European stocks declined from an almost eight-week high as companies from BASF SE to ABB Ltd. reported earnings that missed analysts’ estimates.

National benchmark indexes fell in 14 of the 18 western European markets. Germany’s DAX dropped 1 percent. The U.K.’s FTSE 100 slid 0.5 percent. France’s CAC 40 lost 0.2 percent.

BASF dropped 4.5 percent to 66.74 euros. The world’s biggest chemical company said second-quarter earnings before interest, taxes and one-time items fell 5.4 percent to 1.83 billion euros ($2.41 billion). The average estimate of analysts in a Bloomberg survey had called for 1.99 billion euros.

ABB lost 3.1 percent 20.78 Swiss francs, its biggest retreat since April 17. The largest maker of power transformers posted second-quarter net income of $763 million that missed the $779-million average estimate of analysts surveyed by Bloomberg. Orders fell 7 percent.

Michelin slid 1.4 percent to 75.84 euros. Europe’s largest tiremaker reported a 13 percent decline in first-half profit as slumping auto markets in its home region sapped demand and sales of tires for earthmovers dropped. Operating profit excluding one-time items declined to 1.15 billion euros. The figure beat the 1.12 billion-euro average forecast.

West Texas Intermediate crude dropped for a second day, extending the biggest loss in more than a month, as U.S. crude output surged to a 22-year high.

Futures fell as much as 1.2 percent after decreasing 1.7 percent yesterday as the Energy Information Administration reported U.S. output rose to 7.56 million barrels a day last week, the most since December 1990. Declines eased on a climb in orders for U.S. durable goods in June.

U.S. crude production has surged as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in the central part of the country.

Crude inventories decreased 2.8 million barrels last week, data yesterday from the EIA, the Energy Department’s statistical arm, show. Stockpiles decreased 29.9 million barrels in the four weeks ended July 19, the largest four-week drop in data dating to 1982.

Bookings for U.S. goods meant to last at least three years increased 4.2 percent, led by transportation equipment, after a revised 5.2 percent gain in May that was bigger than initially reported, the Commerce Department said today in Washington.

WTI crude for September delivery declined 32 cents to $105.07 a barrel at 11:06 a.m. on the New York Mercantile Exchange. Futures touched $104.08, the lowest level since July 9. The volume of all futures traded was 14 percent above the 100-day average for the time of day.

Brent for September settlement rose 20 cents to $107.39 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 11 percent below the 100-day average. The European benchmark traded at a $2.32 premium to WTI, up from $1.80 yesterday. Brent dropped below WTI on July 19 for the first time since August 2010.

Gold prices recovered after falling earlier in the session against the backdrop of mixed U.S. statistics.

As shown by recent data that have been published by the Ministry of Commerce, at the end of last month, orders for durable goods increased substantially, which primarily was due to higher demand for airplanes. However, it is worth noting that with the exception of transport, the number of orders remained unchanged. According to the report, the seasonally adjusted total orders for durable goods rose in June by 4.2% - to $ 244,500 bn add that the last increase was slightly less than the revised growth in May - at the level of 5.2% (originally reported +3.6%), but significantly more than the average forecast of experts - at the level of 1.1%. The data showed that the June increase in orders was due to the 31.4% increase in orders for civilian aircraft, and increasing by 18.7% of the orders for defense and details. Excluding transportation orders for durable goods in June remained at $ 157.420 billion The report also showed that the growth in business investment has slowed.

Another Labor Department report showed that by the end of last week, the number of Americans who first applied for unemployment benefits rose slightly, a sign that the labor market recovery is faltering. According to the report, the seasonally adjusted number of initial claims for unemployment insurance for the week ending July 20 rose by 7,000 to 343,000. In addition, it was reported that the value of this index for the previous week was revised to the level of 336 thousand to 334 thousand, which was originally reported. According to the average forecasts of experts, the number of appeals would grow to 339 thousand worth noting that in recent weeks, the numbers were very volatile, partly due to seasonal factors. This includes the typical summer shutdown auto plants and the closure of schools for the holidays, which can affect performance. However, adding that the average number of calls in the last four weeks fell by 1,250 to 345,250 last week. In general, employers fired fewer workers, and in some cases even increased staff. According to reports, the economy added a little more than 200,000 jobs each month for the last nine months, although the unemployment rate remains high - at 7.6%.

The cost of the August gold futures on COMEX today dropped to $ 1308.40, and then rose to $ 1328.50 per ounce.

EUR/USD $1.3050, $1.3060, $1.3100, $1.3115, $1.3200, $1.3235, $1.3250, $1.3300

USD/JPY Y98.80, Y99.25, Y99.75, Y100.00, Y100.50, Y100.90, Y101.00

GBP/USD $1.5200, $1.5300, $1.5400, $1.5405

EUR/GBP stg0.8570, stg0.8575, stg8585

AUD/USD $0.9150, $0.9200, $0.9225, $0.9280

AUD/JPY Y92.10

USD/CAD C$1.0215, C$1.0235, C$1.0250, C$1.0300

U.S. stocks may retreat further from record highs Thursday as investors digest the latest batch of mixed earnings results.

Global Stocks:

Nikkei 14,562.93 -168.35 -1.14%

Hang Seng 21,900.96 -67.97 -0.31%

Shanghai Composite 2,021.17 -12.16 -0.60%

FTSE 6,587.65 -32.78 -0.50%

CAC 3,945.09 -17.66 -0.45%

DAX 8,299.14 -79.97 -0.95%

Crude oil $104.47 -0.87%

Crude oil $1324.80 +0.40%

Upgrades:

Facebook (FB) upgraded from Sell to Neutral at BTIG Research

Facebook (FB) upgraded from Mkt Perform to Mkt Outperform at JMP Securities

Downgrades:

Other:

Facebook (FB) reiterated at Buy at Needham, target raised from $33 to $37

Facebook (FB) reiterated at Buy at Cantor Fitzgerald, target raised from $35 to $40

Data

08:00 Eurozone M3 money supply, adjusted y/y June +2.9% +3.0% +2.3%

08:00 Germany IFO - Business Climate July 105.9 106.3 106.2

08:00 Germany IFO - Current Assessment July 109.4 109.7 110.1

08:00 Germany IFO - Expectations July 102.5 102.5 102.4

08:30 United Kingdom GDP, q/q (Preliminary) Quarter II +0.3% +0.6% +0.6%

08:30 United Kingdom GDP, y/y (Preliminary) Quarter II +0.3% +1.4% +1.4%

The dollar rose sharply against the euro after the publication of data on Germany, but was unable to hold his position, and returned to their previous values, since the interest in this event went down.

As the results of studies that have been presented by the German Institute of Ifo, this month the level of confidence in the German business confidence rose again, registering with the third monthly increase in a row. It is worth noting that recent data has become another confirmation that the eurozone is heading towards recovery.

According to the report, the July index of business sentiment climbed to 106.2, up from 105.9 in June. We add that the latest reading was slightly below average forecasts of experts at the level of 106.3, but, nevertheless, was above the long-term average at around 101.

Experts point out that increasing the level of trust in Germany would be a relief for the euro zone after its largest economy in the 1st quarter, barely grew. Optimism among consumers and the growing confidence in the business community point to an acceleration in economic growth in the 2nd half of the year. According to the latest estimates of economists economic growth for the full year should reach 0.5%.

In addition, it was reported that the companies participating in the monthly surveys Ifo, were more satisfied with the current business conditions. The relevant sub-index rose in July to the level of 110.1, compared to 109.4 in June, as well as the experts' forecasts at 109.7. The data also showed that the index of business expectations fell slightly - to 102.4 from 102.5, while many experts expected a constant figure.

The pound dropped significantly against the dollar, which has been associated with the release of the report by Britain's GDP. The preliminary data that has been submitted by the Office for National Statistics, at the end of the second quarter of the UK economy grew by confirming with the forecasts of experts, which has helped to support manufacturing, construction and services sectors. It should be noted that recent data have raised hopes that the economic recovery may strengthen.

According to the report, in the last quarter GDP growth was 0.6%, compared with an increase of 0.3%. We add that the pace of growth is fully in line with expectations.

Meanwhile, it was reported that annualized GDP growth in the second quarter was 1.4%, compared with an increase of 0.3% in the first quarter, recording the largest increase since the first quarter of 2011. Note that the annual growth is also confirmed experts' opinion.

The largest contribution to GDP growth has been marked by the service sector, which expanded by 0.6% compared with the previous quarter. In addition, the data showed that the volume of construction rose by 0.9%, recovering from a fall of 1.8% in the first quarter, when production was at its lowest level since early 2001. Add that to GDP growth by 0.08 percentage points also helped to increase the production by 0.6%, with the growth of manufacturing output by 0.4%.

The cost of the New Zealand Dollar was higher against the U.S. dollar, which impacted on the decision by the RBNZ rates, and managing comments.

Chapter RBNZ Wheeler said the global outlook remains controversial, the eurozone remains in recession and shows signs of slowing growth in China and Australia, but a more recent positive economic data from the U.S. and Japan. In the global debt markets have become more cautious because of the expected release of the U.S. Federal Reserve and the policy of "quantitative easing."

In addition, managing the RBNZ said that economic growth in New Zealand rose, and although it varies, becomes more widespread across industries. Consumption is growing and reconstruction Kantenberi will be supported by a broad increase in activity in the construction industry, particularly in Auckland. This will support the overall activity and ultimately will reduce housing shortages.

Despite the fact that since May 2013 the foreign trade-weighted New Zealand dollar has declined, it remains high and will continue to be an obstacle for the tradable sectors, reducing export revenues and increasing demand for imports. Fiscal consolidation will reduce aggregate demand in the planned term.

Meanwhile, Managing RBNZ said that although the cessation of monetary stimulus is likely to be necessary in the future, we expect that the interest rate will remain unchanged until the end of the year.

EUR / USD: during the European session, the pair fell to $ 1.3164, and then went back up to $ 1.3215

GBP / USD: during the European session, the pair fell to $ 1.5262

USD / JPY: during the European session, the pair fell to Y99.61

At 12:30 GMT the United States will announce a change in orders for durable goods for June. At 13:00 GMT Belgium will release the index business sentiment in July. At 23:30 GMT Japan will present the consumer price index for June.

EUR/USD

Offers $1.3340/50, $1.3320, $1.3280/300, $1.3250/60, $1.3237

Bids $1.3170/60, $1.3150, $1.3125/15, $1.3105/00, $1.3080

GBP/USD

Offers $1.5470, $1.5440/50, $1.5420, $1.5390/410, $1.5350, $1.5330/35

Bids $1.5250/40, $1.5220-00, $1.5180/70

AUD/USD

Offers $0.9300, $0.9260/65, $0.9240/50, $0.9220, $0.9200

Bids $0.9130/25, $0.9110/00, $0.9050, $0.9000

EUR/GBP

Offers stg0.8700, stg0.8680/85, stg0.8665, stg0.8645/55, stg0.8639

Bids  stg0.8589, stg0.8582, stg0.8575/65

EUR/JPY

Offers Y133.20, Y133.00, Y132.45/50, Y132.15/20

Bids Y131.50, Y131.40/35, Y131.20, Y131.00, Y130.80/75, Y130.50

USD/JPY

Offers Y101.15/20, Y101.00, Y100.70/90, Y100.45/50 , Y100.25/30

Bids Y99.60/50, Y99.40/35, Y99.20/10, Y99.00, Y98.80

European stocks declined as investors weighed earnings reports by companies from BASF SE to Michelin (ML)& Cie. and Roche Holding AG. U.S. stock-index futures and Asian shares also fell.

The Stoxx Europe 600 Index fell 0.3 percent to 300.34 at 9:42 a.m. in London, after initially sliding as much as 0.3 percent. The benchmark rose to an almost eight-week high yesterday as data signaled Germany is leading a revival in euro-area manufacturing and companies posted results that exceeded estimates.

German business confidence rose for a third month in July, data released today showed. The Ifo institute’s business climate index, based on a survey of 7,000 executives, rose to 106.2 this month from 105.9 in June. Economists in had predicted an increase to 106.3.

BASF dropped 4.4 percent to 66.77 euros. Second-quarter earnings before interest, tax and one-time items fell 5.4 percent to 1.83 billion euros ($2.42 billion), the company said. The average estimate of analysts called for 1.99 billion euros.

ABB Ltd. (ABBN) lost 4 percent 20.59 Swiss francs, its biggest retreat in 13 months. The world’s largest maker of power transformers reported an increase in profit for the first time in six quarters. Net income rose 16 percent to $763 million in the second quarter. The average estimate of analysts was for $779 million. Sales rose 6 percent, meeting predictions.

Michelin declined 4.9 percent to 73.12 euros, its biggest drop since Feb. 12. Europe’s largest tiremaker reported a 13 percent decline in first-half profit as slumping auto markets in its home region sapped demand and sales of tires for earthmovers dropped. Operating profit excluding one-time items declined to 1.15 billion euros from 1.32 billion euros a year earlier. The figure compared with the 1.12 billion-euro average estimate.

FTSE 100 6,551.37 -69.06 -1.04%

CAC 40 3,925.54 -37.21 -0.94%

DAX 8,280.08 -99.03 -1.18%

EUR/USD $1.3050, $1.3060, $1.3100, $1.3115, $1.3200, $1.3235, $1.3250, $1.3300

USD/JPY Y98.80, Y99.25, Y99.75, Y100.00, Y100.50, Y100.90, Y101.00

GBP/USD $1.5200, $1.5300, $1.5400, $1.5405

EUR/GBP stg0.8570, stg0.8575, stg8585

AUD/USD $0.9150, $0.9200, $0.9225, $0.9280

AUD/JPY Y92.10

USD/CAD C$1.0215, C$1.0235, C$1.0250, C$1.0300

Asias benchmark stock index fell for a second day as investors weighed corporate earnings and awaited U.S. economic data that may shed light on when the Federal Reserve will taper stimulus.

Nikkei 225 14,562.93-168 .35 -1.14%

Hang Seng 21,902.7 -66.23 -0.30%

S&P/ASX 200 5,035.6 +0.53 +0.01%

Shanghai Composite 2,021.17 -12.16 -0.60%

Canon Inc., the world’s No. 1 camera maker, tumbled 5.4 percent in Tokyo after cutting its sales and profit forecast.

Komatsu Ltd., Japan’s largest construction machinery maker, dropped 2.4 percent after U.S. bellwether Caterpillar Inc. lowered its earnings estimate.

Chinese rail shares rose in Hong Kong as Premier Li Keqiang said the nation will speed railway construction.

The dollar maintained a gain from yesterday against its major peers before data on U.S. employment and manufacturing that may influence market expectations for when the Federal Reserve will pare back its stimulus measures. The number of people in the U.S. continuing to receive jobless benefits fell by 89,000 to 3.03 million in the week ended July 13, economists surveyed by Bloomberg News forecast before today’s data. A second report will show that durable goods orders climbed 1.4 percent in June, a third-consecutive gain, according to the median estimate in a separate poll.

The Bloomberg Dollar Index yesterday advanced by the most in two weeks after a report showed sales of new U.S. homes rose to the highest level in five years. Purchases (NHSLTOT) of new homes in the U.S. rose 8.3 percent to an annualized pace of 497,000 homes in June, the Commerce Department said yesterday, beating the median estimate for a 1.7 percent advance. Fed Chairman Ben S. Bernanke told Congress last week that any reduction in stimulus would depend on the economy’s performance.

The euro held near a two-month high versus the yen before a survey forecast to show Germany’s business climate improved for a third month. In Germany, the Ifo institute’s business climate index, based on a survey of 7,000 executives, probably climbed to 106.1 from 105.9 in June, according to the median forecast in a Bloomberg survey. A measure of current conditions also gained, while a gauge of expectations was unchanged, the survey shows.

The New Zealand dollar rose against all its major peers after Reserve Bank Governor Graeme Wheeler said “removal of monetary stimulus will likely be needed in the future.” The central bank said the pace of future interest-rate increases will depend on the booming housing market’s impact on prices, while reiterating it will keep borrowing costs at a record-low 2.5 percent this year.

EUR / USD: during the Asian session the pair rose above $ 1.3200

GBP / USD: during the Asian session the pair rose above $ 1.5330

USD / JPY: during the Asian session the pair fell to Y100.00

There is a full calendar on Thursday, with the German IfO survey and the UK second quarter GDP data the stand out events. The calendar gets underway at 0600GMT, with the release of the German May construction orders. Other data expected at 0800GMT, the EMU June M3 data. The main release for 0800GMT is the German July IFO business survey. Analysts see the Business survey coming in at 105.9, with current  conditions at 109.6. Eurozone finance ministers will gather in Brussels from 1100GMT for the latest ECOFIN meeting, with the discussion likely to focus on the latest disbursement of funds to Greece. The Belgium July business Sentiment survey will cross the wires at 1300GMT. There is a full calendar on Thursday, with the German IfO survey and the UK second quarter GDP data the stand out events. At 0830GMT, the first reading of the UK's second quarter GDP data will be released, along with the May services index. A sharp rise in the pace of UK growth is expected in the second quarter.

Across the Atlantic, the calendar starts at 1200GMT, with the release of the US June revised Building Permits data. At 1230GMT, the Jobless Claims data for the July 20 week and the June Durable Goods data will be published. Initial jobless claims are expected to rise by 6,000 to 340,000 in the July 20 week after falling by 24,000 in the previous week.  US Treasury Secretary Jack Lew is expected to make remarks on outstanding projects financed by multilateral development banks, due at 1245GMT. Back in Washington, at 1330GMT, the IMF's regular biweekly press briefing is expected. Then, at 1430GMT, the EIA Natural Gas Storage for the July 19 week are expected. The July Kansas City Fed Production data will be released at 1500GMT. Late US data is expected at 2030GMT, when the Money Supply data for the July 15 week will cross the wires.

Change % Change Last

GOLD 1,321.40 -13.30 -1.00%

OIL (WTI) 105.23 -2.00 -1.87%

Nikkei 225 -0,32 -47,23 14,731.28%

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%

FTSE 100 6,620.43 +22.99 +0.35%

CAC 40 3,962.75 +39.66 +1.01%

DAX 8,379.11 +64.88 +0.78%

DJIA 15,542.20 -25.50 -0.16%

S&P 500 1,685.94 -6.45 -0.38%

NASDAQ 3,579.60 0.33 0.01%

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

EUR/USD $1,3197 -0,20%

GBP/USD $1,5314 -0,38%

USD/CHF Chf0,9372 +0,27%

USD/JPY Y100,27 +0,79%

EUR/JPY Y132,34 +0,61%

GBP/JPY Y153,53 +0,41%

AUD/USD $0,9165 -1,34%

NZD/USD $0,7977 -0,21%

USD/CAD C$1,0314 +0,22%

08:00 Eurozone M3 money supply, adjusted y/y June +2.9% +3.0%

08:00 Germany IFO - Business Climate July 105.9 106.3

08:00 Germany IFO - Current Assessment July 109.4 109.7

08:00 Germany IFO - Expectations July 102.5 102.5

08:30 United Kingdom GDP, q/q (Preliminary) Quarter II +0.3% +0.6%

08:30 United Kingdom GDP, y/y (Preliminary) Quarter II +0.3% +1.4%

12:30 U.S. Durable Goods Orders June +3.6% +1.1%

12:30 U.S. Durable Goods Orders ex Transportation June +0.7% +0.5%

12:30 U.S. Durable goods orders ex defense June +3.5%

12:30 U.S. Initial Jobless Claims July 334 339

13:00 Belgium Business Climate July -12.8 -11.2

23:30 Japan Tokyo Consumer Price Index, y/y July 0.0% +0.2%

23:30 Japan Tokyo CPI ex Fresh Food, y/y July +0.2% +0.3%

23:30 Japan National Consumer Price Index, y/y June -0.3% +0.1%

23:30 Japan National CPI Ex-Fresh Food, y/y June 0.0% +0.3%