Benign Data and Market Action

August 19, 2015

The dollar did not change on balance overnight against the euro or sterling.  Other changes were mute, too, including a 0.1% uptick versus the yen.

Share prices are mostly softer.  Ten-year sovereign debt yields are unchanged in the U.S., Germany, Japan and Britain.

WTI oil slipped 0.8% to $42.30 per barrel.  Comex gold firmed 0.4% to $1,121.60 per ounce.

The Bank of Iceland followed up a 50-basis point rate hike in June with another 50-bp tightening and released a statement pointing to a likely further tightening in subsequent meetings of the Monetary Policy Committee.

Japan’s July customs trade deficit — JPY 268 billion unadjusted and JPY 369 billion seasonally adjusted — was greater than forecast, breaking a streak of recent better-than-expected outcomes.

Japan’s all industry index rose 0.3% on month and 1.2% on year in June, a tad less than forecast.   Department store sales increased 3.4% year-over-year in July.

U.S. consumer prices edged up 0.1% in July and 0.2% on year.  Core inflation held at a benign 1.8%.

Foreign direct investment in China was 5.2% greater in July than a year earlier.  That’s a smaller rise than in the first half of 2015.

Construction output in the eurozone fell 1.9% in June and by 0.7% in the second quarter from the prior period.  Output dropped 2.3% between June 2014 and June 2015.

Euroland’s current account surplus widened to EUR 25.4 billion in June from EUR 19.1 billion in May, but the second-quarter average of EUR 22.8 billion per month was smaller than EUR 27.2 billion in the first quarter.

New Zealand producer output prices declined 2.2% in the year to 2Q15, but producer input prices advanced by 3.3%.

The German Bundestag approved the latest Greek bailout, but the vote included 113 nays and 18 abstentions.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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