Daily News Report

Markets in a Flash
• Markets in Asian countries had mixed sessions over night. China and Hong Kong rose while Japan fell.
• The Nikkie fell as the Japanese Yen gained hurting the countries exporters.
• European equity markets are trading higher after European economic data beats expectations.
• Commodities markets are looking strong today as European data is strong. Gold falls back further from $1200.
• The USD looks weaker today after investors sought safety in the currency yesterday after Bernanke’s comments.
• US equity futures are following to European lead and are pointing to a higher open.
News Focus
After Bernanke’s comments yesterday pushed investors towards less risky assets data released today in Europe has reversed this trend. The data released has pushed the commodities and European equity markets higher while weakening the USD.
Data for July’s manufacturing and service output in the Eurozone grew faster than was expected. The index rose to its three month high of 56.7 which beat analyst expectations of 55.5 and the previous month’s figure of 56.0. The main reason for the strength of the index has come from the major economies of Germany and France. This data relieves fears of a double dip recession in the Eurozone.
Retail sales data released in the UK came in better than expected. Sales volumes for the month of June rose by 1 percent. This is a strong increase in sales and has been boosted by consumer spending related the World Cup.
Just Released
0830ET - Jobless Claims
Previous 429 K Consensus 450 K
Consensus Range 430 K to 490 K Actual 464 K
This weeks Jobless Claims figure has come in worse than previous and consensus. The figure shows that more people than expected have filed for unemployment insurance. This proves bearish for the markets as it shows that the labour market is worse than was previously thought.
Coming up Today
As the earnings season continues a number of companies report today. Ones to watch are:
• Amazon
• American Express
• Caterpillar
• Microsoft
1000ET – Existing Home Sales
Previous 5.66 M Consensus 5.260 M
Consensus Range 4.800 M to 6.200 M
After last month’s fall in home sales it is expected that this months, for June, will repeat the pattern. The fall in home sales is a reflection of the slowdown in the economy and the weak labour market. A higher than consensus number will be bullish as it may suggest the economy is in better health than economists predict.
1030ET – Natural Gas Report
The weekly report by the Energy Information Administration provides data on US natural gas stocks. A report showing a drop in natural gas stocks may signal increasing demand in the economy and see an increase in the price of the commodity.