Awaiting Important U.S. Data

July 14, 2017

U.S. statistics will be reported today on consumer prices, retail sales, industrial production and the Reuters/U. Michigan consumer sentiment survey. Market direction on the dollar and stocks awaits those reports.

European sovereign debt yields fell overnight by six basis points in Spain, five bps in Italy, 3 bps in France, 2 bps in Germany and a basis point in the U.K..

West Texas Intermediate crude oil extended yesterday’s rebound by 0.8% to $46.43 per barrel. Gold edged up 0.2% to $1,219.20 per ounce.

Having lost ground on the perceived dovish tone of Janet Yellen’s two-day testimony, the dollar will take its next cue from today’s U.S. data. So far overnight, the greenback has lost 0.3% against the Australian dolar and peso, 0.2% relative to sterling, and 0.1% vis-a-vis the yen and euro. Alternatively, the dollar recovered 0.3% against the Swiss franc and 0.2% versus the kiwi but is flat relative to the loonie and yuan.

Share prices in the Pacific Basin advanced 1.6% in Singapore, 0.5% in Hong Kong and Australia, 0.4% in New Zealand, 0.2% in South Korea, and 0.1% in Japan.

Stocks in Europe are up 0.3% in Switzerland and Spain, and 0.1% in Italy. Such are unchanged in Germany and 0.2% lower in Britain. France is celebrating Bastille Day.

The Central Reserve Bank of Peru as expected cut its main policy interest rate by 25 basis points to 3.75%. That was the second cut since May.

Euroland recorded a EUR 19.7 billion seasonally adjusted trade surplus in May compared to an average surplus of EUR 18.4 billion over the first four months of 2017, but the year-to-date unadjusted EUR 82.9 billion surplus is 18% smaller than a year earlier. Year-to-date import growth of 12.3% has surpassed export growth of 8.5%.

Japanese industrial production in May was revised to a decline of 3.6% from one of 3.3% reported initially. Output in April had jumped 4.0%.

Indian WPI inflation dropped to just 0.90% in June from 2.17% in May. Most of the deceleration was concentrated in fuel and food, but manufactured goods price pressure also receded.

Singapore GDP expanded 0.4% on quarter and 2.5% on year in the second quarter of 2017.

Fitch retained a Chinese credit rating of A+ with a stable outlook.

Despite a 2.6% quarterly contraction, Irish GDP in the first quarter was 6.1% greater than a year earlier.

Italian CPI inflation slowed to 1.2% last month from 1.4% in May. Finnish Consumer price inflation held unchanged at 0.7% in June.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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