CFD Markets News and Forecasts — 22-05-2014

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22.05.2014
23:30
Commodities. Daily history for May 22’2014:
(raw materials / closing price /% change)

Gold $1,294.90 +6.90 +0.54%

ICE Brent Crude Oil $110.39 -0.16 -0.14%

NYMEX Crude Oil $103.69 -0.30 -0.29%

23:25
Stocks. Daily history for May 22’2014:
(index / closing price / change items /% change)

Nikkei 14,337.79 +295.62 +2.11%

Hang Seng 22,953.76 +117.24 +0.51%

Shanghai Composite 2,021.29 -3.67 -0.18%

S&P 1,892.49 +4.46 +0.24%

NASDAQ 4,154.34 +22.80 +0.55%

Dow 16,543.08 +10.02 +0.06%

FTSE 1,366.29 +1.53 +0.11%

CAC 4,478.21 +9.18 +0.21%

DAX 9,720.91 +23.04 +0.24%

23:20
Currencies. Daily history for May 22'2014:
(pare/closed(GMT +2)/change, %)

EUR/USD $1,3655 -0,22%

GBP/USD $1,6866 -0,19%

USD/CHF Chf0,8941 +0,10%

USD/JPY Y101,75 +0,32%

EUR/JPY Y138,94 +0,10%

GBP/JPY Y171,60 +0,13%

AUD/USD $0,9222 -0,25%

NZD/USD $0,8563 -0,09%

USD/CAD C$1,0891 -0,20%

23:00
Schedule for today, Friday, May 23’2014:
(time / country / index / period / previous value / forecast)

02:00 China Leading Index April +1.2%

06:00 Germany GDP (QoQ) (Finally) Quarter I +0.8% +0.8%

06:00 Germany GDP (YoY) (Finally) Quarter I +2.2% +2.2%

08:00 Germany IFO - Business Climate May 111.2 111.0

08:00 Germany IFO - Current Assessment March 115.3 115.6

08:00 Germany IFO - Expectations March 107.3 106.9

09:00 Eurozone European Parliamentary Elections

12:30 Canada Consumer Price Index m/m April +0.6% +0.3%

12:30 Canada Consumer price index, y/y April +1.5%

12:30 Canada Bank of Canada Consumer Price Index Core, m/m April +0.3% +0.2%

12:30 Canada Bank of Canada Consumer Price Index Core, y/y April +1.3%

13:00 Belgium Business Climate March -4.6 -4.7

14:00 U.S. New Home Sales April 384 426

19:00
Dow +28.57 16,561.63 +0.17% Nasdaq +31.62 4,163.16 +0.77% S&P +7.91 1,895.94 +0.42%
16:27
European stocks close: most stocks were up due to the positive manufacturing data in China and the U.S.

Most stock indices stocks increased due to the positive manufacturing data in China and the U.S. China’s HSBC manufacturing index (preliminary) climbed to 49.7 in May, up from 48.1 in April. Analysts had expected an increase to 48.4.

U.S. flash manufacturing purchasing managers' index rose to 56.2 in May, from 55.4 in April. Analysts had forecasted a gain to 55.6.

The European stock markets were also supported by the better-than-expected flash services purchasing managers' index in the Eurozone. The growth in the service industry show some signs of recovery in the Eurozone. But the factory activity in the Eurozone was disappointing.

Eurozone’s flash manufacturing purchasing managers' index fell to 52.5 in May, from 53.4 in April. That was the slowest growth in six months. Analysts had expected a decrease to 53.2.

Eurozone’s flash services purchasing managers' index climbed to 53.5 in May, from 53.1 in April. That was the fastest pace in almost three years. Analysts had forecasted a decrease to 53.0.

France's flash manufacturing purchasing managers' index decreased to 49.3 in May, from 51.2 in April. Analysts had expected a decline to 51.1.

France's flash services purchasing managers' index decreased to 49.2 in May, from 50.4 in April. Analysts had forecasted a fall to 50.3.

Germany's manufacturing purchasing managers' index I slid to 52.9 in AMy, from 54.1 in April. Analysts had expected a decline to 54.0.

Germany's services purchasing managers' index gained to 56.4 in May, from 54.7 in April. Analysts had forecasted a rise to 54.8.

Raiffeisen Bank International AG shares rose 5.8% after reporting the better-than-expected earnings in the first quarter.

Royal Mail Plc shares dropped 9.7% after the company released that the full-year profit missed analysts’ forecast.

Logitech International SA declined 4.8% after reporting its annual report will be released later because of an accounting investigation.

Indexes on the close:

FTSE 100                              6,820.56                              -0.48                      -0.01%

DAX                                      9,720.91                            +23.04                      +0.24%

CAC 40                                 4,478.21                              +9.18                      +0.21%

16:00
European stock close: FTSE 100 6,821.52 +0.48 +0.01% CAC 40 4,478.21 +9.18 +0.21% DAX 9,720.91 +23.04 +0.24%
15:50
Foreign exchange market. American session: the U.S. dollar traded higher against the most major currencies after the release of the U.S. economic data

The U.S. dollar traded higher against the most major currencies after the release of the U.S. economic data. The initial jobless claims in the U.S. climbed by 28,000 to 326,000, from 298,000 in the previous week. Analysts had expected an increase of jobless claims by 12,000 to 310,000.

U.S. flash manufacturing purchasing managers' index rose to 56.2 in May, from 55.4 in April. Analysts had forecasted a gain to 55.6.

Sales of existing homes in the U.S. climbed to 1.3% in April to an annual rate of 4.65 million units, missing expectations of a 2.2% gain to 4.68 million. That was the first increase in 2014.

The euro decreased against the U.S. dollar. Eurozone’s flash manufacturing purchasing managers' index fell to 52.5 in May, from 53.4 in April. That was the slowest growth in six months. Analysts had expected a decrease to 53.2.

Eurozone’s flash services purchasing managers' index climbed to 53.5 in May, from 53.1 in April. That was the fastest pace in almost three years. Analysts had forecasted a decrease to 53.0.

France's flash manufacturing purchasing managers' index decreased to 49.3 in May, from 51.2 in April. Analysts had expected a decline to 51.1.

France's flash services purchasing managers' index decreased to 49.2 in May, from 50.4 in April. Analysts had forecasted a fall to 50.3.

Germany's manufacturing purchasing managers' index I slid to 52.9 in May, from 54.1 in April. Analysts had expected a decline to 54.0.

Germany's services purchasing managers' index gained to 56.4 in May, from 54.7 in April. Analysts had forecasted a rise to 54.8.

The British pound declined against the U.S. dollar after the U.K. gross domestic product. U.K. gross domestic product increased 0.8% in the first quarter (Q4 2013: +0.8%). Analysts had expected this figure.

On a yearly basis, U.K. gross domestic product climbed 3.1% in the first quarter (Q4 2013: +3.1%). Analysts had expected this growth.

U.K. business investment rose by 2.7% in the first quarter, from a 2.4% gain in the previous quarter. That was the highest pace since the first quarter of 2013.

On a yearly basis, U.K. business investment climbed 8.7% in the first quarter, unchanged from the previous quarter figure.

The Confederation of British Industry released the British factory orders. The Confederation of British Industry's (CBI) total order book balance was 0 in May, up from -1 in April. Analysts had expected +4.

The Canadian dollar rose against the U.S. dollar. The retail sales in Canada decreased 0.1% in March, from a 0.5% rise in February. Analysts had expected a 0.2% gain.

The Canadian retail sales excluding automobile sales climbed 0.1% in March, from a 0.6% increase in February. Analysts had forecasted a 0.5% rise.

The New Zealand dollar traded lower against the U.S. dollar. The Reserve Bank of New Zealand reported its annual inflation expectations increased to 2.4% in the first quarter, from 2.3% in the previous quarter.

The kiwi was also supported by the better-than-expected Chinese economic data. China’s HSBC manufacturing index (preliminary) climbed to 49.7 in May, up from 48.1 in April. Analysts had expected an increase to 48.4.

The Australian dollar increased against the U.S. dollar after the release of inflation expectations in Australia and Chinese manufacturing data, but later lost its gains. The inflation expectation for the next 12 months rose to 4.4% in April, from 4.2% in March. March’s figure was revised up from +2.4%.

The Japanese yen traded lower against the U.S. dollar. The decreasing demand for safe-haven currency had a negative impact on the yen. No economic data was published in Japan.
15:40
Oil: an overview of the market situation

The price of oil rose today , while reaching a peak in the last 2.5 months , which was associated with the release of better than expected Chinese data and limited oil exports from Libya.

As it became known , the May purchasing managers index (PMI) in China , designed and HSBC Markit Economics, reached a record in 2013 . According to preliminary data , the indicator for the current month rose to 49.7 points. However, he remained below 50 , indicating a decrease in the activity of the business community in the industrial sector of the country. Last month , the indicator was fixed at 48.1 points. Experts expect that the value of the indicator in May was 48.4 points.

The dynamics also affect the data on the U.S. labor market , which showed : The number of initial claims for unemployment benefits rose by 28,000 and reached a seasonally adjusted 326,000 in the week ended May 17. Economists predicted that the number of applications will increase to 312,000 . Moving average of four weeks for initial claims , which smooths the volatile weekly data , fell last week to 322,500 in 1000 . The number of repeated requests for unemployment benefits fell by 13,000 and totaled a seasonally adjusted 2.653 million in the week ended May 10. This is the lowest level since December 2007. These figures are based on the one -week delay. The Labor Department said that there were no special factors influencing the data last week.

Meanwhile, adding that prices rose after the U.S. sent Marines unit in Italy, which later may be involved in the evacuation of American citizens from Libya, which rose sharply again tension between the government and the rebels. North African country was producing 215,000 barrels a knock in April , with production capacity of 1.5 million in recent weeks, market participants expected that the market will actively enter the Libyan oil , but this is not happening .

It is also worth noting that the Energy Information Agency on Wednesday announced the reduction of commercial stocks of crude oil by 7 million barrels in the week ending May 16. Analysts expect that stocks will remain unchanged. The main reason that provoked the fall, was a sharp decline in imports, which in comparison with the same period last year decreased by 9 %.

The cost of the July futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to $ 103.09 per barrel on the New York Mercantile Exchange (NYMEX).

July futures price for North Sea Brent crude oil mixture rose 20 cents to $ 110.68 a barrel on the London exchange ICE Futures Europe.

15:24
Existing home sales in the U.S. rose in April

The National Association of Realtors released the U.S. existing home sales today. Sales of existing homes in the U.S. climbed to 1.3% in April to an annual rate of 4.65 million units, missing expectations of a 2.2% gain to 4.68 million. That was the first increase in 2014.

Chief economist at the National Association of Realtors Lawrence Yun said he is optimistic about the development of existing home sales.

The median home price gained 5.2% in April to $201,700 from the same period a year earlier.

The Federal Reserve expressed concern that the slow pace of the housing recovery is a risk for the broader economy's continued improvement.

15:20
Gold: an overview of the market situation

The price of gold rose today , as yesterday's FOMC meeting minutes showed that the U.S. Federal Reserve intends to continue supporting the U.S. economy. Although officials discussed the strategy of super soft closure of monetary policy , they have made it clear they have no plans to raise interest rates soon .

The dynamics also affect the data provided by the U.S. housing market . It is learned that sales of existing homes rose 1.3% in April to a seasonally adjusted annual rate of up to 4.65 million, the National Association of Realtors said (NAR). This was slightly lower than the 4.71 million forecast by economists. Surge followed the March growth indicator upcoming home sales that normally precede sales in the secondary market for one or two months , and signaled the beginning of a good spring season sales. NAR also reported that the average house price rose by 5.2 % in April to $ 201,700 for the same period a year earlier. The number of homes for sale on the secondary market the United States represents 5.9 months of sales.

Meanwhile, it was reported that the world's largest reserves secured gold exchange-traded fund SPDR Gold Trust on Wednesday fell by 3.3 tonnes to 776.89 tonnes - the minimum volume since December 2008 . This was the highest decline since April 30.

The dynamics also continues to affect the fact that India's central bank on Wednesday to ease restrictions on gold imports , allowing its import of seven more private firms . According to analysts, this is done to saturate the market and lower ">The cost of the June gold futures on the COMEX today rose to a high of $ 1298.00.

14:00
U.S.: Existing Home Sales , April 4.65 (forecast 4.71)
14:00
U.S.: Leading Indicators , April +0.4% (forecast +0.4%)
13:48
Federal Reserve’s April minutes: the Fed will keep reducing its asset purchase program

The Federal Reserve released its April minutes on Wednesday:

  • The Fed will keep reducing its asset purchase program;
  • The Fed see the slow improvement in the economy and doesn’t see inflation pressure;
  • The Federal Reserve Board of Governors agreed at their April meeting to consider a mix of tools to normalize monetary policy, but interest rate hikes aren't planned yet.

13:45
U.S.: Manufacturing PMI, May 56.2 (forecast 55.6)
13:36
U.S. Stocks open: Dow 16,518.19 -14.87 -0.09%, Nasdaq 4,133.41 +1.87 +0.05%, S&P 1,887.83 -0.20 -0.01%
13:28
Before the bell: S&P futures +0.01%, Nasdaq futures +0.07%

U.S. stock futures were little changed as jobless claims rose in the latest week while a Chinese manufacturing gauge climbed to a five-month high.

Global markets:

Nikkei 14,337.79 +295.62 +2.11%

Hang Seng 22,953.76 +117.24 +0.51%

Shanghai Composite 2,021.29 -3.67 -0.18%

FTSE 6,814.14 -6.90 -0.10%

CAC 4,460.31 -8.72 -0.20%

DAX 9,705.61 +7.74 +0.08%

Crude oil $103.88 (-0.18%)

Gold $1301.60 (+1.05%)

13:08
DOW components before the bell

(company / ticker / price / change, % / volume)

International Business Machines Co...

IBM

186.45

+0.03%

0.9K

Verizon Communications Inc

VZ

49.19

+0.04%

13.1K

Exxon Mobil Corp

XOM

102.08

+0.05%

2.1K

Nike

NKE

74.25

+0.05%

0.3K

Johnson & Johnson

JNJ

100.51

+0.07%

2.4K

United Technologies Corp

UTX

115.00

+0.14%

0.1K

AT&T Inc

T

35.34

+0.20%

13.3K

Boeing Co

BA

131.94

+0.75%

2.1K

Goldman Sachs

GS

159.35

0.00%

0.1K

Intel Corp

INTC

26.20

0.00%

0.9K

The Coca-Cola Co

KO

40.87

0.00%

0.5K

Travelers Companies Inc

TRV

92.86

0.00%

0.3K

Home Depot Inc

HD

78.05

-0.04%

8.6K

Procter & Gamble Co

PG

80.45

-0.05%

1.2K

Caterpillar Inc

CAT

102.80

-0.08%

1.7K

JPMorgan Chase and Co

JPM

54.05

-0.13%

0.2K

General Electric Co

GE

26.45

-0.15%

2.0K

Cisco Systems Inc

CSCO

24.41

-0.29%

7.0K

Pfizer Inc

PFE

29.48

-0.30%

3.8K

UnitedHealth Group Inc

UNH

77.47

-0.32%

0.1K

McDonald's Corp

MCD

102.00

-0.55%

0.1K

13:02
Upgrades and downgrades before the market open

Upgrades:

Facebook (FB) upgraded to Overweight from Equal Weight at Evercore

Boeing (BA) upgraded to Buy from Hold at Drexel Hamilton


Downgrades:


Other:

Verizon (VZ) initiated at Outperformat Bernstein

12:30
U.S.: Initial Jobless Claims, May 326 (forecast 312)
12:30
Canada: Retail Sales, m/m, March -0.1% (forecast +0.2%)
12:30
Canada: Retail Sales ex Autos, m/m, March +0.1% (forecast +0.5%)
12:11
Foreign exchange market. European session: the euro traded mixed against the U.S. dollar after the release of the economic data in the Eurozone

Economic calendar (GMT0):

01:00    Australia                Consumer Inflation Expectation              May          +4.2%                 +4.4%

01:45    China                    HSBC Manufacturing PMI (Preliminary)    May           48.1      48.4       49.7

03:00    New Zealand         Expected Annual Inflation 2y from now  Quarter I +2.3%                 +2.4%

06:58    France                  Manufacturing PMI (Preliminary)              May           51.2      51.1       49.3

06:58    France                  Services PMI (Preliminary)                       May           50.4      50.3       49.2

07:28    Germany               Manufacturing PMI (Preliminary)             May           54.1      54.0       52.9

07:28    Germany               Services PMI (Preliminary)                      May           54.7      54.8       56.4

07:58    Eurozone              Manufacturing PMI (Preliminary)              May           53.4      53.2       52.5

07:58    Eurozone              Services PMI (Preliminary)                       May           53.1      53.0       53.5

08:30    United Kingdom     Business Investment, q/q                      Quarter I   +2.4%  +2.3%   +2.7%

08:30    United Kingdom     Business Investment, y/y                      Quarter I   +8.7%                +8.7%

08:30    United Kingdom     PSNB, bln                                              April          4.9         3.6        9.63

08:30    United Kingdom     GDP, q/q                                               Quarter I   +0.8%  +0.8%   +0.8%

08:30    United Kingdom     GDP, y/y                                               Quarter I   +3.1%  +3.1%   +3.1%

09:00    Eurozone               European Parliamentary Elections                                                       

10:00    United Kingdom     CBI industrial order books balance           May             -1           4             -1

The U.S. dollar traded higher against the most major currencies amid the release of the U.S. economic data. The initial jobless claims in the U.S. should increase to 312,000, from 297,000 in the previous week. U.S. flash manufacturing purchasing managers' index should increase to 55.6 in May, from 55.4 in April. The existing home sales in the U.S. should rise to 4.71 million units in April, from 4.59 million units in March.

The euro traded mixed against the U.S. dollar after the release of the economic data in the Eurozone. Eurozone’s flash manufacturing purchasing managers' index fell to 52.5 in May, from 53.4 in April. That was the slowest growth in six months. Analysts had expected a decrease to 53.2.

Eurozone’s flash services purchasing managers' index climbed to 53.5 in May, from 53.1 in April. That was the fastest pace in almost three years. Analysts had forecasted a decrease to 53.0.

France's flash manufacturing purchasing managers' index decreased to 49.3 in May, from 51.2 in April. Analysts had expected a decline to 51.1.

France's flash services purchasing managers' index decreased to 49.2 in May, from 50.4 in April. Analysts had forecasted a fall to 50.3.

Germany's manufacturing purchasing managers' index I slid to 52.9 in May, from 54.1 in April. Analysts had expected a decline to 54.0.

Germany's services purchasing managers' index gained to 56.4 in May, from 54.7 in April. Analysts had forecasted a rise to 54.8.

The British pound declined against the U.S. dollar after the U.K. gross domestic product. U.K. gross domestic product increased 0.8% in the first quarter (Q4 2013: +0.8%). Analysts had expected this figure.

On a yearly basis, U.K. gross domestic product climbed 3.1% in the first quarter (Q4 2013: +3.1%). Analysts had expected this growth.

U.K. business investment rose by 2.7% in the first quarter, from a 2.4% gain in the previous quarter. That was the highest pace since the first quarter of 2013.

On a yearly basis, U.K. business investment climbed 8.7% in the first quarter, unchanged from the previous quarter figure.

The Confederation of British Industry released the British factory orders. The Confederation of British Industry's (CBI) total order book balance was 0 in May, up from -1 in April. Analysts had expected +4.

The Canadian dollar traded little changed against the U.S. dollar ahead of the release of the Canadian retail sales. The retail sales in Canada should increase 0.2% in March, from a 0.5% rise in February. The Canadian retail sales excluding autos should climb 0.5% in March, from a 0.6% increase in February.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair declined to $1.6861

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30    Canada               Retail Sales, m/m                           March   +0.5%  +0.2% 

12:30    Canada               Retail Sales ex Autos, m/m             March   +0.6%  +0.5% 

12:30    U.S.                    Initial Jobless Claims                        May       297        312       

13:43    U.S.                    Manufacturing PMI (Preliminary)     May       55.4      55.6     

14:00    U.S.                    Existing Home Sales                    April      4.59      4.71
12:00
Orders

EUR/USD

Offers $1.3770/80, $1.3750, $1.3730/35, $1.3695/700

Bids $1.3600, $1.3550


GBP/USD

Offers $1.7000, $1.6950, $1.6925/35

Bids  $1.6855-45, $1.6831


AUD/USD

Offers $0.9400, $0.9375/80, $0.9345/50, $0.9300, $0.9280

Bids $0.9220,  $0.9150


EUR/JPY

Offers Y140.00, Y139.75/80, Y139.50, Y139.20

Bids Y138.50, Y138.00, Y137.50


USD/JPY

Offers Y102.70/80, Y102.50, Y102.00, Y101.80

Bids  Y101.05/00, Y100.80, Y100.50


EUR/GBP

Offers  stg0.8215-25, stg0.8195/205, stg0.8160/65, stg0.8120-30

Bids  stg0.8050, stg0.8035/30, stg0.8005/000


11:05
European stock markets mid session: most stocks increased due to the positive Chinese manufacturing data, easing concerns about the slowdown of China’s economy

The stock indices stocks increased due to the positive Chinese manufacturing data, easing concerns about the slowdown of China’s economy. China’s HSBC manufacturing index (preliminary) climbed to 49.7 in May, up from 48.1 in April. Analysts had expected an increase to 48.4.

Eurozone’s flash manufacturing purchasing managers' index fell to 52.5 in May, from 53.4 in April. That was the slowest growth in six months. Analysts had expected a decrease to 53.2.

Eurozone’s flash services purchasing managers' index climbed to 53.5 in May, from 53.1 in April. That was the fastest pace in almost three years. Analysts had forecasted a decrease to 53.0.

France's flash manufacturing purchasing managers' index decreased to 49.3 in May, from 51.2 in April. Analysts had expected a decline to 51.1.

France's flash services purchasing managers' index decreased to 49.2 in May, from 50.4 in April. Analysts had forecasted a fall to 50.3.

Germany's manufacturing purchasing managers' index I slid to 52.9 in May, from 54.1 in April. Analysts had expected a decline to 54.0.

Germany's services purchasing managers' index gained to 56.4 in May, from 54.7 in April. Analysts had forecasted a rise to 54.8.

Raiffeisen Bank International AG shares rose 5.3% after reporting the better-than-expected earnings in the first quarter.

Royal Mail Plc shares dropped 6.4% after the company released that the full-year profit missed analysts’ forecast.

Logitech International SA declined 5.7% after reporting its annual report will be released later because of an accounting investigation.

Current figures:

Name                                   Price                                    Change                 Change %

FTSE 100                              6,826.46                             +5.42                      +0.08%

DAX                                      9,710.74                            +12.87                      +0.13%

CAC 40                                 4,461.27                               -7.76                      -0.17%

10:00
United Kingdom: CBI industrial order books balance, May -1 (forecast 4)
09:59
U.K. gross domestic product grows as expected

The Office for National Statistics released the U.K. gross domestic product (GDP) figures. U.K. gross domestic product increased 0.8% in the first quarter (Q4 2013: +0.8%). Analysts had expected this figure.

On a yearly basis, U.K. gross domestic product climbed 3.1% in the first quarter (Q4 2013: +3.1%). Analysts had expected this growth.

U.K. business investment rose by 2.7% in the first quarter, from a 2.4% gain in the previous quarter. That was the highest pace since the first quarter of 2013.

On a yearly basis, U.K. business investment climbed 8.7% in the first quarter, unchanged from the previous quarter figure.

U.K. public sector net borrowing excluding one-off payments related to Royal Mail's pension plan and cash transfers from the Bank of England was £11.5 billion in April. The amount increased nearly 2% from April last year.
09:26
Option expiries for today's 1400GMT cut

EUR/USD $1.3625, $1.3650, $1.3700, $1.3715

USD/JPY Y101.00, Y101.25, Y101.40

GBP/USD $1.6850, $1.7000

EUR/GBP stg0.8050, stg0.8100

AUD/USD $0.9200, $0.9225, $0.9260

USD/CAD C$1.0900

09:25
Asian Stocks close: most stocks climbed due to the positive Chinese manufacturing data

Most Asian stock indices climbed due to the positive Chinese manufacturing data. China’s HSBC manufacturing index (preliminary) climbed to 49.7 in May, up from 48.1 in April. Analysts had expected an increase to 48.4.

The Asian stock markets followed the U.S. markets, which ended higher after the release of Federal Reserve's meeting minutes on Wednesday. The Fed sees the slow improvement in the economy and doesn’t see inflation pressure. It means that the U.S. central bank could left interest rates unchanged at record lows for some time after its asset purchase program ends.

Indexes on the close:

Nikkei 225                      14,337.79              +295.62        +2.11%

Hang Seng                     22,953.76              +117.24        +0.51%

Shanghai Composite        2,021.29                   -3.67         -0.18%

09:00
Foreign exchange market. Asian session: the Australian and New Zealand dollar traded higher against the U.S. dollar due to the better-than-expected Chinese manufacturing data

Economic calendar (GMT0):

01:00    Australia                Consumer Inflation Expectation              May          +4.2%                 +4.4%

01:45    China                    HSBC Manufacturing PMI (Preliminary)    May           48.1      48.4       49.7

03:00    New Zealand         Expected Annual Inflation 2y from now  Quarter I +2.3%                 +2.4%

06:58    France                  Manufacturing PMI (Preliminary)              May           51.2      51.1       49.3

06:58    France                  Services PMI (Preliminary)                       May           50.4      50.3       49.2

07:28    Germany               Manufacturing PMI (Preliminary)             May           54.1      54.0       52.9

07:28    Germany               Services PMI (Preliminary)                      May           54.7      54.8       56.4

07:58    Eurozone              Manufacturing PMI (Preliminary)              May           53.4      53.2       52.5

07:58    Eurozone              Services PMI (Preliminary)                       May           53.1      53.0       53.5

08:30    United Kingdom     Business Investment, q/q                      Quarter I   +2.4%  +2.3%   +2.7%

08:30    United Kingdom     Business Investment, y/y                      Quarter I   +8.7%                +8.7%

08:30    United Kingdom     PSNB, bln                                              April          4.9         3.6        9.63

08:30    United Kingdom     GDP, q/q                                               Quarter I   +0.8%  +0.8%   +0.8%

08:30    United Kingdom     GDP, y/y                                               Quarter I   +3.1%  +3.1%   +3.1%

The U.S. dollar declined against the most major currencies after the release of Federal Reserve's meeting minutes on Wednesday. The Fed see the slow improvement in the economy and doesn’t see inflation pressure. It means that the U.S. central bank could left interest rates unchanged at record lows for some time after its asset purchase program ends.

The New Zealand dollar traded higher against the U.S. dollar. The Reserve Bank of New Zealand reported its annual inflation expectations increased to 2.4% in the first quarter, from 2.3% in the previous quarter.

The kiwi was also supported by the better-than-expected Chinese economic data. China’s HSBC manufacturing index (preliminary) climbed to 49.7 in May, up from 48.1 in April. Analysts had expected an increase to 48.4.

The Australian dollar increased against the U.S. dollar after the release of inflation expectations in Australia and Chinese manufacturing data. The inflation expectation for the next 12 months rose to 4.4% in April, from 4.2% in March. March’s figure was revised up from +2.4%.

The Japanese yen declined against the U.S. dollar after the after the release of the better-than-expected Chinese manufacturing data. The decreasing demand for safe-haven currency had a negative impact on the yen. No economic data was published in Japan.

EUR/USD: the currency pair declined to $1.3670

GBP/USD: the currency pair decreased to $1.6885

USD/JPY: the currency pair climbed to Y101.70

The most important news that are expected (GMT0):

09:00    Eurozone            European Parliamentary Elections                                                       

10:00    United Kingdom  CBI industrial order books balance  May       -1           4            

12:30    Canada               Retail Sales, m/m                           March   +0.5%  +0.2%  

12:30    Canada               Retail Sales ex Autos, m/m             March   +0.6%  +0.5%  

12:30    U.S.                    Initial Jobless Claims                        May       297        312        

13:43    U.S.                    Manufacturing PMI (Preliminary)     May       55.4      55.6      

14:00    U.S.                    Existing Home Sales                       April      4.59      4.71

08:33
United Kingdom: Business Investment, y/y, Quarter I +8.7%
08:32
United Kingdom: Business Investment, q/q, Quarter I +2.7% (forecast +2.3%)
08:31
United Kingdom: PSNB, bln, April 9.63 (forecast 3.6)
08:30
United Kingdom: GDP, q/q, Quarter I +0.8% (forecast +0.8%)
08:30
United Kingdom: GDP, y/y, Quarter I +3.1% (forecast +3.1%)
08:00
Eurozone: Manufacturing PMI, May 52.5 (forecast 53.2)
08:00
Eurozone: Services PMI, May 53.5 (forecast 53.0)
07:40
FTSE 100 6,841.95 +20.91 +0.31%, CAC 40 4,469.31 +0.28 +0.01%, Xetra DAX 9,718.23 +20.36 +0.21%
07:31
Germany: Services PMI, May 56.4 (forecast 54.8)
07:30
Germany: Manufacturing PMI, May 52.9 (forecast 54.0)
07:00
France: Manufacturing PMI, May 49.3 (forecast 51.1)
07:00
France: Services PMI, May 49.2 (forecast 50.3)
05:42
European bourses are initially seen trading higher Thursday: the FTSE and DAX are seen higher by 0.4%, with the CAC up 0.3%
05:32
Options levels on thursday, May 22, 2014:

EUR / USD

Resistance levels (open interest**, contracts)

$1.3794 (2550)

$1.3764 (3694)

$1.3723 (517)

Price at time of writing this review: $ 1.3672

Support levels (open interest**, contracts):

$1.3634 (2917)

$1.3614 (6641)

$1.3587 (2950)

Comments:

- Overall open interest on the CALL options with the expiration date June, 6 is 54071 contracts, with the maximum number of contracts with strike price $1,3850 (5148);

- Overall open interest on the PUT optionswith the expiration date June, 6 is 70251 contracts, with the maximum number of contractswith strike price $1,3700 (6641);

- The ratio of PUT/CALL was 1.29 versus 1.47 from the previous trading day according to data from May, 21

GBP/USD

Resistance levels (open interest**, contracts)

$1.7200 (1750)

$1.7101 (1855)

$1.7003 (2745)

Price at time of writing this review: $1.6890

Support levels (open interest**, contracts):

$1.6797 (1565)

$1.6699 (2499)

$1.6599 (1555)

Comments:

- Overall open interest on the CALL options with the expiration date June, 6 is 23079 contracts, with the maximum number of contracts with strike price $1,7000 (2745);

- Overall open interest on the PUT optionswith the expiration date June, 6 is 24225 contracts, with the maximum number of contracts with strike price $1,6700 (2499);

- The ratio of PUT/CALL was 1.05 versus 0.97 from the previous trading day according to data from May, 21

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

03:01
New Zealand: Expected Annual Inflation 2y from now, Quarter II +2.4%
01:47
China: HSBC Manufacturing PMI, May 49.7 (forecast 48.4)
01:02
Australia: Consumer Inflation Expectation, May +4.4%

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