The U.S. dollar rose against major currencies after strong data on manufacturing activity and new home sales.

As the results of studies that were presented Markit Economics, in July, preliminary index of business activity in the U.S. manufacturing sector rose to 53.2, up from 52.2 in June. It is worth noting that, according to the average forecast of experts this figure had climbed to 52.5.

At the same time, as shown by recent data that has been provided by the Ministry of Commerce, at the end of last month new home sales rose markedly, reaching a five-year high at the same time, increasing the likelihood of an early economic recovery. According to the report, in June, sales of new homes rose to a seasonally adjusted 8.3%, reaching a level with 497 thousand units. We add that this was the highest since May 2008. Compared to the same period last year, sales were up 38.1%. Economists had expected sales to increase by only 482 thousand, compared to a revised downward indicator for the last month at 459 million (originally reported 476 thousand).

Earlier, the European currency rose against the U.S. dollar, which has been associated with the publication of upbeat data for the euro area. According to a report from Markit Economics, the composite index of production, which measures business activity in both sectors, rose in July to a 18-month high - at 50.4, down from 48.7 in June. It is worth noting that, according to the average forecast of economists, the value of this indicator was up to the level of 49.1. Recall that the index value above 50 indicates expansion of activity in the sector, while a drop below 50 suggests contraction. Meanwhile, it was reported that the index of business activity in the manufacturing sector rose to the level of 50.1, down from 48.8 in June. We add that the latest reading was the highest in the last 24 months. Many experts have predicted an increase only to the level of 49.1. The data also showed that the index of business activity in the services sector rose in July to the level of 49.6, down from 48.3 in June. The value of this index was the highest in the last 18 months. Economists had expected only a slight increase - to 48.9.

The Australian dollar and the Japanese yen fell against the dollar after the release of negative statistics from China. As the results of recent studies that have been presented today Agency HSBC, the index of manufacturing activity in China fell in July to a level of 47.7, which was the minimum value over the past 11 months. Recall that in June, the index was at around 48.2. In addition, the data showed that the index of industrial production fell from 48.6 in June to 48.2 - a minimum of nine months. Recall that the index value below 50 show a decrease in activity, while growth above this mark suggests the extension.

HSBC experts point out that the continuing decline in index of business activity in the industry is a sign of a slowdown in China's industry due to the reduction of new orders component and a faster reduction in inventories. It also adds pressure on the labor market. Given the fact that the Chinese authorities have recently announced that they will provide a minimum accepted level of economic growth needed to ensure job security, data on the index of business activity showed the need for incentives to stabilize the growth of the economy.

European stocks rose to an almost eight-week high as data signaled Germany is leading a revival in euro-area manufacturing and companies posted results that exceeded estimates.

Preliminary data today showed euro-area manufacturing is expanding this month for the first time since July 2011. A manufacturing index based on a survey of purchasing managers increased to 50.1 from 48.8 in June, Markit Economics said. Economists in a survey had predicted 49.1. A reading of 50 is the dividing line between expansion and contraction.

In Germany, manufacturing unexpectedly expanded in July and services growth accelerated.

National benchmark indexes climbed in all 18 western European markets today, except Greece. The U.K.’s FTSE 100 added 0.4 percent, while Germany’s DAX gained 0.8 percent and France’s CAC 40 rose 1 percent.

Volvo gained 5 percent to 97.90 kronor. Second-quarter earnings before interest and taxes of 3.26 billion kronor ($505 million) exceeded the 3.22 billion-kronor average analyst estimate in a survey. Revenue increased to 72.8 billion kronor, compared with the 71.6 billion kronor average estimate.

EasyJet advanced 3.7 percent to 1,385 pence. Europe’s second-largest discount airline said third-quarter sales rose 11 percent and that full-year earnings should beat analyst estimates as it adds customers on routes where network carriers are withdrawing.

Ryanair Holdings Plc, which posts quarterly results next week, rose 4.8 percent to 7.37 euros in Dublin. A gauge of travel and leisure companies posted the best performance on the Stoxx 600.

Syngenta, the biggest maker of crop chemicals, fell 4 percent to 371 Swiss francs, its largest decline since September 2011. Adjusted earnings of $15.92 a share in the first half missed the average analyst projection for $17.15, as cold weather across Germany and the U.S. hurt demand for its fungicides.

West Texas Intermediate crude pared losses after a U.S. report showed that inventories dropped a fourth week, the longest stretch of declines since August.

Futures rebounded after the Energy Information Administration said that supplies slipped 2.83 million barrels to 364.2 million. Analysts surveyed by Bloomberg had projected a 2.8 million-barrel decrease. Prices dipped earlier as Chinese manufacturing contracted more than economists estimated, bolstering concern that economic growth will slow in the world’s biggest energy-consuming country.

WTI oil for September delivery slipped 44 cents, or 0.4 percent, to $106.79 a barrel at 10:40 a.m. on the New York Mercantile Exchange. The contract traded at $106.40 before the release of the EIA report at 10:30 a.m. in Washington. The volume of all futures traded was 36 percent less than the 100-day average for the time of day.

Brent crude for September settlement dropped 83 cents, or 0.8 percent, to $107.59 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 23 percent below the 100-day average. The European benchmark grade traded at an 80-cent premium to WTI, down from $1.19 yesterday. Brent slid below the U.S. grade in intraday trading on July 19 for the first time since August 2010.

British manufacturers' order book balance improved sharply in July to the highest level in seven months, and firms expect further growth in orders in the coming months, data from a survey by the Confederation of British Industry (CBI) showed Wednesday.

The latest industrial trends survey showed that manufacturers' order book balance increased to -12 percent in July from -18 percent in June..The figure matched economists' expectations.

Looking ahead, manufacturing firms expect both orders and output to increase in the next quarter, the survey showed.

"Optimism in the sector has risen again, and demand conditions are expected to improve further in the coming three months," Stephen Gifford, CBI Director of Economics, said.

During the three months ended July, 32 percent of the surveyed firms reported an increase in their order books, while 27 percent said orders decreased, resulting in a balance of +5, which was the highest since April 2012.

Manufacturers also reported an increase in production, with the balance rising to +7 percent during the three-month period. Firms were slightly more optimistic about the future prospects of their businesses than they were in the previous quarter.

"The UK CBI Industrial Trends Survey for July and Q3 joins the chorus of surveys indicating that the manufacturing sector's recovery is gathering some pace, albeit less than in the rest of the economy," Capital Economics UK Economist Samuel Tombs said.

EUR/USD $1.3100, $1.3130, $1.3145/50, $1.3200, $1.3250

USD/JPY Y99.00, Y99.20, Y99.35, Y99.40, Y100.00, Y100.25, Y100.40, Y100.50, Y101.00

EUR/JPY Y129.00, Y131.00, Y132.00

GBP/USD $1.5350, $1.5355

GBP/JPY Y151.00

AUD/USD $0.9100, $0.9180, $0.9250, $0.9280, $0.9300

USD/CAD C$1.0260, C$1.0330/35

U.S. stock-index futures climbed as Apple (AAPL) Inc. posted profit that topped estimates and European manufacturing unexpectedly expanded.

Crude oil:

Nikkei 14,731.28 -47.23 -0.32%

Hang Seng 21,968.93 +53.51 +0.24%

Shanghai Composite 2,033.33 -10.55 -0.52%

FTSE  6,652.02 +54.58 +0.83%

CAC 3,969.95 +46.86 +1.19%

DAX 8,398.67 +84.44 +1.02%

Crude oil $106.59 -0.60%

Gold $1331.90 +0.01%

Data

01:00 Australia CPI, q/q Quarter II +0.4% +0.5% +0.4%

01:00 Australia CPI, y/y Quarter II +2.5% +2.5% +2.4%

01:45 China HSBC Manufacturing PMI (Preliminary) July 48.2 48.6 47.7

07:00 France Manufacturing PMI (Preliminary) July 48.4 48.9 49.8

07:00 France Services PMI (Preliminary) July 47.2 47.7 48.3

07:30 Germany Manufacturing PMI (Preliminary) July 48.6 49.3 50.5

07:30 Germany Services PMI (Preliminary) July 50.4 50.9 52.5

08:00 Eurozone Manufacturing PMI (Preliminary) July 48.8 49.1 50.1

08:00 Eurozone Services PMI (Preliminary) July 48.3 48.9 49.6

10:00 United Kingdom CBI industrial order books balance July -18 -12

European currency rose against the U.S. dollar, which has been associated with the publication of upbeat data for the euro area. According to a report from Markit Economics, the composite index of production, which measures business activity in both sectors, rose in July to a 18-month high - at 50.4, down from 48.7 in June. It is worth noting that, according to the average forecast of economists, the value of this indicator was up to the level of 49.1. Recall that the index value above 50 indicates expansion of activity in the sector, while a drop below 50 suggests contraction.

Meanwhile, it was reported that the index of business activity in the manufacturing sector rose to the level of 50.1, down from 48.8 in June. We add that the latest reading was the highest in the last 24 months. Many experts have predicted an increase only to the level of 49.1.

The data also showed that the index of business activity in the services sector rose in July to the level of 49.6, down from 48.3 in June. The value of this index was the highest in the last 18 months. Economists had expected only a slight increase - to 48.9.

Note also that the attention of market participants also focused on the output of today's data on the number of buildings sold in the United States. According to the median forecast of economists figure is likely rose last month to the level of 482 thousand new homes, compared with 476 million in May.

Australian dollar and the Japanese yen fell against the dollar after the release of negative statistics from China. As the results of recent studies that have been presented today Agency HSBC, the index of manufacturing activity in China fell in July to a level of 47.7, which was the minimum value over the past 11 months. Recall that in June, the index was at around 48.2.

In addition, the data showed that the index of industrial production fell from 48.6 in June to 48.2 - a minimum of nine months. Recall that the index value below 50 show a decrease in activity, while growth above this mark suggests the extension.

HSBC experts point out that the continued reduction of the index of business activity in the industry is a sign of a slowdown in China's industry due to the reduction of new orders component and a faster reduction in inventories. It also adds pressure on the labor market.

Given the fact that the Chinese authorities have recently announced that they will provide a minimum accepted level of economic growth needed to ensure job security, data on the index of business activity showed the need for incentives to stabilize the growth of the economy.

EUR / USD: during the European session, the pair rose to $ 1.3254

GBP / USD: during the European session, the pair is trading down $ 1.5335

USD / JPY: during the European session, the pair rose to Y100.17

At 13:00 GMT the United States will publish the index of business activity in the manufacturing sector in July. At 14:00 GMT the United States will become aware of the change in the volume of home sales in the primary market in June. At 21:00 GMT we will know the decision of the Reserve Bank of New Zealand's main interest rate, and will cover the application of the Reserve Bank of New Zealand.

EUR/USD

Offers $1.3340/50, $1.3320, $1.3280/300, $1.3255/60, $1.3255

Bids $1.3230, $1.3191, $1.3180, $1.3165/60, $1.3125/15

GBP/USD

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

Bids $1.5330/20, $1.5305/295, $1.5280, $1.5250/40, $1.5220

AUD/USD

Offers $0.9390/00, $0.9360/70, $0.9345/50, $0.9300, $0.9260/65

Bids $0.9155/50, $0.9140/20, $0.9110/00, $0.9050

EUR/GBP

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

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

EUR/JPY

Offers Y134.00, Y133.50, Y133.20, Y133.00, Y132.77/87

Bids Y131.85/80, Y131.50, Y131.20, Y131.00, Y130.80/75, Y130.55/50

USD/JPY

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

Bids Y99.60/55, Y99.40/35, Y99.20/10, Y99.00, Y98.80

European stocks rose, rebounding from yesterday’s first drop in five days, as data signaled euro-area manufacturing is expanding for the first time in two years and companies from Volvo AB to EasyJet Plc posted results. U.S. index futures gained and Asian shares were little changed.

The Stoxx Europe 600 Index added 0.5 percent to 300.85 at 9:06 a.m. in London. The gauge declined yesterday as a measure of U.S. manufacturing unexpectedly slumped.

Preliminary data today showed euro-area manufacturing is expanding this month for the first time since July 2011. A manufacturng index based on a survey of purchasing managers increased to 50.1 from 48.8 in June, Markit Economics said. Economists had predicted 49.1. A reading of 50 is the dividing line between expansion and contraction.

In Germany, manufacturing unexpectedly expanded in July and services growth accelerated, signaling that the recovery in Europe’s largest economy is building momentum.

In the U.S., Commerce Department data may show purchases of new houses increased to a 482,000 pace last month, the highest level since June 2008, according to the median forecast.

Volvo gained 3.1 percent to 96.10 kronor. Earnings before interest and taxes fell to 3.26 billion kronor ($505 million) in the second quarter, from 7.71 billion kronor a year earlier. Profit beat the 3.22 billion-kronor average by analysts.

EasyJet rose 5.3 percent to 1,407 pence after saying sales rose to 1.14 billion pounds ($1.75 billion) in the third quarter. The low-cost carrier said in an interim statement that it predicts second-half revenue per seat to increase by as much as 6 percent from a year earlier, assuming constant currency levels.

ARM Holdings Plc, which designs chips used in Apple Inc.’s devices, advanced 2.7 percent to 922.5 pence. Revenue increased 26 percent to 171.2 million pounds in the second quarter, beating the 165.1 million pounds predicted by analysts, as demand grew for advanced graphics and processing technology.

FTSE 100 6,641.51 +44.07 +0.67%

CAC 40 3,957.18 +34.09 +0.87%

DAX 8,364.87 +50.64 +0.61%

EUR/USD $1.3100, $1.3130, $1.3145/50, $1.3200, $1.3250

USD/JPY Y99.00, Y99.20, Y99.35, Y99.40, Y100.00, Y100.25, Y100.40, Y100.50, Y101.00

EUR/JPY Y129.00, Y131.00, Y132.00

GBP/USD $1.5350, $1.5355

GBP/JPY Y151.00

AUD/USD $0.9100, $0.9180, $0.9250, $0.9280, $0.9300

USD/CAD C$1.0260, C$1.0330/35

Most Asian stocks fell, with the regional benchmark index retreating from a two-month high, after a private survey showed China’s manufacturing contracting at a faster-than-estimated pace.

Nikkei 225 14,731.28 -47.23 -0.32%

Hang Seng 21,978.76 +63.34 +0.29%

S&P/ASX 200 5,035.07 +17.96 +0.36%

Shanghai Composite 2,033.33 -10.55 -0.52%

PetroChina Co., the country’s No. 1 energy producer, sank 2.1 percent in Hong Kong as crude dropped.

Kao Corp., a maker of household and chemical products, fell 6.2 percent in Tokyo after giving an update on a product recall.

Murata Manufacturing Co., a Japanese supplier to Apple Inc., gained 3.8 percent after Apple’s profit topped estimates

01:00 Australia CPI, q/q Quarter II +0.4% +0.5% +0.4%

01:00 Australia CPI, y/y Quarter II +2.5% +2.5% +2.4%

01:45 China HSBC Manufacturing PMI (Preliminary) July 48.2 48.6 47.7

The dollar traded 0.3 percent from a one-month low versus the euro as weaker U.S. economic indicators bolstered the argument for the Federal Reserve to delay a reduction to its bond-buying program. Sales of new U.S. homes probably rose 1.7 percent to an annualized pace of 484,000 last month, compared with 2.1 percent growth in May, according to the median estimate in a Bloomberg News survey before today’s Commerce Department report.

The euro was supported before data predicted 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 the services and manufacturing industries improved to 49.1 in July from 48.7 the previous month, London-based Markit Economics may say today, according to economists. That would match the level in March 2012. A reading below 50 indicates contraction.

Currencies of Asia-Pacific nations including the Australian dollar and yen dropped versus the greenback after a private report showed China’s manufacturing shrank at a faster pace. The preliminary reading of 47.7 for a China Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compared with the 48.2 median estimate a Bloomberg survey. June’s final reading was 48.2, with data below 50 indicating contraction.

EUR / USD: during the Asian session the pair fell to $ 1.3200

GBP / USD: during the Asian session the pair fell to $ 1.5350

USD / JPY: during the Asian session the pair rose to Y99.80

The calendar gets underway at 0658GMT, with the release of the French flash July services and manufacturing PMI data. The flash services PMI is seen at 48.6, with services at 47.5. Both are higher than the July final numbers, but perhaps not quite underlined French FinMin Moscovici's statement that the recession is over. At 0700GMT, the Spanish June PPI numbers will be published. The main flash PMI numbers continue at 0728GMT, when the German July PMI numbers will cross the wires. Analysts see manufacturing at 49.0 and services at 50.6. The composite eurozone data will cross the wires at 0758GMT. Analysts median expectations see the flash manufacturing data at 49.0 and the lash services data at 48.6. The latest ECB Bank Lending Survey will be released at 0800GMT, the same time Italian May retail sales data will be published. Italian sales are seen unchanged on the month. German Economics Minister Philipp Roesler will give a press conference in Berlin at 1350GMT. The French June jobless claims numbers are set to be released at 1600GMT.

There is a limited UK data calendar, with only the July CBI Industrial Trends numbers and the Q3 CBI Business Confidence data. The industrial sector's performance has been patchier than that of services, with the former struggling to generate significant growth. Analysts' forecast range, from a small sample, goes from an unchanged -18 to -10 for July's monthly order books. The latter would be well above the long-run average of -17 and point to expansion at the start of the third quarter.

Change % Change Last

GOLD 1,342.80 6.80 0.51%

OIL (WTI) 107.10 0.16 0.15%

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%

FTSE 100 6,597.44 -25.73 -0.39%

CAC 40 3,923.09 -16.83 -0.43%

DAX 8,314.23 -16.83 -0.20%

DJIA 15,567.70 22.19 0.14%

S&P 500 1,692.42 -3.11 -0.18%

NASDAQ 3,579.27 -21.11 -0.59%

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

EUR/USD $1,3224 +0,30%

GBP/USD $1,5372 +0,10%

USD/CHF Chf0,9347 -0,66%

USD/JPY Y99,48 -0,13%

EUR/JPY Y131,53 +0,16%

GBP/JPY Y152,90 -0,03%

AUD/USD $0,9288 +0,47%

NZD/USD $0,7994 +0,30%

USD/CAD C$1,0291 -0,46%

01:00 Australia CPI, q/q Quarter II +0.4% +0.5% +0.4%

01:00 Australia CPI, y/y             Quarter II +2.5% +2.5% +2.4%

01:45 China HSBC Manufacturing PMI  (Preliminary) July 48.2 48.6 47.7

07:00 France Manufacturing PMI            (Preliminary) July 48.4 48.9

07:00 France Services PMI                (Preliminary) July 47.2 47.7

07:30 Germany Manufacturing PMI   (Preliminary) July 48.6 49.3

07:30 Germany Services PMI                (Preliminary) July 50.4 50.9

08:00 Eurozone Manufacturing PMI   (Preliminary) July 48.8 49.1

08:00 Eurozone Services PMI                 (Preliminary) July 48.3 48.9

10:00 United Kingdom CBI industrial order books balance July -18 -12

13:00 U.S. Manufacturing PMI   (Preliminary) July 51.9 52.5

14:00 U.S. New Home Sales                          June 476 482

14:30 U.S. Crude Oil Inventories                          July -6.9

21:00 New Zealand          RBNZ Interest Rate Decision 2.50% 2.50%

21:00 New Zealand          RBNZ Rate Statement

23:50 Japan CSPI, y/y                                         June +0.3% +0.7%