament, which will easily take the necessary legislation to implement the political program of the Prime Minister, including reform the regulatory framework. Experts point out that the news somewhat positive, since winning elections for the upper house will facilitate the government to implement its policies.

European stocks fell for a fifth day, erasing their gains for the year, as Goldman Sachs Group Inc. cut China's growth forecast amid concern banks in the world's second-largest economy face a cash crunch.

The Stoxx Europe 600 Index declined 1.7 percent to 275.66 at the close in London. The equity benchmark has entered a so-called correction, having slumped 11 percent since May 22, when Federal Reserve Chairman Ben S. Bernanke commented on the possibility of paring bond purchases.

China's stocks plunged the most since August 2009 -- and the CSI 300 Index (SHSZ300) extended its decline from a February high to more than 20 percent -- after the country's central bank signaled it will maintain efforts to curb speculative lending.

Separately, Goldman Sachs cut its estimate for China's economic growth this year to 7.4 percent from an earlier prediction of 7.8 percent, citing weaker economic indicators and tighter financial conditions.

While money-market rates in the country fell for a second day from a record, the overnight repurchase rate of 6.47 percent was still more than double this year's average of 3.09 percent, according to a fixing compiled by the National Interbank Funding Center.

In Germany, data showed that business confidence increased in June in line with economists' estimates. The Ifo institute's business climate index, based on a survey of 7,000 executives, rose to 105.9 this month from 105.7 in May.

National benchmark indexes fell in all of the 17 western European markets trading today, except Iceland. The U.K.'s FTSE 100 retreated 1.4 percent, while France's CAC 40 declined 1.7 percent. Germany's DAX dropped 1.2 percent. Greece was closed for Whit Monday holiday.

Erste tumbled 8.5 percent to 20.09 euros, its biggest drop since January 2012. Austria's biggest lender plans to increase its share capital by 660 million euros in the third quarter as it redeems participation capital of 1.76 billion euros. Erste also cut its earnings outlook, saying it expects its pre-provision operating profit to decline by 5 percent this year.

Kazakhmys, which owns 26 percent of ENRC, plunged 13 percent to 233.7 pence, its lowest price since February 2009. ENRC founders and the Kazakh government made an offer valuing the mining company at 3.04 billion pounds. They offered shareholders $2.65 in cash and 0.23 Kazakhmys shares for each ENRC share held.

A gauge of mining companies in the Stoxx 600 slumped to its lowest level since July 2009. Rio Tinto Group, the second-largest commodity producer, declined 3.4 percent to 2,582 pence and Anglo American Plc fell 4 percent to 1,297.5 pence.

Kabel Deutschland advanced 1.7 percent to 85.50 euros. Vodafone, the world's second-biggest wireless carrier, raised its bid for Kabel Deutschland to 87 euros a share from the initial 80 euros. The German cable company said its board plans to recommend the cash offer to its shareholders.

West Texas Intermediate crude fell to almost a three-week low on speculation that a cash crunch may restrain economic growth in China, the world’s biggest energy-consuming country.

WTI futures dropped as much 1.1 percent in New York while Brent oil traded in London dipped below $100. The People’s Bank of China said the nation should fine-tune its policies as a squeeze in the banking system risks exacerbating a slowdown.

China’s manufacturing will shrink at a faster pace this month, a preliminary indicator showed last week. The country is also the world’s second-largest oil consumer, accounting for 11 percent of global demand in 2012, according to BP Plc (BP/)’s Statistical Review of World Energy. The U.S. is the biggest user at 21 percent.

WTI crude for August delivery declined 50 cents, or 0.5 percent, to $93.19 a barrel at 9:18 a.m. on the New York Mercantile Exchange. Futures fell as much as $1.02 to $92.67 a barrel, the lowest level since June 4. The volume of all futures traded was 8 percent below the 100-day average.

Brent oil for August settlement declined 80 cents, or 0.8 percent, to $100.11 a barrel on the London-based ICE Futures Europe exchange. Volume for all contracts was 5 percent lower than the 100-day average.

Gold prices reduced after a 7 percent drop last week in connection with the strengthening of the dollar and the Fed's plan to reduce the incentive program.

Gold fell by 24 per cent since the beginning of the year, partly due to the Fed's plans to reduce the volume of buying up bonds this year from the current $ 85 billion a month. Also on the market affects the sharp rise in interest rates on short-term loans in China last week.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust on Friday fell by 0.54 percent to 989.94 tonnes - the lowest level in more than four years.

Physical demand in India - the world's largest consumer of gold - also dropped due to the weakening rupee and increase the import duty on precious metals.

Pressure on the price of gold has had a decrease in the growth forecasts of prices for precious metals analysts Goldman Sachs and Credit Suisse.

The main reason for the revision of the forecast Goldman Sachs was the improvement in the U.S. economy, which increases the risk of falling gold prices. By the end of this year, Goldman Sachs expects the price of gold at $ 1,300 an ounce, down 9.4% compared with the previous forecast. Thus by 2014, the price drops to $ 1,050 per troy ounce, down 17.3% from the previous forecast.

The cost of the August gold futures on COMEX today dropped to 1277.20 dollars an ounce.

EUR/USD $1.3075, $1.3300

USD/JPY Y97.00, Y99.00, Y99.50

EUR/JPY Y128.00

CBP/USD $1.5465 $1.5580

CBP/JPY Y150.50

CBP/CHF Chf1.4300

EUR/CHF Chf1.2325

AUD/USD $0.9300

USD/CAD C$1.0290, C$1.0350

U.S. stocks futures fell as Chinese equities entered a bear market amid concern a cash crunch will hurt the world's second-largest economy.

Global Stocks:

Nikkei 13,062.78 -167.35 -1.26%

Hang Seng 19,813.98 -449.33 -2.22%

Shanghai Composite 1,963.24 -109.86 -5.30%

FTSE 6,047.79 -68.38 -1.12%

CAC 3,603.61 -54.43 -1.49%

DAX 7,728.92 -60.32 -0.77%

Crude oil $93.65 -0.04%

Gold $1289.00 -0.23%

Upgrades:

Downgrades:

Other:

Apple (AAPL) target raised to $450 from $435 at BMO

Apple (AAPL) target lowered to $405 from $420 at Jefferies

Data

08:00 Germany IFO - Business Climate June 105.7 106.0 105.9

08:00 Germany IFO - Current Assessment June 110.0 109.6 109.4

08:00 Germany IFO - Expectations June 101.6 102.0 102.5

The euro exchange rate fell slightly against the dollar, while retreating from session highs, as the attention of many market participants moved to the U.S. data. Note that orders for durable goods and consumer confidence index from the Conference Board - is a major U.S. reports this week, and the overall risks are downward, although the main index of orders may be higher than expected on the background of aircraft orders.

More important may be the performances by the Fed, starting with today's speech Fisher.

It is also worth noting that partially influenced the course of trade data for Germany. As it became known that the business sentiment in Germany in June improved, raising hopes for the restoration of sentiment among Europe's largest trading partners.

The business confidence index rose a second straight month to 105.9 in June from 105.7 in May, being above its long term average 101 and above expectations of economists.

Increasing Ifo index gave relief as uncertain business prospects and reduce exports to the Evrobloka affected by the recession have been a deterrent to corporate investments during the year. Business expectations for the next six months improved to 102.5 in June from 101.6 in May. But about 7,000 managers participating in the monthly Ifo survey were less satisfied with their current business situation sub-index fell to 109.4 from 110.0 in the previous month.

Ifo study offers hope that business sentiment also restore the position of the major European trading partners, particularly France and Italy.

The Japanese yen rose against the dollar, although it retreated from earlier reached the maximum values ​​that are likely to be associated with a convincing victory for Japan's ruling coalition in local elections on Sunday, the result of which showed strong support economic recovery policies of Prime Minister Shinzo Abe. Resounding victory in the municipal elections in Tokyo will win the election administration Abe next month in the upper house of parliament. This result will allow the Prime Minister to continue monetary policy, begun in December, on assuming office, which led to a rapid weakening of the yen. In case of victory of the ruling Liberal Democratic Party of Japan and its coalition partners in the elections to the upper house of parliament in July, Abe will have full control of both houses of parliament, which will easily take the necessary legislation to implement the political program of the Prime Minister, including reform the regulatory framework. Experts point out that the news somewhat positive, since winning elections for the upper house will facilitate the government to implement its policies.

EUR / USD: during the European session, the pair is trading in the range of $ 1.3077-$ 1.3125

GBP / USD: during the European session, the pair fell to $ 1.5340

USD / JPY: during the European session, the pair fell to Y97.72

At 13:00 GMT Belgium will release the index business sentiment for June. At 16:30 GMT the United States in a speech made by a member of the Committee on the Federal Open Market R. Fisher.

EUR/USD

Offers $1.3200/10, $1.3180, $1.3160/65, $1.3150, $1.3130, $1.3120/30

Ордера на покупку $1.3079, $1.3075-70, $1.3030-20, $1.3000

GBP/USD

Offers $1.5530/35, $1.5495/500, $1.5470/80, $1.5450/55, $1.5420, $1.5380

Bids $1.5343, $1.5330, $1.5300, $1.5275/70, $1.5250/40

AUD/USD

Offers $0.9313/20, $0.9300, $0.9270/80, $0.9225/30, $0.9200/10

Bids $0.9143, $0.9120, $0.9100, $0.9095/92

EUR/GBP

Offers stg0.8595/600, stg0.8575/80, stg0.8552, stg0.8542

Bids stg0.8475/70, stg0.8465/60, stg0.8445/40, stg0.8420, stg0.8400

EUR/JPY

Offers Y129.80, Y129.50, Y129.39, Y129.09/21, Y128.85/90

Bids Y128.18/12/08, Y128.00, Y127.79 21, Y127.55/50, Y127.10/00

USD/JPY

Offers Y99.45/50, Y99.00, Y98.76, Y98.65/70, Y98.35/40

Bids Y97.50, Y97.20, Y97.00, Y96.80, Y96.55

European stocks fell for a fifth day, erasing their gains fortheyear, as Goldman Sachs Group Inc. cut China's growth forecasta midconcern banks at the world's second-largest economy face acash crunch. U.S. index futures and Asian shares alsod ropped.

The Stoxx Europe 600 Index declined 1.2 percent to 277.17 at 10:31 a.m. in London.Thegauge is heading for an 7.9 percent drop in June, itsbiggestmonthly loss since August 2011, as the Federal Reserve saidlastweek it may end bond purchases next year if the U.S.economystrengthens in line with forecasts. The Stoxx 600 hasslumped 11percent since May 22, when Fed Chairman Ben S. Bernankecommentedon stimulus paring.

Goldman Sachs cut its estimate for China's economic growth thisyearto 7.4 percent from an earlier prediction of 7.8 percent,citingweaker economic indicators and tighterfinancialconditions.

China's benchmark money-market rates last week climbed to arecordas its central bank refrained from using open-marketoperations toease a cash crunch. The rates fell today.

In Germany, data showed that business confidence increased inJunein line with economists' estimates. The Ifo institute'sbusinessclimate index, based on a survey of 7,000 executives, roseto 105.9this month from 105.7 in May.

Erste tumbled 6.5 percent to 20.54 euros, its lowest price sinceNovember.Austria's biggest lender plans to increase its sharecapital by 660million euros in the third quarter as it redeemsparticipationcapital of 1.76 billion euros. Erste also cut itsearnings outlook,saying that it expects its pre-provisionoperating profit to declineby 5 percent this year.

Kazakhmys,whichowns 26 percent of ENRC, plunged 11 percent to 240.8 pence,itslowest price since March 2009. ENRC founders and theKazakhgovernment made an offer valuing the mining company at 3.04billionpounds. They offered shareholders $2.65 in cash and 0.23Kazakhmysshares for each ENRC share held. ENRC rose 1 percent to219pence.

A gauge of mining companies in the Stoxx 600 slumped to itslowestlevel since July 2009. BHP Billiton Ltd., theworld's biggest commodity producer, slid 0.7 percent to 1,692penceand Rio Tinto Group,thesecond largest, declined 1.7 percent to 2,627.5pence.

FTSE 100 6,068.94 -47.23 -0.77%

CAC 40 3,607.45 -50.59 -1.38%

DAX 7,725.23 -64.01 -0.82%

EUR/USD$1.3075, $1.3300

USD/JPYY97.00, Y99.00, Y99.50

EUR/JPYY128.00

CBP/USD$1.5465 $1.5580

CBP/JPYY150.50

CBP/CHFChf1.4300

EUR/CHFChf1.2325

AUD/USD$0.9300

USD/CADC$1.0290, C$1.0350

Asian stocksdeclined, with the benchmark regional index heading toward theworst monthly loss in a year, as Chinese stocks headed for a bearmarket amid a cash crunch at banks in the world's second-largesteconomy.

Nikkei 225 13,062.78 -167.35 -1.26%

Hang Seng 19,778.02 -485.29 -2.39%

S&P/ASX 200 4,669.1 -69.70 -1.47%

Shanghai Composite 1,963.24 -109.86 -5.30%

Industrial & Commercial Bank of China Ltd., the world's largestlender, lost 2.6 percent in Hong Kong, having risen just one day inJune.

BHP Billiton Ltd., the No. 1 mining company, declined 3.4 percent,as Goldman Sachs Group Inc. cut its growth forecast forChina.

AMP Ltd. tumbled 13 percent, its biggest slide in 10 years, afterAustralia's biggest life insurer and pension manager said itexpects profit will fall as much as 16 percent.

The dollar rose to a two-week high versus the yen before data that may add to the case for the Federal Reserve to pare back bond purchases.

The U.S. currency strengthened ahead of reports tomorrow that will probably show orders for durable goods grew and house prices continued to recover. Bookings for appliances, vehicles, engines, electronics and other durable goods grew 3 percent in May after rising 3.5 percent the prior month, economists in a Bloomberg News survey project a report tomorrow from the Commerce Department will show. The S&P/Case-Shiller index of home values for 20 cities probably rose 10.6 percent for the year ended April after a 10.9 percent increase in March that was the biggest year-over-year advance since 2006, according to the median forecast in another survey of economists before the June 25 report.

Fed Bank of Dallas President Richard Fisher will speak on monetary policy in London today. Fisher, one of the most vocal critics of the central bank's quantitative easing. He won't speak from prepared remarks, and will take questions from the audience and media.

The yen slumped against most major peers as Japan's ruling coalition won a majority in Tokyo elections, signaling support for Prime Minister Shinzo Abe. In Japan, the ruling Liberal Democratic Party and its coalition partner won nearly two thirds of the seats in a weekend Tokyo assembly poll, boding well for the party's prospects in a national upper house election in July.

Declines in the euro were limited before the release of a survey of German business confidence today. The Ifo institute's business climate index, based on a survey of 7,000 executives, probably rose to 105.9 in June from 105.7 last month, according to the median forecast in a Bloomberg News survey.

EUR / USD: during the Asian session the pair fell to $ 1.3085

GBP / USD: during the Asian session the pair fell to $ 1.5365

USD / JPY: during the Asian session the pair rose to Y98.70

Monday's calendar is fairly quiet, with much of the week's main data and central bank speakers due later in the week. However, the much watched Ifo is due. However, markets will have plenty to focus on today, as markets in Asia continue the volatility of recent session as US Treasury yields hit fresh 2-year highs. At 0800GMT, the German Ifo Survey will be released. After the better than expected euro area flash PMIs last week, markets will be looking for further evidence of an improvement in the German economy. Expectations are for a modest uptick in the Business Climate index to 105.9, with the Current Assessment seen at 109.8. Also at 0800GMT, Italy's June ISTAT consumer confidence survey will be released.