Currencies Again Unaffected by Festering Geopolitical Tensions

July 28, 2014

A fleeting cease fire in Gaza has been broken.

The U.S. State Department claims to have images of artillery fire from Russian soil against Ukrainian forces.

Spokesmen for Japanese Prime Minister Abe deny rumors of cabinet changes.

The dollar is unchanged against the yen, loonie, Australian dollar and sterling.  The greenback has edged 0.1% higher against the kiwi but dipped 0.1% versus the euro, Swissie and yuan.

Further evidence that the Chinese slowdown has run its course sent share prices in that economy soaring 2.8% to a 7-month high.  Stocks also climbed 0.9% in Hong Kong, 0.5% in Japan and 0.7% in South Korea but slipped 0.6% in Indonesia and India, 0.2% in South Korea, and 0.1% in New Zealand, Australia and Singapore.  In Europe, the German Dax is down 0.1%, but the Paris Cac and British Ftse have increased by 0.3% and 0.1%.

WTI oil softened 0.6% to $101.53 per barrel.  Comex gold edged up 0.1% to $1,306.80 per ounce.

Ten-year British gilt and German bund yields are two and one basis points higher.  The 10-year Japanese JGB yield is steady.

The on-year growth in industrial earnings in China accelerated sharply in June to 17.9% from 8.9% in May and exceeded the first-half pace of 11.4%.

Italian business sentiment eased unexpectedly by 0.2 points to a reading of 99.7 in July.  Finnish business sentiment was unchanged in July, but Finnish consumer confidence rose 0.7 points to a score of 9.4.  Inflation-adjusted Irish retail sales dropped 1.7% in June but remained 4.8% greater than a year before.

The U.S. will be reporting pending home sales and the Dallas Fed manufacturing survey results today.  Markit Economics reports its U.S. manufacturing purchasing managers survey results.  The Bank of Israel is not expected to change its 0.75% key interest rate at this month’s monetary policy meeting.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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