European premarket from Sergei Kostenko

The market is adjusting before the ECB meeting ...
 

European stock market fell on Tuesday from a global outbreak of profit due to the lack of clear signals from the Fed and doubt that on September 6 the ECB will announce all the details of redemption of short-term debt securities in troubled European countries. In the largest decline were stocks of mining companies Rio Tinto and Xstrata, which fell by 2.63% to 3.14%.

Index DJ EURO STOXX BANK up to previous trading to close at 97.83 (-0.40%).

Paper Lloyds Banking Group, Deutsche Bank and Royal Bank of Scotland fell from 1.54% to 2.56%.

Major European indexes at the close of the previous trading session: FTSE 100 - 5,672.01 (-1.50%); DAX 30 - 6,932.58 (-1.17%); CAC 40 - 3,399.04 (-1.58%). Futures DJ STOXX 50 in the morning before the opening of trading in Europe is 2,437.00 (0.16, -08%). European stock markets open neutral.

 

European index of "blue chips" FTSEurofirst 300, closed on Tuesday at 1,079.12 (-1.14%).

Before the opening of the European session US yield on 10-year T-Note is 1.56% (-0.012 points), the 10-year German Government Bonds is 1.42% (-0.012 points), and 10-year UK Government Bonds is 1.63% (+0.000 points), Spanish Government Bonds 6.57% (-0.283 points), Italy Government Bonds 5.67% (-0.103 points).

Oil futures on the morning electronic trading in London are falling after yesterday's profit and correction of the U.S. stock market.

Brent Oil (ICE) in morning electronic trading before the opening of Europe at 113.95 (-0.20%) and the U.S. crude oil WTI (ICE) 95.14 (-0.17%).

 

Gold futures in the morning at 1,694.20 (-0.11%), quotes copper at 346.35 (-0.16%).

Commodity Index CRB Index for the previous trading day was 308.81 (-0.25%).

In the currency market, the dollar is supported against the major currencies except the yen amid expectations of the results of the ECB meeting, and weak social statistics from the U.S., which continues to point to the negative trends in the U.S. economy. Reducing Australia's GDP had a negative impact on the Australian dollar, which continues to fall. The euro also remained under pressure as a result of the uncertainty of the ECB’s plans on September 6 to buy distressed debt securities of euro area countries.

The dollar index ICE, which reflects the value of the U.S. currency against a trade-weighted basket of currencies, is 81.54 (+0.27%).

 

Prediction of the day:

Unclear picture of the actions of the ECB could lead to a correction to the level of the EURUSD to 1.2450.
 

Events today:

Moscow time

11.15 Switzerland Consumer Price Index in August n / a; 0,1% m / m, -0.5% m / m

12.00 Eurozone Final data on the index of business activity in the services sector in August n / a; 47,5; 47,5

12.30 UK PMI services sector in August n / a; 51,5; 51,0

13.00 Eurozone retail sales in July n / a; -0,2% m / m and 0.2% m / m

During the day the UK auction on placement of 30-year government bond n / a; 3,22 / 2,2

During the day, Germany auction on placement of 10-year government bond n / a 1,42 / 1,8

16.30 Revised data on U.S. labor productivity outside agriculture Q2 2012 n / a; 1,8% q / q and 1.6% q / q

16.30 Revised data on U.S. labor costs Q2. 2012 n / a; 1,5% q / q and 1.7% q / q

17.00 Canada Decision of the Bank of Canada Interest Rate n / a; 1,00%; 1,00%

17.00 Statement of Canada Bank of Canada interest rate

 

Sergei Kostenko