Kasper Rorsted, chief executive officer of Henkel AG, said the company's earnings... Read More
The euro declined 0.3 percent against the dollar by 11:27 a.m. in London. Standard & Poor’s 500 Index futures rose 0.3 percent and the Stoxx Europe 600 Index advanced 0.2 percent. Treasuries were little changed before an auction of $27 billion of three-year notes. Oil fell 0.9 percent and wheat dropped 1 percent before a monthly government crop report. Measures of European corporate credit risk declined for a third day.
German investor confidence dropped for an eighth month as the crisis in Ukraine and a sluggish euro-area recovery damped the outlook for
Europe’s largest economy. A Russian humanitarian mission was headed toward eastern Ukraine after the U.S. warned President Vladimir Putin not to use aid as a cover to send in troops. The U.S. is scheduled to release a report on job openings today.
“The poor ZEW data is bad news for the euro,” said Peter Rosenstreich, chief foreign-exchange analyst at Swissquote Bank SA in Gland, Switzerland. “We know about the economic weakness in peripheral countries like Italy, but there’s always hope that Germany will be a growth engine that supports the region. Now the growth engine itself seems to be sputtering.”
ZEW Report
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, dropped to 8.6 in August from 27.1 in July. Economists forecast a decrease to 17, according to the median of 31 estimates in a Bloomberg News survey. The gauge has slipped every month since reaching a seven-year high in December.U.S. job openings in June were probably little changed after rising to the highest level in almost seven years in May, economists said before the Labor Department report.
The dollar rose against all but two of its 16 major counterparts. It appreciated 0.3 percent to $1.33404 per euro and rose 0.1 percent to 102.33 yen. New Zealand’s dollar slid to its weakest level since June 4, falling as much as 0.6 percent to 84.09 U.S. cents, after a report showed annual home-price gains last month were the least since September 2012.
Treasury 10-year yields were at 2.43 percent. The rate on similar-maturity German bunds increased less than one basis point to 1.06 percent.
Russian Shares
The Micex Index of Russian shares rose 0.4 percent. Russia is “evidently” seeking a humanitarian pretext for moving troops into Ukraine, Polish Interior Minister Bartlomiej Sienkiewicz said in an interview on Polish Radio’s 1st Channel.U.S. Secretary of State John Kerry said the U.S. was open to further sanctions against Russia as he reiterated the need for a full investigation into the shooting down of a Malaysian Airline System Bhd plane with 298 people on board last month.
Pandora A/S (PNDORA) rallied 8.4 percent after the Danish jeweler raised its revenue forecast for this year after reporting second-quarter earnings that exceeded analysts’ estimates.
Henkel AG, which makes Sellotape and Loctite glue, slid 6.1 percent after its chief executive officer said the crises in Ukraine and the Middle East will lead to slower earnings growth in the second half of the year.
Rhoen Klinikum AG slipped 0.7 percent as Goldman Sachs Group Inc. and Berenberg Bank AG sold as many as 2.9 million shares in the operator of private hospitals.
China will release data on industrial production, fixed-asset investment and retail sales tomorrow. Factory output probably rose 9.2 percent from a year earlier while retail sales growth accelerated to 12.5 percent from 12.4 percent a month earlier, according to median estimates.
China Lending
New local-currency loans probably reached 780 billion yuan last month ($126 billion), compared with 1.08 trillion yuan in June, according to the median estimate of 46 economists surveyed by Bloomberg. The data may come out as early as today.The cost of insuring against losses on corporate debt fell for a third day. The Markit iTraxx Europe index of credit-default swaps on 125 investment-grade companies declined one basis point to 65.5 basis points, the lowest since July 31.
WTI crude dropped to $97.22 a barrel as the International Energy Agency cut its growth estimate for oil demand for this year and next.
Wheat futures retreated for a fourth day in Chicago on speculation that production will exceed government estimates in the U.S., the world’s top exporter.
The U.S. may harvest 2.015 billion bushels, more than the 1.992 billion bushels predicted by the Department of Agriculture last month, a Bloomberg News survey showed. The USDA is scheduled to update its forecast today. Corn futures declined 0.5 percent.
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