Greek Banks Reopen, Share Prices Higher in Europe, and Gold Lower
July 20, 2015
The U.S. dollar fell 0.8% against the kiwi overnight but shows small gains of 0.3% relative to sterling, 0.2% vis-a-vis the Swiss franc and 0.1% against the yen, loonie and Aussie dollar. The euro and yuan are steady.
Equities have risen 1.5% in Italy, 1.0% in Spain and Germany, 0.9% in France, 0.6% in Greece and Switzerland and 0.4% in Great Britain.
Comex gold tumbled 1.7% to $1,115.19 per ounce. The price of West Texas Intermediate crude oil slipped 0.4% to $50.69 per barrel.
Share prices closed mixed in the Pacific Rim, with drops in Taiwan, Hong Kong, South Korea and India but gains in Japan, New Zealand, Australia, Singapore, and China.
Ten-year sovereign debt yields edged up two basis points in Italy and one basis point in Spain, Germany and France. Such fell two basis points in the U.K. and Japan and are unchanged in Switzerland.
Japan’s Marine Day holiday held down volume this third Monday of July.
Chinese bank lending and money growth beat expectations in June. Yuan loans of CNY 1.279 trillion were the largest total since January. M2, M1 and M0 posted on-year growth of 11.8% (up from 10.8% in May), 4.3% and 2.9%.
There was further evidence that China’s property market is stabilizing after a sharp retrenchment. Home prices rose 0.4% on month in June versus +0.2% in May, and the 12-month 4.9% rate of decline was less than the fall of 5.7% in the year to May. Fewer cities reported month-on-month and year-over-year declines.
New Zealand’s performance of services index, akin to a purchasing managers survey, printed at an 8-month high of 58.2 in June. The Reserve Bank of New Zealand holds an interest rate policy meeting later this week.
Hong Kong joblessness of 3.2% in the second quarter of 2015 was 0.1 percentage point less than in the first quarter.
India’s leading and coincident indices of economic indicators respectively were unchanged and 1.0% higher in June, according to the Conference Board. Both results were considerably better than those for May.
The eurozone’s current account surplus fell in May to a six-month low of EUR 18.0 billion. While the surpluses on merchandise trade and services rose to 2- and 8-month highs, net investment income sank to a 6-month low. Over the 12 months through May, the current account surplus widened to EUR 249 billion, equal to 2.5% of GDP, from EUR 180 billion over the previous statement year, equal to 1.8% of GDP. Euroland posted a EUR 472.6 billion “basis balance,” that is current account plus direct and portfolio investment inflows, compared to EUR 126.6 billion a year earlier.
German producer prices dipped 0.1% on month in June, the first decrease since January, and fell 1.4% on year. Energy fell 0.4% on month, while all other producer prices went up 0.1%.
Dutch consumer confidence settled back to a reading of +4 in July from a 94-month high of +6 in June. Dutch consumer spending growth of 1.1% on year in May represents a 5-month low, down from increases of 1.6% in April and 2.3% in March.
The British Rightmove house price index rose 0.1% in June and accelerated to a 12-month 5.1% rate of rise from 4.5% in May and 2.5% in April.
Although Greek banks were open for the first time in three weeks, depositors are still subject to limits on daily withdrawals. Greek capital controls remain in place. The country was able to make EUR 6.8 billion in debt service payments to the ECB and others.
No U.S. data will be released today.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Chinese property prices, Eurozone current account, German PPI
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