Market Blog > August 2016 > Market Review

Market Review

China's top economic planner approved last month 18 fixed asset investment projects of $8.95 billion USD total value, according to an official statement by the National Development and Reform Commission. The planner also said that China is confident of reaching its official consumer inflation target of around 3 percent this year. The consumer price index (CPI) rose 1.8 percent in July from a year earlier. The Chinese producer price index (PPI) fell 1.7 percent in July from a year ago.

In a report, ZEW said that Euro zone ZEW economic sentiment index rose more-than-expected last month to a seasonally adjusted 4.6, from -14.7 in the preceding month. In a report, the ZEW Centre for Economic Research said that German economic sentiment improved less than expected to 0.5 this month from July’s reading of minus 6.8 that had been its lowest level since November 2012. Analysts had expected the index to increase to 1.8 in August. Retail price inflation in the U.K. rose more-than-expected to 1.9%, from 1.6% in the preceding quarter. Consumer price inflation (CPI) in the U.K. came out slightly higher than forecast in July, to a seasonally adjusted 0.6%, above forecasts for a gain of 0.5% and compared to the 0.5% increase seen in June. Producer price inflation input in the U.K. rose more-than-expected in July, to a seasonally adjusted 3.3%, from 1.7% in the preceding month.

Consumer price inflation (CPI) in the U.S. remained unchanged on a month-over-month basis in July, compared to expectations for a 0.1% gain and an increase of 0.2% in June. Core CPI increased at an annual rate of 2.2% last month, which was also below forecast expectations for a 2.3% rise.

Currencies: The dollar remained broadly lower against the other major currencies, after announcement of mostly downbeat U.S. economic reports that continued to fuel concerns over the strength of the economy. The EURUSD traded higher between $1.1178 and $1.1322. The GBPUSD traded higher between $1.2878 and $1.3051. The USDJPY traded lower between ¥101.29 and ¥99.55.

Crude oil: Oil prices traded near five-week highs following an impressive three-day rally which bolted prices by nearly 10%. On the ICE future Exchange, North Sea Brent crude traded higher between $47.90 and $49.36. On the New York Mercantile Exchange, U.S. light crude oil traded higher between $45.34 and $46.73.

Gold: Gold prices extended their rally on Tuesday, as disappointing U.S. inflation data dampened expectations of a near-term interest rate hike by the Federal Reserve. On the COMEX division of the New York Mercantile Exchange, gold traded higher in a broad range between $1339.04 and $1357.96 an ounce.

Indices:  Asian shares fell on Tuesday amid investor concerns over the region’s growth prospects. At the close in Tokyo, the Nikkei 225 tumbled 1.62%. At the close in China, the Hang Seng edged down 0.09%.

European stocks declined as investors remained cautious after release of economic sentiment data from Germany and the entire Euro zone. At the close in Frankfurt the DAX lost 0.58%. At the close in Paris, the CAC40 dropped 0.83%. At the close in Madrid, the IBEX 35 fell 1.13%. Finally, at the close in London the FTSE100 declined 0.68%.

Wall Street traded slightly lower, indicating a pause after the major indices closed at record highs in the prior session. At the close, the Dow Jones industrial average lost 0.45%. The S&P 500 dropped 0.50% and the NASDAQ composite fell 0.66%.

Economic Calendar
Wednesday 17th August 2016:

Time

Currency

Events

Forecast

Previous

 8:30

GBP

Average Earnings Index 3m/y

2.50%

2.30%

 8:30

GBP

Claimant Count Change

5.2K

0.4K

 8:30

GBP

Unemployment Rate

4.90%

4.90%

14:30

USD

Crude Oil Inventories

 

1.1M

17:00

USD

FOMC Member Bullard Speaks

 

 

18:00

USD

FOMC Meeting Minutes

 

 

Posted: 8/17/2016 6:34:19 AM by Global Administrator | with 0 comments


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