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[IFX Gertrude]

Wall Street Recovers as Investors Brush off North Korea Tensions



U.S. stocks recovered on Tuesday following North Korea's launch of a ballistic missile over Japan which jolted global markets.

The missile was the first Pyongyang has fired over Japan's main island since 2009 and the latest in a series of direct provocations that have briefly added pressure on financial markets in recent weeks.

The Dow Jones industrial average pared earlier losses to close 0.26 percent higher to 21,865.37, as United Technologies and Boeing contributed the most gains. The 30-stock index dropped as much as 134.82 points earlier in the session.

The S&P 500 was in positive territory in afternoon trade, finishing the session 0.1 percent higher at 2,446.30, with industrials leading four sectors higher. The Nasdaq composite also trimmed losses to end 0.3 percent higher at 6,301.89 after Apple notched a record peak.

United Technologies rose 2.9 percent to $118.70 after The Wall Street Journal reported that the aircraft-equipment maker was near a deal to buy Rockwell Collins for over $20 billion.

Tech firms within the S&P 500 added 0.4 percent, led by Micron Technology, which climbed 1.3 percent, while Akamai Technologies advanced 1.3 percent.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, briefly increased over 20 percent before holding nearly 4 percent higher.

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[IFX Gertrude]

Japan Industrial Production Slides 0.8% In July



Industrial output in Japan fell a seasonally adjusted 0.8 percent on month in July, the Ministry of Economy, Trade and Industry said on Thursday.

That missed forecasts for a decline of 0.3 percent following the 2.2 percent spike in June.

On a yearly basis, industrial production climbed 4.7 percent - again missing forecasts for 5.2 percent and down from 5.5 percent in the previous month.

Upon the release of the data, the METI maintained its assessment of industrial production saying was that it shows signs of picking up.

Industries that were down in July included business oriented machinery, electrical machinery and chemicals - while electronic parts, ceramics and petroleum products were up.

Shipments were down 0.7 percent on month and up 4.1 percent on year.

Industries that were down included business oriented machinery, electrical machinery and iron and steel - while electronic parts, petroleum products and transport equipment were up.

Inventories were down 1.2 percent on month and 2.4 percent on year.

Industries that saw decreased production included transport equipment, petroleum products and electrical machinery.

Industries that were up included non-ferrous metals, chemicals and electronic parts.

According to the survey of production forecast, industrial output is expected to rise 6.0 percent in August and fall 3.1 percent in September.

Industries that are expected to contribute to the increase in August include business oriented machinery, transport equipment and electrical machinery.

Industries expected to contribute to the decline in September include business oriented machinery, communications equipment and electronic parts.

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[IFX Gertrude]

Wall Street Advanced as S&P 500 Hits 4-Day Winning Streak



U.S. stocks climbed on Wednesday following stronger-than-expected U.S. economic growth which counterbalanced concerns on heightened tensions between the United States and North Korea as well as uncertainty in the wake of Hurricane Harvey.

The Dow Jones industrial average rose 0.12 percent to 21,892.43, as Goldman Sachs contributed the most gains to the index.

The S&P 500 rose 0.46 percent to end at 2,457.59, with information technology leading eight sectors higher. The S&P also marked a four-day winning streak, its longest since late May.

The tech-heavy Nasdaq composite advanced 1.05 percent to 6,368.31, leading other major U.S. indexes, and touched a three-day winning streak.

Netflix lifted the Nasdaq higher as it climbed over three percent after Bernstein analysts said that Disney pulling its content from the platform will not impede the stock performance of Netflix.

Apple also contributed to the Nasdaq's gains, gaining 0.2 percent to notch a record peak earlier in the session.

Other major stocks in the tech sector also advanced, including Facebook and Google-parent Alphabet. The sector is by far the best-performing sector in 2017, gaining over 20 percent.

Among shares in corporate news, Tax preparation service provider H&R Block dropped 8.3 percent to $26.81 after it posted a larger-than-expected loss. Chipmaker Analog Devices rose 5.2 percent at $83.72 after its quarterly earnings and forecast surpassed expectations.

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[IFX Gertrude]

S&P Maintains Sweden's Sovereign Ratings



Standard & Poor's maintained the sovereign ratings of Sweden at 'AAA' with 'stable' outlook and upgraded Lithuania's rating outlook to positive.

The agency said Sweden benefits from high institutional effectiveness, substantial fiscal buffers, and ample monetary policy flexibility.

The stable outlook reflects the assessment that over the next two years, Sweden's key fiscal, external, economic, and monetary metrics will remain among the strongest of the 131 sovereigns rated by S&P. Despite political fragmentation, S&P expects the Swedish government to maintain fiscal discipline and to pay down public debt. The transparent institutional setting and robust economic fundamentals cushion uncertainties from prospects of snap elections or re-formation of government, the agency said.

According to S&P, Sweden's booming economy is set to motor on at a strong pace through 2017-2018, while high household debt continues to loom as a key risk.

As growth in house prices has exceeded that of disposable income and inflation, a house price correction could lead to a marked reduction in consumption, hampering the Sweden's economic performance and burdening the financial sector, S&P said.

In a separate communique, S&P said the outlook on Lithuania's rating was revised to positive from stable on expectations that Lithuania's economy will post strong balanced growth over the medium term.

The 'A-' ratings on Lithuania reflect the country's economic prospects over the next two years, although it has one of the lowest GDP per capita ratios in the Eurozone.

S&P expects Lithuania's open economy to perform well, fueled by firming exports, rising consumption and strong investment activity, supported by new EU financing cycle.

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[IFX Gertrude]

Stock Futures Drop on North Korea Tensions



U.S. equity index futures fell at the open on Sunday, with stock traders being cautious after news that North Korea had raised diplomatic tensions by conducting what it claimed was a test of a hydrogen bomb for a long-range missile.

On Sunday, Pyongyang conducted its sixth and most powerful nuclear test, in what appears to be a tense escalation of North Korea's stand-off with the United States and its allies.

S&P 500 e-mini futures dropped 0.36 percent as electronic trading resumed on Sunday evening. The decline revealed that traders are cautious but not completely threatened by news on North Korea. Volumes were higher than average, as 30,2000 contracts changed hands.

The 10-year Treasury futures were 0.16 percent higher on the day.

“Traders have been burned by overreacting to the news out of North Korea multiple times over the last month – most recently after missiles were shot over Japanese territory,” according to Nicholas Young, a partner at Conventus Capital LLC in New York. “Unless we get a real response from the U.S., the market seems desensitized to these items.”

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[IFX Gertrude]

Australia Current Account Deficit Balloons To A$9.562 Billion



Australia had a current account deficit of A$9.562 billion in the second quarter of 2017, the Australian Bureau of Statistics said on Tuesday.

That missed forecasts for a shortfall of A$7.5 billion following the downwardly revised A$4.754 billion deficit in the first quarter (originally -A$3.1 billion).

Net exports of GDP came in at 0.3, topping expectations for a flat reading following the 0.7 decline in the three months prior.

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[IFX Gertrude]

European Shares Drop on Jitters over North Korea Nuclear Test



News of North Korea's recent nuclear test pulled down European shares but failed to cause a huge selloff as investors appear to be used to geopolitical tensions.

The pan-European STOXX 600 index and euro zone blue chips were both down 0.5 percent and all major bourses, from the UK's FTSE to France's CAC 40 posted losses from 0.3 to 0.8 percent.

Uncertainty over the response to the recent North Korean test unnerved investors, leading to a jump in stock market volatility. Europe's volatility index rose 1.5 points.

No sector in Europe closed in positive territory, stocks in the financial services industry had the worst day, slipping one percent.

Advances in safe-haven assets, including gold, sent miners Randgold and Fresnillo higher by two and 2.9 percent respectively, while Polymetal acquired support from a JPMorgan upgrade to “neutral” from “underweight”.

Technology stocks were one of the worst performers, closing 0.9 percent lower as a sector overall. Shares of Gemalto plunged to the bottom off the benchmark as Deutsche Bank, Kepler Cheuvreux, and Invest Securities trimmed their target price for the Dutch digital security company. Its shares closed ten percent lower.

Pharma heavyweight Novartis dropped one percent as the group said its chief executive, Joseph Jimenez, would retire in 2018, and chief drug developer Vasant Narasimhan, 41, would run the company from February.

UK specialty chemicals company Victrex rose 8.6 percent, notching a record peak after reducing its full-year tax guidance and saying Jakob Sigurdsson was joining the company as CEO-designate. Its shares were the highest advancers on the STOXX.

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[IFX Gertrude]

Singapore PMI Climbs To 53.2 In August - Nikkei



Singapore's private sector continued to expand in August, and at a faster rate, the latest survey from Nikkei revealed on Wednesday with a PMI score of 53.2.

That's up from 51.3 in July, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, there were faster rises in both output and total new orders, although lower employment persisted.

Firms cut prices despite rising cost inflation.

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[IFX Gertrude]

European Shares Close Lower, Pressured by Financials and N. Korea Tensions



European shares edged lower on Tuesday, pulled down by declines in the heavyweight financial sector as jitters on North Korea remained and caution increased ahead of the European Central Bank policy meeting later this week.

The pan-European STOXX 600 slipped 0.1 percent while euro zone blue chips fell 0.3 percent. In major bourses, Germany's DAX rose 0.18 percent, the U.K.'s FTSE 100 dropped 0.52 percent while France's CAC fell 0.34 percent.

Banks reported the largest sector loss, with several Spanish and Italian lenders near the bottom of the sector's benchmark. Euro zone banks were an outstanding decliner, falling 1.6 percent to their lowest level in nearly 10 weeks, with the sector back in focus ahead of the ECB meeting.

Shares in Banco Santander, BNP Paribas, UniCredit and Deutsche Bank all down between 1.7 and 1.9 percent. This comes despite an upgrade from UBS strategists of European lenders to overweight from neutral. They claim that the recent firming in the euro have made them more cautious on U.S.-exposed stocks but more upbeat on domestically exposed firms.

Energy stocks were among the top-gaining sectors, higher by 0.56 percent with oil prices rebounding.

Health stocks also gained, led by Germany's Merck KGAA, climbing 2.4 percent, which announced it was weighing on selling its consumer health business.

French telecom company Orange and U.K. consumer goods firm Reckitt Benckiser finished near the bottom of the STOXX 600, lower by two percent and 2.7 percent respectively.

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[IFX Gertrude]

COLOMBIA: Colcap Rises 0.15%, Boosted Again By Bancolombia Performance



Colcap, the main index of the Colombian Stock Exchange, rose 0.15% Wednesday, closing at 1,507.42 points, driven by oil prices abroad and Bancolombia's shares.

Felipe Espitia, an analyst at Alianza Valores, said Bancolombia's shares rallied after yesterday's profit-taking to resume the bullish trend they had been showing since the end of last week, boosted by the rebalancing in the FTSE index, in which it will take part from September 15.

Meanwhile, Colombian President Juan Manuel Santos said today that the recent increase in shares traded on the local stock exchange was a result of greater confidence in the country and support of investors for the good performance and prospects of the economy.

The shares of Avianca (+2.76%), Preferencial Bancolombia (+1.55%), Bancolombia (+1.24%), Cemex (+1.22%), Canacol (+1.11%), and Ecopetrol (+0.36%) rose, while ETB (-2.17%), Sura (-1.32%), and Cemargos (-0.94%).

The locally traded U.S. dollar closed at 2,913.70 Colombian pesos, marking a 0.69% fall, due to a rebound in oil prices abroad.

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