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[IFX Gertrude]

European Economics Preview: Germany's ZEW Economic Confidence Data Due



Economic confidence from Germany and public sector finance from the UK are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Switzerland's foreign trade data for July is due. The trade surplus totaled CHF 2.8 billion in June. In the meantime, Statistics Finland releases unemployment data for July.

At 4.30 am ET, the Office for National Statistics is slated to issue UK public sector finance data. The budget deficit is forecast to narrow to GBP 1 billion in July from GBP 6.9 billion in June.

At 5.00 am ET, Germany's ZEW economic confidence survey results are due. The economic confidence index is seen at 15 in August versus 17.5 in July.

At 6.00 am ET, the Confederation of British Industry is scheduled to release Industrial Trends survey data. The order book balance is forecast to fall to 8 percent in August from 10 percent in July.

At 8.00 am ET, Hungary's central bank is set to announce the outcome of its monetary policy meeting. Economists expect the bank to hold its key rate at 0.90 percent.

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[IFX Gertrude]

Japan Manufacturing PMI Climbs To 52.8 In August - Nikkei



Economic confidence from Germany and public sector finance from the UK are due on Tuesday, headlining a light day for the European economic news.

The manufacturing sector in Japan continued to expand in August, and at a faster pace, the latest survey from Nikkei revealed on Wednesday with a Manufacturing PMI score of 52.8.

That's up from 52.1 in July, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, output, new orders, new export orders, employment, input prices and stocks of purchase all expanded at an accelerated rate.

Future expectations remained positive, although the optimism was weaker.

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[IFX Gertrude]

Bitcoin Recover after Shortly Sliding into Correction Territory



Bitcoin and Bitcoin Cash prices regained footing on Tuesday, while its peer ethereum continued to be pressured, further sliding from recent record-highs.

Bitcoin rallied by 2 percent on the day at $4,139.87 after falling to as low as $3,687 in morning trade. During session lows, the digital currency has briefly fallen into correction territory. This is defined by analysts as a 10 percent or steeper decline from a recent record level in an asset.

The cryptocurrency skidded to $3,687 earlier on the day, denoting a 16.7 percent drop from its mid-August record of closing above $4,425, according to Coindesk.com. At its current trading levels, it is 8 percent lower from its peak level.

The ethereum's ether token declined, climbing down from a recent peak, falling 0.5 percent at $322.33 on the day. It hit a record high in mid-June at around $380 per token. Industry experts tried to downplay the decline across digital currencies, as the drop is mainly seen as due to profit-taking.

The trend in bitcoin price comes as the industry found a resolution for the so-called scaling issues, enabling bigger transaction sized in the blockchain network.

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[IFX Gertrude]

BRAZIL: Ibovespa Rises On Privatizations, Auctions And TLP Approval



The Brazilian government announcement on new privatizations, concessions and auctions under the Investment Partnerships Program (PPI), in addition to the approval of the Long-Term Rate (TLP) in a Congress' joint committee, made the Ibovespa high (+0.66%), closing at 70,477.63 points. That was the highest closing level of Ibovespa, the benchmark stock index in Brazil, since January 19, 2011 (70,058 points).

In addition to announcing its intention to privatize Eletrobras, the Mint and Lotteries were included on the privatization list today. The Brazilian government is also expected to grant 14 airports, 15 port terminals, highways and to auction oil exploration areas and energy distributors.

Earlier, the market was already optimistic for the approval of the provisional measure that deals with the Long Term Rate (TLP). The measure is expected to help in reducing the country's structural interest rate and the functioning of Brazil's National Bank for Economic and Social Development (BNDES).

Among the highlights of today were the shares of miners and steelmakers, such as Vale (VALE +2.13%), Gerdau Metal?rgica (GOAU4 +7.42%) and Usiminas (USIM5 +3.85%).

Meanwhile, the locally traded U.S. dollar closed down 1.1%, at R$ 3.1440 in the sale, influenced by TLP's approval.

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[IFX Gertrude]

Wall Street Declines after Trump Threatens Government Shutdown



U.S. equities dropped on Wednesday after President Donald Trump said he is willing to let the government shutdown if Congress fails to fund a Mexico border wall.

The Dow Jones industrial average dropped 0.40 percent to 21,812.09, as Boeing and Johnson & Johnson contributed the most losses. The S&P 500 slipped 0.35 percent to 2,444.04, as consumer discretionary and industrials led losses.

The Nasdaq composite shed 0.30 percent to close at 6,278.41, with huge tech stocks like Amazon and Facebook retreating.

The CBOE Volatility index, a broadly-followed measure of market anxiety, rose 6.0 points to 12.03, its first increase in four days.

The consumer discretionary closed 0.8 percent lower, pulled down by a 3.71 percent loss in Lowe's Companies following weak results and forecast.

Home Depot fell 0.54 percent to $149.10.

Wal-Mart climbed earlier in the session after it announced a partnership with Google to offer voice shopping.

Advertising company Omnicom fell over 6.94 percent to $72.71 and Interpublic Group tumbled 6.32 percent to $72.71 after WPP trimmed its sales forecast after consumer goods giants tightened spending.

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[IFX Gertrude]

Japan Inflation Climbs 0.4% On Year In July



Overall consumer prices in Japan advanced 0.4 percent on year in July, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and unchanged from the June reading.

Core inflation, which excludes food prices, advanced an annual 0.5 percent - again unchanged and matching forecasts.

Individually, prices for fuel climbed 4.3 percent on year, while food prices gained 0.6 percent.

On a monthly basis, overall CPI and core CPI were both flat. Clothing prices fell 2.8 percent on month, and furniture prices dipped 0.4 percent.

Overall consumer prices for the Tokyo region - considered a leading indicator for the nationwide trend - climbed 0.5 percent on year in August. That exceeded expectations for 0.3 percent and was up from 0.1 percent in July.

Core CPI for Tokyo gained 0.4 percent, beating forecasts for 0.3 percent and up from 0.2 percent in the previous month.

Individually, fuel prices spiked 5.7 percent on year and medical care jumped 1.7 percent.

On a monthly basis, overall and core CPI for Tokyo both added 0.2 percent. Recreation costs climbed 2.3 percent on month and medical care gained 1.8 percent.

Also on Friday, the Bank of Japan said that producer prices were up 0.6 percent on year in July. That was beneath expectations for 0.8 percent and down from the downwardly revised 0.7 percent gain in June (originally 0.8 percent).

Individually, prices were up for leasing rental and employment, while they were down for advertising.

On a monthly basis, producer prices gained 0.3 percent after falling 0.2 percent a month earlier.

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[IFX Gertrude]

Wall Street Ends Marginally Lower in Volatile Trading Session



U.S. stock markets ended slightly lower following a session of swinging between gains and losses as investors diverted their attention on a symposium of central bankers in Jackson Hole, Wyoming.

The markets received a brief increase of energy in afternoon trade following House Speaker Paul Ryan's statement, in which he voiced his confidence in pushing through with a tax-revamp package this 2017 and lifting the debt ceiling.

The Nasdaq Composite Index edged down 7.08 points, or 0.1%, at 6,271.33. The S&P 500 fell 5.07 points, or 0.2%, to end at 2,438.97, with 10 out of the 11 primary S&P 500 sectors closing lower. Consumer staples finished lower by 1.3% and industrials were down 0.4%

Meanwhile, the Dow Jones Industrial Average settled 28.69 points, or 0.1% lower, at 21,783.40. Amazon's announcement that it would lower prices of Whole Foods' products after the merger sent down the shares of other players in the grocery sector, with shares of Wal-Mart Stores Inc. posting the biggest decline.

The switching between small gains and losses in stocks comes amid a seasonally low-volume period, making trading susceptible to swings. Stocks saw their lightest volume day of the year on Wednesday, with only 5 billion shares traded. This is significantly below the year-to-date median of 6.54 billion.

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[IFX Gertrude]

BRAZIL: Ibovespa Falls As Traders Turn Cautious Ahead Of Data



Ibovespa, the benchmark stock market index in Brazil, closed slightly down (-0.08%), at 71,017.19 points Monday, with traders turning cautious before the release of data regarding job creation in the United States and Brazil's Gross Domestic Product (GDP).

Also, a possible new criminal complaint against the Brazilian President Michel Temer kept some investors out of the game.

According to H.Commcor's chief operating officer, Ari Santos, the market players expect that any potential complaint against Temer will come out in the next few days before the attorney general Rodrigo Janot leaves office.

"Today's decline is not a profit-taking move consistent with recent highs, but marks the cautiousness of a complicated start to a week that promises many important indicators, such as the GDP of the United States and Brazil," said Pedro Galdi, an analyst at Magliano Consultora.

In the business sector, bank stocks fell, while Vale's shares rose despite the slowdown in the price of iron ore abroad. Bradesco's preferred shares lost 1.53%, Ita? Unibanco's shares fell 0.87%, and Banco do Brasil's common shares dropped 0.93%. Vale's preferred shares rose 1.56%.

Meanwhile, the locally traded U.S. dollar rose 0.25%, closing at R$ 3.1640, with investors waiting for relevant economic data. Possible news on the local political front has also collaborated to keep the currency around R$ 3.16.

For Tuesday, Santos says, the market trend depends on the possibility of a new complaint against Temer. Galdi sees chances for a slight rise, inflated by the vote favorable to the final text of the Long-Term Rate (TLP) institution in the Senate.

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[IFX Gertrude]

Wall Street Flat as Tropical Storm Crippled Texas



Shares of oil refinery firms climbed on Monday after Tropical Storm Harvey forced refineries in Houston to shut down.

The Dow Jones industrial average dropped 0.02 percent to 21,808.40, as insurance giant Travelers contributed the most to the losses. The S&P 500 fluctuated between gains and losses before ending 0.05 percent higher at 2,444.24, as health care led six sectors up. The Nasdaq composite jumped 0.28 percent to 6,283.02.

Harvey, a hurricane that was downgraded to a tropical storm, ravaged Houston and other parts of Texas over the weekend, with over 30 inches of rain falling in some parts in just 48 hours. Houston is home to several major refineries in the U.S.

Oil majors Exxon and Chevron fell 0.3 percent and 0.4 percent respectively. Valero Energy, Phillips 66 and Marathon Petroleum all finished higher.

The S&P 500 financial sector was the biggest weight on the index, with a 0.5 percent decline.

Home Depot, which climbed 1.2 percent, and other companies likely to benefit from rebuilding efforts in the region.

Insurer Travelers weighed the most on the Dow with a 2.6 percent decline to $123.23, as Allstate dropped 1.5 percent to $90.6 while investors priced in the likely impact of Harvey on the sector.

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[IFX Gertrude]

MEXICO: Country Will Seek 'Plan B' If Trump Pulls U.S. Out Of NAFTA



Threats by U.S. President Donald Trump to withdraw the United States from the North American Free Trade Agreement (NAFTA) during renegotiations are encouraging Mexico to create a "Plan B," said the Mexican Secretary of Economy, Ildefonso Guajardo Villarreal.

According to him, Mexico needs to be prepared to the possibility of the United States walking away from the NAFTA deal.

"The best thing Mexico can do is to have an alternate, clear, pragmatic, plan to tackle something that is not our goal, but that may be the result of a process that does not go ahead. We need to be prepared for a scenario in which the United States or its president leaves the NAFTA," Villarreal said in an interview with the El Economista newspaper.

According to him, Mexico must advance in its commercial diversification with South American countries, such as Brazil and Argentina, with the European Union, the Pacific Alliance, and other Asian countries.

Trump said there was little chance that the NAFTA renegotiation, currently underway between Mexico, Canada, and the U.S., would be successful. The president attributed the potential failure of the negotiations to Mexico, claiming that its Southern neighbor would be hampering a new agreement.

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