|
|
| 15.08 19:44 |
Dow +7.90 at 11619.92, Nasdaq -7.78 at 2445.89, S&P +1.90 at 1294.83 |
| 15.08 19:32 |
FTAdvisors on Industrial Production
FTAdvisors'
Brian Wesbury -"the slowdown resembles the period of sluggish growth we
experienced in early 2003, not a full blown recession. In the months
ahead, we expect improving comparisons to a year ago. In our view,
today's report gives the Federal Reserve more room to address inflation
by starting to raise short term interest rates."
|
| 15.08 19:07 |
Dow +20.76 at 11636.69, Nasdaq -2.98 at 2450.69, S&P +3.19 at 1296.12
The major indices are now making a gradual descent. Still, each is off
its worst level of the session when the Dow was down 0.1%, the Nasdaq
was down 0.3%, and the S&P 500 was down 0.2%.
Though the Nasdaq is currently lagging its counterparts, it is the only
index currently on track to conclude the week with a gain. At its
current level it is up 1.5% week-to-date.
Separately, Chicago Fed President Evans stated today that inflation
risks at a time of economic weakness pose a tough policy challenge. He
sees growth in the second half as extremely sluggish, but the risk of a
severe dowturn is averted.
Crude prices have fallen below $112 per barrel, shedding 2.6% this
session. Commodities are down 2.3%, according to the CRB Commodity
Index. The declines in the commodities are largely owed to a stronger
dollar. The greenback is up 0.7%, according to the dollar index. It
is also up 0.6% year-to-date.
|
| 15.08 18:47 |
GBP/USD holds above $1.8600
Holds $1.8615 and has eased an easy half cent since midday after
holding a firmer tone earlier on the morning as some accounts locked in
profits at the end of a dramatic week for the British currency. Offers $1.8680 area, bids
back at the overnight low area of $1.8510/15.
|
| 15.08 18:29 |
Dow +16.20 at 11632.13, Nasdaq -2.05 at 2451.62, S&P +2.09 at 1295.02 |
| 15.08 18:12 |
American focus:
The dollar headed for a
fifth weekly gain against the euro, its longest winning streak in more
than two years, as crude oil prices declined and economies from Germany
to Japan contracted. The U.S. currency rose to the
strongest level in almost six months against the euro and a seven-month
high versus the yen. The pound dropped for an 11th day against the
dollar, the longest run of declines in at least 37 years, on
speculation a recession will force the Bank of England to cut interest
rates. ``The world is finding the dollar is very, very
cheap,'' said Steven Englander, a currency strategist at Lehman
Brothers Holdings Inc. in New York. ``There's significant revision of
growth outlook and monetary policies outside the U.S. Changing global
sentiment is bringing down commodity prices, which is helping the
dollar.''
The dollar has
risen 1.8 percent against the euro this week in its longest stretch of
weekly gains since February 2006. The U.S. currency has increased 8.3
percent after reaching the record low of $1.6038 on July 15. The dollar
is headed for a 0.3 percent advance versus the yen, its second straight
weekly increase. The euro is poised for a fourth weekly decline against
the yen, dropping 1.6 percent.


The dollar's 5.9 percent rally against the euro this month has led banks to raise their forecasts for the U.S. currency. Lehman
turned more bullish on the greenback yesterday, predicting it will
advance to $1.43 by year-end and $1.40 by the end of March 2009.
Goldman Sachs Group Inc. said yesterday the dollar has ``bottomed''
against the euro, predicting it will strengthen to $1.45 per euro in
three months. Sterling fell 0.6
percent to $1.8581 today after touching $1.8512, the lowest level since
July 2006. The stretch of daily declines is the longest since at least
January 1971. The pound has fallen 2.9 percent this week in the biggest
weekly drop since July 2005. The Bank of England cut its forecast for
economic growth this week, signaling it may reduce the 5 percent target
lending rate. Industrial production in the U.S. rose 0.2
percent last month, following a 0.4 percent gain in June, the Federal
Reserve reported. The median forecast of 79 economists surveyed by
Bloomberg News was for no change. Europe's gross
domestic product fell 0.2 percent in the second quarter, the first
contraction since the 15-nation common currency was introduced in 1999,
the European Union's statistics office said yesterday. Japan's economy
shrank an annualized 2.4 percent in the second quarter, after expanding
3.2 percent in the previous three months, the Cabinet Office said this
week. UBS AG said today it no longer expects the
European Central Bank to raise the main refinancing rate from 4.25
percent in September as economic growth slowed ``more rapidly than
initially expected.'' The Federal Reserve cut its lending target to 2
percent in April. Crude oil for September delivery
declined $1.80 to $113.21 a barrel today, extending its decline to 23
percent since reaching a record $147.27 on July 11. The euro-dollar
exchange rate and oil have had a correlation of 0.9 in the past year,
according to Bloomberg calculations. A reading of 1 would mean they move in lockstep.
|
| 15.08 18:04 |
USD/JPY keeps positive mood
Trading
around Y110.35 the pair has recovered slightly from recent dip to
Y110.20 that closely tracked the dip in Dow stocks into shallow
negative territory and subsequent rebound. Dollar bids remain at
Y110.00, offers Y110.70.
|
| 15.08 17:38 |
Dresdner Kleinwort: "There is little doubt that the recent drop in gasoline prices is brightening consumer attitudes and lowering inflation expectations." |
| 15.08 17:12 |
CRUDE OIL: Holds $112.15, down $2.86 on the day but off lows at $111.34. |
| 15.08 16:43 |
Dow +67.09 at 11683.02, Nasdaq +7.51 at 2461.18, S&P +6.38 at 1299.31
Stocks remain in positive ground while trading in choppy fashion. The
Nasdaq 100 is underperforming the Dow, Nasdaq, and S&P 500. It is
currently up just 0.1%, despite strong leadership from Autodesk (ADSK
38.62, +4.27). Autodesk announced earlier today upside earnings per
share results on the back of strong sales growth. Small cap and mid cap
holdings are also underperforming the three primary indices. The
Russel 2000 and the S&P 400 are trading along the unchanged mark.
|
| 15.08 16:16 |
EUR/USD posted new session low
Losses
extend to $1.4680 area in the wake of the UMich data but pace remains
muted. Bids at $1.4670 and $1.4640/50 area that also holds tech
support. Euro last at $1.4688.
|
| 15.08 16:08 |
WTI Nymex crude oil breaks below $111.78 -- hits lowest level since May 1.
Key support now is at $110.16 -- the value of the 200-day moving average.
|
| 15.08 15:39 |
Dow +25.89 at 11641.82, Nasdaq -2.63 at 2451.04, S&P +1.80 at 1294.73
Stocks have faltered as the financial sector (+1.0%) and the tech
sector (-0.1%) lose ground. The financial and tech sectors represent
the two largest sectors in the S&P 500, combining for more than 30%
of its weight. Energy, the third largest sector, is down 2.1%.
However, advancing issues in the S&P 500 continue to have a leg up
on decliners. Roughly 60% of index components are trading with a gain.
|
| 15.08 15:31 |
EUR/USD:
Losses extend to $1.4680
area in the wake of the UMich data but pace remains muted. Bids at
$1.4670 and $1.4640/50 area that also holds tech support. Euro last at
$1.4688.
|
| 15.08 15:16 |
Dresdner Kleinwort about empire state index
"This particular index should have
little policy significance on its own, but it does suggest that the
recent break in the commodity inflation cycle comes as a relief to
manufacturers and brightens their outlook somewhat."
|
| 15.08 15:04 |
CRUDE OIL: WTI Nymex crude oil now breaks below $112.00 |
| 15.08 14:57 |
USA Michigan sentiment index (August) preliminary 61,7 |
| 15.08 14:35 |
US Stocks Open: DJIA +68,07, Nadaq +15,13, S&P +6,07 |
| 15.08 14:27 |
Before the bell [M]
Stock futures indicate a higher open (S&P futures +4.7, Nasdaq futures +8,5).  
Crude
futures are trading more than $1 lower, bringing the price below $114
per barrel. Crude closed the previous session around $115 per barrel.
The Empire State
Manufacturing Index, a regional survey of manufacturers conducted by
the New York Fed, came in at 2.8. It was expected to come in at -4.2,
reflecting an improvement from the -4.9 posted in July.
Retailers Kohl's, Nordstrom, Abercrombie & Fitch, and JC Penney all reported better-than-feared earnings per share results.
|
| 15.08 14:17 |
USA Capacity utilisation (July) 79.9 |
| 15.08 14:15 |
USA Industrial production (July) 0.2% |
| 15.08 14:04 |
USA TICS long-term (June), bln 53.4 |
| 15.08 14:04 |
USA TICS (June), bln 51,1 |
| 15.08 13:51 |
GBP/USD: Extends recovery to $1.8686
Extends
recovery to $1.8686, pushing just above the 61.8% retrace level at
$1.8683 ($1.8788/1.8514). If rate can clear above this area seen
opening a move on toward $1.8720/25 ($1.8723 76.4%). bids now seen in
place back at $1.8650 ahead of $1.8620.
|
| 15.08 13:30 |
USA NY Fed Empire State manufacturing index (August) 2.77 |
| 15.08 13:09 |
European session: Dollar heads for weekly gain before consumer confidence data [M]
The dollar headed for a
fifth weekly gain against the euro, its longest-winning streak in more
than two years, on speculation U.S. consumer spending will keep the
world's biggest economy out of recession.
The greenback rose to the
strongest level in more than 5 1/2 months against the euro and a
seven-month high versus the yen after data this week showed the
European and Japanese economies shrank in the second quarter. The pound
fell to a more-than two-year low versus the dollar. A U.S. report today
is expected to show consumer confidence rose for a second month.
``The dollar is likely to
grind higher against the euro from here,'' said Daragh Maher, deputy
head of global currency strategy in London at Calyon, the
investment-banking arm of France's Credit Agricole SA. ``Oil prices are
falling and that's supportive for the dollar. Risks of downside
surprises are perhaps greater in Europe.''
Europe's economy
contracted for the first time since the 15-nation common currency was
introduced in 1999, a government report showed yesterday. UBS AG said
today it no longer expects the European Central Bank to raise interest
rates in September as economic growth slows ``more rapidly than
initially expected.'' The central bank will start cutting borrowing
costs from the first quarter of next year, UBS predicted.
``The reason the dollar
is firmer is primarily because oil is down,'' Ray Attrill, global
research director in Sydney at 4cast Ltd., a research group that counts
central banks among its subscribers, said in a Bloomberg Television
interview. ``Oil is down because Europe is in virtual recession and
Japan is in recession, so the global demand backdrop for oil is much
weaker. That is what's linking the euro and dollar together.''
Gains in the dollar may
be limited by speculation a slowing housing market will discourage the
Federal Reserve from raising interest rates to slow inflation at a
17-year high.
Futures on the Chicago
Board of Trade show a 30 percent chance that the Fed will increase the
target rate for overnight lending between banks by a quarter-percentage
point to 2.25 percent at the Dec. 16 meeting, compared with 46 percent
odds a month ago. Policy makers next meet Sept. 16.
EUR/USD dropping through the barrier at $1.4750, extending lows to
$1.4735. Shallow recovery attempt allowed for a further drop to
$1.4720, with another shove taking out a barrier at $1.4700, trading
to $1.4698. Recovery met resistance at $1.4740, with tone remaining
heavy. Bids $1.4700/690, $1.4670, $1.4650/40. Offers $1.4740-50.
GBP/USD Rate recovered
to $1.8592 but couldn't find the impetus to edge back above $1.8600.
Rate eased again, this time in line with euro-dollar, finding demand
between $1.8550/40 which only stalled an eventual break to $1.8514.
Rate recovered, meeting resistance toward $1.8600. Bids $1.8515/00,
$1.8480/70. Offers $1.8620, $1.8650.
USD/JPY lift from lows
of Y109.80, with added macro fund demand providing added demand to take
it above Y110.00. Then allied to Y110.66, after a barrier at Y110.00
was extinguished. Tokyo investor yen sales overcoming system demand seen in recent sessions. Bids Y110.00, offers Y111.00-111.30.
Today’s focus is on US
data, including NY Fed Empire State manufacturing index (12:30 GMT),
TICS (13:00 GMT), Industrial production (13:15 GMT) and Michigan
sentiment index (13:55 GMT). Analysts predict consumer confidence rose
to 62.4 in August after 61.2 month earlier.
|
| 15.08 12:31 |
UBS have changed their ECB rate call
Economists at UBS have changed their
ECB rate call, and no longer expect a hike in September, on
assumption that inflation has peaked, GDP to contract. UBS now look
for a period of ECB holding rates unchanged and then expect 75bps in
cuts in 2009, of which the first will occur in Q1.
|
| 15.08 12:16 |
IFO cut Germany 2008 GDP forecast
IFO cut Germany 2008 GDP forecast to
about 2.0% from 2.4%. Germany 2009 GDP forecast 1.0%. Sinn: "Germany
job market reasonably stable, decoupled from GDP. Expect Germany
joblessness to sink for a while yet."
|
| 15.08 12:00 |
ECB STARK: "Inflation remains the greater threat than slowing growth." |
| 15.08 11:54 |
European focus:
The dollar headed for a fifth weekly gain against the euro, its
longest-winning streak in more than two years, on speculation U.S.
consumer spending will keep the world's biggest economy out of
recession.
The greenback rose to the strongest level in more than 5 1/2 months
against the euro and a seven-month high versus the yen after data this
week showed the European and Japanese economies shrank in the second
quarter. The pound fell to a more-than two-year low versus the dollar.
A U.S. report today is expected to show consumer confidence rose for a
second month.
``The dollar is likely to grind higher against the euro from here,''
said Daragh Maher, deputy head of global currency strategy in London at
Calyon, the investment-banking arm of France's Credit Agricole SA.
``Oil prices are falling and that's supportive for the dollar. Risks of
downside surprises are perhaps greater in Europe.''
Europe's economy contracted for the first time since the 15-nation
common currency was introduced in 1999, a government report showed
yesterday. UBS AG said today it no longer expects the European Central
Bank to raise interest rates in September as economic growth slows
``more rapidly than initially expected.'' The central bank will start
cutting borrowing costs from the first quarter of next year, UBS
predicted.
``The reason the dollar is firmer is primarily because oil is down,''
Ray Attrill, global research director in Sydney at 4cast Ltd., a
research group that counts central banks among its subscribers, said in
a Bloomberg Television interview. ``Oil is down because Europe is in
virtual recession and Japan is in recession, so the global demand
backdrop for oil is much weaker. That is what's linking the euro and
dollar together.''
Gains in the dollar may be limited by speculation a slowing housing
market will discourage the Federal Reserve from raising interest rates
to slow inflation at a 17-year high.
Futures on the Chicago Board of Trade show a 30 percent chance that the
Fed will increase the target rate for overnight lending between banks
by a quarter-percentage point to 2.25 percent at the Dec. 16 meeting,
compared with 46 percent odds a month ago. Policy makers next meet
Sept. 16.
|
| 15.08 11:15 |
USD/CHF: Barrier at Chf1.1000 definitely triggered
Barrier at Chf1.1000
definitely triggered, after rate extended recovery highs to Chf1.1008,
easing back below the figure as it ran into further offers placed at
Chf1.1010, currently trading around Chf1.0980. A break above Chf1.1010
to open a move on toward Chf1.1035/50. Bids Chf1.0970, stronger toward
Chf1.0925/20.
|
| 15.08 11:01 |
USD/JPY techs:
Resistance 3: Y112.70
Resistance 2: Y111.90
Resistance 1: Y110.70
Current price: Y110.55
Support 1: Y109.60
Support 2: Y108.80
Support 3: Y107.30 Comments:
USD/JPY still looks optimistic, holding a bit below strong resistance
at session high on Y110.70. Key resistance is around Y111.90 (trend
line from
Mar 2008). Above the rise may extend to Dec 31 of 2007 high on Y112.70.
Support
is around overnight lows on Y109.60 with stronger – at channel line
from Jul 16
at Y108.80. Break under will open the way to Y107.30.
|
| 15.08 10:45 |
USD/CHF techs:
Resistance 3: Chf1.1180
Resistance 2: Chf1.1080
Resistance 1: Chf1.1000
Current price: Chf1.0995
Support 1: Chf1.0950
Support 2: Chf1.0820
Support 3: Chf1.0740
Comments: Techs on USD/CHF hasn’t changed Dollar
strengthens with strong resistance is around Chf1.1000 (38.2% Fibo of
Chf1.3180 - Chf0.9630 decline) with a break under will open the way to
Chf1.1080/00. Above there the resistance comes on Jan 07 highs at
Chf1.1180/90. In general, rate consolidates today above the broken
earlier trend resistance line from Mar 17 at Chf1.0950. Below losses
may extend Wednesday’s/Thursday’s lows on Chf1.0820/30. Stronger level
is around Chf1.0740 (Monday’s low).
|
| 15.08 10:31 |
GBP/USD techs:
Resistance 3: $1.8840
Resistance 2: $1.8780
Resistance 1: $1.8630
Current price: $1.8565
Support 2: $1.8510
Support 3: $1.8300
Support 3: $1.8180
Comments: Cable is still falling. Support comes near $1.8510/20 (session low).
Stronger level is
around $1.8300 (38.2% of the rise from Jun 2001 lows at $1.3670 to Nov 2007
highs on $2.1160). Below pound’s losses may widen to $1.8180. Minor resistance is near 13 Aug low on $1.8780/90. Further
rise may extend to yesterday’s highs on $1.8780/90. Above the target comes at $1.8830/40 (50%).
|
| 15.08 10:15 |
EUR/USD techs:
Resistance 3:$1.5080
Resistance 2: $1.4960
Resistance 1: $1.4820
Current price: $1.4710
Support 1: $1.4640
Support 2: $1.4600
Support 3: $1.4540
Comments: Techs on EUR/USD hasn’t changed. Euro still under pressure
after yesterday’s weak GDP data from France, Germany and EU. Strong
support comes
at 50% Fibo on $1.4640 ($1.3260 - $1.6034 rise). Below losses may widen
to Feb
20 lows on $1.4600 and then – to Feb 14 lows at $1.4540. Resistance
comes at
$1.4820 with stronger level is around Thursday’s and Monday’s low on
$1.4960 and
$1.5080 respectively.
|
| 15.08 09:59 |
OPTIONS: Expiries of note for today's 1400GMT cut,
EUR/USD: $1.5070 USD/JPY: Y110.00, Y111.10, Y109.85 AUS/USD: $0.8785, $0.8850 Kiwi: $0.7000 USD/CAD: C$1.0660, C$1.0570, C$1.0750
|
| 15.08 09:48 |
Oil gets down
WTI Nymex crude oil under pressure at $112.75.
Support is at $112.31 and $110.75 eyed below. Key support is at the 200-day moving
average, today valued at $110.17.
|
| 15.08 09:33 |
Orders:
EUR Bids: $1.4700 Offers: $1.4790/00
JPY Bids: Y109.60/50 Offers: Y110.60/80
GBP Bids: $1.8540/20, $1.8500 Offers: $1.8590/00
|
| 15.08 09:13 |
GBP/USD holds near lows
GBP/USD
holds near $1.8555 with interim interest at $1.8540. Below $1.8540 to open a
deeper move toward $1.8520 ahead of $1.8500. Offers remain in place between
$1.8590/00.
|
| 15.08 09:05 |
Asian session: Dollar heads for weekly gain [M]
The dollar headed for a fifth weekly gain against the euro, its longest winning streak in more
than two years, on speculation U.S.
consumer spending will keep the world's biggest economy out of recession. The greenback rose to the highest in
more than 5 1/2 months against the euro and traded near a seven-month high
versus the yen after data this week showed the European and Japanese economies
shrank in the second quarter. The pound was near a 22- month low after the Bank of England cut its growth
forecast and signaled interest rates may be cut. Futures on
the Chicago Board of Trade show a 30% chance that the Fed will increase the 2% target
rate for overnight lending between banks by a quarter-percentage point at the
Dec. 16 meeting.
EUR/USD fell
from $1.4800 to $1.4730. GBP/USD held
within the $1.8630/80 range before if fell to $1.8530. USD/JPY rose
from Y109.60 to Y110.40.
Today’s focus is on US data, including NY Fed Empire State manufacturing
index, TICS, Industrial production and Michigan sentiment index.
Analysts predict consumer confidence rose to 62.4 in August after 61.2
month earlier.
|
| 15.08 09:01 |
Japan's stocks rise
Japanese
stocks advanced, paring a weekly loss, after freight rates soared the most in
almost seven months. The Nikkei 225 Stock Average gained 62.61, or
0.5% to 13,019.41. The broader Topix index edged up 8.38, or 0.7% to 1,247.31. For
the week, the Nikkei lost 1.1%, while the Topix declined 1%, a third-straight
weekly loss.
|
| 15.08 08:24 |
Stock market: Thursday summary
Stock market fixing: Nikkei 225 -66.25 -0.5% 12
956.80
Topix -7.55 -0.6% 1 238.93
FTSE -85.90 -1.55%
5,448.60
DAX -163.68 -2.49% 6,422.19
CAC +17.94 +0.41% 4,420.91
Dow -109.51 -0.94%
11,532.96
NASDAQ -1.99 -0.08% 2,428.62
S&P -3.76 -0.29%
1,285.83
10yr Note +0.2900 +0.074%
3.947%
NYMEX Crude Oil +2.99 +2.65%
116.00
Gold +16.90 +2.07% 831.50
Japan stocks fell for a third day after Urban Corp. filed the nation's biggest
bankruptcy claim in six years, prompting concern more companies will fail as
the economy slows. K.K. DaVinci Holdings, the nation's
largest real estate asset manager, fell by its trading limit after Urban became
the fifth listed Japanese developer to file for court protection in the past
month. Kansai Urban Banking Corp. plunged to a five-year low after saying it
may not be able to recover a loan from Urban. Kawasaki Kisen Kaisha Ltd. led
shipping lines higher after the benchmark for commodity cargo fees broke a
23-day losing streak. Urban shares plunged 48% after it
filed for protection from $2.35 billion in debt. It was the largest bankruptcy
among listed companies since 2002 and No. 21 in Japan's history, according to Tokyo
Shoko Research Ltd., a credit analysis group. Japan's corporate bankruptcies hit
a five- year high in July, spearheaded by real estate companies as banks cut
off funding. Kansai Urban plunged 8.3%, the
lowest since July 2003. The bank said it may not be able to recover a 6 billion
yen ($55 million) loan to Urban Corp. Bank of Yokohama Ltd., which also funds
the failed developer, slumped 7.1%. Kawasaki Kisen added 5%. Mitsui
O.S.K. Lines Ltd. jumped 4.2%. Mitsui & Co., which generates
more than half its profit from commodities trading, climbed 2.6%. Inpex
Holdings Inc. rose 2.7%.
European stocks advanced for the first time in three days as the cheapest mining shares in
six months lured investors and better-than-estimated earnings from Wal-Mart
Stores Inc. boosted retailers. BHP Billiton Ltd., the world's
largest mining company, jumped 4.6% as copper and gold gained for a second day.
Tesco Plc and Metro AG rallied after Wal-Mart, the biggest retailer, said
profit will rise more than it previously forecast. Hochtief AG gained as Germany's
largest builder increased its earnings forecast. In Europe,
data showed the region's economy contracted in the second quarter for the first
time since the launch of the euro almost a decade ago as faltering sales
undermined investment by companies and soaring costs eroded consumer spending
power. Gross domestic product fell 0.2% from the first quarter, when it rose
0.7%, the European Union statistics office in Luxembourg said. Separate figures
showed inflation held at 4 percent in July, less than initially estimated. BHP Billiton climbed 4.6%. Rio Tinto
Group added 3.1%. L'Oreal SA dropped 4.6%. The world's
biggest cosmetics maker was downgraded to ``underweight'' from ``equal-weight''
by Morgan Stanley analysts, who said the stock price is ``unjustified'' because
of the ``downside risk'' to earnings estimates. Bayerische Motoren Werke AG slipped
1.2%. The world's largest maker of luxury cars was lowered to ``sell'' from
``hold'' at Citigroup Inc., which said slower sales and rising raw-materials
costs may reduce profits.
Stocks turned lower
Thursday as a sharp
increase in consumer inflation outweighed a big earnings report by the retail
giant Wal-Mart. Stocks have slumped for the past two sessions,
weighed by credit fears and concerns about the weakening economy.
Before the bell reports showed consumer prices
surged more than expect during the month of July. The index, a key measure of
inflation, rose 0.8% in July, more than twice what economists were
anticipating, versus a 1.1% gain the previous month. The so-called core CPI,
which excludes the volatile food and energy prices, increased 0.3% in July on a
monthly basis. Analysts had expected an increase of 0.2%. The annual rate
climbed to 5.6%, hitting its highest level since 1991. In other economic news, jobless claims slipped
to 450,000 in
the most recent week. Corporate news: Wal-Mart, the world's largest
retailer, reported a 17% jump in second-quarter profit which beat earnings
predictions. The company reported a profit of $3.4 billion, or 87 cents a
share. Analysts polled by Thomson Reuters expected profit of 84 cents a share.
Revenue rose 10% to $101.6 billion, a shade below Wall Street's estimates. The
company also boosted its full-year earnings forecast to between $3.43 and $3.50
a share. In other company news, Barnes & Noble Inc.
would probably not attempt to acquire rival Borders Group Inc., according to a
Wall Street Journal report.
|
| 15.08 07:49 |
FOREX. Thursday summary
The euro dropped to a 5
1/2-month low against the dollar after crude oil fell and a report showed Europe's economy contracted for the first time since the
15- nation currency was introduced almost a decade ago. Europe's economy
shrank 0.2% in the second quarter, after growing 0.7% in the first, the European Union's statistics
office said from Luxembourg. Official figures on
Thursday showed
that the French economy contracted by 0.3% in the second quarter, compared with
predictions of 0.2% expansion. Germany, the euro zone's economic
powerhouse, shrank by 0.5%, not quite as much as the 0.8% contraction analysts
had expected. Released reports showed US consumer prices surged more than expected during the month of
July. The index, a key measure of inflation, rose 0.8% in July, more than twice
what economists were anticipating, versus a 1.1% gain the previous month. The
so-called core CPI, which excludes the volatile food and energy prices,
increased 0.3% in July on a monthly basis. Analysts had expected an increase of
0.2%. The annual rate climbed to 5.6%, hitting its highest level since 1991. More Americans than forecast filed
initial claims for jobless benefits last week, signaling further weakness in
the labor market. The number of first-time applications decreased to 450,000 in the week
ended Aug. 9, compared with the median forecast of 435,000 of economists.
 EUR/USD printed highs on $1.4950 before
corrected to $1.4914. General demand on dollar continued to drag the euro down to
$1.4775 lows. GBP/USD initially rose to $1.8770/80 before
offers capped further rise and pound retreated to $1.8660. Rebound to $1.8700
was short-lived and pound fell to $1.8650. USD/JPY rose from Y109.00 to Y109.80. Later
rate was back to Y109.30, where it mat new buyers and recovered to Y110.00.
Today’s focus is on US data, including NY Fed Empire State
manufacturing index, TICS, Industrial
production and Michigan
sentiment index. Analysts predict consumer confidence rose to 62.4 in August after 61.2
month earlier.
|
| 15.08 07:30 |
USD/JPY techs:
Resistance 3: Y112.70 Resistance 2: Y111.90 Resistance 1: Y110.40 Current price: Y110.21 Support 1: Y109.60 Support 2: Y108.80 Support 3: Y107.30 Comments: USD/JPY looks optimistic, holding a bit below strong resistance at Aug 11-12 highs on Y110.40. Key resistance is around Y111.90 (trend line from Mar 2008). Above the rise may extend to Dec 31 of 2007 high on Y112.70. Support is around overnight lows on Y109.60 with stronger – at channel line from Jul 16 at Y108.80. Break under will open the way to Y107.30.
|
| 15.08 07:18 |
USD/CHF techs:
Resistance 3: Chf1.1180 Resistance 2: Chf1.1080 Resistance 1: Chf1.1000 Current price: Chf1.0983 Support 1: Chf1.0950 Support 2: Chf1.0820 Support 3: Chf1.0740 Comments: Dollar strengthens with strong resistance is around Chf1.1000 (38.2% Fibo of Chf1.3180 - Chf0.9630 decline) with a break under will open the way to Chf1.1080/00. Above there the resistance comes on Jan 07 highs at Chf1.1180/90. In general, rate consolidates today above the broken earlier trend resistance line from Mar 17 at Chf1.0950. Below losses may extend Wednesday’s/Thursday’s lows on Chf1.0820/30. Stronger level is around Chf1.0740 (Monday’s low).
|
| 15.08 07:06 |
GBP/USD techs:
Resistance 3: $1.8960 Resistance 2: $1.8840 Resistance 1: $1.8780 Current price: $1.8645 Support 1: $1.8620 Support 2: $1.8510 Support 3: $1.8300 Comments: Cable is still falling after breaking trend line from Jan 2002 at $1.8960 on Aug 13 (key resistance). Support comes near $1.8620/40 (this week’s low). Below pound’s losses may widen to $1.8510/20 (Oct 2006 lows). Stronger level is around $1.8300 (38.2% of the rise from Jun 2001 lows at $1.3670 to Nov 2007 highs on $2.1160). Minor resistance is near yesterday’s highs on $1.8780/90. Further rise may extend to $1.8830/40 (50%). Above the target comes at $1.8960.
|
| 15.08 06:48 |
EUR/USD techs:
Resistance 3:$1.5080 Resistance 2: $1.4960 Resistance 1: $1.4820 Current price: $1.4769 Support 1: $1.4640 Support 2: $1.4600 Support 3: $1.4540 Comments: Euro still under pressure after yesterday’s weak GDP data from France, Germany and EU. Strong support comes at 50% Fibo on $1.4640 ($1.3260 - $1.6034 rise). Below losses may widen to Feb 20 lows on $1.4600 and then – to Feb 14 lows at $1.4540. Resistance comes at $1.4820 with stronger level is around Thursday’s and Monday’s low on $1.4960 and $1.5080 respectively.
|
| 15.08 06:31 |
Daily History for Aug 14, 2008
High Low Close EUR/USD 1.4949 1.4775 1.4798 USD/JPY 109.98 109.01 109.76 GBP/USD 1.8786 1.8617 1.8683 USD/CHF 1.0980 1.0834 1.0943
EUR/JPY 163.71 162.20 162.46 EUR/GBP 0.7990 0.7909 0.7919 GBP/JPY 205.95 203.44 205.09 GBP/CHF 2.0503 2.0240 2.0444
Change % Change Last Nikkei 225 -66.25 -0.5% 12 956.80 Topix -7.55 -0.6% 1 238.93 FTSE -85.90 -1.55% 5,448.60 DAX -163.68 -2.49% 6,422.19 CAC +17.94 +0.41% 4,420.91 Dow -109.51 -0.94% 11,532.96 NASDAQ -1.99 -0.08% 2,428.62 S&P -3.76 -0.29% 1,285.83 10yr Note +0.2900 +0.074% 3.947% NYMEX Crude Oil +2.99 +2.65% 116.00 Gold +16.90 +2.07% 831.50
|
| 15.08 06:07 |
Schedule for today, Friday, Aug 15, 2008
12:30 USA NY Fed Empire State manufacturing index (August) -5.0 -4.9 13:00 USA TICS (June), bln - -2.5 13:00 USA TICS long-term (June), bln - 67.0 13:15 USA Industrial production (July) 0.0% 0.5% 13:15 USA Capacity utilisation (July) 79.8 79.9 13:55 USA Michigan sentiment index (August) preliminary 62.4 61.2
|
|
|