Quiet start to Last Week of August

August 26, 2013

A narrowly mixed dollar shows gains of 0.2% against the loonie and Swiss franc and 0.1% versus the euro and Aussie dollar, no change relative to the yuan, and declines of 0.3% relative to the kiwi and 0.1% against the yen and sterling.

The 10-year Japanese JGB and German bund yields dipped a basis point each, while the 10-year British gilt is unchanged.

Syria is the focus of geopolitical tension.  After what’s believed to have been a chemical attack by Assad forces, the U.S. and U.N. appear closer to military action in that country.

British markets will be shut today for the late summer Bank Holiday.

Share prices in Europe are down 2.2% in Italy, 0.7% in Spain, 0.6% in France and 0.3% in Germany.  Japan’s Nikkei closed 0.2% lower.  Elsewhere in the Pacific Rim, stocks advanced by 2.1% in China, 1.0% in South Korea 0.7% in Hong Kong and 0.2% in Australia but lost 1.2% in Indonesia and 0.1% in Singapore.

Gold ticked 0.1% lower to $1394.20 per ounce.  The price of WTI crude oil edged up 0.1% to $106.50 per barrel.

July producer prices dipped 0.1% in Finland and were unchanged from a year earlier, rose 0.9% in Sweden and fell by a lessening 2.8% from a year before, and posted gains in Spain of 0.5% from June and 0.8% from July 2012.

Japanese corporate service prices were unchanged on month in both June and July.  The year-over-year increase of the CSP remained just 0.4%.

Industrial production in Singapore returned to an on-year increase in July (2.7%) from a drop of 4.2% between June 2012 and June 2013.

According to the Conference Board, the index of leading economic indicators in Euroland advanced 1.0% in July, but the index of coincident economic indicators dipped by 0.1% for a second straight time.

Czech consumer confidence was less negative in August than July.  Polish retail sales recorded a larger 4.3% on-year increase in July versus 1.8% in June.

New Zealand recorded a NZD 774 million trade deficit in June after a surplus of NZD 374 million in May.

This month’s Bank of Israel interest rate announcement, due today, is not expected to embody a policy change. 

Scheduled U.S. data releases today include durable goods orders and the Dallas Fed manufacturing index.  Mexican trade figures will be reported.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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